Daily Prelims Notes 9 June 2021
- June 9, 2021
- Posted by: admin1
- Category: DPN
Daily Prelims Notes
9 June 2021
Table Of Contents
- WORLDBANK APPROVES 500 M TO SUPPORT MSME’S
- RBI MOPS UP 70 % OF 10 YEAR G-SEC BONDS
- INFLATION AND ITS EFFECTS
- NITI AAYOG NEEDS TO PERHAPS LOOK AT SDG 10 AT A HOLISTIC MANNER
- GOVT SEEKS COMMENTS ON PROPOSED REVISION OF WPI
- WORLD BANK SLASHES INDIA’S GDP FORECAST TO 8.3%
- NATIONAL RIVER CONSERVATION PLAN
- WHY DO AIRCRAFT RUN INTO TURBULENCE?
- WE WILL PROBABLY NEED BOOSTER SHOTS FOR COVID 19
- SC URGED TO STOP ILLEGAL ADOPTION
- GoM for retains 5% tax on Covid jabs; tax cut on PPEs, ventilators, sanitisers:
- GLOBAL OUTAGE OF INTERNET
- DRAFT MODEL RULES FOR LIVE-STREAMING AND RECORDING OF COURT PROCEEDINGS
- UNITED NATIONS ECONOMIC AND SOCIAL COUNCIL (ECOSOC)
- ARAVALLI RANGES
- NATIONAL ASSET RECONSTRUCTION COMPANY LTD (NARCL)
- MONSOON SESSION LIKELY TO BEGIN IN JULY
- RENGMA NAGAS DEMAND AUTONOMOUS COUNCIL
- UNSC ENDORSES SECRETARY GENERAL GUTERRES FOR SECOND TERM
- BRICS OPPOSES EXCEPTIONALISM: CHINA
Subject: International Relations
Context: The World Bank’s Board of Executive Directors has approved a $500 million program to support India’s nationwide initiative to revitalize the MSME sector, which has been heavily impacted by the COVID-19 crisis.
- The $500 million Raising and Accelerating Micro, Small and Medium Enterprise (MSME) Performance (RAMP) Program is the World Bank’s second intervention in this sector, the first being the $750 million MSME Emergency Response Program, approved in July 2020 to address the immediate liquidity and credit needs of millions of viable MSMEs severely impacted by the ongoing COVID-19 pandemic.
- The RAMP Program will support the Government of India’s efforts to increase MSME productivity and financing in the economic recovery phase, crowd in private sector financing in the medium term, and tackle long-standing financial sector issues that are holding back the growth of the MSME sector.
- The RAMP program will provide better access to finance and working capital for MSMEs by strengthening the receivable financing markets;
- It will scale up online dispute resolution mechanisms to address the problem of delayed payments. Such efforts are expected to improve the cost-effectiveness, quality, accessibility, impact, and outreach of such schemes.
Context: The Reserve Bank of India has mopped up about 70 per cent of the benchmark 10-year Government Security (coupon rate: 5.85 per cent) the government has issued since December 1, 2020
- It keeps the G-Sec yields under check and ensuring that banks have enough liquidity to subscribe at the weekly bond auctions.
- The current outstanding in the 10-year benchmark G-Sec is ₹1.05-lakh crore. Of this, around 70 per cent is with the RBI.
- The central bank has accumulated all this via open market operation (purchases), the G-Sec Acquisition Programme and via the secondary market.
- What this means is the RBI is providing liquidity to banks to encourage them to buy G-Secs at the weekly auctions.
- A Government Security (G-Sec) is a tradable instrument issued by the Central Government or the State Governments.
- It acknowledges the Government’s debt obligation.
- Such securities are short term (usually called treasury bills, with original maturities of less than one year- presently issued in three tenors, namely, 91 day, 182 day and 364 day) or long term (usually called Government bonds or dated securities with original maturity of one year or more).
- In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
- G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.
- Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
Context: Global Inflation usually spills over to emerging economies through the commodities channel which is already showing up in the WPI which captures inflation in the producer’s level.
- Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.
- Inflation measures the average price change in a basket of commodities and services over time.
- The opposite and rare fall in the price index of this basket of items is called ‘deflation’.
- Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency. This could ultimately lead to a deceleration in economic growth.
- However, a moderate level of inflation is required in the economy to ensure that production is promoted.
Who measures Inflation in India?
- Inflation is measured by a central government authority, which is in charge of adopting measures to ensure the smooth running of the economy. In India, the Ministry of Statistics and Programme Implementation measures inflation.
- In India, inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index) which measure wholesale and retail-level price changes, respectively. The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics etc, which Indian consumers buy for use.
Adverse impacts of inflation:
- Inflation causes decrease in the real value of money and other monetary items over time.
- Inflation causes uncertainty over future and this may discourage investment and savings.
