"BRICS vs G5" New Delhi 2012 Summit: Creation of a New Economic World Order

IMT-H organised it’s first mock global summit titled “Creation of a new economic world order”. The event started with summit co-ordinators briefing about the flow of the summit. Then each side was invited to the podium to present their agenda to the audience.

Agenda presented by BRICS (represented by the Indian Prime Minister)

·         Multilateral Institutional reforms i.e. in WB, IMF, etc

The countries called for a review of the current representation in the international institutions and enhance the voice and representation of emerging market and developing countries, including the top level posts in these institutions, by selecting through an open and merit-based process.

·         Free trade agreements

To promote free trade, even in other developing economies like that of Middle East nations; also for the development of those areas.

Issues raised by G5 (represented by the French President):

·        Energy crisis in BRICS countries

Being the emerging economies, BRICS nations are harming the environment in order to meet the demands of energy for the production rate in order to develop their economy. 

·        Political and social instability

Lack of proper structure and administration, occurrence of crisis has made the nations unstable. 

·        Lack of openness in economy 

There is very little freedom in the economies with regards to doing business. 

·        Asymmetric intra-BRICS trade

There are no proper trade tie-ups between the nations themselves, which need to be fixed or channeled first before demanding for free trade agreements. 

·        No sense of geographical unity

The location of the nations is too diverse to actually have a sense of unity for a common cause.

The summit was then open to the house for a healthy discussion over the various issues of the summit. A lot of key points regarding the qualifications to the participation to the global institutions, the law structure in BRICS nations regarding trade, participation of the BRICS nations in global GDP, the erratic bi-lateral trade ties among the BRICS nations, etc. were brought forward.

Later the house was open to the audience, where in the G5 was questioned about the social instability, unemployment issues and the high national debts prevailing in the G5 nations, the non-compliance to the global environmental norms by G5 nations, etc. BRICS nations were asked about the rate at which they are implementing the various laws to make their states stable, and the substantial contribution towards global development, etc.

Meanwhile, the various institutions present in the summit viz. World Bank, IMF, ECB and WTO, pitched in clarifying the various issues between the two sides. They accepted the contributions of the BRICS and graciously applauded their willingness to participate in decision making but reiterated that it can’t be done overnight and over the years, the inclusion of emerging nations in decision making would definitely be considered.

Finally, the summit was concluded by the Indian Prime Minister, who on a hopeful note stated that it is for an even development of all the nations and they are concerned about it, they also look forward towards proper steps by the global leaders and institutes in this respect.

Country/Institution heads’ role enacted by:

BRICS:

Brazil-Siddharth Jaiswal

Russia-Manish Bhalla

India-Nidhi Yadav

China-Rishav Jindal

South Africa-Prateek Gupta

G5:

Japan: Aakansha Mintri 

Germany: Amrutha Ghali

USA: Akshay Bhandari

UK: Gaurav Surana

France: Vineet Kulria

Institutions:

World Bank: Udit Luthur

IMF: Indu Makhija

European Central Bank: Vaibhav Chabbra

WTO: Lokesh Sikhwal

Contributed by Prateek Mukherji