BRIC nations call for change in the global financial system
But there is disagreement on immediate measures. Russia wants to replace the dollar as the reserve currency; Beijing prefers a gradual change over. National differences are brought to bear, such as the unresolved border dispute between India and China.
Beijing (AsiaNews/Agencies) – BRIC nations (Brazil, Russia, India and China) yesterday ended their historic 1st summit saying the world needs a more diversified international monetary system that is less dependent on the dollar.  Russian President Dmitry Medvedev, who hosted the summit in Yekaterinburg, invited the 4 emerging nations to “create the conditions for a fairer world order”. But experts observe that their differences still outweigh their common interests.

The four BRIC countries account for 40% of the world’s population and 15% of the global economy, for which they claim a greater voice and representation in international financial institutions”.  They there was a strong need for a stable, predictable and more diversified global monetary system and urged support for a more democratic and just "multipolar" world order. There was no explicit mention of the US dollar or the United States in the statement, but the desire to remove it from the role of dominant International currency is evident.

However, a common vision on immediate steps is lacking.  Medvedev called for a “more diversified” monetary system yesterday to reduce dependency on the world’s reserve currency. But China has over 2 billion US dollars in its reserve and does not want the American currency to loose its value now.  Instead Beijing is in favour of a progressive extension of Yuan value across neighbouring states: yesterday the Chinese Communist Party’s official newspaper, the People’s Daily, explained in an editorial that the substitution of the dollar with other currencies had already begun through bi- or multilateral agreements between states and that the process will be gradual.

Analysts observe that the differences between BRIC nations far out weigh their common interests.  During the summit Chinese President Hu Jintao and Indian Premier Manmohan Singh spoke of the unresolved issue between the two states of the 3500 km long border.  On June 15th only hours before the leaders arrival at the summit India moved an estimated 15-30 thousand troops to the border area as well as aircraft.  Beijing lays claims to entire regions which India has no intention of ceding.