Brics Summit Of Emerging Nations To Explore Bank Plan

Leaders of the Brics group have agreed to examine in detail a proposal to set up a new bank to fund projects in developing nations, India's PM says.

Leaders of Brazil, Russia, China, India and South Africa, which now account for nearly 28% of the global economy, met in Delhi to discuss closer trade links.

They also said dialogue was the only route to lasting solutions in Syria and Iran, Indian PM Manmohan Singh said.

The summit was held amid Tibetan protests aimed at China's president.

Hu Jintao joined other Bric leaders for the fourth meeting of the bloc of emerging economies. On Wednesday, a Tibetan activist died in Delhi after setting himself on fire two days earlier in protest at Mr Hu's visit.

Bric nations' share of the global economy has risen fast in recent years and is expected to continue to grow. Correspondents say they are also growing in diplomatic clout.

Closer economic ties

On Thursday, Dilma Rousseff of Brazil, Dmitry Medvedev of Russia and Jacob Zuma of South Africa joined Mr Singh and Mr Hu for hand shakes and a group photograph at the start of the one-day meeting.

"The Brics countries have agreed to examine in greater detail a proposal to set up a South-South development bank," Mr Singh said.

"We should promote greater interaction amongst business communities of Brics nations and easier visa facilities for businessmen must be prioritised," he added.

Mr Singh said it was the responsibility of the Brics nations to ensure that the world economy was taken forward, and Europe was given the necessary help to help itself.

The meeting also agreed to expand the capital base of the World Bank and other institutions to ensure global economic stability, he added.

Mr Singh said the Brics group must speak with one voice on important issues such as reform of the UN Security Council.

President Hu said Brics nations should "enhance co-operation and intensify communication in international trade".

Brazil's Dilma Rousseff blamed the developed world for hindering other nations with "unjust" monetary policies.

The Brics nations have been looking at ways to increase their trade links and decrease dependency on Europe and the United States.

Correspondents say the joint development bank is expected to be established along the lines of the World Bank and Asian Development Bank, offering funding outside the current global financial system.