BRICS calls for UNSC reforms

The Sanya declaration also underscores the concurrent presence of all five BRICS countries in the present UNSC as “a valuable opportunity to work closely issues of peace and security”.

Further,in the context of the Fukushima nuclear disaster,leaders of the five countries reaffirmed their support for nuclear energy as an “important element in the future energy mix of BRICS countries”. At the same time,they called for paying more attention to safety standards.

“International cooperation in the development of safe nuclear energy for peaceful purposes should proceed under conditions of strict observance of relevant safety standards and requirements concerning design,construction and operation of nuclear power plants,” stated the declaration.

The five leaders — Indian Prime Minister Manmohan Singh,Chinese President Hu Jintao,Russian President Dmitry Medvedev,Brazilian President Dilma Rouseff and South African President Jacob Zuma — also held detailed deliberations on the global economic situation and felt that while the world may have largely come out of the economic crisis,further consolidation is still needed.

Through this discussion,it was agreed that the financial crisis had “exposed the inadequacies of the existing international monetary system,with a broad-based international reserve currency system providing stability and certainty”.

The Chinese contention to focus on Special Drawing Rights (SDRs) as an alternative got more attention with the five countries agreeing to discuss the possibility of expanding the basket of currencies in the SDRs to make it a viable option. It may be noted that China is keen to have the Yuan included in this basket.

“We welcome the current discussion about the role of the SDR in the existing international monetary system including the composition of SDR’s basket of currencies,” stated the declaration.

After lengthy deliberations,the five countries also signed an agreement that would enable disbursal of credit for trade purposes among each other in local currencies. However,it was made clear in the agreement that this was subject to national laws,which can override the provisions in this agreement.

The BRICS repeated its call for the governing structures of international financial institutions to “reflect the changes in the world economy,increasing the voice and representation of emerging economies and developing countries”.

This apart,the five leaders were in agreement that the “excessive volatility in commodity prices,particularly food and energy,poses new risks for the on going recovery of the world economy”.