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Know about"BRICS"

BRICS is an acronym for Brazil, Russia, India, China, and South Africa. Goldman Sachs economist Jim O'Neill coined the term BRIC (without South Africa) in 2001, claiming that by 2050 the four BRIC economies would come to dominate the global economy. South Africa was added to the list in 2010.


The BRICS were not a formal intergovernmental organisation; they were initially named to highlight investment potential. Through yearly formal summit meetings and the coordination of international policy, they have developed into a more cohesive geopolitical bloc since 2009. The core tenets of BRICS bilateral ties are non-interference, equality, and mutual gain.

The latest summit of BRICS was held between 22-24 August 2023 in Johannesburg, South Africa. Many countries have shown their interest in joining BRICS. Six new countries are joining BRICS.


Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates were all extended invitations to join the group during the 15th BRICS Summit in August 2023, according to Cyril Ramaphosa, the president of South Africa. On January 1, 2024, full membership will go into effect.


Financial Framework of BRICS:

The New Development Bank (NDB), often known as the BRICS Development Bank, and the Contingent Reserve Arrangement (CRA) are the two elements that now make up the BRICS financial architecture. These two elements were ratified as treaties in 2014 and went into effect in 2015.


New Development Bank:

The five BRICS governments jointly run a global development bank known as the New Development Bank (NDB), also known as the BRICS Development Bank. Infrastructure projects will be the bank's core area of lending, with annual lending limits of up to $34 billion authorised. The "New Development Bank Africa Regional Centre" will be located in South Africa and serve as the Bank's African headquarters. The bank will start with $50 billion in capital, and as time goes on, its worth will rise to $100 billion. To reach the initial goal of $50 billion, $10 billion will be contributed by each of Brazil, Russia, India, China, and South Africa. There are currently 53 active projects totalling about $15 billion.


Recently Bangladesh, Egypt, the United Arab Emirates and Uruguay were added as new members of BRICS New Development Bank.


BRICS CRA:

A mechanism for offering defence against global liquidity pressures is the BRICS Contingent Reserve Arrangement (CRA). This includes currency problems when the national currencies of members are being negatively impacted by pressures on the world economy. The rapid economic liberalisation of emerging economies was found to enhance economic volatility and create an unstable macroeconomic environment. The New Development Bank and the CRA are usually recognised as examples of growing South-South cooperation and are seen as rivals to the International Monetary Fund (IMF). It was founded by the BRICS nations in 2015. The Treaty for the Establishment of a BRICS Contingent Reserve Arrangement was signed in Fortaleza, Brazil, on July 15, 2014. When announced at the 7th BRICS summit in July 2015, it came into effect with the first sessions of the BRICS CRA Governing Council and Standing Committee, held on September 4 in Ankara, Turkey.


One of the heads of state from the member nations is chosen by the group to serve as President Pro Tempore of the BRICS at each meeting. The president of Brazil held the pro tempore presidency in 2019.


Temporary Presidentship:

The eleventh BRICS summit's subject was "BRICS: Economic Growth for an Innovative Future," and the Brazilian Pro Tempore Presidency has the following priorities for 2019. - Invigorating the fight against transnational crime, particularly against organised crime, money laundering, and drug trafficking; Strengthening the cooperation in science, technology, and innovation; Strengthening the cooperation in the digital economy; Supporting the reconciliation between the New Development Bank (NDB) and the BRICS Business Council. Currently, Russia is the new President Pro Tempore. Investing in BRICS nations to boost their economies, working together in the energy and environmental sectors, supporting young children, and developing policies on migration and peacekeeping are among their objectives.




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