- High inflation may lead to shortages of goods if consumers begin hording out of concern that prices will increase in the future.
Favorable impacts of Inflation:
- Inflation ensures that the central banks adjust the interest rates.
- Inflation encourages non-monetary investment.
Context: Viewed against the economic impact of the pandemic, nations’ efforts towards meeting the UN’s Sustainable Development Goals (SDGs) by 2030 have assumed even greater importance.
- NITI, without doubt, has done well to focus on crucial social indicators like women’s representation in policy-making, crimes against SCs/STs, transgender labour force participation, etc, but, dropping earlier indicators that brought into stark relief the progress (or the lack of this) on reducing economic inequality doesn’t make the picture truly representative.
- In 2019, the NITI’s index included inequality indicators like the growth in household expenditure per capita for the bottom 40% of rural and urban populations, as well as the Gini index, a measure of wealth inequality.
- In 2018, the index had also included the Palma ratio—which shows the gap between the richest 10% and the bottom 40%.
- These are all crucial indicators to have a more granular assessment of the current position of households in NITI’s only economic indicator of inequality this year—population in the two lowest wealth quintiles.
- The Palma ratio of inequality was proposed by Alex Cobham and Andy Sumner in 2013, on the basis of the ‘Palma proposition’.
- The Palma ratio is a measure of inequality. It is the ratio of the richest 10% of the population’s share of gross national income (GNI) divided by the poorest 40%’s share.
- The measure is now reported by many of the leading income distribution databases and some national statistics offices, and received wide support as an original indicator for the UN Sustainable Development Goal 10.
Context: Wholesale price index makeover on the cards, base year to be 2017-18
- The wholesale price index (WPI), the widely tracked inflation indicator, is set for an overhaul with the base year being revised to 2017-18 from 2011-12 and the possibility of bringing within its tent fresh items to capture emerging consumption patterns.
Wholesale Price Index
- It is the most widely used inflation indicator in India.
- Published by the Office of Economic Adviser, Ministry of Commerce and Industry.
- All transactions at the first point of bulk sale in the domestic market are included.
- Major criticism for this index is that the general public does not buy products at wholesale price.
- The base year of All-India WPI has been revised from 2004-05 to 2011-12 in 2017.
Subject: International Reports
Context: The World Bank on Tuesday has slashed India’s GDP forecast to 8.3 per cent for FY22, the fiscal year starting April 2021, as against its earlier estimate of 10.1 per cent.
- The Washington-based global lender, in its latest issue of Global Economic Prospects released here, noted that in India, an enormous second Covid-19 wave is undermining the sharper-than-expected rebound in activity seen during the second half of Fiscal Year 2020/21, especially in services.
Global Economic Prospects (GEP)
- GEP is a World Bank Group flagship report that examines global economic developments and prospects, with a special focus on emerging market and developing economies.
- It is issued twice a year, in January and June.
- The January edition includes in-depth analyses of topical policy challenges while the June edition contains shorter analytical pieces.
Subject : Governance
- The Ganga Action Plan (GAP) Phase – I which was taken up as 100% centrally funded scheme and aimed at preventing the pollution of river Ganga and to improve its water quality.
- It was started in June 1985
- Subsequently, the GAP Phase II was launched in 1993 for pollution abatement of river Yamuna and Gomti, major tributaries of river Ganga.
- The river pollution abatement programme was further expanded to include other major rivers of the country in 1995 under the aegis of National River Conservation Plan (NRCP).
- Finally in December 1996, GAP Phase II was also merged with the NRCP.
- All projects for river cleaning in the country was brought under one umbrella scheme of NRCP.
- To improve the water quality of the major rivers which are the major fresh water source in the country through the implementation of pollution abatement Schemes.
The activities under NRCP include the following:
- Interception and diversion works/ laying of sewerage systems to capture raw sewage flowing into the rivers through open drains and diverting them for treatment.
- Setting up of Sewage Treatment Plants (STPs) for treating the diverted sewage.
- Construction of Low Cost Sanitation Toilets to prevent open defecation on river banks.
- Construction of Electric Crematoria and Improved Wood Crematoria to conserve the use of wood.
- River Front Development works, such as improvement of bathing ghats.
- Public participation & awareness and capacity building.
Subject: Science & tech
Context: Eight passengers on board a Vistara flight from Mumbai to Kolkata on Monday, June 7, suffered injuries after the Boeing 737-800 encountered severe turbulence during its descent.
- Air turbulence means disruption of airflow over the wings of an airplane, which causes it to enter an irregular vertical motion.
- There are at least seven different kinds of turbulence which an aircraft can face.
- Jet streams trigger sudden changes in wind speed that can rock the plane.
- Another type is thermal turbulence. It’s created by hot rising air, usually from cumulus clouds or thunderstorms.
