[BRICS Summit] Nations seeks IMF to bridge the financial growth

BRICS nations including India today sought a strong, quota-based and adequately-resourced IMF to bridge the financing gap in infrastructure development to push economic growth in developing nations.

Goa Declaration on 8th BRICS Summit concluded at Benaulim Goa,

We reaffirm our commitment to a strong, quota-based and adequately-resourced International Monetary Fund (IMF). Borrowed resources by the IMF should be on a temporary basis

Highlighting the importance of public and private investments in infrastructure, including connectivity,to ensure sustained long-term growth, the leaders of the five nation grouping called for approaches to bridge the financing gap in infrastructure including through enhanced involvement of Multilateral Development Banks. The leaders of Brazil, Russia, India, China and South Africa strongly committed to support the coordinated effort by the emerging economies to ensure that the new quota formula will be finalised within the agreed timelines.

This, they said, will ensure that the increased voice of the dynamic emerging and developing economies reflects their relative contributions to the world economy, while protecting the voices of least developed countries (LDCs), poor countries and regions.

BRICS nations welcomed the inclusion of the RMB (Chinese currency) into the Special Drawing Rights (SDR) currency basket on October 1, 2016. They called for the advanced European economies to meet their commitment to cede two chairs on the Executive Board of the IMF. They said,

The reform of the IMF should strengthen the voice and representation of the poorest members of theIMF, including Sub-Saharan Africa.

Sharing the concerns regarding the challenges of sovereign debt restructuring, BRICS nations noted that timely and successful debt restructuring is key for ensuring access to international capital markets, and hence economic growth, for countries with high debt levels. They welcomed the current discussions to improve the debt restructuring process,and on the revised collective action clauses (CACs).

We reiterate our support for the multilateral trading system and the centrality of the WTO as the cornerstone of a rule based, open, transparent, non-discriminatory and inclusive multilateral trading system with development at the core of its agenda, the declaration said.

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Noting the increasing number of bilateral, regional, and plurilateral trade agreements, they said that these should be complementary to the multilateral trading system and encourage the parties there on to align their work in consolidating the multilateral trading system under the WTO in accordance with the principles of transparency, inclusiveness, and compatibility with the WTO rules. .