Victory for emerging BRICs?
Emerging market ministers, particularly those from the BRIC economies — Brazil, Russia, India and China — are painting this weekend’s G20 meeting as a victory in dragging them out of the shadows of global policy-making.
It accelerated a review of IMF quotas by two years to 2011, which should give emerging economies more say in the running of the multilateral lender. It also suggested that the headship of IFIs — international financial institutions — would no longer be guaranteed to Americans or Europeans.
BRIC countries even issued their own communique, ahead of the final statement. “There is a conclusion that has been reached in recent years, which is that the resolution to today’s global problems is only possible with the participation of emerging countries,” Brazil’s central bank governor Henrique Meirelles told MacroScope.
“There is a natural evolution of the decision-making process, which many important countries agree on, that decisions move from the G7 to the G20.”
But were there actually any major concessions? Tim Ash, head of emerging Europe, Middle East and Africa research at RBS thinks not.
“Clearly they would like things to change, but I’m not sure that much has actually changed,” he says.