<p>Sudan has agreed to compensate the families of sailors killed in an <a href="https://www.wionews.com/world/trump-confirms-key-plotter-in-uss-cole-attack-has-been-killed-188597">al Qaeda</a> attack on the <a href="https://www.wionews.com/world/trump-confirms-key-plotter-in-uss-cole-attack-has-been-killed-188597">USS Cole</a> warship 20 years ago, state news agency SUNA said on Thursday, part of government efforts to remove the country from a list of state sponsors of terrorism.</p>

<p>The report said the settlement had been signed on February&nbsp;7. It did not mention the amount paid in compensation, but a source with knowledge of the deal, speaking on condition of anonymity, said that Sudan had agreed to settle the case for $30 million.</p>

<p><strong>Also read:&nbsp;<a href="https://www.wionews.com/world/trump-confirms-key-plotter-in-uss-cole-attack-has-been-killed-188597">Trump confirms key plotter in USS Cole attack has been killed</a></strong></p>

<p>The 17 sailors were killed, and dozens of others injured, in the attack on October&nbsp;12, 2000, when two men in a small boat detonated explosives alongside the Navy guided missile destroyer as it was refueling in the southern Yemeni port of Aden.</p>

<p>Khartoum agreed to settle "only for the purpose of fulfilling the condition set by the <a href="https://www.wionews.com/world/trump-confirms-key-plotter-in-uss-cole-attack-has-been-killed-188597">US&nbsp;administration</a> to remove Sudan from its list of state sponsors of terrorism", SUNA said, citing the justice ministry.</p>

<p>Being designated as a state sponsor of terrorism makes Sudan ineligible for desperately needed debt relief and financing from lenders such as the <a href="https://www.wionews.com/world/lebanons-new-finance-minister-meets-with-imf-official-276548">International Monetary Fund</a> and <a href="https://www.wionews.com/business-economy/world-bank-to-reduce-lending-to-china-267039">World Bank</a>.</p>

<p><strong>Also read: <a href="https://www.wionews.com/opinions/al-qaeda-is-stronger-today-than-it-was-on-911-232726">Al-Qaeda is stronger today than it was on 9/11</a></strong></p>

<p>Removal from the list potentially opens the door for foreign investment.</p>

<p>"The government of Sudan would like to point out that the settlement agreement explicitly affirmed that the government was not responsible for this incident or any terrorist act," the justice ministry said in its statement, cited by SUNA said.</p>

<p>The announcement comes two days after Khartoum and rebel groups agreed that all those wanted by the International Criminal Court for alleged war crimes and genocide in the Darfur region should appear before the tribunal. The list includes Sudan's ousted president Omar al-Bashir.</p>

<p>The US&nbsp;sailors' relatives had sued Sudan under the 1976 Foreign Sovereign Immunities Act, which generally bars suits against foreign countries except those designated by the United States as a sponsor of terrorism, as Sudan has been since 1993.</p>

<p>Sudan did not defend against the claims in court. In 2014, a trial judge found that Sudan's aid to al Qaeda "led to the murders" of the 17 Americans and awarded the families about $35 million, including $14 million in punitive damages.</p>

<p>Sudan then tried to void the judgment, arguing the lawsuit was not properly served on its foreign minister, violating notification requirements under <a href="https://www.wionews.com/world/trump-confirms-key-plotter-in-uss-cole-attack-has-been-killed-188597">US&nbsp;</a>and international law.</p>

<p>The <a href="https://www.wionews.com/world/trump-confirms-key-plotter-in-uss-cole-attack-has-been-killed-188597">US</a>&nbsp;Supreme Court turned down the bid by the families last year.</p>


Sudan has agreed to compensate the families of sailors killed in an al Qaeda attack on the USS Cole warship 20 years ago, state news agency SUNA said on Thursday, part of government efforts to remove the country from a list of state sponsors of terrorism.

Sudan has agreed to compensate the families of sailors killed in an al Qaeda attack on the USS Cole warship 20 years ago, state news agency SUNA said on Thursday, part of government efforts to remove the country from a list of state sponsors of terrorism. The report said the settlement had been signed on February 7. It did not mention the amount paid in compensation, but a source with knowledge of the deal, speaking on condition of anonymity, said that Sudan had agreed to settle the case for $30 million. Also read: Trump confirms key plotter in USS Cole attack has been killed The 17 sailors were killed, and dozens of others injured, in the attack on October 12, 2000, when two men in a small boat detonated explosives alongside the Navy guided missile destroyer as it was refueling in the southern Yemeni port of Aden. Khartoum agreed to settle "only for the purpose of fulfilling the condition set by the US administration to remove Sudan from its list of state sponsors of terrorism", SUNA said, citing the justice ministry. Being designated as a state sponsor of terrorism makes Sudan ineligible for desperately needed debt relief and financing from lenders such as the International Monetary Fund and World Bank. Also read: Al-Qaeda is stronger today than it was on 9/11 Removal from the list potentially opens the door for foreign investment. "The government of Sudan would like to point out that the settlement agreement explicitly affirmed that the government was not responsible for this incident or any terrorist act," the justice ministry said in its statement, cited by SUNA said. The announcement comes two days after Khartoum and rebel groups agreed that all those wanted by the International Criminal Court for alleged war crimes and genocide in the Darfur region should appear before the tribunal. The list includes Sudan's ousted president Omar al-Bashir. The US sailors' relatives had sued Sudan under the 1976 Foreign Sovereign Immunities Act, which generally bars suits against foreign countries except those designated by the United States as a sponsor of terrorism, as Sudan has been since 1993. Sudan did not defend against the claims in court. In 2014, a trial judge found that Sudan's aid to al Qaeda "led to the murders" of the 17 Americans and awarded the families about $35 million, including $14 million in punitive damages. Sudan then tried to void the judgment, arguing the lawsuit was not properly served on its foreign minister, violating notification requirements under US and international law. The US Supreme Court turned down the bid by the families last year.

