What is BRICS?
About:
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
- In 2001, the British Economist Jim O’Neill coined the term BRIC to describe the four emerging economies of Brazil, Russia, India, and China.
- The grouping was formalized during the first meeting of BRIC Foreign Ministers in 2006.
- South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
Share of BRICS:
The BRICS brings together five of the largest developing countries in the world, representing 41% of the global population, 24% of the global GDP, and 16 % of the global trade.
Chairmanship:
- The chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
- India hosted the chair for the 2021 BRICS Summit.
Initiatives of the BRICS:
New Development Bank:
- During the Sixth BRICS Summit in Fortaleza (Brazil) in 2014, the leaders signed the Agreement establishing the New Development Bank (NDB – Shanghai, China).
- It has so far approved 70 infrastructure and sustainable development projects.
Contingent Reserve Arrangement:
- In 2014, the BRICS governments signed a treaty on the setting up of the contingent reserve arrangement
- The arrangement is aimed at forestalling short-term balance of payments pressures, providing mutual support, and strengthening the financial stability of the BRICS nations.
Customs Agreements:
- Customs agreements were signed to coordinate and ease trade transport between BRICS countries
Launched of Remote Sensing Satellite:
- In August 2021, the five space agencies signed an agreement on the Cooperation on BRICS Remote Sensing Satellite Constellation.
- The constellation is made up of six existing satellites: Gaofen-6 and Ziyuan III 02, both developed by China, CBERS-4, jointly developed by Brazil and China, Kanopus-V type, developed by Russia, and Resourcesat-2 and 2A, both developed by India.
BRICS Expansion:
- BRICS marked its 15th summit by expanding its membership from five to ten countries, reflecting a concerted effort to enhance its global standing.
- Egypt, Iran, Saudi Arabia, UAE, Ethiopia joined the BRICS fold, amplifying the group’s representation across the Middle East, Africa.
- Full membership will take effect on January 1, 2024.
- The original BRIC members had two things in common: large economies, and high potential growth rates.
- The expanded BRICS+ is a less coherent group; some are going through crises, and others are thriving. This could signal an expansion of the agenda beyond economics.
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