Samson » October 16th, 2016
16/10/2016 - 12:54
Here leaders of the five countries meet the fastest economic growth in the world in the state of Goa in southwest India annual summit at a time of growing doubts about their ability to formulate global dialogue on international politics and finance.
And facing Brazil, Russia, India, China and South Africa, or so-called "BRICS", a difficult task to assert its growing influence as a powerful group at a time working to bridge the gap on their rivals business to help grow their economies.
The group represents nearly half of the world's population and a quarter of its economy, with a $ 16.6 trillion economy.
But Brix Group is facing an economic slowdown, and at the political level, he wants each member of the other supporting his policies - Russia on Syria, and China on the South China Sea, and India in its fight against terrorism.
8th BRICS Summit enters day 2
Sun Oct 16, 2016 8:23AM
(L to R) Brazilian President Michel Temer, Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping and South African President Jacob Zuma pose for a group photo during the BRICS Summit in Goa, October 16, 2016. (Photo by AFP)
A summit of the BRICS group of countries has entered its second day in India, with leaders reviewing international politics and economy.
The 8th BRICS Summit resumed on Sunday with meetings and a closed-door dinner attended by leaders of Brazil, Russia, India, China and South Africa in the beach town of Benaulim in the state of Goa.
Indian Foreign Ministry spokesman Vikas Swarup told reporters on Saturday that leaders would discuss ways to “increase intra-BRICS trade and cooperation.”
BRICS was formed in 2011 with the aim of using the members’ collective growing economic and political influence to enhance each member state.
The nations, with a joint estimated GDP of 16 trillion dollars, set up their own bank in parallel to the Washington-based International Monetary Fund (IMF) and World Bank and hold summits rivaling the G-7 forum.
But the five BRICS countries, which together account for more than half of the world’s 7.4 billion population, have been hit hard by falling global demand and lower commodity prices.
Russia and Brazil have fallen into recession recently. South Africa only just managed to avoid the same fate last month, while China’s economy has lost momentum as well.
India, however, is now the world’s fastest-growing major economy in an otherwise gloomy environment, and its GDP is expected to grow 7.6 percent in 2016-17.
In this handout photograph received on October 15, 2016, Russian President Vladimir Putin (1st-L) attends a meeting with Chinese President Xi Jinping (1st-R) at the 8th BRICS Summit in Goa. (Via AFP)
Meanwhile, the event witnessed a flurry of bilateral meetings between leaders on Saturday.
The Russian president met one on one with the leaders of China, India and South Africa to reportedly garner support for the war on terrorism in Syria.
India was said to be seeking the group’s cooperation on enhancing trade as well as climate change, while also seeking discussion on regional security, including the recent flare-up of tensions with archrival Pakistan.
Taking place at the same time in Goa is a meeting of heads of a seven-nation grouping called BIMSTEC.
Myanmar’s Aung Sang Suu Kyi, Bangladesh’s Prime Minister Sheikh Hasina, and the leaders of Sri Lanka, Bhutan and Nepal are set to hold talks focused on trade. Thailand’s prime minister is not attending due to the death of the country’s king.
Global economy in precarious state, Xi Jinping tells BRICS summit
China’s President Xi Jinping says the club of emerging powers had been undermined by both domestic and international woes
Benaulim: China’s President Xi Jinping warned Sunday that the global economy remained in a precarious condition as leaders of the BRICS group of nations tried to find ways to fire up growth in the troubled bloc.
Speaking at a summit in the Indian state of Goa, Xi told his host Narendra Modi and the leaders of Russia, Brazil and South Africa that the club of emerging powers had been undermined by both domestic and international woes.
But the leader of the world’s second largest economy said the long-term forecast for BRICS members was positive as he called for more confidence-building measures.
“The global economy is still going through a treacherous recovery,” Xi said in a statement at the summit on India’s west coast.
“Because of the impact of both internal and external factors, BRICS countries have somewhat slowed down in economic growth and have faced a number of new challenges in development.”
BRICS was formed in 2011 with the aim of using members’ growing economic and political influence to challenge Western hegemony.
The nations, with a joint estimated GDP of $16 trillion, set up their own bank in parallel to the Washington-based International Monetary Fund and World Bank and hold summits rivalling the G7 forum.
But the countries, accounting for 53% of world population, have been hit by falling global demand and lower commodity prices, while several have also been mired in corruption scandals.
Russia and Brazil have fallen into recession recently, South Africa only just managed to avoid the same fate last month and China’s economy has slowed sharply.
