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Nations eye stable reserve system | |
(about 15 hours later) | |
The world's newest economic grouping has ended its first major summit by calling for a more diversified international monetary system. | |
But the leaders of Brazil, Russia, India and China stopped short of criticising the world's dominant currency, the US dollar. | |
The group also repeated calls for greater representation at major institutions, such as the World Bank. | |
The leaders of the Bric nations met in the Russian city of Yekaterinburg. | |
'Greater voice' | |
Earlier on Tuesday, Russian President Dmitry Medvedev said that reserve currencies, including the dollar, "have not managed to perform their functions." | |
But the final statement issued by the leaders made no reference to developing new reserve currencies to challenge the dollar, which Russia had called for at a separate event earlier in the day. | |
The emerging and developing economies must have a greater voice and representation in international financial institutions Bric summit statement | |
"There is a strong need for a stable, predictable and more diversified international monetary system," the final statement said. | |
The Bric nations also called for a bigger say in the global financial system. | |
"The summit must create the conditions for a fairer world order," they said in their final statement. | |
The leaders of the four countries said they were "committed to advance the reform of international financial institutions, so as to reflect changes in the world economy. | |
"The emerging and developing economies must have a greater voice and representation in international financial institutions." | |
New order | |
China is now the world's third-biggest economy, while Russia, India and Brazil are catching up with many key European economies. | |
China is now the world's third largest economy | |
The term Bric was coined by US investment bank Goldman Sachs which used it to describe the growing power of emerging market economies in 2001. | The term Bric was coined by US investment bank Goldman Sachs which used it to describe the growing power of emerging market economies in 2001. |
Its research suggested that the four developing economies could be among the world's strongest by 2050. | |
The meeting in Yekaterinburg, a city some 1,420km (880 miles) east of Moscow, will include President Dmitry Medvedev of Russia, Hu Jintao of China, Luiz Inacio Lula da Silva of Brazil and Indian Prime Minister Manmohan Singh. | |
Working together | Working together |
Analysts say that as the global recession bites, the four Bric nations are showing a growing willingness to work together. | Analysts say that as the global recession bites, the four Bric nations are showing a growing willingness to work together. |
Rory MacFarquhar, a Moscow-based economist at Goldman Sachs, said the significance of the summit would be political rather than economic. | Rory MacFarquhar, a Moscow-based economist at Goldman Sachs, said the significance of the summit would be political rather than economic. |
"There is considerable interest, you could say from all [the Bric] countries but Russia in particular, in creating an alternative" to established international organisations," he said. | |
Both Russia and China have questioned the role of the dollar in the world's economy, leading to speculation that Bric might be considering the creation of a new global reserve currency. | Both Russia and China have questioned the role of the dollar in the world's economy, leading to speculation that Bric might be considering the creation of a new global reserve currency. |
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