Sudan agrees to compensate families of USS Cole victims

<p>Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the <a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536">International Monetary Fund</a>, which would make her the first person from an emerging economy to head the global lender.</p>

<p>A centre-right politician who grew up in Bulgaria under communism, Georgieva has built a reputation during her time at the&nbsp;World&nbsp;Bank&nbsp;- where she has been on a leave of absence from her post as the Chief Executive Officer during the IMF nomination process - and the European Commission as a tenacious straight-shooter, champion of gender equality and leader in the global fight against climate change.</p>

<p>She will face a host of challenges as the head of the IMF, the&nbsp;world's crisis lender with $1 Trillion in firepower, including a global economic slowdown triggered by escalating trade tensions between the United States and China.</p>

<p>In addition, the United States, which represents the largest voting bloc on the IMF board, has withdrawn from multilateral accords, and risks are growing in emerging markets like Argentina, which last year received a $57 billion bailout, the IMF's largest ever.</p>

<p>The IMF's executive board interviewed Georgieva, 65, the sole nominee for the job, on Tuesday, and is due to vote on her nomination on Wednesday.</p>

<p>The vote is largely ceremonial. Georgieva, backed by the French President Emmanuel Macron, last month won support from the rest of the European Union, as well as tacit backing from the United States.</p>

<p>An IMF board source told Reuters that Georgieva was ready for the job. "She has convinced the board that she is the leader that the institution needs and will be a strong advocate for the multilateral system," the source said, speaking on the condition of anonymity because the board’s deliberations are not public.</p>

<p>Her likely confirmation has spawned great pride in her home country, with some newspapers lauding it as evidence of both Georgieva's own qualities and as a diplomatic success.</p>

<p>"Only 20 years ago, Bulgaria was among the countries with an IMF rescue programme," the leading financial newspaper Kapital said earlier this month. "The nomination of the former Bulgarian EU commissioner should be seen not only as her personal acknowledgement&nbsp;but as a diplomatic success for the country."&nbsp;</p>

<p>Georgieva will replace Christine Lagarde, who became the first woman to head the <a href="https://www.wionews.com/south-east-asia/international-monetary-fund-to-consider-three-year-extended-fund-facility-of-6-billion-for-pakistan-231072">IMF</a> when she took the helm in 2011. Lagarde, 63, guided the lender through the European sovereign debt crisis, which began about a month after she took office. She is departing to head the European Central&nbsp;Bank.</p>

<p>Before her appointment at the&nbsp;<a href="https://www.wionews.com/world/international-monetary-fund-downgrades-world-growth-warns-of-precarious-2020-238104">World&nbsp;Bank</a>, Georgieva held numerous senior European Commission posts, including the budget commissioner, and has deep knowledge of emerging market countries served by the&nbsp;World&nbsp;Bank.</p>

<p>Scott Morris, a senior fellow at the Center for Global Development, said Georgieva quickly made an impact after assuming the No. 2 role at the&nbsp;World&nbsp;Bank&nbsp;in early 2017. She pushed for consensus on a $13 billion capital increase and reform package agreed last year. Under the reforms, lending to China and other wealthier developing countries will decrease with more resources going to needier countries.</p>

<p>"She was able to bring together a diverse group of shareholders. That's her strength," said Morris, a former US&nbsp;Treasury official. "What's less clear is how she will handle the day to day business of the fund, that business being the crisis moments. It's harder to see how she will respond in a crisis."</p>

<p>Morris said Lagarde was successful in that she was not viewed as representing European interests, which helped her navigate the Greek debt crisis. Georgieva will have to take a similar multilateral approach, keeping her focus on the interests of the institution and individual countries.</p>

<p>"No one thought of Lagarde as a European&nbsp;chief&nbsp;executive," Morris said. "She rose above that."</p>


Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the International Monetary Fund, which would make her the first person from an emerging economy to head the global lender.

Bulgarian economist Kristalina Georgieva is expected to be confirmed on Wednesday as the Managing Director of the International Monetary Fund, which would make her the first person from an emerging economy to head the global lender. A centre-right politician who grew up in Bulgaria under communism, Georgieva has built a reputation during her time at the World Bank - where she has been on a leave of absence from her post as the Chief Executive Officer during the IMF nomination process - and the European Commission as a tenacious straight-shooter, champion of gender equality and leader in the global fight against climate change. She will face a host of challenges as the head of the IMF, the world's crisis lender with $1 Trillion in firepower, including a global economic slowdown triggered by escalating trade tensions between the United States and China. In addition, the United States, which represents the largest voting bloc on the IMF board, has withdrawn from multilateral accords, and risks are growing in emerging markets like Argentina, which last year received a $57 billion bailout, the IMF's largest ever. The IMF's executive board interviewed Georgieva, 65, the sole nominee for the job, on Tuesday, and is due to vote on her nomination on Wednesday. The vote is largely ceremonial. Georgieva, backed by the French President Emmanuel Macron, last month won support from the rest of the European Union, as well as tacit backing from the United States. An IMF board source told Reuters that Georgieva was ready for the job. "She has convinced the board that she is the leader that the institution needs and will be a strong advocate for the multilateral system," the source said, speaking on the condition of anonymity because the board’s deliberations are not public. Her likely confirmation has spawned great pride in her home country, with some newspapers lauding it as evidence of both Georgieva's own qualities and as a diplomatic success. "Only 20 years ago, Bulgaria was among the countries with an IMF rescue programme," the leading financial newspaper Kapital said earlier this month. "The nomination of the former Bulgarian EU commissioner should be seen not only as her personal acknowledgement but as a diplomatic success for the country." Georgieva will replace Christine Lagarde, who became the first woman to head the IMF when she took the helm in 2011. Lagarde, 63, guided the lender through the European sovereign debt crisis, which began about a month after she took office. She is departing to head the European Central Bank. Before her appointment at the World Bank, Georgieva held numerous senior European Commission posts, including the budget commissioner, and has deep knowledge of emerging market countries served by the World Bank. Scott Morris, a senior fellow at the Center for Global Development, said Georgieva quickly made an impact after assuming the No. 2 role at the World Bank in early 2017. She pushed for consensus on a $13 billion capital increase and reform package agreed last year. Under the reforms, lending to China and other wealthier developing countries will decrease with more resources going to needier countries. "She was able to bring together a diverse group of shareholders. That's her strength," said Morris, a former US Treasury official. "What's less clear is how she will handle the day to day business of the fund, that business being the crisis moments. It's harder to see how she will respond in a crisis." Morris said Lagarde was successful in that she was not viewed as representing European interests, which helped her navigate the Greek debt crisis. Georgieva will have to take a similar multilateral approach, keeping her focus on the interests of the institution and individual countries. "No one thought of Lagarde as a European chief executive," Morris said. "She rose above that."

