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Brics discusses creating an alternative to the IMF summit in India

(03/28/2012) .

The President Rousseff arrived on Tuesday in New Delhi, India to attend the Fourth Summit of the BRICs (group composed of Brazil, Russia, India, China and South Africa), a meeting that should be dominated by discussions about stimulate economic growth in a sustainable and balanced. Upon arriving at the Taj Palace hotel, in the Indian capital, Dilma received the traditional bindi in the center of the forehead (a small mark made with red pigment, a symbol of protection and energy), a necklace of flowers and rose petals.

Leaders of five countries in the BRIC bloc - Brazil besides the President, will attend the meeting Prime Minister Manmohan Singh and President Dmitri Medvedev of Russia, Hu Jintao of China, and Jacob Zuma, South Africa - to discuss creation of a development bank of the block, dedicated to investing in infrastructure projects and sustainable development in poor and emerging countries. The expectation is that leaders sign a declaration of intention to create the Development Bank of the BRICs, which would act as a kind of alternative to the World Bank and International Monetary Fund, but without defining the details.

"The creation of the Development Bank of the BRICs should come true in about three years. The intention is to have money to invest in their own countries in the group and other developing countries," says Fabiano MIELNICZUK, research coordinator of the BRICs Policy Center, an initiative of the Municipality of Rio de Janeiro and the PUC / RJ. "Until now, these countries were forced to submit to political conditionality, and to comply with demands made by the World Bank or the IMF in return for loans. This does not happen with the bank of the BRICs." You are still expected to sign acts in relation to a theme that has been discussed since the completion of the first Summit of the BRICs: the creation of mechanisms to facilitate trade and local currency financing of investments between the EU countries.

Rio +20 On the eve of the Rio +20, the UN Conference on Sustainable Development (which takes place in June in Rio de Janeiro), the agenda of discussions will also include BRIC issues related to the green economy (which includes the use of the environment to generate wealth without degradation) as a way to distribute income and generate social inclusion. "This involves the transfer of technology from rich countries to developing ones. In this sense, the other BRIC countries have much to learn from China, which pollute much, but invests heavily in research to move to clean technology," says MIELNICZUK. Also discussed are issues relating to peace and global security, including the situation in Syria and Iran in addition to the summit of the BRIC countries, is scheduled a financial forum, attended by presidents of central banks. There will be a business forum, which will be attended by 60 executives from Brazil. On Friday, Dilma must sign a series of bilateral agreements with India.

The term BRIC was created ten years ago by Goldman Sachs economist Jim O'Neill, who predicted at the time that Brazil, Russia, India and China (South Africa was only added to the group in 2011) would boost the economy world in the decades following. O'Neill predicted that the Brics collectively come to represent 14% of Gross Domestic Product (GDP), compared to their then 8%. In fact, despite the global financial crisis of 2008/2009, this number was exceeded, reaching 19%. According to IMF estimates, in 2012, the BRIC countries will account for 56% of world economic growth, while the G7 countries (U.S., Japan, Germany, UK, France, Italy and Canada) should be responsible for only 9% growth.

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