The fifth BRICS Summit was concluded at Durban in South Africa on Wednesday, announces the formation of BRICS Development Bank to finance infrastructure projects and to create a USD 100 billion contingency fund to tackle any financial crisis in emerging economies.
South Africa President Jacob Zuma, Chinese President Xi Jinping, Russian President Vladimir Putin and Brazilian President Dila Rouseff along with Prime Minister of India Dr. Manmohan Singh participated in the summit.
"Following the report from our finance ministers, we are satisfied that the establishment of a New Development Bank is feasible and viable. We have agreed to establish the New Development Bank. The initial contribution to the Bank should be substantial and sufficient for the Bank to be effective in financing infrastructure," the 'eThekwini' (Durban) Declaration said at the end the Summit of leaders of the five countries (Brazil, Russia, India, China and South Africa).
"In June 2012, in our meeting in Los Cabos, we tasked our Finance Ministers and Central Bank Governors to explore the construction of a financial safety net through the creation of a Contingent Reserve Arrangement (CRA) amongst BRICS countries. They have concluded that the establishment of a self-managed contingent reserve arrangement would have a positive precautionary effect, help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability," the Declaration added.
"We are grateful to our Finance Ministers and Central Bank Governors for the work undertaken on the New Development Bank and the Contingent Reserve Arrangement and direct them to negotiate and conclude the agreements which will establish them. We will review progress made in these two initiatives at our next meeting in September 2013," it said.
Addressing the plenary session of the 5th BRICS Summit here yesterday, Dr. Singh said: "As we look to the future, the progress over the past five years encourages us to set higher ambitions, seek new avenues and set new goals for our cooperation. However, our roadmap for the future should focus on consolidating and deepening our existing cooperation."
Making five suggestions for stepping up cooperation among the five developing countries, Dr Singh said, "We should also carefully prioritize existing and new areas, keeping in view our strengths, our resources and the difference we can make, both for our people and the world."
Dr. Singh said: "We should further sustain our growth by harnessing the vast opportunities for expanding trade and investment ties between ourselves. Each of us has unique sets of resources and strengths and we should exploit our complementarities for mutual benefit. We should also seek increased cooperation in manufacturing and services sectors. The measures agreed upon today will help us meet these objectives."
The second point that Dr Singh made was that the external focus of their research and development cooperation tended to be on the developed world.
Third, we should individually and collectively work to make economic development more broad-based and inclusive. This is not only a moral imperative, but a pragmatic approach to make the global economy more sustainable and enhance political and social stability in vulnerable parts of the world," he added.
Dr Singh also felt BRICS countries should work more cohesively in international forums to advance the agenda of sustained global economy recovery and promote a balanced outcome on issues such as trade, sustainable development and climate change, in a manner that protects our shared interests and those of the entire developing world.
"Finally, we should work for a reform of global institutions of political and economic governance that reflects contemporary realities and equips them more effectively to deal with emerging challenges. In particular, reform of the United Nations Security Council and the IMF are urgently needed," he added.
" The overarching Summit theme of partnership between BRICS and Africa is, therefore, very apt. The outcomes of this Summit reflect our shared commitment in this regard," he added.
With inputs from ANI
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