Brazil, Russia, India, China and South Africa (BRICS)

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Brazil, Russia, India, China and South Africa (BRICS)

BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. Originally the first four were grouped as “BRIC” (or “the BRICs”), before the induction of South Africa in 2010. The BRICS members are known for their significant influence on regional affairs; all are members of G20. Since 2009, the BRICS nations have met annually at formal summits. China hosted the 9th BRICS summit in Xiamen on September 2017, while South Africa will do so for the 10th BRICS summit in July 2018. The term does not include countries such as South Korea, Mexico and Turkey for which other acronyms and group associations were later created.

In 2015, the five BRICS countries represent over 3.1 billion people, or about 41% of the world Population; four out of five members (excluding South Africa at #24) are in the top 10 of the world by population. As of 2018, these five nations have a combined Nominal GDP of US$18.6 trillion, about 23.2% of the gross world product, combined GDP (PPP) of around US$40.55 trillion (32% of World’s GDP PPP) and an estimated US$4.46 trillion in combined foreign reserves. Overall the BRICS are forecasted to expand 4.6% in 2016, from an estimated Growth of 3.9% in 2015. The World Bank expects BRICS growth to pick up to 5.3% in 2017. The BRICS have received both praise and criticism from numerous commentators. Bilateral relations among BRICS nations have mainly been conducted on the basis of non-interference, Equality, and mutual benefit.

The term “BRIC” was coined in 2001 by then-chairman of Goldman Sachs Asset Management, Jim O’Neill, in his publication Building Better Global Economic BRICs. The foreign ministers of the initial four BRIC states (Brazil, Russia, India, and China) met in New York City in September 2006 at the margins of the General Debate of the UN General Assembly, beginning a series of high-level meetings. A full-scale diplomatic meeting was held in Yekaterinburg, Russia, on 16 June 2009.

First BRIC summit The BRIC grouping’s first formal summit, also held in Yekaterinburg, commenced on 16 June 2009, with Luiz Inácio Lula da Silva, Dmitry Medvedev, Manmohan Singh, and Hu Jintao, the respective leaders of Brazil, Russia, India and China, all attending. 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. There was further discussion of ways that developing countries, such as 3/4 of the BRIC members, could become more involved in global affairs. In the aftermath of the Yekaterinburg summit, the BRIC nations announced the need for a new global reserve currency, which would have to be “diverse, stable and predictable”. Although the statement that was released did not directly criticise the perceived “dominance” of the US dollar – something that Russia had criticised in the past – it did spark a fall in the value of the dollar against other major currencies.

Developments

The BRICS Forum, an independent international organisation encouraging commercial, political and cultural cooperation between the BRICS nations, was formed in 2011. In June 2012, the BRICS nations pledged $75 billion to boost the lending power of the International Monetary Fund (IMF). However, this loan was conditional on IMF voting reforms. In late March 2013, during the fifth BRICS summit in Durban, South Africa, the member countries agreed to create a global financial institution which they intended to rival the western-dominated IMF and World Bank. After the summit, the BRICS stated that they planned to finalise the arrangements for this New Development Bank by 2014. However, disputes relating to burden sharing and location slowed down the agreements.

At the BRICS leaders meeting in St Petersburg in September 2013, China committed $41 billion towards the pool; Brazil, India and Russia $18 billion each; and South Africa $5 billion. China, holder of the world’s largest Foreign Exchange reserves and who is to contribute the bulk of the currency pool, wants a greater managing role, said one BRICS official. China also wants to be the location of the reserve. “Brazil and India want the initial capital to be shared equally. We know that China wants more,” said a Brazilian official. “However, we are still negotiating, there are no tensions arising yet.” On 11 October 2013, Russia’s Finance Minister Anton Siluanov said that a decision on creating a $100 billion fund designated to steady currency markets would be taken in early 2014. The Brazilian finance minister, Guido Mantega stated that the fund would be created by March 2014. However, by April 2014, the currency reserve pool and development bank had yet to be set up, and the date was rescheduled to 2015. One driver for the BRICS development bank is that the existing institutions primarily benefit extra-BRICS corporations, and the political significance is notable because it allows BRICS member states “to promote their interests abroad… and can highlight the strengthening positions of countries whose opinion is frequently ignored by their developed American and European colleagues.”

New Development Bank

The New Development Bank (NDB), formerly 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-2/”>INFRASTRUCTURE projects with authorized lending of up to $34 billion annually. South Africa will be the African Headquarters of the Bank named the “New Development Bank Africa Regional Centre”. 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.