World Bank's Georgieva to be first International Monetary Fund chief from emerging economy

<p>Pakistan's government, struggling to lift revenues and cut ballooning public debt, <a href="https://www.wionews.com/south-asia/imf-approves-6-billion-loan-for-pakistan-to-right-the-nations-economy-232863">registered around 100,000 new tax filers</a> and expects to have raised about $450 million from a tax amnesty on hidden assets, the finance chief said on Thursday.</p>

<p>The announcement came a day after the<a href="https://www.wionews.com/south-asia/us-pushes-for-conditionality-in-imf-bailout-package-to-pakistan-228542"> International Monetary Fund(IMF)</a> gave final approval to a $6 billion loan package designed to shore up the economy while the government cuts debt and builds up dwindling foreign currency reserves.</p>

<p>Finance chief Abdul Hafeez Shaikh said nearly 137,000 people had registered at the closure of the amnesty this week, of whom nearly 100,000 were first-time filers.</p>

<p>That was a significant total in a nation where less than 1 per cent of the 208 million population file tax returns.</p>

<p>In total, around $19.25 billion assets were declared and tax revenue worth around $449.15 million was collected.</p>

<p>Prime Minister Imran Khan introduced the amnesty on undeclared assets, part of a broader drive to widen Pakistan's notoriously narrow tax base, in a bid to identify high earners for more efficient tax collection.</p>

<p>The move represented a turnaround for Khan who had accused previous governments of using amnesties to legitimise illegally acquired wealth hidden inside Pakistan and abroad.</p>

<p>Under the IMF agreement, approved on Wednesday, Pakistan has undertaken to drastically increase revenue mobilization by 4-5 per cent of GDP at federal and provincial level over three years.</p>

<p>There have already been protests by opposition parties at the squeeze on household revenues.</p>

<p>Hafeez Shaikh said the IMF agreement would open up more funds from other lending agencies and help the broader economy.</p>

<p>"Pakistan's economy will stabilise, and we will take on the path of progress," he said.</p>

<p>The government has set a target of raising $35.6 billion in tax this year, an ambitious goal given that it missed a previous target of $28.2 billion by over $3.2 billion.</p>


Pakistan's government, struggling to lift revenues and cut ballooning public debt, registered around 100,000 new tax filers and expects to have raised about $450 million from a tax amnesty on hidden assets, the finance chief said on Thursday.

Pakistan's government, struggling to lift revenues and cut ballooning public debt, registered around 100,000 new tax filers and expects to have raised about $450 million from a tax amnesty on hidden assets, the finance chief said on Thursday. The announcement came a day after the International Monetary Fund(IMF) gave final approval to a $6 billion loan package designed to shore up the economy while the government cuts debt and builds up dwindling foreign currency reserves. Finance chief Abdul Hafeez Shaikh said nearly 137,000 people had registered at the closure of the amnesty this week, of whom nearly 100,000 were first-time filers. That was a significant total in a nation where less than 1 per cent of the 208 million population file tax returns. In total, around $19.25 billion assets were declared and tax revenue worth around $449.15 million was collected. Prime Minister Imran Khan introduced the amnesty on undeclared assets, part of a broader drive to widen Pakistan's notoriously narrow tax base, in a bid to identify high earners for more efficient tax collection. The move represented a turnaround for Khan who had accused previous governments of using amnesties to legitimise illegally acquired wealth hidden inside Pakistan and abroad. Under the IMF agreement, approved on Wednesday, Pakistan has undertaken to drastically increase revenue mobilization by 4-5 per cent of GDP at federal and provincial level over three years. There have already been protests by opposition parties at the squeeze on household revenues. Hafeez Shaikh said the IMF agreement would open up more funds from other lending agencies and help the broader economy. "Pakistan's economy will stabilise, and we will take on the path of progress," he said. The government has set a target of raising $35.6 billion in tax this year, an ambitious goal given that it missed a previous target of $28.2 billion by over $3.2 billion.

Pakistan registers 100,000 new tax filers amid financial crisis

<p>It is important for the Indian <a href="http://www.wionews.com/business-economy/rbi-to-pump-in-additional-liquidity-of-rs-40000-crore-in-december-179820">government to heed the RBI's message</a> on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.&nbsp;</p>

<p>Addressing a group of journalists here, he also said the <a href="http://www.wionews.com/india-news/govt-does-not-need-extra-funds-from-rbi-to-meet-fiscal-deficit-target-arun-jaitley-179162">International Monetary Fund does not</a> want politicians "manipulating" central banks for political ends.</p>

<p>"There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government.</p>

<p>"We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said.&nbsp;</p>

<p>"Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added.</p>

<p>Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical.</p>

<p>Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said.&nbsp;</p>

<p>Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment.</p>

<p>However, at the same time, he said, their moves also raised questions of transparency and accountability.&nbsp;</p>

<p>"So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said.</p>

<p>If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said.&nbsp;</p>

<p>"Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added.&nbsp;</p>

<p>After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. &nbsp;</p>

<p>India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government.</p>

<p>"India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here.</p>

<p>He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking.<br />
&nbsp;<br />
"There is a big challenge of stricter, oversight," the economist said.</p>

<p>Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system.&nbsp;</p>

<p>"But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.</p>


It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry.

