If the Western world is focused on the eurozone crisis, the five leaders of the BRICS (Brazil, Russia, India, China and South Africa) they are preparing for the fourth summit which will begin on Thursday in New Delhi. The aim of the meeting is to find new ways to increase cooperation and collective measures to encourage the development of the 5 building blocks. But the issues on the agenda are many and range from the fight against terrorism to the challenges of global warming, energy and food security.
The novelty that has attracted the most attention is the idea, launched by India, to set up a Brics Bank for the development of emerging countries which would use the various national currencies as a reference for the exchange rate. A setback to the World Bank? Rather it seems a sincere desire to enter the international finance scene and take on a more important position. On the other hand, the BRICS together account for 41% of the world's population, almost 20% of the GDP and 46% of the earth's workforce. With the crisis afflicting Europe, the economic scenario is changing and the five emerging countries are eager to take the reins.
The Brazilian president, Dilma Rousseff, expressed herself in favor of the creation of the Brics Bank which, by aiming to invest in infrastructure and development in the poorest nations, has the potential to reshape the anti-poverty agenda. Yet Russian President Medveded's adviser, Arkadi Dvorkivoch, preferred to be cautious, saying that “it is not yet clear in what terms and on what basis an interstate bank can be created. Dvorkovich rather puts faith in the fact that the directors of the BRICS development banks "will sign general agreements to grant credit in national currencies, within the framework of the interbank cooperation mechanism of the member states".
But there is another thing that these 5 countries have in common lately: the incredible increase in foreign aid in public spending. In the last 10 years the trend that saw European countries among the major promoters of international donations has reversed course. Between 2005 and 2010, Brazil and India increased their foreign aid spending by more than 20%. About half the increase in the same item of the budget of China and South Africa. During the same period, the budgets of Great Britain, France and Germany grew by less than 5% per annum. The donations of the BRICS are concentrated above all in the health sector (Global Health) and are well regarded by the international community. As Dvorkovich recalled, "the development assistance mechanism for the poorest countries, especially African ones, may be an indication of the growing unity among the BRICS countries".
The summit will take place in New Delhi on March 29, follow it on the official website.
