"The summit of the so-called BRIC nations of Brazil, Russia, India and China ended with a short statement by Russian President Dmitry Medvedev and a communique that demanded more power for developing nations in international financial institutions and the United Nations.
'We are committed to advance the reform of international financial institutions, so as to reflect changes in the world economy,' the BRIC countries said in a joint communique.
'The emerging and developing economies must have a greater voice and representation in international financial institutions,' it said. 'We also believe that there is a strong need for a stable, predictable and more diversified international monetary system.'
"We will not do without additional reserve currencies," he said, adding that a new supranational reserve currency was also an option as the IMF's SDRs gained a bigger role.
The initial response from the developed world to Russia's initiative came from Japan, where Finance Minister Kaoru Yosano reiterated his view that the dollar will remain the world's key reserve currency. (via BRIC demands more clout, steers clear of dollar talk - Yahoo! Philippines News).
This was predictable
The 2ndlook posts and the Quicktakes on the events in the unfolding global financial crisis have been pre-casting these developments. This meeting was good news. This meeting could not have happened earlier - with elections in India being the delaying proposition.
The meeting has happened. Some old and tired cliches have been shopped out for waiting media. Greater role for BRIC in UN and IMF ... is not even old wine (turned vinegar) in a old cracked bottle.
What's gonna happen
The Chinese and Russian decision to increase holdings of their each others currencies was good development. The greater role for 'IMF-SDR' is eye wash. The BRIC leaders know well enough that the West will not let go of the IMF and the UN. But the charade is possibly required - and they are going through it.
The real developments will happen more quietly. After all, the final outcome is something that they, The BRIC nations would like to reveal with fanfare and celeberation.
We live in exciting time ... or is this a dangerous time?