BRIC to engage in world’s global economic decision-making
BRIC (an acronym for Brazil, Russia, India and China) will be
involved in global economic decision-making, yet they will pose no
threat to the West, said Director of London School of Economics and
Political Science Howard Davies.
One important change agreed at the G20 summit in London is to bring
the four big emerging markets, the BRIC nations, into the main
decision-making parties for the world economy, Davies told Xinhua in a
recent interview in the northern Russian city of St. Petersburg, where
he was attending an international economic forum.
Davies said he is in favour of the change because, in his view, the
financial structures of the world need to reflect the changing focus of
economic and financial power, which “has moved eastwards in recent
years.”
The four countries, however, are in rather different positions.
Brazil and Russia are not yet very well integrated into the world
financial system, and India is beginning to be, said Davies.
China has gone further in this regard because it has a number of big
commercial banks, which have already operated internationally on quite
significant scales, Davies said.
Davies ruled out the possibility that BRIC will form a common
financial center, saying such a financial hub simply makes no sense. But
China is the one with the potential to become a big regional financial
center, he said.
BRIC will not act collectively due to their various interests and
different economic styles. China is mainly a manufacturing economy,
Russia is primarily a commodity-based economy, India is primarily a
service-based economy and Brazil is a bit of a mixture.
“They don’t have very many common interests except that they are
rapidly growing countries,” Davies said. As their economies grow, they
will find that they have more common interests with other countries in
the world than they have with each other.
“BRIC itself will not play a role.” Individually they will take part
in rebuilding the world financial architecture and play important roles
in the future, but they will not operate as a bloc, he said.
MOSCOW, Xinhua |