12 things one needs to know about BRICS
12 Things One Needs To Know About BRICS. Economist Jim O’Neill devised the term BRIC for a paper he published in 2001 titled: “Building Better Global Economic BRICs.
1. Economist Jim O’Neill devised the term BRIC for a paper he published in 2001 titled: “Building Better Global Economic BRICs.” The thesis projecting that the economic potential of the 4 countries is such that by the year 2050, these will be among five most dominant economies of the world
2. Radical talks began in New York in September 2006, with a meeting of the BRIC foreign ministers. This was followed by the first summit, which was held in the year 2009 in Russia.
3. In the year 2010, South Africa was invited to the conference and by the end of the summit it became a member of the group, thus expanding the name to BRICS
4. All five nations are members of the G-20. Collectively these five states alone make up about a fifth of the world’s GDP and account for over 42 percent of the world’s population
5. BRICS has been more of a notion than an organization until this historic 6th summit held in Brazil 2014. The BRICS nations created their own bank, organized a rotating presidency
6. International Monetary Fund (IMF) and World Bank were created with the perspective of western world and developed countries. The BRICS bank is created in the perspective of emerging economies
7. BRICS bank is created not as a competition to IMF and World Bank but as an alternative to other emerging economies, for lending money for infrastructure projects such as bridge and road buildings. Thus helping the BRICS nations to expand businesses in other economies
8. With an Initial capital of $50 billion The BRICS signed the “New Development Bank” (NDB) into reality. Individually BRICS will fund $10 billion thus making it an equal share
9. This Summit also shaped Contingent Reserve Arrangement of $100 billion buffer against any economic instability, with each country contributing $20 billion
10. The headquarters of the NDB will be in Shanghai and an African regional center for the bank will be set up in South Africa.
11. The first NDB president will be from India with the presidency rotating every five years. Subsequently after India, the presidency goes to Brazil, Russia, South Africa, and then China
12. The seventh BRICS Summit is scheduled to be held in 2015 in Russia. Indonesia and Turkey have been mentioned as aspirants for full membership of the BRICS, while Argentina, Egypt, Iran, Nigeria and Syria have voiced interest in joining BRICS