“The good news is that rich countries are in crisis and that emerging countries are making a huge contribution to save the economy and, consequently, save the rich countries,” Brazil’s president, Luiz Inácio Lula da Silva, told Reuters. “Wealthy countries are no longer the only ones that account for the world’s production capacity and consumption,” Lula added, saying the BRIC nations should work together to “change the political and trade geography of the world”.
On the agenda are ways to reshape the global financial system after the worst economic crisis in decades. Analysts said that any substantial agreement on major issues was unlikely at the summit. Qin Yaqing, vice president of China Foreign Affairs University in Beijing, said: “This meeting shows the growing influence and voice of the emerging world … But there are also big differences between them. So complete cooperation between them would be extremely difficult, but partial cooperation is possible, and a meeting like this will help amplify their shared voice.”
The term BRIC was coined in 2001 to describe the growing power of emerging-market economies. BRIC countries now account for 15% of the US$60.7-trillion global economy. Some economists have predicted, however, that in 20 years the four countries together could dwarf the Group of Seven (G7) and that China’s economy will overtake the United States’ in total size.
See full story