Ensure more say for emerging economies, curb protectionism: BRIC

YEKATERINBURG: In the backdrop of the global meltdown, India, Russia, China and Brazil pitched for "greater voice and representation" of developing economies in the international financial institutions and demanded curbing of trade protectionism.

In a joint statement after the first Summit of four countries attended by Prime Minister Manmohan Singh, BRIC underlined the "strong need for a stable, predictable and more diversified international monetary system." The four fastest growing economies also pressed all countries and relevant international bodies to "act vigorously" to implement the decisions adopted at the London G-20 Summit in April, with a promise to cooperate closely to ensure further progress of collective action at the next G-20 Summit to be held in Pittsburg in September.

The Summit, where global financial crisis dominated the agenda, emphasized the need for improving the international trade and investment environment and urged the international community to keep the multilateral trading system stable, curb trade protectionism, and push for comprehensive and balanced results of the WTO's Doha Development Agenda.

"We look forward to a successful outcome of the UN Conference on the World Financial and Economic Crisis and its Impact on Development to be held in New York on June 24-26," said the Joint Statement issued by Singh, Russian President Dmitry Medvedev, Chinese President Hu Jintao and Brazilian President Lula Da Silva. The BRIC said it is committed to advance the reform of international financial institutions, so as to reflect changes in the world economy.

"The emerging and developing economies must have greater voice and representation in international financial institutions, and their heads and senior leadership should be appointed through an open, transparent and merit-based selection process," it said.

They said a reformed financial and economic architecture should be based democratic and transparent decision-making and implementation process at the international financial organizations, solid legal basis, compatibility of activities of effective national regulatory institutions and international standard-setting bodies.

The reform of the financial institutions should also entail strengthening of risk management and supervisory practices, it said.

The BRIC statement noted the important role played by international trade and foreign direct investments in the world economic recovery and asked all parties to work together to improve the international trade and investment environment. Pointing out that the poorest countries have been hit hardest by the financial crisis, the statement said the international community needs to step up efforts to provide liquidity for these countries.

"The international community should also strive to minimize the impact of the crisis on development and ensure the achievement of the Millennium Development Goals. Developed countries should fulfill their commitment of 0.7 per cent of Gross National Income for the Official Development Assistance and make further efforts in increasing assistance, debt relief, market access and technology transfer for developing countries," it said.

"We underline our support for a more democratic and just multi-polar world order based on the rule of international law, equality, mutual respect, cooperation, coordinated action and collective decision-making of all states," the BRIC nations said.

The next BRIC Summit will be held in Brazil next year.