The Heiligendamm Process: Extending the G8-G5 Dialogue

July 10, 2009

Yesterday, in their joint declaration, G8 and G5 countries committed themselves to work together to address international governance challenges. To facilitate continued dialogue on issues such as investment, intellectual property and climate, the leaders announced an extension of the Heiligendamm Process – renaming it the Heiligendamm-L’Aquila Process (HAP) – the structured dialogue among the officials of the established industrialized countries  and the major emerging economies of the global South – China, India, Brazil, South Africa and Mexico.

In this exclusive video, Andrew F. Cooper interviews Ulrich Benterbusch, Director of the Heiligendamm Dialogue Process at the OECD. Since the 2007 Heiligendamm G8 Summit, Mr. Benterbusch has been the primary facilitator of this program that has allowed for confidence building and partnerships among G8 and G5 states, development of common policy towards critical global issues, as well as spill-over affects for the international financial institutions.

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The Latest on Currency: Lula Steps Up at G8

July 9, 2009

Lula2Gregory Chin
Senior Fellow, CIGI

On the eve of their meeting with the G8, the G5 group of major emerging economies – Brazil, China, India, Mexico and South Africa – discussed the use of their own currencies to settle trade accounts among themselves, Indian Foreign Secretary Shivshankar Menon told reporters. According to Menon, the suggestion to explore this possibility came from Brazilian President Luis Inacio Lula da Silva.

Menon wanted to clarify that this does not mean the G5 having a new currency or alternative reserve currency. China, Russia, Brazil, France, and to a lesser degree India had expressed an interest in the talks between G5 and G8 leaders due on Thursday including debate on seeking long-term alternatives to the US dollar as the global reserve currency. Brazil and China have, of course, already established arrangements to settle a portion of their trade in their own currencies.

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G5 Leaders Shifting the Balance

July 9, 2009

G5

Andrew F. Cooper
Associate Director and Distinguished Fellow, CIGI

While the BRIC group of states have grabbed a great deal of attention with their landmark leaders’ summit in Yekaterinburg, Russia, 15 June 2009, their expanded G5 alter ego has been a significant force at this week’s G8 Summit in L’Aquila.

Coined by Goldman-Sachs, the original BRIC investment acronym has moved from a laudatory account of the rise of 4 big economies (Brazil, Russia, India and China) to a geo-political reality. Such a shift indicates the extent to which we are moving into a more contested global order. In many ways, the BRIC countries are more interesting for their differences than their similarities. Brazil and India are robust democracies. Russia is a managed democracy. China is a one party state. India has a fast rising population. Russia is in serious demographic trouble with a sharply reduced life expectancy. Brazil and Russia are resource rich. India and China are resource dependent.

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