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BRAZIL, RUSSIAN FEDERATION, INDIA, PEOPLE’S REPUBLIC OF

CHINA (PRC) AND SOUTH AFRICA

As emerging protagonists in international

development cooperation.

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Guide Questions

Development FrameworkHistory

• Objectives • Goals • Development

Important Points Deadline Importance Things to consider

Criticisms Feedbacks may it be positive or negative

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ORIGIN AND EVOLUTION OF BRICS [BRAZIL, RUSSIA, INDIA, CHINA AND SOUTH AFRICA]

The BRIC [Brazil, Russia, India and China] idea was first conceived in 2001 by Goldman Sachs as part of an economic modeling exercise to forecast global economic trends over the next half century; the acronym BRIC was first used in 2001 by Goldman Sachs in their Global Economics Paper No. 66, “The World Needs Better Economic BRICs”.

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ORIGIN AND EVOLUTION OF BRICS [BRAZIL, RUSSIA, INDIA, CHINA AND SOUTH AFRICA]

The BRICS members are all developing or newly industrialized countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs; all five are G-20 members.

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EXPANSION OF BRIC INTO BRICS

BRIC Foreign Ministers at their meeting in New York on 21st September 2010 agreed that South Africa may be invited to join BRIC. Accordingly, South Africa was invite to attend the 3rd BRICS Summit in Sanya on 14 April 2011.

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First BRIC summit held in Yekaterinburg, commenced on 16 June 2009

The summit's focus was on means of improving the global economic situation and reforming financial institutions, and discussed how the four countries could better co-operate in the future.

HISTORY- Summits

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The main agenda for the summit was the creation of a new development bank.

The aims of the bank would include: funding development and infrastructure projects in developing and least developed countries;

lending, in the long term, during global financial crises such as the Eurozone crisis; and issuing convertible debt, which could be bought by the central banks of all the member states and hence act as a vessel for risk-sharing.

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Three main aspects are underlining the relevance of BRIC as protagonists in development cooperation:

1. The outstanding size of their economies, 2. strong growth rates, leading to

increasing significance in world economy, and

3. the demand for a stronger political voice in international governance structures, which corresponds to their economic status (cf. O’Neill 2001, Orgaz et.al. 2011).

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Goals & objectives:

Their specified goal was to push for reform in the IMF (Which all BRICS members are a part of)

The creation of a "bank" to counter the IMF

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Goals & objectives:

In the joint declaration of Sanya (2011), BRICS claim to represent common goals of all LICs and MICs and emphasize the necessity to fight poverty and to achieve the MDGs:

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Goals & objectives:

July 14, 2014(RIA Novosti), Daria Chernyshova - Infrastructure development is currently the main objective for the BRICS countries, and it will be the primary goal of the New Development Bank (NDB)“The main objective now, the main

goal is to foster the infrastructure of our five countries,” 

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BRICS: Five Countries With A Common Goal For Growth

Their greatest common denominator is simply the fact that they are different from the development model of industrialized nations.

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Developments

In June 2012, the BRICS nations pledged $75 billion to boost the lending power of the  (IMF).

New Development Bank was agreed to by BRICS leaders at the 5th BRICS summit held in Durban, South Africa on 27 March 2013.  (The bank's primary focus of lending will be infrastructure projects)

China and Russia have had strong political and economic ties with neighboring countries and also SSA.

Brazil, India and South Africa did not live in isolation. The biggest effect can be identified in trade relations. 60 %

of BRIC total impact on LICs is attributed to trade. Debt sustainability: BRIC seem to “provide more financing

to LICs with weaker institutions and governance.” (IMF 2011d: 18).

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POINTS:

WHAT BRICS IS NOT  A military entity  A military alliance Economically stable  A unified foreign policy entity

THERE ARE MUTUAL ECONOMIC INTEREST AND INTERDEPENDENCIES AMONG BRICS, EU, US.

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POINTS: ISSUES

 China - Territorial disputes in the S. China Sea (- India-China disagreement over Tibet / Borders) China/India -Kashmir and Jammu.  China/India -Aksai Chin  China/India -Demchok, Chumar, Kaurik, Shipki Pass, Jadh,

and Lapthal  China/India -Shaksgam Valley China/India -South Tibet  Russia/ROC/PRC -Heixiazi / Bolshoy Ussuriysky Island -

Eastern / Western half 2004.  Russia/ROC/PRC -Kutuzov Island  Russia/ROC/PRC -Tuva 

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POINTS:

As of 2014, the five BRICS countries represent almost 3 billion people which is 40% of the world population, with a combined nominal GDP of US$16.039 trillion (20% world GDP) and an estimated US$4 trillion in combined foreign reserves.

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Current BRICS heads of government

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Criticisms

Some analysts:

have highlighted potential divisions and weaknesses in the grouping, including significant economic instabilities;

disagreements between the members over UN Security Council reform.

India and China's disputes over territorial issues BRICS discussed global monetary reform, not

yuan -China exchange rates cause problems in BraziL

BRICS is that it is trying be a common economic entity while ignoring vastly different foreign policies.

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China as a threat and intimidatingInvolving China with BRICS is neither wise,

nor prescient.

Criticisms

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Deadline

Achieve the objectives of the MDGs by 2015 as scheduled. (Sanya Declaration 2011)

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