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Yechury suggests BRICS coalition to deal with crisis

Special Correspondent

NEW DELHI: As the world prepares to reconstruct a new financial system in the wake of the global meltdown, Communist Party of India (Marxist) on Monday suggested building a coalition of countries including Brazil, Russia, India, China and South Africa (BRICS) to deal with it.

Sceptical of the move to build a new method to deal with the post-financial meltdown by capitalist forces whose policies led to the problem, CPI (M) Polit Bureau Member and MP Sitaram Yechury said the “core of it should be to build an effective coalition of BRICS.”

Addressing a seminar ‘What can we learn from the global financial and economic crisis?’ Mr. Yechury said India wasalready part of the India-Brazil and South Africa and the effort to promote India, China and Russia had receded after the Left parties withdrew support to the United Progressive Alliance government.

Mr. Yechury said a change in the financial system would have to be a correlation of class forces and it would have to go in that direction. He said it is yet to be seen in how the G-20 restores the global economy.

Disagreeing with the Manmohan Singh government’s move to pump in liquidity into the market, Mr. Yechury said lessons should be drawn from China that announced a $450 billion stimulus in the form of public works.

On the other hand, India forced the public sector financial institutions to pump money into the share market and the Sensex moved up only to fall as foreign institutional investors withdrew after registering profits. This cash infusion, he said, essentially bailed out the FIIs.

The seminar was organised by Aneveshan, Delhi Science Forum and Economic Research Foundation.

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