Understanding BRICS – Emerging National Economies

Understanding BRICS – Emerging National Economies

You all must have read about the BRICS in your school curriculum, but that was confined to mere full form of BRICS and a few basic details. This blog will get you detailed insights into it and will also help you in your General Awareness in various entrance exams and interviews.

BRICS is a group of five major emerging national economies, not a world institution or an organization as many believe, it is just an annual summit or association between these countries. It comprises 17 percent share in the world trade, having 37 percent of the world GDP and representing 3 billion people i.e. 43 percent of the world population.

Chronicle of BRICS

In order to give recognition to the world rising economic powers, four nations joined hands to form a group. These nations were Brazil, Russia, India and China, abbreviated as BRIC. BRICS is the brainchild of Goldman Sachs. He formed this group and used this acronym in the Global Economics Paper, “The World Needs Better Economic BRICs” in 2001. The 1st BRIC Summit was held on 16 June 2009 in Yekaterinburg, Russia. South Africa was the last country which joined the group in 2010 and completed the group as BRICS. After its inclusion, South Africa attended the 3rd BRICS Summit in Sanya, China on 14 April 2011.

BRICS work on two important pillars:

  • Issue of mutual interest through meetings of Leaders and Ministers of Health, Finance, Trade, S&T, Education, Communication, Agriculture, Labor, etc.
  • Through the meetings of Working Groups and Senior Officials Practical cooperation in number of areas.

Initiatives by BRICS:

  1. First Summit was held in 2009 in Russia- to reform financial institutions, improve the global economic situation, and announced the need for a new “Global Reserve Currency”.
  2. Second Summit held in Brazil in 2010– for the Development banks from each nation signed a Memorandum of Cooperation to help out each other (EXIM Bank from India).
  3. Third Summit took place in China, 2011– in this summit they pitched for UNSC Reforms and discussed other ongoing issues. It was this summit in which South Africa became a member.
  4. Fourth Summit was held in the year 2012 in India- in this summit the idea for a New Development Bank was mooted by India. Other foreign policy issues were also discussed.
  5. Fifth Summit was held in the year 2013 in South Africa- this summit proclaimed for a New Development Bank, setting up of a BRICS Business Council, creation of a Contingent Reserve Arrangement, and establishment of a BRICS Think Tank Council. It was called theeThekwini Declaration.
  6. Sixth Summit was held in Brazil in 2014– this came out with $100 billion seed fund for the NDB and CRA.
  7. Seventh summit was held in Ufa, Russia in 2015- Ufa Declaration was released by the leaders that called for enhanced coordinated efforts in responding to emerging challenges, ensuring peace and security, promoting development in a sustainable way among the member countries.
  8. Eighth summit was held in India on 16th October 2016 – this summit concluded with the adoption of the Goa Declaration which pledged opposition to the terrorism.The theme of India’s BRICS Chairmanship was Building Responsive, Inclusive and Collective Solutions.

BRICS has emerged as one of the successful organizations which have attracted other nations to join hands and work on the foot mark for the development of their respective economy. Presence of China and India has made this group powerful in terms of economy and military powers.

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    • Dear Someet, we duly accept your suggestion.Here is the information. China will be hosting the 9th BRICS Summit in the month of September in China’s Xiamen. Hope this information was good. Also we will try to cover the said topics in our blogs soon.