World Economy

Ufa Declaration Upholds Industrial Cooperation

Ufa Declaration Upholds Industrial CooperationUfa Declaration Upholds Industrial Cooperation

Industrial development is the key source of sustaining economic growth for the BRICS nations, with concerted efforts needed for intensifying cooperation of industrial production capabilities, establishing industrial parks and clusters and promoting core sector industries, the final declaration adopted by the leaders of the five countries said.

The declaration stated that the nations will strengthen their cooperation to counter international terrorism, giving the central role in this action to the United Nations, PTI reported.

The seventh BRICS summit between Brazil, Russia, India, China and South Africa ended in the Russian city of Ufa on Thursday.

The declaration also gives an assessment on the current global political and economic situation and enlists the common approaches of the BRICS countries on the most topical issues of multilateral cooperation. The leaders also adopted an action plan that details the work of the group for the upcoming year and also includes the new promising areas of cooperation.

“We emphasize that, in the context of the unstable global financial and economic system and price volatility in global commodity markets, the development of the real sector of economy becomes particularly relevant,” the BRICS leaders said in the document.

“We recognize that industrial development is a fundamental source of growth for the BRICS countries, which possess ample natural resources and significant labor, intellectual and technical capacities. Increasing production and export of high value-added goods will help BRICS countries enhance their national economies, contribute to their participation in global value chains and improve their competitiveness,” they said.

BRICS countries enhance their national economies, contribute to their participation in global value chains and improve their competitiveness,” they said.

“In this connection, we reaffirm the unique mandate of the United Nations Industrial Development Organization to promote and accelerate inclusive and sustainable industrial development,” the declaration said.

“We are convinced about the importance of economic growth based on the balanced development of all economic sectors and on the development and introduction of advanced technologies and innovations, the mobilization of resources from financial institutions and the encouragement of private investment,” it said.

  Concern Over Recovery

BRICS countries, including India, voiced concern over the “fragile recovery” of global growth and the potential spillover effects from the “unconventional monetary policies” of the developed countries and felt that the BRICS Development Bank will serve as a powerful instrument for financing infrastructure investment.

The BRICS bank will approve its inaugural investment projects in the first quarter of 2016 and will work closely with the China-led AIIB, said the declaration.

It also said the global growth has witnessed “fragile recovery.” It said the member countries were “concerned about potential spillover effects from the unconventional monetary policies of the advanced economies.”

BRICS countries together account for about 18% of global trade and their combined GDP surged from $10 trillion in 2001 to $32.5 trillion in 2014.

Referring to the New Development Bank of BRICS, the declaration said it shall serve as a powerful instrument for financing infrastructure investment and sustainable development projects in the BRICS and other developing countries and emerging market economies.

  Condemn US’ Failure

Saying they are “deeply disappointed,” the BRICS countries have criticized the United Sates for its failure to ratify the reform package of the International Monetary Fund.

“We remain deeply disappointed with the prolonged failure by the United States to ratify the IMF 2010 reform package, which continues to undermine the credibility, legitimacy and effectiveness of the IMF,” the 43-page Ufa Declaration, issued at the end of the meeting, said.

“We expect the US to ratify the 2010 reform by mid-September 2015 as agreed in the IMF,” the document read.

The reform package was agreed by an overwhelming majority of members of the IMF, including the US.

 No Sanctions Against Russia

BRICS member states will not join unilateral western sanctions imposed against Russia, the director general at the Department of International Economic Cooperation of China’s Ministry of Foreign Affairs said Friday.

“Unilateral sanctions imposed against Russia do not apply to other BRICS countries,” Zhang Jun told journalists in Ufa when asked whether anti-Russian sanctions would hamper business and trade ties between Russia and China.

He said that all of the leaders in BRICS had reached a consensus in regard to sanctions against Russia.