Emerging markets rise and the world moves towards multipolarity

The BRIC countries made their debut as a whole yesterday, a move that, in the view of many economists, heralded the rise of emerging markets, and the world economy will move towards multipolarity as the BRICS economies overtake the three largest economies of the US, Europe and Japan.　　The BRIC countries made their debut on the world stage for the first time as a whole in Jekaterinburg, Russia, which, in the view of many economists, is far more symbolic than the real results of the emerging market rise that the summit brought. Holding Regiment heating conspiracy interest economists generally believe that the BRICS summit is only a preliminary meeting of the four heads of state, although there are many common interests, but there are differences, to form a regular meeting mechanism to form a community of interests, there is a long way to go.　　But through this summit, we can understand each other's positions, seek common interests, unite the future and jointly seek some common interests internationally.　　Ma, chief economist at Deutsche Bank Greater China, said it was the BRICS ' common interest to increase the voice of the IMF.　　Puyong, chief investment strategist at UBS Wealth Management Asia-Pacific, said the four countries were different, but on some issues the interests of the four countries were consistent, including the stability of the dollar, the dependence of the western economy on how to improve the voice and status of the world. Lu, an Asian economist at Merrill Lynch, points out that the build-up of emerging market countries is helping to improve their position in international organizations, such as voting rights at the IMF and the WTO. These need to be promoted by big emerging market countries.　　At the same time, the Brics have their own strengths, China is a large manufacturing exporter, Brazil is a big exporter of raw materials, Russia is a big exporter of natural gas, each country can complement each other and expand its voice in international organizations as a whole. The world will move towards multipolarity for this meeting, Ma said that there will be no specific results in the short term, but in the long run the BRICS will rise in international status and rise faster than before the crisis. After the crisis G3 (the United States, Europe, Japan, the three major economies) will be a prolonged slump in economic growth, while the BRIC countries, although the growth potential than before the crisis, but the growth rate will be much higher than G3. Deutsche Bank expects China to overtake the US in nominal GDP for 10 years, and the BRIC GDP will surpass G3 in 20 years.　　In this context, the BRICS countries to establish a cooperative mechanism, common in the international economic field to fight for their own right to speak is the homeopathy. Tao, chief economist at Credit Suisse Asia, says the Brics are more of a symbol of the rise of emerging markets. Because they are the most powerful countries in the emerging world, their influence on the global economy will be growing. This round of financial crisis is actually the redistribution of global economic power. The impact of Europe and Japan will decline in the future. Emerging-world champions will rise. The world's largest or the United States, the developed countries will be a partial from first-class to second-rate, emerging countries in the elite will rise from three to first-class.　　The world will be more balanced and multipolar. The dominance of the dollar is hard to replaceEconomists have been divided over the BRIC countries ' discussion of currency swaps and hyper-sovereign currencies to reduce reliance on the dollar. Ma that China has signed a currency swap agreement with six countries, not excluding China from signing agreements with Brazil and Russia. China and Brazil have recently agreed to trade with each other in their own currencies, and China and Russia are also showing similar intentions that could soon be agreed. In his view, China and India do not rule out the possibility of a similar intention. This trend shows that even if China's capital is not fully open, the internationalisation of the renminbi still has room for development.　　If these countries are willing to settle in their own currencies, they will replace the dollar to some extent. But Lu is not optimistic about this. The geographical distance of four countries, although more bilateral trade, but the large use of national currency for trading settlement, the current or near future conditions are immature. International trade requires one or two hard currencies as a clearing tool.　　and trade between the BRICS is not a particularly balanced one, so that a country will hold a lot of money from another country, and such a bilateral currency problem needs to be managed. Tao that currency swaps or trade settlements in their own currencies are of little significance. He said that if the United States is excluded, trade between the rest of the world is basically balanced.　　The 80%―90% of China's trade surplus comes from the US, which is basically flat with other countries. For the most talked-about IMF's hyper-sovereign currency, Tao points to a total of 70 billion dollars, less than the size of a U.S. Treasury bond issue. Moreover, 70 billion dollars is now only in the subscription, only when the real need, will really send debt to buy people. The emerging world has yet to find a carrier to replace the dollar's savings wealth, so it is necessary to constantly beat the United States. The internationalization of RMB is not only the internationalization of exchange rate formation mechanism, but also the international capital purchase of assets, which will take a long time and not be changed overnight.