It is important for the Indian government to heed the RBI's message on financial stability, IMF's Chief Economist Maurice Obstfeld said, amid reports of friction between the central bank and the finance ministry. Addressing a group of journalists here, he also said the International Monetary Fund does not want politicians "manipulating" central banks for political ends. "There is debate over whether it's better for financial stability to be the remit of the central bank or an independent regulator...The UK in 1997, split them, then put them back together again. I'm not going to take a position on that...But I think...The central bank does have to be intimately concerned with financial stability to some degree and with the payment system," he said, responding to a specific question on the recent developments in India regarding the RBI and the government. "We need to think about what is the best institutional framework in which financial policy can be set with regard to long-term stability of the economy, not just to performance over political horizon," Obstfeld said. "Well, I think they (the RBI and the Indian government) have reached an agreement on how to proceed. I think their (RBI) message that financial stability is important is correct. And it is important for the government to heed that," he added. Responding to a series of questions on the attempt in certain countries like the US, India, Argentina and Turkey to curb independence of central banks, Obstfeld said central banks' role as a financial regulator is critical. Central banks have "much greater power than you thought". They are fundamentally involved in financial stability policy, in fiscal policy, he said. Obstfeld said if one looks at the record, the decisions taken by central banks worldwide did stabilise the economy by avoiding much worse losses in output and employment. However, at the same time, he said, their moves also raised questions of transparency and accountability. "So, it's not a shock that people raise these questions and it does create a challenge for central banks to be more transparent and to communicate more effectively with a broader public about what they are about and what they are doing," Obstfeld said. If the central bank cannot communicate more effectively about what it is doing, then there is a possibility of political manipulation where politicians attack the central bank and undermine it, he said. "Clearly, we don't want politicians manipulating the central bank for political ends," Obstfeld added. After serving as IMF's chief economist for more than three years, 66-year-old Obstfeld is set to retire this month-end and will return to the University of California, Berkley. Gita Gopinath, Indian American economist from the Harvard University, would replace him from the first week of January. India's growth has been "very solid" over the past four years, IMF's chief economist Maurice Obstfeld added, praising the fundamental economic reforms like the GST and the Insolvency and Bankruptcy Code carried out by the government. "India under the government of Prime Minister Narendra Modi has carried out some really fundamental reforms. These include the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code...A lot of what they have done on financial inclusion has been really important," Obstfeld told a group of journalists here. He said one risk that has become much more evident in the last few years has been non-bank finance, usually called shadow banking. "There is a big challenge of stricter, oversight," the economist said. Noting that there has long been a legacy of corporate debt associated with bad infrastructure projects in India, Obstfeld said it has been very concentrated in banking system. "But as the government is trying to better oversee the banking system, these loans have migrated to shadow banking and that is an area where more needs to be done to contain financial pressures, which we are beginning to see in India," he said.

India's growth very solid, government should heed RBI's message: IMF

<p>Economic growth in the energy-rich<a href="http://www.wionews.com/world/imf-fears-possible-italy-contagion-to-weaker-european-economies-176252"> Gulf will recover in 2018 from a</a> contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday.</p>

<p>The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council to grow by 2.4 per cent in 2018 and 3.0 per cent in 2019, after a contraction of 0.4 per cent last year. &nbsp;</p>

<p>Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues.</p>

<p>But "the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices," the IMF said in its Regional Economic Outlook for the Middle East and North Africa (MENA).</p>

<p>After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April.</p>

<p>Growth in non-GCC oil exporters in MENA, which includes Iran, Iraq, Algeria and Libya, is projected to slow to 0.3 per cent in 2018, from three per cent the previous year, and pick up modestly to 0.9 per cent in 2019, the IMF said.</p>

<p>"This largely reflects the expected impact of the re-imposition of US sanctions on Iran, which is likely to reduce Iranian oil production and exports significantly over the next two years at least," the IMF said.</p>

<p>It projected Iran's economy to shrink by 1.6 per cent this year and 3.6 per cent in 2019.</p>

<p>For oil-importing countries in MENA, growth is expected to continue at a modest pace of 4.5 per cent in 2018, before dropping back to four per cent next year, the IMF said.&nbsp;</p>

<p>This level of growth is not sufficient to create the required jobs for a region marred by instability and civil strife, it said.</p>

<p>Oil revenues for MENA exporters have increased by about $260 billion&nbsp;over the period 2016 to 2018.</p>

<p>This has mostly been due to a price rise generated by production cuts in nations belonging to the OPEC cartel, as well as non-OPEC producers.&nbsp;</p>

<p>The current account balance will turn from a deficit into a surplus and overall budget shortfalls will decline, the lender said.</p>

<p>The IMF urged GCC states to continue with and expand reforms, welcoming the imposition of value-added tax by Saudi Arabia and the UAE.</p>

<p>It also called on GCC countries to impose corporate and personal income tax in order to diversify their revenue streams.</p>


Economic growth in the energy-rich Gulf will recover in 2018 from a contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday.

Economic growth in the energy-rich Gulf will recover in 2018 from a contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday. The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council to grow by 2.4 per cent in 2018 and 3.0 per cent in 2019, after a contraction of 0.4 per cent last year. Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues. But "the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices," the IMF said in its Regional Economic Outlook for the Middle East and North Africa (MENA). After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April. Growth in non-GCC oil exporters in MENA, which includes Iran, Iraq, Algeria and Libya, is projected to slow to 0.3 per cent in 2018, from three per cent the previous year, and pick up modestly to 0.9 per cent in 2019, the IMF said. "This largely reflects the expected impact of the re-imposition of US sanctions on Iran, which is likely to reduce Iranian oil production and exports significantly over the next two years at least," the IMF said. It projected Iran's economy to shrink by 1.6 per cent this year and 3.6 per cent in 2019. For oil-importing countries in MENA, growth is expected to continue at a modest pace of 4.5 per cent in 2018, before dropping back to four per cent next year, the IMF said. This level of growth is not sufficient to create the required jobs for a region marred by instability and civil strife, it said. Oil revenues for MENA exporters have increased by about $260 billion over the period 2016 to 2018. This has mostly been due to a price rise generated by production cuts in nations belonging to the OPEC cartel, as well as non-OPEC producers. The current account balance will turn from a deficit into a surplus and overall budget shortfalls will decline, the lender said. The IMF urged GCC states to continue with and expand reforms, welcoming the imposition of value-added tax by Saudi Arabia and the UAE. It also called on GCC countries to impose corporate and personal income tax in order to diversify their revenue streams.

Growth prospects in Gulf countries uncertain due to oil prices: IMF

<p>In first big confirmation on the bailout package to Islamabad, the International Monetary Fund(IMF) has told WION that it "understands" that Pakistan "intends to approach it".</p>

<p>Though Pakistan has not still approached IMF for the bailout package, the Pakistani finance minister Asad Umar has said that the country will be going forward with it.</p>

<p><a href="http://www.wionews.com/south-asia/pakistani-rupee-dives-8-as-imf-bailout-talks-loom-170378">Also Read:&nbsp;Pakistani rupee dives 8% as IMF bailout talks loom</a></p>

<p>The IMF spokesperson told WION,"We have not yet received a formal request for a program from Pakistan’s authorities. However, we understand that Pakistan intends to approach the IMF for support."</p>

<p>The IMF also assured that, "once we receive a formal request, the IMF will consider it as it does for other members of the IMF.”</p>

<p>A month ago when WION had asked IMF this question, the multilateral organisation had said "it has not received a request for financial support for Pakistan."</p>

<p>Approaching the IMF is considered as a U-turn by the new Imran Khan government since before the elections, Khan has been saying that he will go with a "begging bowl" to solve the economic issues his country is facing. Pakistan's economy is facing a massive economic crisis especially balance to payment issues.&nbsp;</p>

