BRICS Leaders meet informally ahead of G20 Summit

The BRICS Leaders on Thursday met ahead of the formal opening of the G20 Summit here and took note of the high unemployment in some countries and the on-going challenges and vulnerabilities in the global economy, particularly in advanced economies.

According to a statement issued by the Ministry of External Affairs (MEA), the BRICS Leaders reiterated their concerns they had expressed in the Durban Summit in March, regarding the unintended negative spillovers of unconventional monetary policies of certain developed economies. They emphasized that the eventual normalization of monetary policies needs to be effectively and carefully calibrated and clearly communicated.

The leaders believed that major economies, including G20, could do more to boost global demand and market confidence.

BRICS Leaders also expressed their concern over the stalling of the International Monetary Fund reform process. They recalled the urgent need to implement the 2010 IMF Quota and Governance Reform, as well as the need to complete the next general quota review by January 2014 as agreed at the G20 Seoul Summit in order ensure the Fund's credibility, legitimacy and effectiveness.

The Leaders are looking forward to the 9th World Trade Organisation's Ministerial conference to be held in December 2013, and expect that it will be a stepping stone to the successful and balanced conclusion of the Doha Development Round.

The Leaders of Brazil, India, China and South Africa congratulated Russia for the successful Presidency of the G20 in 2013 and appreciated the emphasis by the Russian Presidency on the development agenda.

The Leaders welcomed the good progress made towards the establishment of the BRICS-led New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA).

On the NDB, progress has been made in negotiating its capital structure, membership, shareholding and governance. The Bank will have an initial subscribed capital of US 50 billion dollars from the BRICS countries.

On the CRA, consensus has been achieved on many key aspects and operational details regarding its establishment. As agreed in Durban, the CRA will have an initial size of US100 billion dollars. Country's individual commitments to the CRA will be as follows: China - US 41 billion dollars; Brazil, India, and Russia - US 18 billion dollars each; and South Africa - US 5 billion dollars.

In light of the progress achieved both in the negotiations of the NDB and CRA the BRICS leaders expect tangible results by the time of the next Summit.

The Leaders welcomed the first meeting of the BRICS Business Council held recently in Johannesburg, South Africa, and encouraged the business community to increase contacts and cooperation.

The Leaders noted t the recent developments in the world economy and emphasised the need for intra-BRICS economic cooperation.