Тhe future of the new world economic order

Summit of Brazil, Russia, China and India failed to find common issues for cooperation – the fight against protectionism and adjusting the global financial architecture, commented „forms.“

Leaders of Brazil, Russia, India and China (Brick) agreed at the meeting in Yekaterinburg to proceed to develop parameters of a new global financial architecture (development of the measures is ordering the ministries of finance and central banks of countries) and announced to cancel of protectionism in agriculture.

Group support and accelerate the negotiations of the Doha Round under the World Trade Organization (WTO) to radically reduce mnogomiliardnite agricultural subsidies that distort the terms of trade and prevent the development of agricultural production in developing countries.
„Finding“ a new world currency and the conversion of most foreign exchange reserves of the group in other debt financing instruments, which earlier announced the Assistant to the President of Russia Dmitry Medvedev Arkadiy Dvorkovich, never happened. In his words, Moscow is expected to hear of their response to their proposals, but such options currently being discussed only fix for „forms“ representative of the Finance Ministry.
Countries with transitional and developing economies should have greater voice and representation in international financial institutions, says in communication, distributed after the meeting. The document also speaks of the necessity of reforming the United Nations and enhancing the status of India and Brazil in this organization.
It was necessary to „feel“ the common positions on key issues in the global economy, says Yaroslav Lisovolik by Deutsche Bank. Three countries in the group and less active advocate for equality in international economic relations, they now join Russia and fix it.
After meeting in the world media and zashtitiha were two opposing views. First: Brick no future: the group will remain as an informal club, both in form and content, said the „Financial Times“ Evgeny Yasin. The differences between these countries are huge, so they will be difficult to combine their economic positions, and Martin added Volkar of A. T. Kearney. Exporters of energoresursi Russia and Brazil have advantageous high energy prices, while India and China as producers of finished goods and services outsourcing – their demotion.
The second – the opposite of the first: the group has a lot in common: these countries are the largest among developing economies, which will determine the course of development of world economy.
The idea EA Brick „father“ chief economist of Goldman Sachs Jim O Neal in 2001, recalls the „forms“. He united these countries in one group and predicted that Brazil, Russia, India and China will be to anticipate the world’s leading economies in 2050 and will become basis of new global economic order. World crisis enhance the competitive advantages of Brick and allow the Chinese economy to anticipate the U.S., and Brick – zadmine to G-7 on volume of GDP in a short time – since 2027, he predicted in an interview to Reuters.
According to Goldman Sachs, contraction of world economy will reach 1.1 percent, while the countries of Brick will register growth of 4.8 percent. Despite the overall positive forecast for Brick, the economic structures and indicators within the group itself is very different. According to the International Monetary Fund (IMF), plus once a year will be the economies of China (6.5 percent) and India (4.5 percent), Brazil and Russia were reported to fall with, respectively, 1, 3% and 6%.
Highest economic growth among countries Brick next year will again reach China: 8.3 percent in 2009 and 10.9 percent in 2010, forecasts Goldman Sachs, in the growth of world economy from 3.3% in 2009 average growth of China in 2011-2050 will reach 5.2 percent of India – 5.2%, Brazil – 4.3%, and Russia – 2.8%.
Meeting of leaders of political parties had a context, experts believe. China wants to reduce global dominatsiya the U.S., but this is possible only through the creation of a political alliance with other countries, said the „Financial Times“ David Tsvayg, director of the Hong Kong Center for Multilateral Cooperation of China.
Next meeting of high level leaders of the countries of the group will take place in 2010.