Xiamen declaration Current Affairs
Union Cabinet has approved MoU signed between Export-Import Bank of India (Exim Bank) and member banks under BRICS Interbank Cooperation Mechanism on Collaborative Research on Distributed Ledger and Block chain Technology in context of development of digital economy.
Blockchain technology or Distributed Ledger holds potential for solutions to various challenges being faced in financial sector space of BRICS nations. The MoU was signed between Exim Bank, Banco Nacional de DesenvolvimentoEconomico e Social (BNDES, of Brazil), China Development Bank (CDB), State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank of Russia) and Development Bank of Southern Africa (DBSA). It intends to enhance understanding in this field, through joint research efforts to identify areas within respective business operations where it may have potential for applications aimed at enhancing operational efficiencies.
The Xiamen Declaration signed in September 2017 at 9th BRICS summit in Xiamen, China by BRICS leaders had highlighted importance of digital economy and ways BRICS nations can leverage its potential for fostering global economic development and benefit everyone. Accordingly, Memorandum of Understanding (MoU) on Collaborative Research on Distributed Ledger and Block chain Technology in the Context of Development of Digital Economy was suggested to be signed by all member banks.
The 9th BRICS summit was held in Xiamen, China. The theme of the summit was “Stronger Partnership for brighter Future”. It was for second time the summit was hosted in China after 2011 summit. At the end of summit, BRICS leaders adopted Xiamen declaration.
Four documents were signed in presence of BRICS Leaders. They are
- Strategic Framework of BRICS Customs Cooperation
- BRICS Action Plan for Innovation Cooperation(2017-2020)
- BRICS Action Agenda on Economic and Trade Cooperation
- MoU between BRICS Business Council and New Development Bank on Strategic Cooperation
Features of Xiamen declaration
Strive towards broad partnerships: BRICS countries agreed to strive towards broad partnerships with emerging markets and developing countries and pursue equal-footed and flexible practices and initiatives for dialogue and cooperation with non-BRICS countries, including through BRICS Plus cooperation (It includes Thailand, Tajikistan, Egypt, Kenya and Mexico).
BRICS local currency bond markets: Member countries resolved to promote development of BRICS local currency bond markets and agreed to jointly establish a BRICS local currency bond fund and facilitate financial market integration. They will also encourage explorations toward the establishment of the BRICS Institute of Future Networks.
R&D and innovation in ITC: They agreed to enhance joint research, development and innovation in information and communications technology (ICT), including internet of things (IoT), big data, data analytics, cloud computing, nanotechnology, artificial intelligence, 5G and their innovative applications.
Cooperation on energy: They agreed to strengthen BRICS cooperation on energy and work to foster open, flexible and transparent markets for energy commodities and technologies.
Promote effective use of fossil fuels: They also agreed to work together to promote most effective use of fossil fuels and wider use of gas, hydro and nuclear power to move towards low emission economy, better energy access and sustainable development.
BRICS Agriculture Research Platform: It is proposed to be established in India which will serve as virtual network facilitating cooperation in priority areas.
Broad counterterrorism coalition: They called upon international community to establish genuinely broad counterterrorism coalition and support UN’s central coordinating role in this regard.
People-to-People exchanges: It should be promoted for development and enhancing mutual understanding, friendship and cooperation among BRICS countries.
BRICS is acronym for an association of five major emerging national economies viz, Brazil, Russia, India, China and South Africa. It was established in 2009. Originally it was known as BRIC before inclusion of South Africa in 2011. The first formal summit was held in Yekaterinburg, Russia in 2009.
BRICS countries are distinguished by their large, fast-growing economies and significant influence on regional and global affairs. They are home to 42% of the world’s population. Their total share in the global economy has risen from 12% to 23% in the past decade and collectively contribute they more than half of global growth.