Modi hosts BRICS leaders as bloc beset by economic woes

AFP, NEW DELHI: Prime Minister Narendra Modi will look to reinvigorate the BRICS group of emerging nations at a summit this weekend with India seen as a bright spot in a bloc whose clout has been undermined by economic woes.
BRICS—a club made up of Brazil, Russia, India, China and South Africa—was formed in 2011 with the aim of using its growing economic and political influence to challenge Western hegemony.
The nations, with a joint estimated GDP of $16 trillion, set up their own bank in parallel to the Washington-based International Monetary Fund and World Bank and hold summits rivalling the G7 forum.
But the countries, accounting for 53 per cent of world population, have been hit by falling global demand and lower commodity prices, while several have also been mired in corruption scandals.
Russia and Brazil have fallen into recession recently, South Africa only just managed to avoid the same fate last month while China’s economy—the recent engine of world growth—has slowed sharply.
India by contrast is now the world’s fastest-growing major economy in an otherwise gloomy environment and its GDP is expected to grow 7.6 per cent in 2016-17. Indian foreign ministry official Amar Sinha said the leaders would debate “global growth prospects, the role of BRICS in leading this global growth and our contributions to it”.
He also confirmed regional security and climate change were on the agenda while Russia is expecting talks on Syria.
President Vladimir Putin’s office said in a statement that “international terrorism and the Syria peace process” would be discussed as Moscow faces international anger over its airstrikes in support of the Assad regime.
China’s Vice Foreign Minister Li Baodong meanwhile said the leaders would “exchange in-depth views on BRICS cooperation and other global and regional issues”, according to state news agency Xinhua.
Some of the more substantive talks are expected at bilaterals on the sidelines of the summit in the tourist state of Goa, with Modi expected to separately meet China’s President Xi Jinping and Putin.
Brazil’s new President Michel Temer, who replaced impeached Dilma Rousseff, will look to such meetings to boost trade ties and help drag his country out of its worst recession in half a century.
The summit comes amid some scepticism about the future of BRICS, especially given India’s efforts to reach out to the US and Europe since Modi—a one-time pariah of the West—came to power in 2014.
Eswar Prasad, professor of trade and economics at Cornell University in the United States, said BRICS had been weakened by its collective burdens.
“The economic troubles faced by many members of the BRICS group have reduced its potency and influence in the world economy,” he told AFP. 
Prasad said BRICS needed to focus on a global issue such as pushing back against mounting anti-globalisation rhetoric to stay relevant.

Modi hosts BRICS leaders as bloc beset by economic woes

AFP, NEW DELHI: Prime Minister Narendra Modi will look to reinvigorate the BRICS group of emerging nations at a summit this weekend with India seen as a bright spot in a bloc whose clout has been undermined by economic woes. BRICSa club made up of Brazil, Russia, India, China and South Africawas formed in 2011 with the aim of using its growing economic and political influence to challenge Western hegemony. The nations, with a joint estimated GDP of $16 trillion, set up their own bank in parallel to the Washington-based International Monetary Fund and World Bank and hold summits rivalling the G7 forum. But the countries, accounting for 53 per cent of world population, have been hit by falling global demand and lower commodity prices, while several have also been mired in corruption scandals. Russia and Brazil have fallen into recession recently, South Africa only just managed to avoid the same fate last month while Chinas economythe recent engine of world growthhas slowed sharply. India by contrast is now the worlds fastest-growing major economy in an otherwise gloomy environment and its GDP is expected to grow 7.6 per cent in 2016-17. Indian foreign ministry official Amar Sinha said the leaders would debate global growth prospects, the role of BRICS in leading this global growth and our contributions to it. He also confirmed regional security and climate change were on the agenda while Russia is expecting talks on Syria. President Vladimir Putins office said in a statement that international terrorism and the Syria peace process would be discussed as Moscow faces international anger over its airstrikes in support of the Assad regime. Chinas Vice Foreign Minister Li Baodong meanwhile said the leaders would exchange in-depth views on BRICS cooperation and other global and regional issues, according to state news agency Xinhua. Some of the more substantive talks are expected at bilaterals on the sidelines of the summit in the tourist state of Goa, with Modi expected to separately meet Chinas President Xi Jinping and Putin. Brazils new President Michel Temer, who replaced impeached Dilma Rousseff, will look to such meetings to boost trade ties and help drag his country out of its worst recession in half a century. The summit comes amid some scepticism about the future of BRICS, especially given Indias efforts to reach out to the US and Europe since Modia one-time pariah of the Westcame to power in 2014. Eswar Prasad, professor of trade and economics at Cornell University in the United States, said BRICS had been weakened by its collective burdens. The economic troubles faced by many members of the BRICS group have reduced its potency and influence in the world economy, he told AFP. Prasad said BRICS needed to focus on a global issue such as pushing back against mounting anti-globalisation rhetoric to stay relevant.