JOIN USHuge FI inflows are risk to economy, says BRICS
“Excessive volatility in commodity prices, particularly those for food and energy, poses new risks for the ongoing recovery of the world economy,” said the joint statement released after BRICS Summit said here.
The declaration also highlighted issues concerning excessive capital flows to emerging nations. “We call for more attention to the risks of massive cross-border capital flows now faced by the emerging economies”, it added.
The statement was issued after the Summit, which was attended by Indian Prime Minister Manmohan Singh, Russian President Dmitry Medvedev, Chinese President Hu Jintao, Brazil’s Dilma Rousseff and South Africa’s Jacob Zuma.
BRICS which is a grouping of Brazil, Russia, India, China and South Africa represents 3 billion people from different continents of the world and account for 18 per cent of the global GDP.
Early this week, the International Monetary Fund (IMF) too had warned that rising food and commodity prices pose a threat to poor households, adding to social and economic tensions, notably in the Middle East and North Africa.
“The international community should work together to increase production capacity, strengthen producer-consumer dialogue to balance supply and demand, and increase support to the developing countries in terms of funding and technologies”, it added.
BRICS also called for a mechanism to address the problem of inadequate reliable and timely information on demand and supply at international, regional and national levels.
“The BRICS will carry out closer cooperation on food security,” the statement added. Noting the world economy still faces “uncertainties”, the declaration, stressed that the international community needed to step up efforts to reduce distortion, further regulate financial market and promote sound banking systems.
Doha deal
Meanwhile, Opposing protectionism and seeking a rule-based multilateral trading system, India and three other fast growing economies pushed for “comprehensive and balanced” conclusion of the Doha round of trade talks that addresses the development agenda effectively. India, along with China, Brazil and South Africa, also advocated the case of Russia’s early accession to the World Trade Organisation.
“India reaffirms its commitment to a balanced and ambitious outcome to Doha round of WTO negotiations,” Prime Minister Manmohan Singh said. India will continue to engage with its partners to facilitate a “rule-based multilateral trade regime which is fair, equitable and addresses development agenda effectively”.