Topnews, Press, Economy, Politics
29. March 2013
Marking another milestone in the history of the country and continent, President Jacob Zuma hosted Her Excellency President Dilma Rousseff of the Federative Republic of Brazil, His Excellency President Vladimir Putin of the Russian Federation, His Excellency President Xi Jinping of the People’s Republic of China and the Honourable Prime Minister Manmohan Singh of the Republic of India for the fifth BRICS Summit in Durban from 26 to 27 March 2013.
A major outcome of the summit, outlined in the eThekwini Declaration, was the announcement of the establishment of the BRICS-led Development Bank to address the challenges faced by developing countries of infrastructure development due to insufficient long-term financing and foreign direct investment, especially investment in capital stock. The leaders said BRICS cooperation towards more productive use of global financial resources could make a positive contribution to addressing this problem.
Another announcement, among several others, was the construction of a financial safety net through the creation of a Contingent Reserve Arrangement (CRA) among the BRICS countries. The self-managed CRA will have a positive precautionary effect to help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability.
It is envisaged that Africa’s development will be enhanced through infrastructure development projects and the BRICS countries will play a pivotal role. This was affirmed during the discussions between BRICS and African leaders during a Retreat on 27 March in Durban post the summit.
The theme of both the summit, “BRICS and Africa: Partnership for Development, Integration and Industrialisation” and the retreat, “Unlocking Africa’s Potential: BRICS and African Cooperation on Infrastructure”, followed on the 2011 Sanya Summit commitment that discussions would continue on the role of BRICS partnering with Africa to support Africa’s infrastructure development and industrialisation.
For more information on the summit and the eThekwini Declaration and Action Plan, visit www.brics5.co.za
|+| Statement by BRICS Leaders on the Establishment of the BRICS-led Development Bank