<p>Pakistan's Finance Minister Asad Umar on Monday had said,"it was decided that we should start talks with the IMF for such a stabilisation, recovery programme on which basis we could overcome this financial crisis".</p>

<p>Many have linked the current debt crisis with China lead infrastructure project - China Pakistan Economic corridor(CPEC) which has caused many debt-linked issues in several countries including in South Asia in Sri Lanka.</p>

<p>The "Debt Trap Diplomacy" by China has been slammed by US. Earlier this year, US secretary of state Mike Pompeo had said that US will be watching what "IMF does" and "there is no rationale for IMF TAX dollars for those to go to bail out Chinese bondholders"</p>

<p>If IMF agrees to the bailout package, it will be second bailout package in 5 years and 13th in last three decades. Reports suggest Pakistan plans to approach for $12 billion&nbsp;bailout package from the IMF.&nbsp;</p>


In first big confirmation on the bailout package to Islamabad, the International Monetary Fund(IMF) has told WION that it "understands" that Pakistan "intends to approach it".

In first big confirmation on the bailout package to Islamabad, the International Monetary Fund(IMF) has told WION that it "understands" that Pakistan "intends to approach it". Though Pakistan has not still approached IMF for the bailout package, the Pakistani finance minister Asad Umar has said that the country will be going forward with it. Also Read: Pakistani rupee dives 8% as IMF bailout talks loom The IMF spokesperson told WION,"We have not yet received a formal request for a program from Pakistan’s authorities. However, we understand that Pakistan intends to approach the IMF for support." The IMF also assured that, "once we receive a formal request, the IMF will consider it as it does for other members of the IMF.” A month ago when WION had asked IMF this question, the multilateral organisation had said "it has not received a request for financial support for Pakistan." Approaching the IMF is considered as a U-turn by the new Imran Khan government since before the elections, Khan has been saying that he will go with a "begging bowl" to solve the economic issues his country is facing. Pakistan's economy is facing a massive economic crisis especially balance to payment issues. Pakistan's Finance Minister Asad Umar on Monday had said,"it was decided that we should start talks with the IMF for such a stabilisation, recovery programme on which basis we could overcome this financial crisis". Many have linked the current debt crisis with China lead infrastructure project - China Pakistan Economic corridor(CPEC) which has caused many debt-linked issues in several countries including in South Asia in Sri Lanka. The "Debt Trap Diplomacy" by China has been slammed by US. Earlier this year, US secretary of state Mike Pompeo had said that US will be watching what "IMF does" and "there is no rationale for IMF TAX dollars for those to go to bail out Chinese bondholders" If IMF agrees to the bailout package, it will be second bailout package in 5 years and 13th in last three decades. Reports suggest Pakistan plans to approach for $12 billion bailout package from the IMF.

Pakistan intends to approach US for bailout, confirms IMF

<p>As the Trump administration turns the heat on China in the trade war, the International Monetary Fund(IMF) cut China's growth citing "negative effect of recent tariff actions".</p>

<p><a href="http://13.232.42.114/business-economy/full-blown-us-china-trade-war-will-slow-global-growth-by-less-than-1-imf-170313">Also Read:&nbsp;Full-blown US-China trade war will slow global growth by less than 1%, says&nbsp;IMF</a></p>

<p>The IMF said China will grow at &nbsp;6.2 per cent next year, down from an early forecast of 6.4 per cent. It is the slowest growth rate forecast for the Chinese republic since 1990.</p>

<p>"The forecast does not incorporate the impact of further tariffs on Chinese and other imports threatened by the United States, but not yet implemented, due to uncertainty about their exact magnitude, timing, and potential retaliatory response," the IMF said.</p>

<p>The IMF added that China was navigating a "difficult trade-off between growth and stability". The IMF had earlier forecast 6.6 per cent growth for the Communist regime this year. China's economy grew 6.9 per cent last year.</p>

<p>President Trump has threatened to impose tariffs on all Chinese goods entering the US, a scenario which the IMF said would have a severe impact on the Chinese economy.</p>

<p>The Monetary Fund further cautioned that China's growth could fall by as much as a full percentage point or more by 2019 if the "worst-case" scenario materialises, involving more tariffs by the US, a Chinese counter-response and collapse in business confidence.</p>

<p>Growth is expected to "remain strong elsewhere in emerging and developing Asia", the IMF said, forecasting India's growth to increase to 7.3 per cent this year and 7.4 per cent nex year. However, it said that trade uncertainty would impact the ASEAN-5 - Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.</p>

<p>The International fund set a 5.3 per cent growth forecast for the Southeast countries this year, but lowered it to 5.2 per cent next year.</p>


As the Trump administration turns the heat on China in the trade war, the International Monetary Fund(IMF) cut China's growth citing "negative effect of recent tariff actions".

As the Trump administration turns the heat on China in the trade war, the International Monetary Fund(IMF) cut China's growth citing "negative effect of recent tariff actions". Also Read: Full-blown US-China trade war will slow global growth by less than 1%, says IMF The IMF said China will grow at 6.2 per cent next year, down from an early forecast of 6.4 per cent. It is the slowest growth rate forecast for the Chinese republic since 1990. "The forecast does not incorporate the impact of further tariffs on Chinese and other imports threatened by the United States, but not yet implemented, due to uncertainty about their exact magnitude, timing, and potential retaliatory response," the IMF said. The IMF added that China was navigating a "difficult trade-off between growth and stability". The IMF had earlier forecast 6.6 per cent growth for the Communist regime this year. China's economy grew 6.9 per cent last year. President Trump has threatened to impose tariffs on all Chinese goods entering the US, a scenario which the IMF said would have a severe impact on the Chinese economy. The Monetary Fund further cautioned that China's growth could fall by as much as a full percentage point or more by 2019 if the "worst-case" scenario materialises, involving more tariffs by the US, a Chinese counter-response and collapse in business confidence. Growth is expected to "remain strong elsewhere in emerging and developing Asia", the IMF said, forecasting India's growth to increase to 7.3 per cent this year and 7.4 per cent nex year. However, it said that trade uncertainty would impact the ASEAN-5 - Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. The International fund set a 5.3 per cent growth forecast for the Southeast countries this year, but lowered it to 5.2 per cent next year.

