Following is the text
of the BRICS Finance Ministers’ Joint Communique issued at the end of
the meeting in Washington, yesterday:
“We, the BRICS Finance Ministers and Central Bank Governors, met on
September 22, 2011 in Washington DC, USA, amid growing concern regarding
the state of the global economy.
While BRICS countries recovered quickly from the 2008-09 global
financial crisis, some of us have been subject to inflationary pressures
and growth prospects of all our countries have been dampened by global
market instability. In advanced countries, the build up of sovereign
debt and concerns regarding medium to long-term plans of fiscal
adjustment are creating an uncertain environment for global growth.
Also, excessive liquidity from aggressive policy actions taken by
central banks to stabilize their domestic economies has been spilling
over into emerging market economies, fostering excessive volatility in
capital flows and commodity prices.
The immediate problem at hand is to get growth back on track in
developed countries. In this context we welcome the recent fiscal
package announced by USA as well as the decisions taken by Euro area
countries to address financial tensions, notably by making the EFSF
flexible. It is critical for advanced economies to adopt responsible
macroeconomic and financial policies, avoid creating excessive global
liquidity and undertake structural reforms to lift growth create jobs
and reduce imbalances.
The current situation requires decisive actions. We are taking necessary
steps to secure economic growth, maintain financial stability and
contain inflation. We are also determined to speed up structural reform
to sustain strong growth which would advance development and poverty
reduction at home and benefit global growth and rebalancing. The
contribution of BRICS countries and other emerging market economies to
global growth is rising and will increase further. However, global
rebalancing will take time and its impact may not be felt sufficiently
in the short-term. We will also work to intensify trade and investment
flows among our countries to build upon our synergies.
The BRICS are open to consider making additional efforts in working with
other countries and International Financial Institutions in order to
address the present challenges to global financial stability, depending
on individual country circumstances.
We are concerned with the slow pace of quota and governance reforms in
the IMF. The implementation of the 2010 reform is lagging. We must also
move ahead with the comprehensive review of the quota formula by January
2013 and the completion of the next review of quotas by January 2014.
This is needed to increase the legitimacy and effectiveness of the Fund.
We reiterate our support for measures to protect the voice and
representation of the IMF’s poorest members. We call on the IMF to make
its surveillance more integrated and evenhanded.
Multilateral Development Banks are considered by developing countries as
important partners in helping them meet their long term development
finance needs. In the current global economic environment, the Banks
need to mobilize more resources to increase their assistance to low
income and other developing countries including finding ways of
expanding their lending capacity, so that development finance is not
In the face of a slowdown of global economic growth, it is necessary to
maintain international policy co-operation and co-ordination. We remain
committed to work with the international community, including making
contributions to the G20 Cannes Action Plan consistent with national
policy frameworks to ensure strong, sustainable and balanced growth. We
shall work together in searching for a coordinated solution to the
current challenges as we did in 2008-09.”