BRICS CRA

The BRICS Contingent Reserve Arrangement (CRA) is a framework for providing protection against global liquidity pressures. This includes currency issues where members’ national currencies are being adversely affected by global financial pressures. It is found that emerging economies that experienced rapid economic Liberalization-2/”>Liberalization went through increased economic volatility, bringing uncertain macroeconomic Environment. The CRA is generally seen as a competitor to the International Monetary Fund (IMF) and along with the New Development Bank is viewed as an example of increasing South-South cooperation. It was established in 2015 by the BRICS countries. The legal basis is formed by the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement, signed at Fortaleza, Brazil on 15 July 2014. With its inaugural meetings of the BRICS CRA Governing Council and Standing Committee, held on September 4, 2015, in Ankara, Turkey it entered into force upon ratification by all BRICS states, announced at the 7th BRICS summit in July 2015.

BRICS payment system

At the 2015 BRICS summit in Russia, ministers from BRICS nations, initiated consultations for a payment system that would be an alternative to the SWIFT system. Russian Deputy Foreign Minister Sergey Ryabkov stated in an interview, “The finance ministers and executives of the BRICS central banks are negotiating … setting up payment systems and moving on to settlements in national currencies. SWIFT or not, in any case we’re talking about … a transnational multilateral payment system that would provide greater independence, would create a definite guarantee for BRICS.

The Central Bank of Russia (CBR) also started consultations with BRICS nations for a payment system that would be an alternative to the SWIFT system. The main benefits highlighted were backup and redundancy in case there were disruptions to the SWIFT system. The Deputy Governor of the Central Bank of the Russia, Olga Skorobogatova stated in an interview, “The only topic that may be of interest to all of us within BRICS is to consider and talk over the possibility of setting up a system that would apply to the BRICS countries, used as a backup.”

China has also initiated development of their own payment system called CIPS that would be an alternative to the SWIFT system. The Cross-Border Inter-Bank Payments System (CIPS) is a planned alternative payments system to SWIFT which would provide a Network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.,

The BRICS countries are Brazil, Russia, India, China, and South Africa. They are all major emerging economies with a combined population of over 3 billion people and a combined GDP of over $20 trillion. The BRICS countries have been working together to promote economic growth, development, and cooperation since 2006.

Brazil is the largest country in both South America and Latin America. It is a federal republic with 26 states and the Federal District. The capital of Brazil is Brasília. The Official Language of Brazil is Portuguese. Brazil is a member of the United Nations, the G20, and the BRICS. Brazil is a major producer of coffee, soybeans, and beef. It is also a major exporter of iron Ore, ethanol, and automobiles.

Russia is the largest country in the world by area. It is a federal semi-presidential republic with 85 federal subjects. The capital of Russia is Moscow. The official language of Russia is Russian. Russia is a member of the United Nations, the G20, and the BRICS. Russia is a major producer of oil, natural gas, and metals. It is also a major exporter of weapons and military equipment.

India is the second most populous country in the world. It is a federal republic with 28 states and 7 union territories. The capital of India is New Delhi. The official language of India is Hindi. India is a member of the United Nations, the G20, and the BRICS. India is a major producer of textiles, Software, and pharmaceuticals. It is also a major exporter of rice, tea, and spices.

China is the most populous country in the world. It is a unitary one-party socialist republic with 23 provinces, 5 autonomous regions, 4 municipalities, and 2 special administrative regions. The capital of China is Beijing. The official language of China is Mandarin Chinese. China is a member of the United Nations, the G20, and the BRICS. China is a major producer of electronics, textiles, and automobiles. It is also a major exporter of goods and Services.

South Africa is the southernmost country in Africa. It is a constitutional republic with 9 provinces. The capital of South Africa is Pretoria. The official languages of South Africa are Afrikaans, English, isiNdebele, isiXhosa, isiZulu, Sepedi, Setswana, Sesotho, Tshivenda, and Xitsonga. South Africa is a member of the United Nations, the G20, and the BRICS. South Africa is a major producer of gold, platinum, and diamonds. It is also a major exporter of fruit, wine, and vegetables.

The BRICS countries have a number of common challenges, including POVERTY, inequality, and Climate change. They are also working together to address these challenges. For example, the BRICS countries have pledged to increase Investment in infrastructure and to promote trade and investment between them. They have also pledged to work together to address Climate Change.

