brics is the acronym for an association of five major emerging national economies

8/10/2019 BRICS is the Acronym for an Association of Five Major Emerging National Economies

1/4

BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India,

China, and South Africa. The grouing !as originally "no!n as #BRIC# $efore the inclusion of South Africa in %&'&.

The BRICS mem$ers are all develoing or ne!ly industrialised countries, $ut they are distinguished $y their large,

fast(gro!ing economies and significant influence on regional and glo$al affairs) all five are *(%& mem$ers.

As of %&'+, the five BRICS countries reresent almost + $illion eole !hich is &- of the !orld oulation,

!ith a com$ined nominal */ of 0S1'2.&+3 trillion 4%&- !orld */5 and an estimated 0S1 trillion in com$ined

foreign reserves. As of %&', the BRICS nations reresented '6 ercent of the !orld economy.

Brazil held the chair of the BRICS grou in %&', having hosted the grou7s si8th summit in %&'.The BRICS

have received $oth raise and criticism from numerous 9uarters. The term, #BRICS#, !as coined $y economist im

;7


2/4

Developments

BRICS leaders at the 2th BRICS summit in Gortaleza, Brazil. @eft to right: /utin, ?odi, Rousseff, Hi and Fuma.

The BRICS Gorum, an indeendent international organisation encouraging commercial, olitical and cultural

cooeration $et!een the BRICS nations, !as formed in %&''.%&D In une %&'%, the BRICS nations ledged 1J

$illion to $oost the lending o!er of the International ?onetary Gund 4I?G5. o!ever, this loan !as conditional on

I?G voting reforms.%'D In late ?arch %&'+, during the fifth BRICS summit in ur$an, South Africa, the mem$er

countries agreed to create a glo$al financial institution !hich they intended to rival the !estern(dominated I?G and

Korld Ban".%%D After the summit, the BRICS stated that they lanned to finalise the arrangements for this ne!

develoment $an" $y %&'.%+D o!ever, disutes relating to $urden sharing and location have slo!ed do!n the

agreements.

At the BRICS leaders meeting in St. /eters$urg in Setem$er %&'+, China committed 1' $illion to!ards the

ool) Brazil, India and Russia 1'6 $illion each) and South Africa 1J $illion. China, holder of the !orld7s largest

foreign e8change reserves and !ho is to contri$ute the $ul" of the currency ool, !ants a greater managing role, said

one BRICS official. China also !ants to $e the location of the reserve. #Brazil and India !ant the initial caital to $e

shared e9ually. Ke "no! that China !ants more,# said a Brazilian official. #o!ever, !e are still negotiating, there

are no tensions arising yet.#%D ;n ''th ;cto$er %&'+, Russia7s Ginance ?inister Anton Siluanov said that a decision

on creating a 1'&& $illion fund designated to steady currency mar"ets !ould $e ta"en in early %&'. The Brazilian

finance minister, *uido ?antega stated that the fund !ould $e created $y ?arch %&'.%JD o!ever, $y Aril %&',

the currency reserve ool and develoment $an" had yet to $e set u, and the date !as rescheduled to %&'J.;ne

driver for the BRICS develoment $an" is that the e8isting institutions rimarily $enefit e8tra(BRICS cororations,

and the olitical significance is nota$le $ecause it allo!s BRICS mem$er states #to romote their interests a$road...

and can highlight the strengthening ositions of countries !hose oinion is fre9uently ignored $y their develoed

American and =uroean colleagues.#

In ?arch %&', at a meeting on the margins of the


3/4

In uly %&', the *overnor of the Russian Central Ban", =lvira e"aterin$urg4Sevastianov7s

ouse5

%n

d

'J Aril

%&'&

Brazi

l

@uiz Incio

@ula da SilvaBrasMlia

*uests: aco$ Fuma4/resident of South

Africa5 andRiyad al(?ali"i4Goreign

?inister of the /alestinian


4/4

+rd' Aril

%&''

Chin

au intao Sanya4Sheraton Sanya Resort5

Girst summit to include South Africa

alongside the original BRICcountries.

th

%3

?arch

%&'%

India?anmohan

Singh

brics is the acronym for an association of five major emerging national economies

Documents