The BRIC acronym, which stands for Brazil, Russia, India and China, originated in a Goldman Sachs paper - Building Better Global Economic BRICs - as part of an economic modeling exercise to forecast global economic trends over the next half-century. The main finding was that the BRIC countries collectively would play an increasingly important role in the global economy.
The First Summit (2009) - Russia - Focused on discussing economic and financial issues arising out of the 2008 financial crisis and with emphasis on reform of international financial institutions.
The Second Summit (2010) - Brazil - Launching of several intra-BRICS Cooperative Institutions including a meeting of National Security Advisors, a Business Forum, a Think Tank Seminar and a meeting of Ministers of Agriculture to boost the agricultural base of the respective member countries. Development banks from each country signed a Memorandum of Cooperation to help each other out
The Third Summit (2011) - China - Opening a new foray into the African continent. Pitched for UNSC Reforms. Discussed other ongoing issues. South Africa becomes a Member.
The Fourth Summit (2012) - India- Remarkable for enunciating financial cooperation with third countries through the establishment of the BRICS Bank for financing infrastructure needs and sustainable development projects of BRICS and other developing countries. - Idea for a New Development Bank was mooted by India. Other foreign policy issues were discussed.
The Fifth Summit (2013) - South Africa - Laid the foundation for ushering Contingence Reserve Arrangement with an initial amount of USD $ 100 billion. Proclamation for a New Development Bank, creation of a Contingent Reserve Arrangement, setting up of a BRICS Business Council and the establishment of a BRICS Think Tank Council. This was called the eThekwini Declaration.
The Sixth Summit (2014) - Brazil - With theme Inclusive Growth, Sustainable Solutions', Constitutive agreements for the New Development Bank to fund infrastructure and sustainable development projects in emerging markets were signed. $100 billion seed fund for the NDB and CRA. The summit is still going on.
The Seventh BRICS Summit (2015): Taking place in Ufa, Russia, underwent the process of ratification of constituting agreements of Contingency Reserve Arrangement as well as the New Development Bank.
The BRIC are both the fastest growing and largest emerging markets economies. They account for almost three billion people, or just under half of the total population of the world. In recent times, the BRIC have also contributed to the majority of world GDP growth. According to various economists' projections, it is only a matter of time before China becomes the biggest economy in the world - sometime between 2030 and 2050 seems the consensus. In fact, Goldman Sachs believes that by 2050 these will be the most important economies, relegating the US to fifth place. They are primarily an investment category now, although there may some political and economic alliances that develop from that grouping. If they do, it is likely to be temporary - once China has assumed its rightful place, it may have no need for these alliances. A G2 of China and the US may be more important for it unless the 2050 predictions do come true.
The BRICS will significantly increase their share in the world economy and trade. A new global financial system with a significant presence of these countries, compared with the current situation, will be created. Or maybe even a financial system of its own, allowing the economies to support each other.
- REKHA G