New Delhi – BRICS Summit 2012

March 30, 2012

By Padmini Arhant

The five emerging economies Brazil, Russia, India, China and South Africa represented BRICS summit 2012 in New Delhi, India.

BRICS consolidated GDP growth and steady progress contributed to the positive trend despite turbulence in the global economy predominantly from European and United States debt crises combined with recent western imposed sanctions against Iran having ripple effects on consumers and businesses around the world.

BRICS latest plan to introduce development bank and local credit facility would be extremely productive providing opportunities for struggling economies and developing nations to borrow funds without surrendering natural resources and human capital as collateral for depletion and exploitation compromising sovereignty in the end.

The financial institutions by BRICS could address the burgeoning economic crises assisting nations with basic requirements to advanced technology promoting structural capabilities for survival and sustenance in the competitive globalized economy.

Contemporary problems confronting nations is corruption and systemic abuse of power posing major impediments in uplifting economic standards pervasively to reflect international systems effectiveness in any capacity.

Although graft might be a domestic challenge,

The detrimental impact on global business cannot be ignored with unaccounted money belonging to national treasury stashed away in overseas bank accounts exacerbating budget deficits and cash flow depriving public sector investments in improving infrastructure, health, education and broad range economic activities that could otherwise reduce dependency on internal or external funding.

Besides corruption culture in politics and economics representing operational facets in society leads to dysfunctional mode deterring foreign investors from long-term commitments affecting industrial output and employment.

BRICS development bank in this respect could ease the burden on citizens engaged in contentious battle with political authorities embedded in lucrative ventures through government contracts or private firms seeking license for various entrepreneurial projects by incorporating transparency and accountability as pre-requisite for borrowing to cultivate discipline and ethics in fiscal management.

Considering EU, IMF and World Bank severe austerity measures and unreasonable demands tied to economic rescue package is yet to bring relief except producing political instability and social unrest,

BRICS targeted programs along with repair and restoration strategy could prove highly beneficial to ailing economies emulating BRICS achievement rising from gloom to bloom status in the past decade.

The alternative reserve currency could counteract U.S. dollar and euro volatility in substitution during international trade especially for nations unable to compete due to national currency devaluation from political turmoil or unfair trade policies such as Free Trade Agreement rather than Fair Trade Deal.

Furthermore, currency float backed with gold bullions would guarantee equilibrium in variable market conditions maintaining value to volume ratio.

In other matter, UNSC resolutions against Iran and SyriaRussia and China apparently sharing similar concerns regarding western military intervention and crippling economic sanctions while respecting other BRICS partners flexibility often swayed in favor of the west.

Reiterating earlier statement – trade embargo and military strikes against Syria and Iran is counterproductive with ramifications currently experienced in many parts of Europe and world over.

India and South Africa having voted for UNSC proposal against Syria is indicative of western dominance with the two nations compliance overriding pragmatism and undermining national sovereignty.

Containing tensions in the region and terminating armed conflicts via disarmament is in common interest of all to protect citizens in Syria suffering casualties from violence thus far.

Syrian oppositions refusal to ceasefire with fragmentation within attributed to political stalemate blocking main street civilian leaders to commence dialogue for fruitful negotiations eliminating apprehensions on potential civil war.

Global security is intact with unanimous approval of peace process abstaining from bias and focused on objectivity to deliver desirable outcome – preventing loss of lives and peaceful democratic solutions to political upheaval.

Likewise lifting sanctions against Iran in the absence of any evidence of nuclear weapons program is essential for international organizations like UNSC and EU credibility and integrity at present on the decline with reasons revealed in the record – viz. Iraq and Libya.

BRICS cooperation in ratifying climate treaty to achieve 1.5°C or 350ppm would pronounce solidarity on humanitarian issues and planet sustenance.

Good Luck and Success to BRICS aspirations in all frontiers to serve humanity with viable financial center stimulating global productivity for prosperity amongst all.

Peace to all!

Thank you.

Padmini Arhant




















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