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The acronyms BRICS (Brazil, Russia, India, China, and South Africa) stand for Brazil, Russia, India, China, and South Africa. Jim O’Neill, a former Goldman Sachs economist, coined the term BRIC (excluding South Africa) in 2001, predicting that the 4 BRIC countries will control the global economy by 2050.
BRICS Nation:
The BRICS countries are known for having a significant influence on regional affairs. Since 2009, the governments of the BRICS nations have met once a year in formal summits. India will virtually host this 13th BRICS Summit on September 9, 2021.
Before South Africa’s entrance in 2010, the first four were referred to as “BRIC” (or “the BRICs”).
The BRICS nations collectively encompass 39,746,220 km2 (15,346,101.0 sq m) and then have a population of 3.21 billion people, accounting for around 26.7 % of both the world’s largest earth’s surface & 41.5 percent of its population.
Understanding the BRICS countries
For years, Brazil, Russia, India, China, & South Africa have been among the fastest in the world emerging market countries, owing to low labour costs, favourable demographics, and an abundance of natural resources during a global commodities boom.
The first BRIC summit has taken place.
The first formal summit of the BRIC grouping was held at Yekaterinburg, on June 16, 2009, with Luiz Inácio Lula da Silva, Dmitry Medvedev, Manmohan Singh, and Hu Jintao, the leaders of Brazil, Russia, India, and China, all in attendance.
The summit focused on boosting the global economy and reforming banking institutions, as well as discussing how the four nations could work together more effectively in the future.
BRICS CRA
The BRICS Contingent Reserve Arrangement (CRA) was founded by the BRICS nations in 2015. The Treaty again for Implementation of such a BRICS Contingent Reserve Arrangement, agreed on July 15, 2014, in Fortaleza, Brazil, provides the legal framework.
- In July 2014, the Treaty for the Establishment of the BRICS CRA was signed in Fortaleza, Brazil.
- It is a mechanism designed to assist BRICS countries in times of economic distress by providing additional money and other resources.
- It will provide liquidity and precautionary measures to BRICS members in response to the current or prospective short-term balance of payments challenges.
- A contractual study of the CRA demonstrates that, while all BRICS nations have equal access to strategic choices, the CRA closely mimics the IMF’s quota-based voting distribution when it comes to operational decisions.
BRICS Achievements
- The BRICS group brings together the world’s main rising economies, which account for 41% of the global population.
- The countries control 24 percent of global GDP and much more than 16 percent of global commerce.
- As a result, a Long – term contractual Arrangement has been established.
- The formation of the Development Fund is one of the significant accomplishments. It’s a competitor of the World Bank.
- The Brasilia Declaration establishes a global agenda for the BRICS countries.
- Under the three main pillars for political and military, economic and financial, cultural and people-to-people contacts, the BRICS nations meet to discuss key problems.
BRICS: The Concept of BRICS
- Non-interference, impartiality, and mutual benefit are the guiding ideals.
- The partnership has economic, geographical, and political ramifications.
- Political and military, economic and financial, cultural, and people-to-people contacts are the three pillars of BRICS.
BRICS’ Futures:
On a global scale, the BRICS are losing credibility. Goldman Sachs closed its BRICS fund, which has lost over 80% of its value since 2010.
Jim O’Neill also stated that while he was dissatisfied with BRICS’ performance, he still had optimism for its recovery.
BRICS is expected to expand to include a number of additional members, making it BRICS. Singapore, Indonesia, Mexico, Turkey, Korea, and Kenya are among the potential BRICS members.
The Rise of the BRICS as Global Powerhouses:
BRIC countries contributed 11% of world gross domestic output in 1990. By 2014, this rate had risen to over 30%. These data include a peak in 2010, reflecting a drop in value in the aftermath of the financial crisis of 2008.
In 2001, Goldman Sachs’ Jim O’Neill predicted that BRIC countries will be the speediest market economies. The Goldman Sachs hypothesis does not claim that even these countries are part of a formal political alliance, such as the European Union (EU). Instead, it maintains that they have economic clout.
BRICS Nation Summits:
Since the group’s formation in 2009, this is indeed a list of BRICS state leaders who have attended each BRICS Summit. Brazil, Russia, India, China, and South Africa make up the group of five countries.
Every year, the BRICS have a summit at which every state or government head is invited.
Conclusion:
The acronyms BRICS (Brazil, Russia, India, China, and South Africa) stand for Brazil, Russia, India, China, and South Africa. Jim O’Neill, a former Goldman Sachs strategist, coined the term BRIC (without South Africa) in 2001, predicting that the four BRIC countries will control the global economy by 2050.
Due to cheap labour costs, growing populations, and rich natural resources amid a global resources boom, Brazil, Russia, India, China, and South Africa have been the fastest-growing emerging market nations in the globe for years.
