BRICS flay West over IMF reform, monetary policy

Thu Mar 29, 2012 2:03pm EDT
 

By Rajesh Kumar Singh

NEW DELHI (Reuters) - Leaders of the BRICS group of emerging market nations pressed Western powers to cede more voting rights at the IMF this year and flayed the rich world's reflationary monetary policies for putting global economic stability in jeopardy.

"This dynamic process of reform is necessary to ensure the legitimacy and effectiveness of the Fund," Brazil, Russia, India, China and South Africa said in a joint declaration after their one-day summit in New Delhi.

"We stress that the ongoing effort to increase the lending capacity of the IMF will only be successful if there is confidence that the entire membership of the institution is truly committed to implement the 2010 Reform faithfully."

Promised changes to voting rights at the IMF have yet to be ratified by the United States, adding to frustration over reform of the G7 and the U.N. Security Council, where India and Brazil have been angling for years for permanent seats.

The BRICS leaders also accused rich countries of destabilizing the world economy five years into the global financial crisis.

"It is critical for advanced economies to adopt responsible macroeconomic and financial policies, avoid creating excessive global liquidity and undertake structural reforms to lift growth that create jobs," they said in a joint declaration.

The rich world's monetary policy "brings enormous trade advantages to developed countries, and results in unfair obstacles for other countries," Brazil's President Dilma Rousseff said at the summit.

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Brazilian Trade Minister Fernando Pimentel (L-R), Russia's Economic Development Minister Elvira Nabiullina, India's Trade Minister Anand Sharma, China's Minister of Commerce Chen Deming and South African Minister of Trade and Industry Rob Davies, shake hands during a group photograph at the BRICS Summit Forum themed "BRICS Partnership for Stability, Security and Growth" in New Delhi March 28, 2012. REUTERS/Vijay Mathur