BRICS
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BRICS
Subject – IR
Context – The 13th BRICS summit is set to be held on September 9 in digital format under India’s chairmanship.
Concept –
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
- The term BRIC was coined by Jim O’ Neil, the then chairman of Goldman Sachs in 2001.
- The first BRIC summit took place in the year 2009 in Yekaterinburg (Russia).
- In 2010, South Africa formally joined the association making it BRICS.
- The BRICS Leaders’ Summit is convened annually.
- The Chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
- Together, BRICS accounts for about 40% of the world’s population and about 30% of the GDP (Gross Domestic Product), making it a critical economic engine.
- During the Sixth BRICS Summit in Fortaleza (2014) the leaders signed the Agreement establishing the New Development Bank (NDB), headquartered in Shanghai.
- Fortaleza Declaration stressed that the NDB will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development thus contributing to sustainable and balanced growth.
- Considering the increasing instances of global financial crisis, BRICS nations signed BRICS Contingent Reserve Arrangement (CRA) in 2014 as part of Fortaleza Declaration at Sixth BRICS summit.
- The BRICS CRA aims to provide short-term liquidity support to the members through currency swaps to help mitigating BOP crisis situation and further strengthen financial stability.
- The initial total committed resources of the CRA shall be one hundred billion dollars of the United States of America (USD 100 billion).
13th BRICS Summit
- The chair of BRICS 2021 is India.
- The theme of the 13th BRICS Summit is, ‘BRICS @ 15: Intra-BRICS Cooperation for Continuity, Consolidation and Consensus.’