India by contrast is now the world’s fastest-growing major economy in an otherwise gloomy environment.
Modi said it was vital that the BRICS nations found ways of increasing their levels of cooperation. He called for the dismantling of trade barriers, promotion of skills and infrastructure development.
“Promoting economic and commercial engagement has been a foundational impulse in creation of BRICS,” he said.
Modi, who came to power two years ago, said his government’s policy of opening up the Indian economy had achieved results and offered valuable lessons.
“In India, we have undertaken substantial reforms in the last two years to streamline and simplify governance, especially doing business in India,” said the Indian prime minister.
“The results are clearly visible. We have moved up in almost all global indices that measure such performances.
“We have transformed India into one of the most open economies in the world today.”
Xi said there was no reason why the bloc’s members should not flourish as he called on a group made of business leaders from BRICS nations “to take concrete actions to boost confidence”.
“The potential and strength of BRICS countries in terms of resources, market and labour forces have remained unchanged,” he said.
“The long term... of BRICS development is still positive.”
Modi has also been using the summit to attempt to isolate India’s arch-rival Pakistan following a surge in tensions between the nuclear-armed neighbours.
In a meeting with his fellow leaders, Modi urged them to take a strong united stand against the “mothership of terrorism” in the South Asian region, in a thinly veiled reference to Pakistan.
Modi said a country in India’s neighbourhood held links to “terror modules” around the world, which BRICS should strongly condemn.
“In our region, terrorism poses a grave threat to peace, security and development.”
“Tragically the mothership of terrorism is a country in India’s neighbourhood,” Modi said without naming Pakistan.
Modi wants to isolate Pakistan internationally following fury at home over recent attacks blamed on Pakistan-based groups that have left some 25 Indian soldiers dead.
Analysts however are sceptical of India’s chances of securing a joint BRICS condemnation given China’s strong diplomatic support for Pakistan and Russia’s efforts to forge closer defence ties with Islamabad.
Taking place at the same time in Goa is a meeting of heads of a seven-nation grouping called BIMSTEC loosely based around the Bay of Bengal.
Myanmar’s Aung Sang Suu Kyi, Bangladesh Prime Minister Sheikh Hasina and the leaders of Sri Lanka, Bhutan and Nepal are set to hold talks also focused on trade. Thailand’s prime minister is not attending.
China backs Brics nations despite global uncertainty
Vladimir Putin, Narendra Modi, Xi Jinping 1/2 hr ago
China's Xi Jinping (R) admitted economic growth in the Brics countries had slowed
China's president has said the long-term prospects of the Brics countries - Brazil, Russia, India, China and South Africa - are still positive despite a precarious global economy.
President Xi Jinping said the Brics countries were among those currently enduring slower economic growth.
But he stressed that the potential and strength of the group was "unchanged".
It comes as leaders of the Brics countries agreed in India to forge closer business and trade ties.
The grouping contains about half of the world's population and nearly 25% of world economic output.
Speaking at the Brics summit in the Indian resort state of Goa, Mr Xi referred to the recent slowdown in economic growth amongst the group.
But he added the position of the Brics "is still positive long-term" due to their resources and workforces.
Earlier this month, the International Monetary Fund cut its forecast for world economic growth in 2016, with Brazil, South Africa and Russia receiving some of the sharpest downgrades.
The Brics economies have been hit by falling global demand and lower commodity prices, while some have faced corruption scandals.
Brazil and Russia are both in recession, and Brazil on some counts is suffering its worst downturn since the 1930s.
South Africa narrowly avoided a recession last month, while China is going through its slowest economic growth in 25 years.
Still, Lord Jim O'Neill, the economist who coined the term "Brics", told the BBC he remained confident of the grouping's success.
Ahead of the talks, he said it is "bigger today [than] even in the most optimistic scenario I thought 15 years ago, and it's primarily because of China".
At the summit, the Brics leaders agreed to set up a new credit rating agency and expand the role of emerging economies, and recognised the threat from terrorism.
In separate agreements, Mr Xi vowed to pursue closer ties with India and Russia as part of a wider Chinese push to foster global trade partnerships.
Indian Prime Minister Narendra Modi said India and China had a responsibility to join hands and turn the 21st Century into an Asian century.
Meanwhile, Mr Modi and Russian President Vladimir Putin signed multi-billion dollar energy and defence pacts on Saturday on the sidelines of the summit.