4th BRIC summit India
4th BRIC summit India
The 2012 BRICS summit was the fourth annual BRICS summit, an international relations conference attended by the heads of state or heads of government of the five member states Brazil, Russia, India, China and South Africa. The summit was held at Taj Mahal Hotel in New Delhi, India on 29 March 2012 and began at 10:00 Indian Standard Time.This is the first time that India has hosted a BRICS summit.The theme of the summit was BRICS Partnership for Global Stability, Security and Prosperity.The main agenda for the summit was the creation of a new development bank.The idea for setting up such a bank was put forward by India, as a sign of firming the power of the group and increasing its influence in global decision making Sudhir Vyas, a senior Indian official, said that the idea for a BRICS bank had been in the air for some time.The aims of the bank would include: funding development and infrastructure projects in developing and least developed countries lending, in the long term, during global financial crises such as the Eurozone crisis and issuing convertible debt, which could be bought by the central banks of all the member states and hence act as a vessel for risk sharing.Economic experts predicted several beneficent effects of such a bank. Such a bank would allow successful implementation of regional development projects, with increased efficiency and transparency.Brazilian Trade Minister Fernando Pimentel said that the bank would be a very powerful financial tool to improve trade opportunities, and may be a major step to support the EU to overcome its financial crisis.In the Delhi Declaration at the end of the summit, the BRICS announced the setting up of the bank, described as a BRICS led South-South development bank. The finance ministers of the member states were directed to conduct feasibility studies of the initiative and to submit their reports at the next BRICS summit.Pimentel said that the proposed bank was not meant as a sign of abandonment of existing global financial institutions, but that it was a response to current economic necessities. Vyas commented that the BRICS would determine the capital structure and that the initiative would take some time to get started.Development Bank Leaders agree to explore the setting up of a BRICS led South-South Development Bank. It will promote mutual investment and fund infrastructure projects in BRICS and developing countries. Development Banks of BRICS countries sign two pacts for boosting intra BRICS trade. BRICS to set up Exchange Alliance, a joint initiative by related BRICS securities exchanges. IMF quota reforms Pitch for greater representation of developing countries and emerging economies in the IMF by speeding up quota reforms.Back a merit based selection process for the heads of the IMF and the World Bank, posts reserved customarily for a European and an American respectively. Syria: Backs a Syria led democratic transition. BRICS voices deep concern over Syria and calls for an immediate end to all violence and violations of human rights and backs a Syrian led political process.Global governance reforms BRICS leaders pitch for reform of global governance institutions, including the UN, the International Monetary Fund and the World Bank.Backs speedier resolution of the Arab-Israeli conflict and the creation of an independent Palestine co-existing with Israel.