IMF cuts China's growth rate on 'negative effect of tariff actions'

<p>A day after Prime Minister Narendra Modi said India will become a USD 5 trillion economy by 2022, the World Bank board Friday endorsed an ambitious five-year Country Partnership Framework (CPF) for India, which aligns with New Delhi's objectives of high, sustainable and inclusive growth.</p>

<p>Aimed at supporting India's transition to a higher middle-income country by addressing some of its key development priorities -- resource efficient and inclusive growth, job creation and building its human capital -- the framework is expected to bring between USD 25-30 billion in financial support from the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).</p>

<p>"With a fast-growing economy, global stature, and its unique experience of lifting the highest number of poor out of poverty in the past decades, India is well-positioned to become a high middle-income country by 2030," said Hartwig Schafer, World Bank South Asia vice president.</p>

<p>"It's a five-year framework that commits the Bank's engagement in India, both in areas where what we'll do, how we will work in these areas and the level of financial commitment. This is the first country partnership framework written with India," Junaid Ahmad, Country Director, World Bank, India, told PTI in an exclusive interview.</p>

<p>"The CPF was preceded by a systematic country diagnostic or SCD that offered a narrative about India. What are the challenges going forward in terms of the growth of India? And what are the challenges that India faces in achieving the twin goals that the World Bank has put for itself, which is a reduction in extreme poverty and the increase in shared prosperity," Ahmad said.</p>

<p>Soon after the World Bank endorsed the CPF for India, Ahmad said, the Board recognises the incredible growth and development of India over the last several decades.&nbsp;</p>

<p>"It recognizes that India has gone from a low-income country status to a low-middle income. And now India is entering the economic transformation from low-middle income to high-middle income (country). This CPS is about how can the Bank support this transition," he said.</p>

<p>Noting that both the SCD is a highly consultative document, Ahmad said, the CPF is a joint document with the Indian government.&nbsp;</p>

<p>"I compliment the World Bank Group for aligning the CPF with India's development and investment objectives of high, sustainable and inclusive growth," said Subhash Chandra Garg, Economic Affairs Secretary, in a statement.</p>

<p>Observing that the SCD basically said India's big story is steady growth from very low several decades back to a steady growth of seven per cent plus, Ahmad said, this document also showed that the growth is quite diversified. "Some of it is based on export. A lot of it is based on an internal consumption and investment, unlike say China, which is highly export-led growth. So India's is more broad-based, diversified growth path," he said.</p>

<p>"Over time, this growth has become more stable and is resilient. Recently there were shocks on the economy, which included demonetisation and the GST implementation and there was this fall in the growth. But it is now rebounded, and not only has it gone back to seven per cent, this quarter it is at eight per cent," Ahmad said.</p>

<p>Based on the SCD goal of taking the Indian growth rate to eight per cent plus, the World Bank argued that there were several areas of engagement that were very important: natural resource management, jobs and competitiveness, and human development, he said, adding that the framework addresses these issues.</p>

<p>"The first point we make is India needs to unleash the power of markets and the private sector. It needs to leverage the private sector and in particular private capital. The challenge for the Bank is how do you take the little amount of money ultimately you're putting into the country and you go from being a lending bank to being a leveraging bank," Ahmad said.</p>

<p>He said complementing transformational national programs, the Bank will also develop strategic state partnerships to address state-specific development priorities and support implementation capabilities at the state and the local level.</p>

<p>"The future of India lies in the states of India. The country's transition to high middle-income status will be determined in large part by the effectiveness of India's federal compact. In this context, an important focus of the CPF will be to deepen engagement with India's states and invest in the institutions and capabilities of the states and local governments to address their development priorities," Ahmad said.</p>

<p>He said the Bank was going for a "Lighthouse India" approach. "Lighthouse India basically means learning from the innovation of the states and sharing with other states.</p>

<p>We also recognise that the learning is what India also has to offer the rest of the world. As it goes from low-income to middle-income to high-middle-income, its learning over its development path is going to be very valuable for other nations," he said.</p>

<p>"The Indian economy has evolved to a level where the private sector can be counted on to close large developmental gaps. Through this the CPF, the WBG will help India leverage additional resources from the private sector to help India realize its full potential," said Jun Zhang, Country Head, IFC, India.</p>


A day after Prime Minister Narendra Modi said India will become a USD 5 trillion economy by 2022, the World Bank board Friday endorsed an ambitious five-year Country Partnership Framework (CPF) for India, which aligns with New Delhi's objectives of high, sustainable and inclusive growth.

A day after Prime Minister Narendra Modi said India will become a USD 5 trillion economy by 2022, the World Bank board Friday endorsed an ambitious five-year Country Partnership Framework (CPF) for India, which aligns with New Delhi's objectives of high, sustainable and inclusive growth. Aimed at supporting India's transition to a higher middle-income country by addressing some of its key development priorities -- resource efficient and inclusive growth, job creation and building its human capital -- the framework is expected to bring between USD 25-30 billion in financial support from the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). "With a fast-growing economy, global stature, and its unique experience of lifting the highest number of poor out of poverty in the past decades, India is well-positioned to become a high middle-income country by 2030," said Hartwig Schafer, World Bank South Asia vice president. "It's a five-year framework that commits the Bank's engagement in India, both in areas where what we'll do, how we will work in these areas and the level of financial commitment. This is the first country partnership framework written with India," Junaid Ahmad, Country Director, World Bank, India, told PTI in an exclusive interview. "The CPF was preceded by a systematic country diagnostic or SCD that offered a narrative about India. What are the challenges going forward in terms of the growth of India? And what are the challenges that India faces in achieving the twin goals that the World Bank has put for itself, which is a reduction in extreme poverty and the increase in shared prosperity," Ahmad said. Soon after the World Bank endorsed the CPF for India, Ahmad said, the Board recognises the incredible growth and development of India over the last several decades. "It recognizes that India has gone from a low-income country status to a low-middle income. And now India is entering the economic transformation from low-middle income to high-middle income (country). This CPS is about how can the Bank support this transition," he said. Noting that both the SCD is a highly consultative document, Ahmad said, the CPF is a joint document with the Indian government. "I compliment the World Bank Group for aligning the CPF with India's development and investment objectives of high, sustainable and inclusive growth," said Subhash Chandra Garg, Economic Affairs Secretary, in a statement. Observing that the SCD basically said India's big story is steady growth from very low several decades back to a steady growth of seven per cent plus, Ahmad said, this document also showed that the growth is quite diversified. "Some of it is based on export. A lot of it is based on an internal consumption and investment, unlike say China, which is highly export-led growth. So India's is more broad-based, diversified growth path," he said. "Over time, this growth has become more stable and is resilient. Recently there were shocks on the economy, which included demonetisation and the GST implementation and there was this fall in the growth. But it is now rebounded, and not only has it gone back to seven per cent, this quarter it is at eight per cent," Ahmad said. Based on the SCD goal of taking the Indian growth rate to eight per cent plus, the World Bank argued that there were several areas of engagement that were very important: natural resource management, jobs and competitiveness, and human development, he said, adding that the framework addresses these issues. "The first point we make is India needs to unleash the power of markets and the private sector. It needs to leverage the private sector and in particular private capital. The challenge for the Bank is how do you take the little amount of money ultimately you're putting into the country and you go from being a lending bank to being a leveraging bank," Ahmad said. He said complementing transformational national programs, the Bank will also develop strategic state partnerships to address state-specific development priorities and support implementation capabilities at the state and the local level. "The future of India lies in the states of India. The country's transition to high middle-income status will be determined in large part by the effectiveness of India's federal compact. In this context, an important focus of the CPF will be to deepen engagement with India's states and invest in the institutions and capabilities of the states and local governments to address their development priorities," Ahmad said. He said the Bank was going for a "Lighthouse India" approach. "Lighthouse India basically means learning from the innovation of the states and sharing with other states. We also recognise that the learning is what India also has to offer the rest of the world. As it goes from low-income to middle-income to high-middle-income, its learning over its development path is going to be very valuable for other nations," he said. "The Indian economy has evolved to a level where the private sector can be counted on to close large developmental gaps. Through this the CPF, the WBG will help India leverage additional resources from the private sector to help India realize its full potential," said Jun Zhang, Country Head, IFC, India.

