BRICS: Modi and Xi expected to meet on Sept 5; PM moots co-op between Contingent Reserve Arrangement and IMF

The Dollar Business Bureau 

With Prime Minister Narendra Modi’s visit to China for the BRICS Summit, media reports hint that there could be a bilateral meeting between PM Modi and China’s Premier Xi Jinping.

The world media awaits with anticipation at this possible meeting between the two leaders, as it comes after the tense 73-day standoff at the Doklam region. 

The Summit which began today at the Chinese port city of Xiamen had the unveiling of the Xiamen Declaration signed by its member countries, Brazil, Russia, India, China and South Africa. The Declaration amongst other things calls for energizing the practical cooperation between the member countries. It states enhancing communication and coordination in improving global economic governance to foster a more just and equitable international economic order. 

In his address at the plenary session of the Summit, PM Modi said a strong partnership among member nations on innovation and digital economy can help spur growth, promote transparency and support the sustainable development goals. A separate rating agency would help the economies of the member countries as well as other developing nations he said. 

“Our Central Banks must further strengthen their capabilities and promote cooperation between the Contingent Reserve Arrangement and the IMF (International Monetary Fund),” the prime minister said, urging the early creation of the BRICS rating agency.  

Last year Indian officials at the BRICSs Summit in Goa had first mooted the idea of having such an agency for the BRICS grouping which could solve the obstructions for the emerging market economies dominated by S&P, Moody’s and Fitch. These three western rating agencies hold over 90% of the sovereign ratings market presently. 

The PM also held talks with the Russian President  Vladimir Putin on a range of bilateral, regional and global issues. It is believed that the two leaders discussed ways to ramp up bilateral cooperation, in the areas of security trade and defence. 

In his speech, the Indian PM emphasised the need, “to accelerate track of cooperation in smart cities, urbanisation and disaster management. BRICS has developed a robust framework for cooperation; contribute stability and growth in a world drifting towards uncertainty. Our endeavours today touch diverse areas of agriculture, culture, environment, energy, sports and Information and Communications Technology (ICT).” 

The Prime Minister among many other things asserted that the grouping was in a “mission-mode” to eradicate poverty and ensure health, sanitation, skills, food security, gender equality, energy and education. He said women’s empowerment programmes were “productivity multipliers” that mainstream women in nation building.

(Source: PTI)