BRICS makes a case for strong quota-based and resourced IMF

BRICS nations including India today sought a strong, quota-based and adequately resourced IMF to bridge the financing gap in infrastructure development to push economic growth in developing nations.

"We reaffirm our commitment to a strong, quota based and adequately resourced International Monetary Fund (IMF). Borrowed resources by the IMF should be on a temporary basis," stated Goa Declaration on 8th BRICS Summit concluded here.

Highlighting the importance of public and private investments in infrastructure, including connectivity,to ensure sustained long-term growth, the leaders of the five nation grouping called for approaches to bridge the financing gap in infrastructure including through enhanced involvement of Multilateral Development Banks.

The leaders of Brazil, Russia, India, China and South Africa strongly committed to support the coordinated effort by the emerging economies to ensure that the new quota formula will be finalised within the agreed timelines.

This, they said will ensure that the increased voice of the dynamic emerging and developing economies reflects their relative contributions to the world economy, while protecting the voices of least developed countries (LDCs), poor countries and regions.

BRICS nations welcomed the inclusion of the RMB (Chinese currency) into the Special Drawing Rights (SDR) currency basket on October 1, 2016.

They called for the advanced European economies to meet their commitment to cede two chairs on the Executive Board of the IMF.

They said,"The reform of the IMF should strengthen the voice and representation of the poorest members of the IMF, including Sub-Saharan Africa."

Sharing the concerns regarding the challenges of sovereign debt restructuring, BRICS nations noted that timely and successful debt restructuring is key for ensuring access to international capital markets, and hence economic growth, for countries with high debt levels.

They welcomed the current discussions to improve the debt restructuring process,and on the revised collective action clauses (CACs).

"We reiterate our support for the multilateral trading system and the centrality of the WTO as the cornerstone of a rule based, open, transparent, non-discriminatory and inclusive multilateral trading system with development at the core of its agenda," the declaration said.

Noting the increasing number of bilateral, regional, and plurilateral trade agreements, they said that these should be complementary to the multilateral trading system and encourage the parties there on to align their work in consolidating the multilateral trading system under the WTO in accordance with the principles of transparency, inclusiveness, and compatibility with the WTO rules.

Emphasising the importance of implementing the decisions taken at the Bali and Nairobi Ministerial Conferences, BRICS nations stressed on thee need to advance negotiations on the remaining Doha Development Agenda (DDA) issues as a matter of priority.

"We call on all WTO members to work together to ensure a strong development oriented outcome for MC 11 (next ministerial conference) and beyond," they said.

Prime Minister Narendra Modi said at the conclusion of BRICS Summit,"We feel that it is necessary for economies to make public investments in long term infrastructure projects, coordinate macro-economic policy, drive growth, and promote world trade and manufacturing with renewed vigour."

Modi further said,"We emphasized the central role for the WTO as the cornerstone of the multilateral trade architecture. We acknowledged the need to strike a balance between economic development and environmental protection."

BRICS nations  believed that close cooperation between the sectoral cooperation mechanisms, BRICS Contact Group on Economic and Trade Issues, the BRICS Business Council, New Development Bank and the BRICS Interbank cooperation mechanism is crucial in strengthening the BRICS economic partnership.

They stressed the importance to foster an innovative, invigorated, interconnected and inclusive world economy.

BRICS leaders said,"We will enhance our consultations and coordination on the G20 agenda, especially on issues of mutual interest to the BRICS countries, and promote issues of importance for the Emerging Market and Developing Economies (EMDEs)."

They further said,"We will continue to work closely with all G20 members to.... strengthen international financial architecture, support for industrialisation in Africa and least developed countries and enhance cooperation on energy access and efficiency."

The joint declaration said,"We stress the need for enhanced international cooperation to address illicit cross- border financial flows, tax evasion and trade mis-invoicing."

The BRICS leaders said, "We are pleased to note the progress in operationalising the Africa Regional Centre (ARC) of the New Development Bank and pledge our full support in this regard.We note with appreciation the approval of the first set of loans by NDB, particularly in the renewable energy projects in BRICS countries."

They said,"We express satisfaction with NDB's issuance of the first set of green bonds in RMB. We are pleased to note that the operationalisation of BRICS Contingent Reserve Arrangements (CRA) has strengthened the global financial safety net."

They announced that in order to reach out to fellow developing and emerging economies, they will hold an Outreach Summit of BRICS Leaders with the Leaders of BIMSTEC member countries - Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation comprising of Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.

The meeting will be an opportunity to renew BRICS friendship with BIMSTEC countries as well as to jointly explore possibilities of expanding trade and commercial ties, and investment cooperation between BRICS and BIMSTEC countries,while advancing our common goals of peace, development, democracy and prosperity.