The primary aim is to create a peaceful and harmonious world that fosters common prosperity and serves the interests of all its people and nations.
What is BRICS?
BRICS is an acronym that represents five emerging economies: Brazil, Russia, India, China, and South Africa. These countries are viewed as a collective force that is challenging the global dominance of traditional economic powers such as the United States, Europe, and Japan.
The Origins of BRICS
The term BRICS was coined in 2001 by Jim O'Neill, an economist at Goldman Sachs. Initially, the acronym represented only four countries: Brazil, Russia, India, and China. O'Neill suggested that these four countries had the potential to become the most dominant global economic powers by the year 2050. He argued that their large and growing populations, natural resources, and economic potential made them a formidable force to be reckoned with.
In 2010, South Africa was added to the BRIC grouping, and the acronym was changed to BRICS. This move was prompted by South Africa's relatively large economy and its increasing importance in the African continent. Today, the BRICS countries represent about 42% of the world's population, 23% of global GDP, and 30% of the world's territory.
The BRICS Countries
Brazil: Brazil is the largest country in South America and the fifth largest country in the world by land area. It has a population of approximately 213 million people, making it the sixth most populous country in the world. Brazil is known for its abundant natural resources, including minerals, oil, and agricultural products. It is also one of the world's largest producers of coffee, soybeans, and beef.
Russia: Russia is the largest country in the world by land area, spanning two continents: Europe and Asia. It has a population of approximately 144 million people. Russia is known for its vast reserves of natural resources, including oil, natural gas, and minerals. It is also a major exporter of arms, military equipment, and nuclear technology.
India: India is the world's second most populous country, with over 1.3 billion people. It is also the world's seventh largest country by land area. India is known for its information technology industry, which has emerged as a global leader in recent years. It is also a major producer of textiles, agricultural products, and pharmaceuticals.
China: China is the world's most populous country, with over 1.4 billion people. It is the world's second-largest economy, and it is expected to overtake the United States as the world's largest economy in the coming years. China is known for its manufacturing industry, which has grown rapidly over the past few decades. It is also a major producer of steel, textiles, and electronics.
South Africa: South Africa is the southernmost country on the African continent, with a population of approximately 60 million people. It is known for its abundant mineral resources, including gold, diamonds, and platinum. It is also a major producer of wine and agricultural products.
The BRICS Summit
The BRICS countries hold an annual summit to discuss issues of mutual interest, including economic development, trade, and political cooperation. The first BRICS summit was held in 2009 in Russia, and since then, the summits have been held in Brazil, China, India, and South Africa.
At the summits, the leaders of the BRICS countries discuss ways to enhance their economic and political cooperation. They also discuss issues related to global governance and the reform of international institutions such as the United Nations and the World Trade Organization.
The New Development Bank
The New Development Bank (NDB) was established in 2014 and is headquartered in Shanghai, China. It was created as an alternative to the existing global financial institutions such as the World Bank and the International Monetary Fund (IMF), which are dominated by Western countries.
The NDB is a multilateral development bank that aims to support infrastructure and sustainable development projects in the BRICS countries and other developing nations. It provides loans and other forms of financial assistance for projects that promote sustainable development, such as renewable energy, transportation, and telecommunications.
The NDB is capitalized with an initial investment of $50 billion, with each of the BRICS countries contributing an equal share. Since its inception, the NDB has approved loans worth over $30 billion for projects in member countries and beyond.
In addition to the establishment of the New Development Bank, the BRICS nations created a liquidity mechanism known as the Contingent Reserve Arrangement. This mechanism provides support to member countries that are experiencing payment difficulties. The Contingent Reserve Arrangement functions as a kind of insurance policy for member countries, allowing them to access funds quickly in the event of a balance of payments crisis.
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