BRICS and it’s relevance
BRICS is an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. The idea of BRIC was given by Goldman Sachs in 2001. 'BRICS' was actually 'BRIC' before South Africa joined in 2010. All the BRICS nations are developing or newly industrialized countries having a strong hold in regional as well as global affairs. It's first meeting was held at New York in 2006. The first standalone summit of BRIC took place at Yekaterinburg in Russia in 2009. It was at Sanya, that 'BRIC' became 'BRICS' with the induction of South Africa.
To work together through global issues like climate change, global terrorism, food and energy security, financial situations e.t.c. There is also co-operation among these countries in areas of security, finance, business, agriculture, health, culture,sports and science. At present, BRICS account for almost half of world’s foreign direct investments and half of world’s population. As a percentage share of the world’s GDP, their combined GDP is expected to rise from 17 per cent of the world in 2010 to 47 per cent by 2030.
BRICS SUMMIT 2014:
Brazil hosted the sixth summit of BRICS on the 14th, 15th and 16th July 2014. This summit adopted the ‘Fortazela Declaration and Action Plan‘, the agreement on the New Development Bank, the Treaty for establishment of a BRICS Contingent Reserve Arrangement and agreements among BRICS development banks and Export Credit Insurance Agencies.
The theme of the summit was , “Inclusive growth: sustainable solutions”. The newly added Contingent Reserve Arrangement is an additional line of defense available to the BRICS countries in scenarios of Balance of Payment difficulties(worth $100 billion), whereas the New Development Bank will finance infrastructure and sustainable development projects.
The BRICS framework includes more than 20 equally important cooperation formats including BRICS Business Council, BRICS banking forum. BRICS exchange Alliance.
The New Development Bank to be based in Shanghai, China is to be presided by India for the first six years. India’s presidency is to be followed by Brazil and Russia who will have five years term each.
Lastly, it is obvious that a solid foundation has been laid in form of BRICS among all it’s member countries. Future plannings and the results up til now seems to be promising too ; so it is only for the best that Brazil, China, India, Russia and South Africa continue with their cooperation and confidence in each other. This will be beneficial not just for the developing nations and region, but the world economy as a whole.
Team Aspirant forum