BRICS is an acronym for the economies of five countries
BRICS countries of Brazil, Russia, India, China and South Africa represents 46% of the world population, having 30% of the world GDP and 17% share in the world trade.
The acronym BRIC currently BRICS was initially formulated in 2001 by economist Jim O'Neill, of Goldman Sachs, in a report on growth prospects for the economies of Brazil, Russia, India and China which together represent a significant share of the world's production and population.
Main areas and topics of dialogue between BRICS countries are issues of mutual interest in finance and central banks, trade, mutual investments, academic forum and think tanks council, health, science and technology, security, terrorism and agriculture.
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| BRICS 2014 summit |
BRICS is an acronym for the economies of Brazil, Russia, India, China and South Africa projected to be the fastest growing market economies. It was agreed to expand BRIC into BRICS with the inclusion of South Africa at the BRIC Foreign Ministers’ meeting in New York in September 2010.
BRIC started after the meeting of the Leaders of Russia, India and China in St. Petersburg on the margins of G8 Outreach Summit in 2006. After the Yekaterinburg Summit, seven annual Summits were held in Brasilia the federal capital of Brazil in 2010, Sanya in Southeast China in 2011; New Delhi India in 2012; Durban South Africa 2013; Fortaleza in Northeastern Brazil 2014; 2015 in Ufa Russia and October 2016 at the Taj Exotica hotel in Benaulim, Goa, India. The eighth BRICS Summit will be held in Xiamen China September 3-5, 2017.
BRICS countries agreed to establish a New Development Bank at their summit meeting in 2014. The New Development Bank has $50 billion in initial capital. The BRICS bank works on an equal-share voting basis. The capital will be used to finance infrastructure and sustainable development projects in the BRICS countries. Other low and middle-income countries will be able buy in and apply for funding from BRICS.
BRICS countries have also created a $100 billion Contingency Reserve Arrangement, meant to provide additional liquidity protection to member countries during balance of payments problems. The CRA unlike the pool of contributed capital to the BRICS bank, which is equally shared is being funded 41% by China, 18% from Brazil, India, and Russia, and 5%from South Africa.
Due to lower labor and production costs, many companies also cite BRICS as a source of foreign expansion opportunity, and promising economies in which to invest. As of 2015, the five BRICS countries represent over 3.6 billion people, or about 40% of the world population; all five members are in the top 25 of the world by population, and four are in the top 10.
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| BRICS 2014 summit Brazil |
In July 2017, South Africa ANC’s international relations subcommittee plans to push for the establishment of a BRICS ratings agency to be official party policy. The International Criminal Court, World Bank and International Monetary Fund are mentioned for their “stubborn persistence of imperial designs”.
Regarding economic growth, BRICs are ahead of the projections made in 2001, South Africa not included, 18% of the world's GDP, above Goldman Sachs's forecast of 14.2% however, those analyzing the model of growth say that it ignores the finite nature of fossil fuel, uranium, and other resources. BRICS comprises five strategic partners, all of which have a strong regional leadership and major participation in the global economy.
Together, BRICS represents 46% of the world population, having 30% of the world GDP and 17% share in the world trade. Between 2002 and 2012, intra-BRICS trade increased 922%, from US$ 27 to 276 billion, while between 2010 and 2012, BRICS international trade rose 29%, from US$ 4.7 to 6.1 trillion dollars.
Wise are those who learn that the bottom line does not always have to be their top priority. - William Arthur Ward
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