BRICS: the answer to the challenge of global governance

BRICS: the answer to the challenge of global governanceI. "It is not ideology but pragmatism"

In BRICS lives 43 percent of the inhabitants of the planet, which makes 20-25% of global GDP in the general price 13700000000000. bucks. Gold and foreign supplies of 5 states account for 4.4 trillion. bucks. Exclusively in the 2012 fraction of foreign direct investment, attributable to the BRICS in the world was 11%.

October 17 at a meeting of the commission on military-technical cooperation of the Russian Federation and foreign states, Vladimir Putin said that the military-technical cooperation of the Russian Federation with the BRICS and Vietnam should move to a qualitatively new level:

"Given the increasing technological, industrial, scientific potential of all of these states, military-technical cooperation with these countries can and should move to a qualitatively new level."

The president was referring not only a trading partnership. It was about production cooperation, joint research and development, the development of effective systems of service and after-sales service, in the end, the total output of the BRICS countries to the markets of third countries. As a final example, the president cited cooperation between Russia and India:

"In cooperation with India, as you know, we do not limit the supply of ready-made samples of Russian weapons. More and more weight is conducting joint research and development and the creation of the license, including the supply of equipment to other third countries. "

Joint creation would lower the cost of production of products, introduce new technologies, to build up the transfer of defense technologies in the civilian sphere.

In the context of the development of relations BRICS it should be recalled, and that for 2015 is planned for the BRICS summit in Ufa. The preparation of this town 2-summits — the BRICS and SCO — will izderzhat 60 billion rubles.

Subsequent same BRICS summit, the fifth to be held in South Africa March 27, 2013. On October 29, Russian press reported that South Africa wants to offer 5 chapters of the headquarters of the Bank of the planned development of the group in their own country. The deputy minister of international relations and co-operation South Africa, Mr. Ibrahim told the ITAR-TASS:

"If the decision to develop the bank will be taken at the summit, it is natural, it will determine the seat of the favorites of 5 states. But I can say to you that we will offer this position the bank in our country. "

Creating the Development Bank of the BRICS proposed by India, would be the main theme of the upcoming fifth summit of the group in Durban. At the moment we are preparing a feasibility study of the bank, which will be presented to favorites 5 states. The main objective of the bank — boosting trade between the BRICS countries. Loans, the bank will provide a national currency.

At the fifth summit will open a discussion and offer South African President Jacob Zuma that you want to associate member countries of BRICS submarine cable communication system. South Africa has already started the procurement of equipment for the construction of a submarine cable across the Atlantic to Brazil. The project is impressive: the cable length — 9900 km.

The head of the telecommunications company «eFive» Ros Thomas said:

"The system will provide a high-speed link with the West, and later with the East, with the result that South Africa will become the central hub of this network."

South African analysts Kathryn Grant and Peter Draper («Mail and Guardian») argue in this context: South Africa deserves its own place in the 5 states, and the concept of Mr. J. O'Neill, who invented the four-letter acronym (BRIC) and are not considered, that South Africa is economically worthy of entering the "block", long out of date. Today, experts note (Draper — Senior Fellow and Kathryn Grant — head of economic programs from the South African Institute of international affairs), South Africa is a country with a rapidly growing economy, development of the middle class and the country in general — a very promising market. Not enough of South Africa is about to catch up with the advanced countries of accidents «G7», — well, or not just about, since 2040. South Africa, experts write, does not correspond to that level — well, let's also recognize that it is moving forward. As can be seen, the concept of BRIC as union of four countries "must end."

South African analysts do not believe that democratic approaches, the good from the approaches «G7», may impede the BRICS countries to realize their economic interests. Democracy, in the views of the creators of articles, is not the basis of economic diplomacy is the first violin plays a cool economic calculation. Well, she «G7» was designed to control economic conflicts in the global economy.

For the BRICS countries in particular the burning three components of collaboration.

