What does BRICS stand for?
BRICS is the abbreviation for the relationship between five noteworthy rising national economies of the world. The chronological order for BRICS is Brazil, Russia, India, China and South Africa. Initially, the first four were assembled as “BRIC” (or “the BRICs”) before the enlistment of South Africa in 2010.
The BRICS individuals are known for their huge impact on provincial issues. All these individual countries are also a part of the G20 group. Since 2009, the BRICS countries have met each and every year at formal summits. South Africa facilitated the latest tenth BRICS summit in July 2018. The term does exclude nations, for example, South Korea, Mexico and Turkey for which different abbreviations and gathering affiliations were later made.
History of BRICS
- The term was first coined by Jim O’Neill, the then chairman of Asset Management at Goldman Sachsto address economies that were progressing at a fast pace.
- After the foreign ministers of the initial four BRIC states met on September 2006 in New York, United States on the occasion of General Debate of the UN General Assembly a series of meetings later led to a full-scale diplomatic meeting.
- The group’s first formal summit was held in Yekaterinburg, Russia which started on 16 June 2009
- The meet had, amongst its agendas reformation of financial institutions and global economy, ways to increase mutual trade and ways to increase contribution to in various global affairs.
- In 2010, South Africa via its efforts expressed the desire to join the BRIC group. The necessary steps for its financial inclusion began in the month of August 2010.
- On 24 December 2010, South Africa became formally became a member after it was invited by China to join. Later, other members followed suit.
- Hence, the letter ‘S’ was added to rename the group to ‘BRICS’
- The latest BRICS summit had taken place in South Africa, from 25th to 27th July 2018.
Some data related to BRICS
- In 2015, the five BRICS nations acted as a representation of over 3.1 billion individuals or about 41% of the total populace.
- Currently, these five countries have a consolidated ostensible GDP of US$18.6 trillion, that amounts to approx 23.2% of the gross world product and joined GDP (PPP) of around US$40.55 trillion (32% of World’s GDP PPP)
- Overall the BRICS are anticipated to extend 4.6% in 2016, from an expected development of 3.9% in 2015.
- The financial architecture of BRICS is composed of two institutions. Both were signed and incorporated into BRICS structure at Fortaleza, Brazil on 15 July 2014. These are:
New Development Bank or NDB, which was earlier known as BRICS Development Bank, was created in 2014 to counter the financial dominance of the west favouring World Bank and International Monetary Fund. In the beginning, each member country contributed $10 Billion to create a corpus of $50 billion.
Contingent Reserve Arrangement or CRA, is a policy framework to ensure that countries do not face currency shortages or succumb to liquidity pressures. This prevents rising economies from financial troubles, which post liberalization of economic policy, faced rapid currency shortages.
Bilateral relations among BRICS countries have essentially been directed based on non-interference, fairness, transparency and common benefit. The BRICS have gotten both, applause from appreciators and criticism from various critics. However, on an overall basis, it has contributed towards increment in bilateral trade among its members.
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