BRIC formalises ties; India to host next meeting in 2009 news
17 May 2008

Four of the world's largest emerging market economies - Brazil, Russia, India and China – have agreed to formalise their `BRIC' club to affirm their global economic clout.

The first formal meeting of foreign ministers of Brazil, Russia, India and China, at Yekaterinburg in Russia's Urals, decided to boost cooperation on various fronts and work on ways to ease the burden of soaring global food prices.

The BRIC countries also resolved to work together and with other countries in order to strengthen international security and stability.

"Building a more democratic international system founded on the rule of law and multilateral diplomacy is an imperative of our time," BRIC foreign ministers said in a joint communique.

The BRIC countries are ``changing the way the world order is organised'' as they seek to convert their combined economic clout into greater political influence, Brazilian foreign minister Celso Amorim said.

Indian foreign minister Pranab Mukherjee said the BRIC countries had cushioned the developed world from a bigger economic slowdown over recent years.

"They have prevented the world from facing a worsening situation. This is a different situation from the past, when there was a global slowdown," said Mukherjee. "In this area, it is clear BRIC can increasingly play a key role," he said.

Mukherjee criticised "inefficient producers" in developed countries for subsidising their farmers, which he said was stifling attempts by developing states to feed their populations, hit hardest by rising global food prices.

"The main problem with the food crisis is overproduction in developing countries," said Brazilian foreign minister Celso Amorim.

China called for increased cooperation among energy producers and consumers to reduce volatility on world oil markets.

Russia is the world's second biggest oil exporter while China is the world's second biggest oil consumer.

"Speculation in world markets has led to soaring world oil prices. The international community should step up energy efficiency and enhance dialogue between oil producers and oil consumers," Chinese foreign minister Yang Jiechi said.

The foreign ministers of Russia, China and Brazil also sought joint efforts of the world community in combating international terrorism and speedy adoption of Comprehensive Convention on International Terrorism by the United Nations.

"Don't fall into the trap of analysing and searching for root causes. Terrorism is unacceptable in any form and manifestation," Mukherjee declared at the BRIC meet.

The economy and finance ministers of the four BRIC countries will meet later this year in Brazil.

India will host the next stand-alone meetings of the foreign ministers of RIC and BRIC groupings in 2009.

The term BRIC was coined by Jim O'Neill, London-based chief global economist at Goldman Sachs Group Inc, in 2001, to describe how the four major fast-growing economies of Brazil, Russia, India and China are posing a challenge to the West's leading economies.

The four BRIC countries together made up 12 per cent of global gross domestic product in 2007, up from 8 per cent in 2000, according to the International Monetary Fund.

BRIC nations have grown 70 per cent in the last two years, versus the 42 per cent increase of emerging markets overall.


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BRIC formalises ties; India to host next meeting in 2009