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CHINA> National
BRIC gets increasing recognition: Researcher
By Li Xing (chinadaily.com.cn)
Updated: 2009-06-14 15:06

Swaran Singh, professor of Diplomacy and Disarmament with Jawaharlal Nehru University in New Delhi, believes BRIC countries set "new examples of great economic powers" even though these four countries are still grappling with such problems as poverty, unemployment and other economic and social challenges.

"The current global meltdown is the first time in history that the so-called great economic powers are depending on emerging economies (like BRIC) to rescue the world from the unprecedented slide," said Singh, who is also president of Association of ASIA Scholars (South Asia Chapter) in New Delhi.

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"It is important that BRIC are unique examples where economies are still growing at an impressive pace and there is absolutely no fear of recession or even major slow-down though they do have their own share of difficulties," he said in an interview with China Daily via email.

He highlighted the fact that the four countries are becoming "increasingly main players in G20 negotiations since G20 has become "the new forum providing direction to global economic decision-making".

Bretton Woods institutions – World Bank and International Monetary Fund – began to accept the validity of the new method of purchasing power parity (PPP) in 1993. By that par, China today is considered the second largest world economy.

With Russia officially joining in 1997, Group of 7 leading world industries became G8. The Heiligendamm process, an initiative that started in 2007, has enabled high level dialogue between the G8 and the five most important emerging economies, known as the Outreach Five countries composed by China, Mexico, India, Brazil and South Africa.

All this "speaks volumes for the transformation (of the world economic order) in the making," Singh said. "The success of BRIC forum and their economies is today beginning to transform not only the nature of decision-making forums and policies of great economic powers towards BRIC but very theoretical and conceptual fundamentals of economic discipline."

"The status of great economic power is no longer dependent on per capita income alone," he said.

BRIC are more than just four largest emerging economies, he said.

"Their deliberations would not have survived if they did not share common concerns and common values and visions," he said.

"Their sharing of common views goes beyond their economic deliberations and their commitment to multilateralism (against multipolarism), dialogue (instead of coercion) to norms and institutions (instead of bullying and cartelizing) remain their strong binding force," he said.

Their continuing economic development in times of crisis "provides a strong positive spin to their policies, he said. "The current global economic crisis has really brought forward their unique strengths of free-market but restraint and state regulations which need to be emulated in a world where both State ownership and free-market models have lost all credibility."

"Given their mutual trust and understanding as also in view of their continued success in improving their economic well-being the BRIC countries are bound to continue to be important players in world's economic decision-making," he said.

"Endorsing their strength and co-opting BRIC into the global decision-making is no longer a matter of choice for the conventional great economic powers. They can today afford to ignore BRIC but only at their own peril. Increasing recognition of BRIC is evidence that great economic powers understand this change as also BRIC's usefulness for global peace and prosperity," he said.

 

 

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