As a way to coordinate efforts in dealing with the financial crisis and trade protectionism, BRIC countries are gathering to set future agendas that may strengthen ties and related exchange traded funds (ETFs).
Leaders of BRIC countries (Brazil, Russia, India and China) are gathering for their first official summit in Yekaterinburg, Russia today to discuss long-term plans, according to the Economist. Member nations may coordinate in an effort to find an alternative to the dollar as a global currency and expand bilateral trade.
Analysts say BRIC countries are stepping up cooperation in an attempt to reposition themselves in the international arena, as stated in ChinaView. The recent financial crisis has also been a trigger in convincing these countries of the need to establish a new international political and economic order.
One of their main concerns is that Western governments should better supervise their countries’ financial capital and enhance risk warnings and disclosure in financial services. BRIC members will also discuss future ways of handling financial crises and less reliance on the U.S. dollar.
BRIC leaders will establish a relationship of mutual cooperation and common development in emerging market economies. BRIC countries may pool resources into common development interests. They could supplement each other in the fields of finance, energy, services, technology, agriculture, environmental protection and food safety, along with multilateral trade talks at the WTO.
iShares MSCI BRIC (BKF): up 51.0% year-to-date