The BRICS countries are a growing force in the global economy. They are working together to promote economic growth, development, and cooperation. They are also working together to address common challenges, such as poverty, inequality, and climate change.

What is the BRICS group?

The BRICS group is an association of five major emerging economies: Brazil, Russia, India, China, and South Africa. The group was founded in 2006 with the goal of promoting economic cooperation and development among its members.

What are the goals of the BRICS group?

The goals of the BRICS group are to:

  • Promote economic growth and development among its members
  • Strengthen cooperation in trade, investment, and finance
  • Address global challenges such as climate change and poverty
  • Promote peace and security in the world

What are the achievements of the BRICS group?

The BRICS group has achieved a number of successes, including:

  • The establishment of the New Development Bank (NDB), a multilateral development bank that provides financial assistance to developing countries
  • The creation of the BRICS Contingent Reserve Arrangement (CRA), a reserve fund that provides liquidity support to BRICS countries in times of financial Stress
  • The signing of the BRICS Trade Agreement, which aims to reduce tariffs and other trade barriers between BRICS countries
  • The launch of the BRICS University Network, a network of universities that aims to promote research and Education in BRICS countries

What are the challenges facing the BRICS group?

The BRICS group faces a number of challenges, including:

  • The economic slowdown in some BRICS countries, such as Brazil and Russia
  • The political instability in some BRICS countries, such as India and South Africa
  • The rise of protectionism in some developed countries
  • The increasing competition from other emerging economies, such as Mexico and Indonesia

What is the future of the BRICS group?

The future of the BRICS group is uncertain. The group faces a number of challenges, but it has also achieved a number of successes. It is possible that the BRICS group will continue to grow and become more influential in the world. However, it is also possible that the group will face further challenges and eventually dissolve.

Question 1

Which of the following is not a member of BRICS?

(A) Brazil
(B) Russia
(C) India
(D) China
(E) South Africa

Answer
(E) South Africa

Question 2

The BRICS countries are all considered to be emerging markets. What does this mean?

(A) They are all developing countries with high economic growth rates.
(B) They are all members of the United Nations.
(C) They are all nuclear powers.
(D) They are all members of the G20.
(E) They are all members of the Commonwealth of Nations.

Answer
(A) They are all developing countries with high economic growth rates.

Question 3

The BRICS countries have been working together to increase their cooperation on a number of issues. Which of the following is not one of these issues?

(A) Trade
(B) Investment
(C) Finance
(D) Climate change
(E) Education

Answer
(E) Education

Question 4

The BRICS countries have also been working together to increase their influence on the global stage. Which of the following is not one of the ways they have done this?

(A) By forming the BRICS New Development Bank
(B) By increasing their participation in international organizations
(C) By working together to reform the international financial system
(D) By increasing their military cooperation
(E) By working together to promote Democracy and Human Rights

Answer
(D) By increasing their military cooperation

Question 5

The BRICS countries have been criticized for a number of things. Which of the following is not one of these criticisms?

(A) That they are a group of authoritarian countries
(B) That they are a group of countries that are not committed to democracy and human rights
(C) That they are a group of countries that are not committed to free trade
(D) That they are a group of countries that are not committed to environmental protection
(E) That they are a group of countries that are not committed to the Rule of Law

Answer
(B) That they are a group of countries that are not committed to democracy and human rights

Question 6

The BRICS countries have also been praised for a number of things. Which of the following is not one of these praises?

(A) That they are a group of countries that are committed to Economic Development
(B) That they are a group of countries that are committed to multilateralism
(C) That they are a group of countries that are committed to the fight against poverty and inequality
(D) That they are a group of countries that are committed to the promotion of peace and security
(E) That they are a group of countries that are committed to the protection of the environment

Answer
(A) That they are a group of countries that are committed to economic development

Question 7

The future of the BRICS countries is uncertain. Some analysts believe that they will continue to grow in importance and influence, while others believe that they will eventually fade away. What do you think?

(A) I think the BRICS countries will continue to grow in importance and influence.
(B) I think the BRICS countries will eventually fade away.
(C) I think the BRICS countries will remain a significant force on the global stage for the foreseeable future.
(D) I think the BRICS countries will eventually become a major world power.
(E) I think the BRICS countries will eventually become a global superpower.

Answer
(C) I think the BRICS countries will remain a significant force on the global stage for the foreseeable future.