By Li Hongmei, Special to Sina English
Ahead of the full G-20 summit, the leaders of the BRICS group of Brazil, Russia, India, China and South Africa have met in Los Cabos, Mexico, in order to coordinate positions.
The group was formed in 2006 on the initiative of Russian President Vladimir Putin. Its original name BRIC was changed to BRICS, when South Africa joined it in 2011.
Between them, the BRICS countries account for 45% of the world’s population, 30% of the Earth’s landmass and 25% of the global economy. Over the past 10 years, their combined economic output has increased by 320%.
The BRICS are pinned great hope as emerging economies to salvage the debt-ridden eurozone, as the EU is the largest economy in the world, global recovery is dependent on a European recovery.
But this needs all the G-20 countries to unify their approach. And the BRICS should consult closely to keep track of the changing situation and enhance coordination.
At the time, economic shocks and underlying shifts of power are coercing G-20 to find cooperative solutions. Also, under such circumstances, the BRICS should develop clear lines of communication among themselves to ensure the best outcome.
Even if Barack Obama has, depart with tradition, handpicked an Asian American for the top job at the World Bank, US gesture still fails to address the real grievance of the BRICS countries; namely, the World Bank as well as the International Monetary Fund cannot represent the current global distribution of income and power and should be restructured to do so.
Back at the Cannes summit last year, European leaders hoped other countries, especially some emerging economies, would buy European Financial Stability Fund (EFSF) bonds, by injecting capital in the region's financial markets.
Xia Zhanyou, professor of Beijing-based University of International Business and Economics, said there were legitimate concerns as to offering help to the ailing but advanced economy.
"We should help at the right time in an appropriate way. Actually the crisis also presents an opportunity for the BRICS to fight for a larger say at the IMF," Prof. Xia said.
Since the financial crisis, the IMF has implemented two rounds of reform, in 2008 and 2010, to boost the emerging economies' quota shares and voting shares. Yet so far the US still holds veto rights, and the combined quota shares of the BRICS are still less than that of the US.
Some Chinese experts remain cautious on the BRICS' role in helping the EU. But it is unlikely for a responsible China to just stand by and watch.
Chinese President Hu Jintao also urged the G20 summit to pick up the all-in-the-same-boat spirit and buoy up the international community's confidence in the global economic recovery at the meet of the BRICS leadership.
The leaders of BRICS nations met here Monday and agreed to boost cooperation within the group of five major emerging economies.Full story
Chinese President Hu Jintao and leaders of other BRICS nations met in Los Cabos, Mexico on Monday ahead of the G20 summit. Full story