Los Cabos: The world's biggest five emerging economies including India are jockeying for more say in global governance as their leaders met ahead of the G-20 Summit to strengthen their calls for a new model in this regard.

The meeting of the countries known by their acronym of BRICS, comes against the backdrop of growing increasing anger at the lack of implementation of the reform of the governance of the International Monetary Fund that was agreed two years ago. Besides India, other members are Brazil, Russia,, China and South Africa.

BRICS countries have been the new growth poles of the global economy with a combined nominal GDP of USD 13.7 trillion and an estimated USD 4 trillion in combined foreign reserves.

As current chair of BRICS, India hosted an informal meeting of BRICS leaders here on the sidelines of the seventh summit of the Group of 20 developing and developed countries.

Ahead of the informal meeting of the leaders, Prime Minister Manmohan Singh said it was being convened to exchange views on the agenda of the Summit which is being dominated by the faltering global economy fuelled by the Eurozone crisis.

At the fourth BRICS summit in Delhi in March this year, BRICS leaders have agreed to work with the international community to ensure international policy coordination to maintain macro-economic stability conducive to the health recovery of the global economy.

The BRICS meeting came even as pressure was building on the G-20 leaders to unveil a new programme of measures to boost growth in what could be seen as a significant move away from the policy of debt reduction.

Ahead of the G-20 summit, fears of a dramatic escalation of the eurozone's long-running crisis appeared to have eased a bit following the election in Greece of a pro-Euro party and fresh momentum from G-20 nations towards boosting the IMF war chest.

"We are bit frustrated with the (lack of) progress that has been made," said a senior Brazilian official who nonetheless hoped that "a great majority" of countries would ratify the agreement by the IMF's annual meeting in Tokyo next October.

Moreover, the BRICS countries are due to prepare the ground and make further progress towards the establishment up of a new development bank at a meeting being held later on Monday.
   
A BRICS bank could fill the gap left by the embattled World Bank, according to Brazilian officials. Brazil's warning came as the IMF last week revealed that only 107 members having 66.84 percent of fund quotas had consented to their proposed quota increases.

According to IMF managing director Christine Lagarde: "Member countries (must) complete the necessary legislative steps and other legal measures quickly to implement these important reforms within the agreed timeframe."

G-20 leaders are expected to use their communiqué to "fully implement" the agreed reforms.

But in the meantime, big emerging economies such as Brazil and India will have to deal with the impact of the European crisis and it may indeed be a rougher ride than anticipated.

They will come to Los Cabos with the weakest growth outlook for a number of years.

Prime Minister Singh has already voiced fears on the fallout of the 17-nation Eurozone crisis on the Indian economy.

Last week the World Bank said Chinese growth would slow to 8.2 percent in 2012 from 9.2 percent last year, India would decline to 6.6 percent from 6.9 percent while Russia would fall back to 3.8 percent from 4.3 percent. Brazil was the exception, accelerating to 2.9 percent from 2.7 percent.

Signs of a more pronounced global slowdown have prompted some of the BRICS countries to prepare domestic stimulus measures. China for example has cut interest rates, brought forward spending on infrastructure and unveiled plans to boost consumer spending.

(Agencies)

Latest News from World News Desk