World Bank endorses plan for India to transition to higher middle-income country

<p>The disengagement of both Chinese and Indian troops in Doklam has fortunately led to a less tense atmosphere for the ninth BRICS Summit. China as the host would naturally like to make it a big success.</p>

<p><strong>Evolution</strong></p>

<p>BRIC&nbsp;has come a long way from Jim O&rsquo;Neill&rsquo;s (of Goldman Sachs) 2001 concept of four attractive investment destinations comprising of Brazil, Russia, India and China. It expanded into BRICS with the inclusion of South Africa. The agenda has also steadily expanded and there is a growing awareness about its relevance. The group brought a unique and alternative narrative for global growth and development.</p>

<p>In the beginning, the group was confusing for many people, since it did not fit in with any of the recognised foundations for forming such groups. It was not based on region, ideology, language, religion or commodities. The common factor for the group was the success that these five countries had made out of the process globalisation and the rapid economic growth that they registered. The raison d&rsquo;etre of the group was the growth potential of these emerging markets.</p>

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<h5>Intra BRICS cooperation in sectors like health, education, urbanisation, inclusive growth, gender issues and the environment has been making steady gains, though these do not make headline news.</h5>
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<p>Initially, BRICS countries concentrated on three main pillars &ndash; reform of the Global Financial Institutions (IMF and World Bank), intra-BRICS cooperation in various sectors and addressing Global Governance Issues. In all three, there has been considerable progress. At the Seoul G-20 Summit in 2010, a decision was taken to change the share quotas and voting powers in the IMF and World Bank. It was a modest success but the US Congress has stalled further progress on the issue.</p>

<p>Intra-BRICS cooperation in sectors, such as health, education, urbanisation, inclusive growth, gender issues and the environment have been making steady gains, though these do not make headline news. Here, the idea is to learn from each other&rsquo;s experiences and follow best practices.</p>

<p>On Global Governance, the group has been demanding an equitable sharing of global leadership commensurate with the economic and political influence of BRICS. The Global Financial Crisis of 2008 clearly reiterated the need for a new approach to Global Economic and Political Governance with the inclusion of new emerging economies.&nbsp;</p>

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<h5>The most impressive achievement of BRICS, of course, is the establishment of the New Development Bank (NDB) and the Contingency Reserve Arrangement (CRA) in a very short time.</h5>
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<p>The most impressive achievement of BRICS, of course, is the establishment of the New Development Bank (NDB) and the Contingency Reserve Arrangement (CRA) in a very short time. These come about because of the inability of the World Bank and the IMF to evolve with changing circumstances. This development proved that BRICS could indeed establish global institutions wherever needed.</p>

<p><strong>What are the expectations from the Xiamen Summit?&nbsp;</strong></p>

<p>Even though there are no big-ticket items like the NDB on the cards, some pending ideas like the establishment of a BRICS Credit Rating Agency and BRICS standardisation and benchmarking would be pursued. There are also new initiatives on cyber security and sustainable development goals.&nbsp;</p>

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<h5>BRICS should step in to take the leadership role in promoting globalisation, free trade and multilateralism.</h5>
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<p>The international scenario today is truly at a crossroads. This provides a unique opportunity for BRICS to step into global leadership roles. The US and the Western countries have retreated from promoting their pet themes of globalisation and free trade. These are issues of critical importance to BRICS because their economic success has been predicated on these principles. With the West taking a back seat on these questions, BRICS should step in to take the leadership role in promoting globalisation, free trade and multilateralism.</p>

<p>The question is does BRICS have the bandwidth to do it? If not, it will have to find it because it is an excellent opportunity for BRICS to play a role in Global Governance. Of course, it will not be easy because there is a divergence in BRICS on many of these issues. The original convergence that the five countries had on Global Governance does not appear to be strengthening. Nonetheless, BRICS should not miss this opportunity of taking over a leadership role in these three critical areas.&nbsp;</p>

<p>BRICS also suffers from structural and procedural issues. Summits every year hosted by different countries lead to a proliferation of agenda items with each host trying to outdo the predecessor. There is hardly any follow-up on many of these items. The time has come for BRICS to prioritise a select number of critical areas and work towards achieving concrete goals.</p>

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<h5>China has invited leaders of Thailand, Indonesia, Kazakhstan, Egypt, Mexico and Guinea (African Union Chair) to the Xiamen Summit.</h5>
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<p><strong>BRICS Plus is not a good idea</strong></p>