In 1-x, they need to consider different approaches to economic development, including the balance of the capitalist forces in relation to the state. Any country can learn, that is, problems of implementation of market reforms and of the chosen values of economic development. At the same time, countries may find the directions in which they can cooperate at the international level, and to find where they will perform on the international market solos and where — in the quintet.

In-2, they should pay attention to the fundamental trade facilitation. Their proper business community and forums should use their influence to speed up trade and vkladyvatelnyh deals. With all this experts note that 5 states do not have the usual davneshnih infrastructure connections. For general discussion of the BRICS in the next summit and other meetings should focus on eliminating various trade and vkladyvatelnyh barriers that hinder the strengthening of business ties between the five countries.

B-3, States parties should continue negotiations on financial cooperation, for example, by calculations in government currencies and linking the stock exchanges (where it makes sense.)

At the same time South Africa must continue to develop its business with the rest of the African continent.

As for the "foreign agenda", the BRICS countries have committed as ever to focus on global economic governance. In other cases it is useful to merge with some of the states «G7», if it will help to promote the public interest. In other words, the benchmark should be the ideology and pragmatism.

II. "Call of global governance"

Analyst Mario Burkun believes that BRICS bloc — "one of the more influential in the world today." No wonder the summit «G20», held in Los Cabos, particularly representatives of the BRICS offered the latest strategy of global economic development, in accordance with which the Member States have restructured international monetary system.

The first step is focused on the shift of the BRICS 'global jury "associated with the major financial groups in the world. The members of the "jury", said the journalist, "was given to the role of risk asses
sors." Logically, the creator wrote that they get the greatest benefit from the exciting reports that can raise or bring down the economies of entire countries. After all, other credit-rating organizations can make personal decisions undeniably taken as absolute economic truth.

Once upon a proposal of the Speaker of the Federal Reserve — Paul Volcker, Alan Greenspan, Ben Bernanke — encouraged speculative investment, but these people have lost credibility after the 2008 crisis and the recession, which started in 2010.

Today, when the company «Standard & Poor's», «Fitch group», or «Moody's» once again associate the bond yields of any country with a certain "point of reference in a certain sphere of influence" may break out completely man-made financial tragedy. This in itself is completely impartial comparison of bond yields in crisis in Greece, Spain and Italy with a fine indicator of Germany has perfectly illustrates this point.

Because these reports are in fact based on discriminatory parameters in respect of the rules of use, protectionism or a monetary contribution of individual regions, companies and investors. Yet, they are accepted as truth.

As for the Russian Federation, recently entered the WTO, the creator of shows that it is — the 9th largest economy in the world.

"After having been satisfied with the immense requirements for membership in the WTO, economy RF was "classified" by today's rating organizations as unstable. This is because this estimate does not include the expected rise in prices for oil and gas in the medium and long term. Russia's GDP is growing, and all the signs are that this growth will be sustainable. The accumulated reserves of the country are far superior to the national debt. "

It is therefore, not to be a "participant" in a man-made catastrophe of money, BRICS countries need to form their own organizations risk assessment and use more specific aspects. Own assessment, in addition, allow

"Positively influence the psychology of individual investors by taking into account a wide range of criteria, as opposed to practiced at the time of creation of panic and compulsive behavior in respect of liquid assets with high volatility."

International organization of risk assessment BRICS, a draft of which will open a discussion on the future summit in South Africa, will be able to produce, says M. Burkun, unified world view, correctly reflecting the economic reality. Promotion of productive investment and adjustable will allow to avoid the danger of unexpected configurations expectations in the money markets, which are often sources of recessions and downturns.

In fact, it's not that different, as a challenge to global governance. Specifically thinks so Aurobindo Mahapatra, creator of the article "BRICS framework lays a just world order."

A fair and honest international order — is necessary, according to the Indian expert. In fact, until such time as other global players begin to orient the actions and work on a multi-polar world, will take a dive into chaos. But there is hope that the intractability of certain powers in this matter will soon be resolved. This is the "challenge of global governance of the XXI century". Call that completely according to Toynbee, need to be answered.

