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Brazil, Russia, India And China Form Bloc To Challenge US Dominance

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  • Brazil, Russia, India And China Form Bloc To Challenge US Dominance

    BRAZIL, RUSSIA, INDIA AND CHINA FORM BLOC TO CHALLENGE US DOMINANCE
    Tony Halpin in Yekaterinburg

    The Times
    June 17, 2009
    UK

    With public hugs and backslaps among its leaders, a new political
    bloc was formed yesterday to challenge the global dominance of the
    United States.

    The first summit of heads of state of the BRIC countries -- Brazil,
    Russia, India and China -- ended with a declaration calling for a
    "multipolar world order", diplomatic code for a rejection of America's
    position as the sole global superpower.

    President Medvedev of Russia went further in a statement with his
    fellow leaders after the summit, saying that the BRIC countries wanted
    to "create the conditions for a fairer world order". He described
    the meeting with President Lula da Silva of Brazil, the Indian Prime
    Minister, Manmohan Singh, and the Chinese President, Hu Jintao, as
    "an historic event".

    The BRIC bloc brings together four of the world's largest emerging
    economies, representing 40 per cent of the world's population and
    15 per cent of global GDP. The leaders set out plans to co-operate
    on policies for tackling the global economic crisis at the next G20
    summit in the US in September.

    "We are committed to advance the reform of international financial
    institutions so as to reflect changes in the world economy. The
    emerging and developing economies m ust have a greater voice,"
    they said.

    The BRIC states also pledged to work together on political and economic
    issues such as energy and food security. Co-operation in science and
    education would promote "fundamental research and the development of
    advanced techologies".

    The declaration also satisfied a key Kremlin demand by calling for a
    "more diversified international monetary system". President Medvedev is
    seeking to break the dominance of the US dollar in financial markets
    as the world's leading reserve currency.

    He favours the establishment of more regional reserve currencies,
    including the Russian rouble and the Chinese yuan, to prevent economic
    shocks. Mr Medvedev said: "The existing set of reserve currencies,
    including the US dollar, have failed to perform their functions."

    The declaration made no specific mention of the dollar, an indication
    of China's reservations about the Russian idea. Beijing holds almost $2
    trillion in foreign currency reserves and a large portion of US debt.

    The BRIC summit coincided with a two-day meeting of the Shanghai
    Co-operation Organisation (SCO) in Yekaterinburg, which further
    underlined the determination of Moscow and Beijing to assert themselves
    against the West.

    The SCO comprises Russia, China and the Central Asian states of
    Kazakhstan, Uzbekistan, Tajikistan and Kyrgyzstan. Iran, Pakistan,
    India and Mongolia have observer status and President Karzai of
    Afghanistan attended the summit as a guest.

    Iran's embattled President, Mahmoud Amadinejad, defied protests at
    home to attend the conference, where he hit out at the US and declared
    that the "international capitalist order is retreating". But he beat
    a swift retreat from the summit just hours after arriving, cancelling
    a planned press conference to return to the crisis in his country.

    China pledged $10 billion in loans to Central Asian countries
    struggling in the economic crisis, adding financial muscle to its
    leading role in the SCO.

    Russia and China regard the organisation as a means to restrict US
    influence in their Central Asian "back yard".

    Mr Medvedev held separate meetings about the situation in Afganistan
    with President Karzai and President Zardari of Pakistan, a clear signal
    to President Obama not to ignore Russian interests as he presses US
    policy in the region in the fight against the Taleban.
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