Saturday, June 20, 2009

BRIC- A TOUGH CHALLENGE AHEAD

The first BRIC summit held in Yekaterinburg,Russia in June promises a better economic equilibrium in the world,an idea very much consistent with the purpose of the formation of BRIC,an alliance of Brazil,Russia,China and India.So far the activities of BRIC remained within the periphery of discussions and talks.But the recent summit indicates bigger domain of activities and a greater role to play in shaping up a multi polar world.
The First BRIC summit is the manifestation of the determination of the leaders of these nations to make the world feel their presence.The main agenda of the summit was to find out the avenues to tackle the global financial crisis.They also discussed how these countries can work together in a better way to push the financial institutions for better reforms.More they had discussions over the role of other developing nations involved in the global affairs.The leader proposed a "global reserve currency" which would be more stable and predictable to withstand future financial shocks.This is being seen as a frontl attack on "Dollar dominance"of which these nations especially Russia has been critical for a long time.
The idea of BRIC was first floated by Goldman Sachs back in 2001.Their report indicated that these four nations will become the four largest economies by the middle of the present century and surpass the United States in terms of economic parameters.However the idea was embraced by the concerned nations only in last year when their foreign ministers met for the first time in the sidelines of Russia-India-China trilateral meet.
It is widely believed that given their internal differences over wide range of issues,the chances of success of these nations for forming a strong alliance against eco-political giants like US or EU do not seem to be very bright.At the most they can act as a pressure group to influence the policies of the global institutions.
However,the global financial crisis provided a golden opportunity for these nations to tighten their grip on the present state of affairs.Though these nations too suffered from the financial meltdown,it was nowhere near the economic setback of US or EU.China and India even managed to maintain growth rate over 5%.Moreover, with more than 25% of the land mass of the earth,nearly 42% of the total world population and huge markets their presence in the global economic and political scenario can not be ignored.Question remains whether such high sounding claims of unity in diversity will prove to be just paper tigers or they will really keep aside their differences for a better, common cause and throw a challenge to the rival giants for ensuring a multipolar global order.


2 comments:

  1. nice one. Gives an isight into the formation and evolution of BRIC . PLz write a similar article abt SCO and why india is tryimg to stay away from it.

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  2. Thanks Bharath.Yeah, was planning to do that as well.

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