April-2011-International

INTERNATIONAL AFFAIRS

President Saleh of Yemen agrees to step down
On April 24, 2011, Yemen's embattled President agreed to a proposal by Gulf Arab mediators to step down within 30 days and hand power to his deputy in exchange for immunity from prosecution. A coalition of seven opposition parties said they also accepted the deal but with reservations. Even if the differences are overcome, those parties do not speak for all of the protesters seeking President Ali Abdullah Saleh's removal, and signs were already emerging that a deal on those terms would not end protests.

Under the latest draft, Yemen's Parliament would grant Saleh legal protection from prosecution. The President would submit his resignation to lawmakers and hand power to his Vice President, who would call for new Presidential elections.

BRIC expands to BRICS
BRIC, the grouping of the four countries thought to radiate the largest lessons in developing an economy–Brazil, Russia, India and China–has decided to transform itself to BRICS, with the much-awaited induction of South Africa into the cohort, making it more representative. Started in year 2009, the 2011 summit, held in Sanya on south China's tropical island of Hainan on April 13-15, was the first one for South Africa.

Bringing South Africa makes the grouping more representative of the emerging powers from all the developing regions. All of them are members of the G-20, the high table of global economic policy coordination. This gives them a significant clout. If they can coordinate their positions in G-20 Summits, they will be more effective. Although the BRICS grouping is in a nascent stage it has been able to emerge as an important voice.

BRICS represent the world’s fastest growing market, comprising 44 per cent of the world population. All of them are members of the UN, of which two are permanent.

Experts say all the member-countries must take advantage of the moment and come out with a clear map for long-term sustenance. And, that the grouping should take a leadership role in closing the Doha round of multilateral trade deals under World Trade Organisation (WTO).

Besides, focusing on financial cooperation and an effective mechanism for global development, the leaders also dwelled on some of the recent events around the world, such as the unrest in West Asia, turmoil in North Africa and the disaster in Japan.

Leaders of BRICS countries adopted a far-reaching declaration that, among other things, called for restructuring of international financial institutions to reflect changes in the world economy, thus increasing the voice and representation of emerging economies.

The cooperation among BRICS countries was neither directed against nor was at the expense of anyone, Prime Minister Manmohan Singh said while addressing the plenary of the BRICS leaders.

Recognising that the international financial crisis has exposed the inadequacies and deficiencies of the existing international monetary and financial system, the leaders supported the reform and improvement of the international monetary system, with a broad-based international reserve currency system providing stability and certainty.

At a joint press conference by summit leaders, Prime Minister Manmohan Singh announced that the designated banks of BRICS nations have signed a framework agreement on financial cooperation which envisaged grant of credit in local currencies and cooperation in capital markets and other financial services. Under the agreement, banks in each country would work out modalities so that projects and loans could be encouraged in other BRICS nations, if national laws permit them to do so.

The five nations also signed an MoU on BRICS long-term business contacts to facilitate trade amongst them. The FICCI will be the focal point for this on the Indian side.

The Chinese leader also sought to dispel the impression that BRICS wanted to emerge as a grouping aimed at countering leading global economies

The BRICS countries also resolved to carry out closer cooperation on food security, support development and use of renewable energy resources, and recognise its importance as a means to address climate change.
Supporting the G-20 initiative, the BRICS leaders desired that the grouping should play a bigger role in global economic governance as the premier forum for international economic cooperation.

In an action plan, the five nations decided to hold a meeting of high representatives for security issues in the latter half of 2011 in China, engage in joint research on economic and trade issues, encourage cooperation in sports and promote cooperation in scientific, technological and innovation cooperation in BRICS format.