Economics

BRICS

BRICS is the acronym for an
association of five major emerging national economies: Brazil, Russia, India,China and South Africa. Originally the first four were grouped as “BRIC” before the induction of South Africa in 2010. The term ‘BRIC’ was coined in 2001. The BRICS members are known for their significant influence on regional affairs.Since 2009, the BRICS nations have met annually at formal summits. South Africa hosted the 10th BRICS summit in July
2018. The agenda for BRICS summit 2018
includes Inclusive growth, Trade issues,
Global governance, Shared Prosperity, International peace and security.

It’s headquarters is at Shanghai, China. The New Development Bank(NDB) formerly referred to as the BRICS Development Bank was established by BRICS States. The first BRICS summit was held at Moscow and South Africa hosted the Tenth Conference at Johanesberg in July 2018. India had an opportunity of hosting fourth and Eighth summits in 2012 and 2016 respectively.

Objectives of BRICS:

1. To increase trade co-operation by making an exclusive trade block.
2. To use currency other than US Dollar. Since Dollar is a dominant currency and US can control the flow of dollar, BRICS helps in the countries operating with alternative currencies. How far have they succeeded in this respect?Not much.
3. To increase regional co-operation.
4. To create a separate trade block made
for developing countries for trade
co-operation.

Functions of BRICS:

1. It acts as a promoter of more legitimate
international system and also advocating
reform of the UN Security Council.
2. This group of nations is especially meant for South-South framework for cooperation.
3. It performs as an agent to bridge the increasing gap between developed and
developing countries. For instance,in the WTO, the BRICS countries are emphasizing to promote a fair order regarding agricultural policies.
4. It performs a commendable contribution
for assisting developing countries in gaining in areas such as an advantage in trade and climate change negotiations.
5. It disseminates information and exchange platform beyond economic cooperation. 6. It acts as a catalytic in protecting the
interests of middle powers on globalforum.

Achievements of BRICS:

Following are some of the major
achievements of BRICS:

 The establishment of the Contingent Reserve Arrangement (CRA) has further deepened and consolidated the partnership of its members in the economic-financial area.
 In the sixth BRICS summit in Brazil,the member countries, signed an agreement to create a development bank (New Development Bank) with headquarters at Shangai, China in 2015 on the lines of Asian Development Bank and the World Bank.
 The economic potential and demographic development are putting the BRICS countries, increasingly in a leading position in setting the global agenda and having a greater say in the global governance.

It has to be remembered that BRICS share 43% of world population, but only 21% ofthe global GDP.

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