G-20 deal sets up BRICS to backstop eurocrisis
Power shifts are on display at the G-20 in Mexico as emerging markets pledge funds to the International Monetary Fund in order to avert a European meltdown and its global impact.
One of the more controversial outbursts at the G-20 in Mexico this week came from European Commission President Jose Manuel Barroso, who, on the defense about the eurozone crisis, told reporters: “We are not coming here to receive lessons in terms of democracy or in terms of how to handle the economy.”
For many observers, it's also one of the most telling comments – underlining the way the world order is changing and how the traditional powerbrokers are reacting.
At a more micro level, these power shifts are on display at the G-20 in Los Cabos, Mexico, where emerging economies are pledging additional funds to the International Monetary Fund (IMF) in order to avert a European meltdown and its effect on the global economy.
According to Reuters, China has offered a $43 billion contribution to new IMF reserves. The other nations in the coalition of emerging world powers called the BRICS that includes Brazil, Russia, India, China, and South Africa, also agreed to increase donations to the IMF, with India, Brazil, and Russia pledging $10 billion and South Africa $2 billion. Mexico also pledged $10 billion.