BRICS is the group of nations having developing economies; the only difference is large or fast growing economies. Earlier the group was BRIC, which was subsequently changed to BRICS after joining of South Africa. All five members are member of G-20. The five countries constitute 40% of the world’s population and accounts 20 % of the gross world product making it a successful idea for developing these economies. P.M. Narendra Modi arrived at Ufa, Russia to attend the 7th BRICS summit. The members will have further discussion on the New Development Bank.
History of BRICS
First summit was held at Yekaterinburg in 2009 hosted by Russia, when the group was BRIC (before induction of South Africa). The summit aimed at improving financial institutions and ways to improve the cooperation between members. The issue of need of global reserve currency was raised at this summit. South Africa was inducted in the group in 2010 adding ‘S’ to the name.
Many countries like Indonesia, Turkey, Mexico have shown their interest in joining the group. Bangladesh, Nigeria, Syria, Iran and some others are who have also urged to join the group.
Aim of BRICS
BRICS was established with the aim of communal growth of all the members. The summits held were concluded with various aims. The financial stability of the members was always given the top priority. The impact of IMF over economic development led the members to find out solution of this problem.
New Development Bank
New development bank is the milestone in the history of BRICS. The bank was earlier called as BRICS development bank. The birth of this new bank was decided during the 5th summit. The finalization and signing the agreement was done on 6th summit, held in Fortaleza, Brazil. The bank was initially established with $ 50 billion which was subsequently increased to $ 100 billion. China holds the highest number of shares of this bank. The banks aims at lending maximum $36 billion annually for infrastructure development. This will make BRICS more strong and helpful for members.
Contingency Reserve Arrangement
The last summit of BRICS was remarkable for 100 billion Contingency Reserve Arrangement supposed to overcome the dependency over IMF. It ensures the global financial safety net and complement existing international monetary and financial arrangements of the member nations.
The group will also give assistance money to the needy nations.
Recently K.V. Kamath of India was appointed as the president of new development.
This group has so far been successful in the race of approaching the aims and is also proved to be fruitful for all the members. The further motives of this group are heading to make this group meet its aim of enhancing the economies. Well, it is always a better option to walk with others then to run alone. The path that India chose will lead India to overcome its long coming economic problems. More similar groups like SAARC, ASEAN and others were also very helpful in strengthening the relations with other nations and parallel development of all the member nations.