G-20 sees rise of a new bloc
Regrouping and power re-balancing at the all powerful G-20 is underway even as G-8 is likely to turn a strategy forum for developed countries led by US, France and Germany.
Emerging power houses — Brazil, Russia, India and China (Bric) have enlisted the membership of South Africa, Mexico and Indonesia in obvious preparation to take on the US, EU and Japan troika.
This expanded Bric will be akin to the lineup of developing countries to protect their interests at multi-lateral trading forum, World Trade Organisation (WTO).
“All the three countries have agreed to join the Bric,” a top G-20 negotiator said on condition of anonymity. Incidentally, all the three countries are part of the developing countries group at WTO.
Brazil’s foreign minister Celso Amorium and India’s then trade representative K.M. Chandrasekhar brainstormed to form this coalition of developing countries at WTO to push for their defensive and offensive interests. At the G-20 leaders’ forum, Prime Minister Manmohan Singh took the lead to rope in new members into Bric to make it an effective negotiating block. Mexico, South Africa and Indonesian Presidents and Prime Ministers will be invited for the next meeting of Bric leaders ahead of G-20 summit in South Korea, September this year.
While developed countries would essentially firm up their negotiating strategy at G-8, the G-7 Bric nations’ leadership will evolve a coordinated action plan on economic front.
As the G-20 has begun to make recommendations on trade and investment front as well, the Bric leaders will get a chance to plan coordinated action for their trade representatives at WTO as well. The G-20 summit had barred all member-countries from imposing any fresh trade barriers. Secondly, the G-20 leadership has directed its trade ministers and representatives at WTO to conclude the Doha round of discussions before the year end. Similarly, this new extended block of G-7 within G-20 would allow greater say for emerging economies in running all important global financial institutions like World Bank, IMF and regional banking organisations.
Post new comment