News / Economy

BRICS Considering Giving Financial Help to Developed Economies

China's Central Bank Governor Zhou Xiaochuan at the BRICS finance ministers news conference at IMF headquarters in Washington, Sept. 22, 2011na)
China's Central Bank Governor Zhou Xiaochuan at the BRICS finance ministers news conference at IMF headquarters in Washington, Sept. 22, 2011na)
William Ide

Members of the global economic grouping known as BRICS - Brazil, Russia, India, China and South Africa - say they are considering providing funds through the International Monetary Fund or other financial institutions to help get growth in developed countries back on track.  The BRICS countries on Thursday called for decisive action, but did not offer immediate and specific financial support.

For more than a week, speculation has been building about what the BRICS countries could do to help Europe stem its sovereign debt crisis.  The possibility that emerging economies like China and Brazil -- with large foreign currency reserves -- could come to the euro zone's rescue has stirred much speculation among analysts over what these countries might do to help the global economy.

With more than $4 trillion in cash reserves, most of that owned by China, there has been talk of the BRICS economies investing in euro zone sovereign bonds.

Following a gathering of central bankers and finance ministers on Thursday, the BRICS countries issued a statement in which they seemed willing to act, although not on their own, and not just yet.

Zhou Xiaochuan is the Governor of the People's Bank of China.

"[The] BRICS communique also expressed that we need to jointly consider a kind of support for these purposes [aiding the global economy]," he said. "But probably this needs a wider range of discussion, maybe G-7 [Group of Seven] G-20 [Group of 20] or [during] other occasions."

Chinese officials say Beijing will continue to give marginal support to Europe through its ongoing investments there and efforts to diversify its holdings in foreign currency reserves.

Nearly a third of China's foreign currency reserves are in euros.  China says it wants to grow that investment and reduce its holdings in dollars.

In 2008, the Group of 20 leading industrialized and developing economies worked to help ease the global financial crisis.  BRICS leaders say they are looking for a similar effort to emerge in the coming weeks.  G-20 finance leaders will meet here in Washington this week during the annual meetings of the IMF and World Bank, and the European debt crisis is expected to be a major topic of discussion.  G-20 leaders are also scheduled to next month in Paris.

The People's Bank of China's Zhou Xiaochuan says that as emerging countries look to help advanced economies, they need to ensure that their own economic growth continues.  One way of doing that, he says, is by ensuring that BRICS countries move away from reliance on exports for economic growth.

"We need to do a good policy making job in our own countries [in] each BRICS country," he said. "Actually, BRICS countries represent quite a big share of the global economy.  In today's crisis period, the internal demand of each country, I think, is important."

According to the International Monetary Fund, Brazil, Russia, India, China and South Africa will account for 60 percent of the world's global economic growth by 2014.

In their communique, the BRICS nations welcomed steps taken by the United States and the European Union to address financial tensions.  They said it is critical for advanced economies to adopt responsible economic and financial policies to promote growth, create jobs and reduce trade imbalances.

The BRICS states also stressed that as they do more to contribute to the global economy, they should have more of a say in what global financial institutions do.  In their statement, they voiced concern over the slow pace of quota and governance reforms that the IMF approved last year.

In 2010, the 187 member nations of the IMF agreed to shift more voting rights to emerging economies like China, giving them a bigger say in its decision making process.

You May Like

Photogallery South Africa Bans Travelers From Ebola-stricken Countries

South Africans returning from affected West African countries will be thoroughly screened, required to fill out medical questionnaire, health minister says More

Multimedia UN Launches ‘Biggest Aid Operation in 30 Years’ in Iraq

Move aims to help thousands of Iraqi religious minorities who fled their homes as Kurdish, Iraqi government forces battle Sunni insurgents More

Video African Media Tries to Educate Public About Ebola

IT specialists, together with radio and TV reporters, are battling misinformation and prejudice about disease More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Gaza Conflict, Hamas Popularity Challenge Abbasi
X
Scott Stearns
August 21, 2014 9:20 PM
The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Gaza Conflict, Hamas Popularity Challenge Abbas

The Palestinian unity government of Mahmoud Abbas has failed to convince Hamas to agree to Egyptian-negotiated terms with Israel on a Gaza cease-fire. VOA State Department Correspondent Scott Stearns reports on what the Gaza conflict means for President Abbas, with whom U.S. officials have worked for years on a two-state solution to the Israeli-Palestinian conflict.
Video

Video Nigeria's 'Nollywood' Movie Industry Rolls in High Gear

Twenty years after its birth in a video shop in Lagos, Nigeria's "Nollywood" is one of the most prolific film industries on earth. Despite low budgets and whirlwind production schedules, Nigerian films are wildly popular in Africa and industry professionals say they hope, in the future, their films will be as great in quality as they are in quantity. Heather Murdock has more for VOA from Lagos.
Video

Video UN Launches 'Biggest Aid Operation in 30 Years' in Iraq

The United Nations has launched what it describes as one of the biggest aid operations in 30 years in northern Iraq, as hundreds of thousands of refugees flee the extremist Sunni militant group calling itself the Islamic State. As Kurdish and Iraqi forces battle the Sunni insurgents, the fighting has forced more people to flee their homes. Kurdish authorities say the international community must act now to avert a humanitarian catastrophe. Henry Ridgwell reports for VOA from London.
Video

Video Cambodian American Hip Hop Artist Sings of Personal Struggles

A growing underground movement of Cambodian American hip hop artists is rapping about the struggles of living in urban America. Most, if not all of them, are refugees or children of refugees who came to the United States from Cambodia to escape the Khmer Rouge genocide of the 1970s. Through their music, the artists hope to give voice to immigrants who have been struggling quietly for years. Elizabeth Lee reports from Long Beach, California.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video Ferguson Calls for Justice as Anger, Violence Grips Community

Violence, anger and frustration continue to grip the small St. Louis suburb of Ferguson, Missouri. Protests broke out after a white police officer fatally shot an unarmed black teenager on August 9. The case has sparked outrage around the nation and prompted the White House to send U.S. Attorney Eric Holder to the small community of just over 20,000 people. VOA’s Mary Alice Salinas has more from Ferguson.
Video

Video Beheading Of US Journalist Breeds Outrage

U.S. and British authorities have launched an investigation into an Islamic State video showing the beheading of kidnapped American journalist James Foley by a militant with a British accent. The extremist group, which posted the video on the Internet Tuesday, said the murder was revenge for U.S. airstrikes on militant positions in Iraq - and has threatened to execute another American journalist it is holding. Henry Ridgwell has more from London.
Video

Video Family Robots - The Next Big Thing?

Robots that can help us with daily chores like cooking and cleaning are a long way off, but automatons that serve as family companions may be much closer. Researchers in the United States, France, Japan and other countries are racing to build robots that can entertain and perform some simpler tasks for us. VOA’s George Putic reports.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.

AppleAndroid

World Currencies

EUR
USD
0.7492
JPY
USD
102.27
GBP
USD
0.5960
CAD
USD
1.0950
INR
USD
61.300

Rates may not be current.