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The BRICS summit ends in New Delhi

March 30, 2012, 12:17 UTC+3

The important result of the summit became an agreement for mutual credits in national currencies

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MOSCOW, March 30 (Itar-Tass) — The summit of BRICS developing countries (Brazil, Russia, India, China and South Africa) ended in New Delhi on Thursday. Several important agreements were approved at the summit. The important result of the summit became an agreement for mutual credits in national currencies, but not in the US dollars. Meanwhile, the leaders of the BRICS states intend to transform in a political bloc. At the negotiations the BRICS leaders called to grant more votes to them in the International Monetary Fund and levelled criticism on the West.

The leaders of the BRICS informal union, which still call themselves as a group of developing countries, decided to transform in a political organization, the Kommersant notes. The BRICS summit declared about the plans to engage actively in world politics. The BRICS summiteers were planning at first to focus on such financial and economic issues as the creation of the BRICS bank of development and mutual credits in national currencies.

Indian Prime Minister Manmohan Singh was the first to state about this, noting that the BRICS prosperity is linked with the geopolitical environment. President Dmitry Medvedev elaborated on the idea. “In the future our organization may become one of the key elements in global governing system. We are discussing not only economic issues, but also the problems of international politics. Our goal can become the BRICS transformation in a full-format mechanism not only on the issues of economy, but also politics. I offer to instruct the foreign ministers to develop this concept,” Medvedev put forward an ambitious initiative. This is needed for closer cooperation with the UN and a stronger role of the UN Security Council, as well as to end the use of the United Nations “as a cover for toppling unacceptable rules.”

It is unclear what a full-format mechanism will be in the BRICS, which currently exists in the informal way. Medvedev did not elaborate on his initiative.

The only significant and concrete outcome of the summit is the five-partite general agreement on the common procedure to open credit lines in national currencies between the BRICS states. From now on the BRICS states will be able to fund each other and joint projects in national currencies that will make it possible for the BRICS states to advance to a stronger status of their national currencies.

Head of the Centre of Indian Studies Tatiana Shaumyan told the Nezavisimaya Gazeta that the time is ripe for the institualization of the group and the formation of bodies, which would fulfil its decisions. For instance, the Shanghai Cooperation Organization has its secretariat and the South Asian Association for Regional Cooperation has its secretariat as well.

But the BRICS states are different. The group began to form only in the last few years. Therefore, there are no common views on its structure.

Russian officials noted that the BRICS should play a more serious role in the management of international financial organizations (meanwhile, not claiming for the management in the World Bank), the Moskovsky Komsomolets writes. Chinese officials noted that the BRICS states “can form a common front over the Middle East crisis.” Meanwhile, in the final declaration the BRICS leaders stated about the situation over Iran that cannot be allowed to grow into a conflict and the BRICS states expect Iran to make its contribution as a responsible member of the international community. The BRICS states also said that Syria should launch the national dialogue in peaceful ways, territorial integrity and sovereignty of the country should be preserved. They also stated that Afghanistan needs some time and assistance for the development and the preferential access on the world markets.

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