BRICS a stabiliser of global economy, says Xinhua (Commentary)

The new development bank will cover the shortcomings of the global financial system. It is a platform set up by the emerging economies to advance peace, development and cooperation.

Brazilian President Dilma Rousseff has named her finance minister and Central Bank president to represent the country on the board of governors of the BRICS New Development Bank (NDB). It is not intended to overturn the current system, but to encourage investment from developed countries and other developing countries with an open and inclusive mind. The five have contributed half the world’s economic growth in the past 10 years.

Although a number of the BRICS have had an economic downturn, or at least a period of less success, the economic base of these countries is still growing. “The Agreement outlines the terms of mutual support for member states in the framework of the Agreement on BRICS Pool of Conventional Currency Reserves”, the Russian Central Bank said in a statement.

For example, all BRICS countries object to requirements unfavorable to the growth of their emerging economies in world trade and climate change negotiations, calling for a world economic recovery led by financial reforms. Their competitive edge in market demand and natural resources remains unchanged, their process of industrialisation and urbanisation remains unchanged, and their commitment to the construction of integrated markets, multi-tiered network, connectivity by land, air and sea, and greater cultural exchanges remains unchanged.

Although the five countries are at very different stages of their development, they will still become new growth poles for the world economy.

By Tuesday, all member countries had ratified the agreement to build the bank and deposited their share of the initial capital, Xinhua news agency reported. Driven by Brics, South-South cooperation will be elevated in its level, accelerated in pace and expanded in fields.

Common interests continuously inject vitality into the BRICS cooperative mechanism. Along with the strengthening partnership and maturing cooperation mechanism, BRICS countries will play more important roles in worldwide political and economic affairs.

Under such circumstances, the BRICS leaders’ meeting in Ufa has critical significance as cooperation among them will benefit not only themselves but also the world economy. China would put in the maximum of United States dollars 41 billion, while South Africa would chip in United States dollars 5 billion. Our bilateral ties have never been as strong as today. A year ago the BRICS were nearly as large as the American GPD.

Storchak said gaining BRICS membership should not be a problem for Greece.