Introduction of BRICS

• 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

• BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia,
India, China and South Africa.

• The BRICS Forum, an independent international organisation encouraging commercial, political and
cultural cooperation between the BRICS nations, was formed in 2011.

• The BRICS members are all developing or newly industrialised countries, but they are distinguished by
their large, fast-growing economies and significant influence on regional and global affairs

• Russia currently holds the chair of the BRICS group, and hosted the group's seventh summit in July
2015.

• Bilateral relations among BRICS nations have mainly been conducted on the basis of non-interference,
equality, and mutual benefit
 From ‘BRIC’ to ‘BRICS’
• The grouping was originally known as "BRIC" before the inclusion of South Africa in
2010
• The BRIC became a mechanism through which the countries can exchange
opinions, seek convergence, identify areas of cooperation and influence the international
agenda.
• Officially it was admitted as a BRIC nation on 24 December 2010
• With the entrance of South Africa, at the 3rd BRICS Summit, in April 2011, the BRIC became
BRICS, with capital "S".

4
 Why BRICS formed?
BRICS is formed for following two major reasons:

•To be an Alternative to World Bank and IMF to challenge US supremacy.

•To provide Self owned and Self Managed Organisation to carry out
Developmental and Economical Plans in member nations without being
dependent on any foreign agency.This point gets it strength on recent
development in BRICS with the inititative of BRICS Bank.
 OBJECTIVE OF BRICS
• To achieve regional development
• The BRICS group also acts as a bridge between developed and developing
countries. For example, in the WTO, the BRICS countries are trying to
promote a fair order regarding agricultural policies.
• The BRICS group will also play an increasingly important role in assisting
developing countries in gaining an advantage in trade and climate change
negotiations
• The BRICS also formed an information-sharing and exchange platform that
expands beyond economic cooperation to also involve educational, cultural,
and environmental engagement.
ABOUT THE BRICS NATION
 BRAZIL

KEY ADVANTAGES :
One of the fastest growing economies in the last centuries
Brazilian economy becoming less dependent on imports
Extremely rich in resources such as coffee, sugarcane, crude oil and iron etc.
Focus on equitable development has resulted in significant poverty
reduction.
CHALLENGES FOR THE FUTURE:
•Overburdened and ineffective judicial system.
•Industrial output is weak
 RUSSIA

KEYADVANTAGES:
Russia has capability in high-technology sectors
 Accounts for around 20% of the world’s oil and gas reserves
 fall in the number of people living below the poverty line
Third largest exporter of steel and aluminium

CHALLENGES FOR FUTURE

Labour shortages and poorly developed infrastructure
Corruption
 INDIA

KEYADVANTAGES
• 1.15 billion people
• fastest growing economies
• 2nd largest labour force
• Natural Resources
CHALLENGES FOR THE FUTURE
• Improving basic educational achievement
• Improving infrastructure and electrical capacity
• Expanding technology industry
 CHINA

KEYADVANTAGES
• Broad expansion of educational achievement
• Rapid economic growth
• Third largest country in land size
• Biggest of all BRIC nations GDP wise.
• Largest exporter/ importer for 32 and 34 countries respectively.
• Cheap labour work force

CHALLENGES FOR THE FUTURE

• support to rural areas and less-developed regions
• Bank of China sees inflation as a bigger risk
• Need to improve the investment
 SOUTH AFRICA

KEYADVANTAGE
• The South African economy is now the 23rd largest in the world
• Inflation is now below 5% and falling.
• 25% of goods produced in South Africa are for export
• Richest in terms of its mineral reserves
CHALLENGES FOR THE FUTURE:
• The economy is growing but not fast enough
• Lack of skills, particularly in IT.
• 48% of the population is living below the poverty line
 BRICS Summits
1. Yekaterinburg Summit (2009)

Consensus on improving the global economic situation and reforming financial institutions. BRIC nations
announced the need for a new global reserve currency, which would have to be "diversified, stable and
predictable"

2. Brasilia Summit (2010)

South Africa officially became a member nation. Iran and nuclear weapons, development, the furtherance
of the BRIC as an international body, the global economic situation at the time, reform of financial
institutions, the financial G20, and cooperation and issues related to global governance.

3. Sanya Summit (2011)

Economics, anti-terror law under UN auspices,United Nations Security Council reform,decision to cease
mutual trade payments in U.S. dollars and instead henceforth give credits to one another in their
national currencies alone.
4. New Delhi summit (2012)
A proposal to create a joint BRICS development bank that would finance investments in
developing nations
5 Durban Summit (2013)
Negotiations for setting up the bank.
6.Fortaleza Summit (2014)
Creation of two financial institutions: the New Development Bank (NDB) to finance
infrastructure and “sustainable development” projects, with $50 billion in capital to start
with, and the $100 billion Contingent Reserve Arrangement (CRA), to tide over
members in financial difficulties.
7.Ufa Summit (2015)
•The summit coincided with the entry into force of constituting agreements of the New
Development Bank and the BRICS Contingent Reserve Arrangement and during the summit
inaugural meetings of the NDB were held, and it was announced it would be lending in local
currency; and open up membership to non-BRICS countries in the coming months
 Major Focus Of BRICS
• To establish a development bank to balance the influence of the World Bank and IMF, as well
as creating a joint foreign exchange reserve.
• Governance & Leadership
• Science & Technology
• Poverty
• Private Sector & Prevention of Corruption
• Investment Landscape
• Innovation in building Infrastructure
• Trade
• Healthcare
 SOME FACTS AND FIGURE
• As of 2015, the five BRICS countries represent over 3 billion people, or 42% of
the world population; all five members are in the top 25 of the world by
population, and four are in the top 10
• At their fifth summit, BRICS nations have decided to setup a development bank
to
overhaul the global financial system
• Current BRICS attendees
• The BRICS countries make up 21 percent of global GDP. They have increased their
share of global GDP threefold in the past 15 years.
• The BRICS are home to 43 percent of the world's population.
• The BRICS countries have combined foreign reserves of an estimated $4.4 trillion.
• Intra-BRICS trade flows reached $282 billion in 2012 and are estimated to reach
$500 billion by 2015. In 2002, it was $27.3 billion.
• IMF estimates of GDP per member in 2012, China $8.25 trillion, Brazil $2.43
trillion,
Russia and India at $1.95 trillion each, South Africa $390.9 billion.
• Per capita GDP for 2012 was estimated at, China $6,094, Brazil $12,340, Russia
$13,765, India $1,592, South Africa $7,636
• BRICS is very special in following terms :
1.It represents 5 most Emerging Economies of World.
2.These countries represent about 40% of World's Total Population.
3.These countries are Developing and Recently Industrialised Nations.