BRICS is the association of the five members (Brazil, Russia, India, China and South Africa). First it was the group of four members (BRIC). South Africa joined in 2010. Now this is known as the BRICS summit. The members are all developing industrialized countries. The all five member are all also member of G-20. Since 2009, The BRICS nations have met annually at formal summit. BRIC officially held in 2008. It's maintaining 19 % something GDP of the world. Russia hosted the group's Seventh summit in July 2015. The five BRICS countries represent over 3 billion people or 42 % the world population.
Their economies are expected to eventually reach their economic growth. These five nation have a combined Nominal GDP 16.039 US$ trillion. This summit has received both praise and criticism from numerous commentators. BRICS nations have mainly been conducted on the basis of non inference, equality and mutual benefit. India participate in the first BRIC summit in 2009, the former PM Mr. Man Mohan Singh had attended it.
Achievement and failure .......
The summit focus was on means of improving the global economic situation and reforming financial institution and discussed how the four countries could better co-operate in the future.
After summit BRIC members could become more involved in global affairs. BRIC nations announced the need for a new global reserve currency which would have to be diversified, stable and predictable.
The BRICS forum, an independent international organization encouraging commercial political and cultural cooperation between the BRICS nations (75$ billion) to boost the lending power of the International monetary fund (IMF)
IN 2013 during the fifth BRICS summit in Durban South Africa, The group member agreed to create a global financial institution which they intended to rival the western-dominated IMF and World Bank.
The BRICS finalize the arrangement of this New development Bank by 2014. China committed $41 billion towards the pool, Brazil, India and Russia $18 billion and South Africa $5 billion. China holder of the world's largest foreign exchange reserve and who is to contribute the bulk of the currency Pool.
Financial structure, There are two components that make up the financial architecture of BRICS, The new development Bank and the contingent reserve arrangement these components were signed in 2014 and become active in 2015.
The new development Bank (NDB) referred to as the BRICS development Bank, is a multilateral development Bank operated by the BRICS states. The bank's primary focus of lending will be infrastructure .The bank will have starting capital of $50 billion, with capital increased to $100 billion over time. Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $ 50 billion.
The BRICS always criticized for many issues as well. The member of the group unable to understand the policy and which was the main reason for delay in setting up of the BRICS bank. But the countries referred to china for strong share in BRICS economy. The economic disorder between the group member are the serious matter to make pool of finance amount depend on per capita income, foreign reserve etc.
This BRICS group only discussed on finance and economy of the countries, but unable to raise the voice in global issue on different aspect like climate change and terrorism. The India country going to organize BRICS summit in October 2016 state of Goa. This India will get the new achievement in this summit as being a good role in this group.
- Sanyog Varshney