Aurobindo Mahapatra highlights in the "response" subsequent event: a meeting September 25, 2012 Ministers of Foreign Affairs of the BRICS on the sidelines of the UN General Assembly, which open a discussion on the issue of UN reform and expansion of the Security Council. Comrade Lavrov reiterated Russia's position in support of the candidacy of India, a member of the BRICS as a permanent member of the Security Council.

Getting tired of the United Nations, says the creator, is based on the international standard quality policies and proclaims the equality of all peoples. But the reality justifies the turnaround: the UN is seen as the House, where its members to express their past position —

"As if they were standing forlornly on the pedestal of the truth, or as to the dueling field, where competitors are arguing with each other."

For all this, though membership in the UN hold almost all the countries of the world, decision-making — benefit the few. It is here and is the line of divergence "between the highest standards of the organization and its majestic real work."

In the changing world of principle decentralization, including financial. Now BRICS stands for the expansion of power at the global level and called for the reform of international institutions such as the World Bank and the International cash fund. Since ancient times there is a need not only political decentralization, and economic — on global level.

Global challenges, be it climate change, religious extremism, financial crises, surpassing even the competence of any single country — could be addressed at the international level. But in the absence of agreement between the members of the UN betrothed difficulties will every day become more daunting.

III. Half against third

In order to predict the collapse of the economies of the BRICS countries in the West have even invented a special economic the term: down of growth. Lowering the yearly growth rate of GDP, say, a 1 percentage point gives the South American and European "experts" cause for joy. They shout, "Hooray! BRICS a failure! "

In those circumstances near catastrophe of 5 gentlemen critics called the next:

1. The BRICS are disconnected from the impact of Western economies.

2. All 5 of corruption corroded and therefore their political system — not legal.

3. 5 equal the middle is the one who is "more equal" others — China. And everything is unstable: judge Bo Xilai, is approaching a crucial party congress, the economy is not growing as rapidly as earlier as in Western Europe — the recession. Wages grow at Chinese factories? And that's bad — for the Chinese competitiveness.

4. In particular, as rapidly falling Brazilian growth: in 2010, it surpassed 7.5%, and this year, Brazil's economy may grow less than 2%.

5. In India — "clinical depression." The growth that exceeded 9% before the financial crisis, at this point a bit above 5%.

6. In Russia — its difficulties. Worse of all, Putin returned to the Kremlin: it immediately led to mass protests in Moscow. A shale gas revolution in the U.S.? All this is a tragedy for Russia: in fact the global price of gas will fall. In Putin's system does not have the means.

So says Gideon Rekman, columnist "Financial Times".

Meanwhile, the South American money expert Kim Hayward's own statements to be more careful — and a lot more reads on the economy, if the policy. The blog "Financial Times", he just shows that in the current time

"Two thirds of the money foreign directors are planning expansion in the BRIC countries, the U.S., England and Germany. And, when it comes to the BRICS, almost half of those surveyed cash Directors has currently investing or planning to enter these markets — compared with just 3-of 10 in 2011. "

The data were obtained on the basis of a professional survey of more than 1,000 financial directors of medium-sized companies operating in 14 markets.

Comments are unnecessary.


So Makar, like any other analysts frighten investors return Living Dead Comrade Putin to the Kremlin or mass protests, like any persuade them to turn away from the Russian Federation, India or Brazil, and turned out to MIST countries, heads of financial companies prefer not to think about the "swamp the opposition" or the sad fate of Bo Xilai, and about their advantage. And capitalist interests lead them in the BRICS countries. By the way, if you do not like any analyst's GDP growth in India is "only" 5 percent, what he would say about the alleged U.S. GDP growth by the end of this year, only two percent? "Disconnect" from the impact of Western economies — once with the increase in the impact of international institutions, including the UN — says just about the power of the BRICS, not helplessness.

Surveyed and translated Oleg Chuvakin
— Especially for

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