<p>The question of deepening vs broadening BRICS has been debated many times. The consensus, so far, has been to deepen cooperation between the five before broadening the group. Of course, since the Summit in Durban (South Africa), there has been outreach activities as part of South-South Cooperation (AU countries in Durban, Latin American leaders in Fortaleza, SCO members in Ufa and BIMSTEC members in Goa). China has been keen to take it to a higher level with a &ldquo;BRICS plus&rdquo; concept. So long as it is within the outreach approach, it would work well. Any attempt to increase the membership could be counter-productive.</p>

<p>China has invited leaders of Thailand, Indonesia, Kazakhstan, Egypt, Mexico and Guinea (African Union Chair) to the Xiamen Summit. As an outreach activity, there is no harm so long as there is no formal induction into the group. It appears that China has since given up the idea of BRICS Plus due to objections from other members. Chinese Foreign Minister Wang Yi made a remark to this effect on August 30.</p>

<p>Another aspect that India will have to look out for in the Xiamen Final Declaration is a reference to China&rsquo;s pet project of One Belt-One Road (OBOR) or the Belt-Road Initiative (BRI). India has held the view that this is a unilateral project of China without any multilateral consultations. Further, the China Pakistan Economic Corridor (CPEC) of the project impinges on India&rsquo;s sovereignty. Therefore, India has to make sure that there is no reference to this initiative in the Final Declaration.</p>


For BRICS to play an important role in Global Governance, it should step in to take the leadership role in promoting globalisation, free trade and multilateralism.

The disengagement of both Chinese and Indian troops in Doklam has fortunately led to a less tense atmosphere for the ninth BRICS Summit. China as the host would naturally like to make it a big success. Evolution BRIC has come a long way from Jim O’Neill’s (of Goldman Sachs) 2001 concept of four attractive investment destinations comprising of Brazil, Russia, India and China. It expanded into BRICS with the inclusion of South Africa. The agenda has also steadily expanded and there is a growing awareness about its relevance. The group brought a unique and alternative narrative for global growth and development. In the beginning, the group was confusing for many people, since it did not fit in with any of the recognised foundations for forming such groups. It was not based on region, ideology, language, religion or commodities. The common factor for the group was the success that these five countries had made out of the process globalisation and the rapid economic growth that they registered. The raison d’etre of the group was the growth potential of these emerging markets. Intra BRICS cooperation in sectors like health, education, urbanisation, inclusive growth, gender issues and the environment has been making steady gains, though these do not make headline news. × Initially, BRICS countries concentrated on three main pillars – reform of the Global Financial Institutions (IMF and World Bank), intra-BRICS cooperation in various sectors and addressing Global Governance Issues. In all three, there has been considerable progress. At the Seoul G-20 Summit in 2010, a decision was taken to change the share quotas and voting powers in the IMF and World Bank. It was a modest success but the US Congress has stalled further progress on the issue. Intra-BRICS cooperation in sectors, such as health, education, urbanisation, inclusive growth, gender issues and the environment have been making steady gains, though these do not make headline news. Here, the idea is to learn from each other’s experiences and follow best practices. On Global Governance, the group has been demanding an equitable sharing of global leadership commensurate with the economic and political influence of BRICS. The Global Financial Crisis of 2008 clearly reiterated the need for a new approach to Global Economic and Political Governance with the inclusion of new emerging economies. The most impressive achievement of BRICS, of course, is the establishment of the New Development Bank (NDB) and the Contingency Reserve Arrangement (CRA) in a very short time. × The most impressive achievement of BRICS, of course, is the establishment of the New Development Bank (NDB) and the Contingency Reserve Arrangement (CRA) in a very short time. These come about because of the inability of the World Bank and the IMF to evolve with changing circumstances. This development proved that BRICS could indeed establish global institutions wherever needed. What are the expectations from the Xiamen Summit? Even though there are no big-ticket items like the NDB on the cards, some pending ideas like the establishment of a BRICS Credit Rating Agency and BRICS standardisation and benchmarking would be pursued. There are also new initiatives on cyber security and sustainable development goals. BRICS should step in to take the leadership role in promoting globalisation, free trade and multilateralism. × The international scenario today is truly at a crossroads. This provides a unique opportunity for BRICS to step into global leadership roles. The US and the Western countries have retreated from promoting their pet themes of globalisation and free trade. These are issues of critical importance to BRICS because their economic success has been predicated on these principles. With the West taking a back seat on these questions, BRICS should step in to take the leadership role in promoting globalisation, free trade and multilateralism. The question is does BRICS have the bandwidth to do it? If not, it will have to find it because it is an excellent opportunity for BRICS to play a role in Global Governance. Of course, it will not be easy because there is a divergence in BRICS on many of these issues. The original convergence that the five countries had on Global Governance does not appear to be strengthening. Nonetheless, BRICS should not miss this opportunity of taking over a leadership role in these three critical areas. BRICS also suffers from structural and procedural issues. Summits every year hosted by different countries lead to a proliferation of agenda items with each host trying to outdo the predecessor. There is hardly any follow-up on many of these items. The time has come for BRICS to prioritise a select number of critical areas and work towards achieving concrete goals. China has invited leaders of Thailand, Indonesia, Kazakhstan, Egypt, Mexico and Guinea (African Union Chair) to the Xiamen Summit. × BRICS Plus is not a good idea The question of deepening vs broadening BRICS has been debated many times. The consensus, so far, has been to deepen cooperation between the five before broadening the group. Of course, since the Summit in Durban (South Africa), there has been outreach activities as part of South-South Cooperation (AU countries in Durban, Latin American leaders in Fortaleza, SCO members in Ufa and BIMSTEC members in Goa). China has been keen to take it to a higher level with a “BRICS plus” concept. So long as it is within the outreach approach, it would work well. Any attempt to increase the membership could be counter-productive. China has invited leaders of Thailand, Indonesia, Kazakhstan, Egypt, Mexico and Guinea (African Union Chair) to the Xiamen Summit. As an outreach activity, there is no harm so long as there is no formal induction into the group. It appears that China has since given up the idea of BRICS Plus due to objections from other members. Chinese Foreign Minister Wang Yi made a remark to this effect on August 30. Another aspect that India will have to look out for in the Xiamen Final Declaration is a reference to China’s pet project of One Belt-One Road (OBOR) or the Belt-Road Initiative (BRI). India has held the view that this is a unilateral project of China without any multilateral consultations. Further, the China Pakistan Economic Corridor (CPEC) of the project impinges on India’s sovereignty. Therefore, India has to make sure that there is no reference to this initiative in the Final Declaration.

What can the Xiamen BRICS Summit get for India and others?