- Mechanical turbulence is caused by the landscape. Mountains or tall buildings can distort the wind flow in the sky above them.
- Airplanes can also create turbulence. The wings cause wake turbulence as it passes through the air. This can affect planes flying behind one another. It’s why planes avoid taking the same flight path on take offs and landings.
- Pilots and air traffic control do a lot to avoid turbulence.
- Other kinds of turbulence include “wake turbulence”, which forms behind an aircraft when it flies through air, creating wingtip vortices.
Are turbulence incidents dangerous?
- It depends on the nature and intensity of the turbulence. Aircraft face some form of turbulence on a regular basis, and pilots are trained to deal with these disturbances.
Subject: Science & tech
Context: As the nation edges closer to President Joe Biden’s goal of a 70% vaccination rate, many people are beginning to wonder how long their protection will last.
- For now, scientists are asking a lot of questions about COVID-19 booster shots, but they do not yet have many answers.
- The National Institutes of Health recently announced that it has begun a new clinical trial of people fully vaccinated — with any authorized vaccine — to see whether a booster of the Moderna shot will increase their antibodies and prolong protection against getting infected with the virus.
- In medical terms, a booster dose is an extra administration of a vaccine after an earlier (primer) dose.
- After initial immunization, a booster injection or booster dose is a re-exposure to the immunizing antigen. It is intended to increase immunity against that antigen back to protective levels, after memory against that antigen has declined through time.
- For example, tetanus shot boosters are often recommended every 10 years, before which memory cells specific against tetanus have lost their function or undergone apoptosis.
- The need for a booster dose following a primary vaccination is evaluated in several ways. One way is to measure the level of antibodies specific against a disease, a few years after the primary dose is given.
- Anamnestic response, the rapid production of antibodies after a stimulus of an antigen, is a typical way to measure the need for a booster dose of a certain vaccine. If the anamnestic response is high after receiving a primary vaccine many years ago, there is most likely little to no need for a booster dose.
- People can also measure the active B and T cell activity against that antigen after a certain amount of time that the primary vaccine was administered, or determine the prevalence of the disease in vaccinated populations
Context: The Supreme Court has agreed to intervene after the National Commission for Protection of Child Rights (NCPCR) sounded the alarm on a spate of complaints about illegal adoption of COVID orphans through private individuals and organizations.
- NCPCR statistics shows that 3,621 children were orphaned, 26,176 children lost either parent and 274 children were abandoned between April 1, 2021 to June 5, 2021.
- The second wave of the pandemic was at its worst form during this period, leaving a trail of death across the country.
- NCPCR had received many complaints in May that private individuals and organisations have been actively collecting data on these children while claiming that they want to assist families and children in adoption.
- Social media posts are circulating that children are up for adoption. This is plainly illegal and violates the Juvenile Justice Act.
- The Act also prohibits the disclosure of identity of children with regard to the name, school, age, address or any information which would reveal the essential details of the child.
What is the procedure to be followed with children who have been orphaned?
- If someone has information about a child in need of care, then they must contact one of the four agencies: Childline 1098, or the district Child Welfare Committee (CWC), District Child Protection Officer (DCPO) or the helpline of the State Commission for Protection of Child Rights.
- Following this, the CWC will assess the child and place him or her in the immediate care of a specialized Adoption Agency.
- When there is a child without a family, the State becomes the guardian.
About JJ Act, 2015:
- Aim: To comprehensively address children in conflict with law and children in need of care and protection.
- It mandates setting up Juvenile Justice Boards and Child Welfare Committees in every district. Both must have at least one-woman member each.
- Also, the Central Adoption Resource Authority (CARA) was granted the status of a statutory body to enable it to perform its function more effectively.
- All Child Care Institutions, whether run by State Government or by voluntary or non-governmental organisations are to be mandatorily registered under the Act within 6 months from the date of commencement of the Act.
Context: The Group of Ministers (GoM), constituted by the Goods and Service Tax (GST) Council last week to look into the tax rate on Covid vaccines and other equipment, has recommended retaining the GST rate on Covid-19 vaccine at 5 per cent, while suggesting tax cut on a slew of Covid-related items like ventilators, personal protective equipment (PPE) kit, among others, for three months.
The recommendations have been submitted to Finance Minister Nirmala Sitharaman on Thursday.
- The GST council is the key decision-making body that will take all important decisions regarding the GST. The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states.
- The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.
- It is a constitutional body (Article 279A) for making recommendations to the Union and State Government on issues related to Goods and Services Tax.
- Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, such as, the goods and services will be subject or exempted from the Goods and Services Tax.
- The GST Council is chaired by the Union Finance Minister and other members are the Union State Minister of Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
- It is considered as a federal body where both the centre and the states get due representation.
Subject: Science & tech
Context: Several big websites around the world went down for about half an hour, because of a major issue with the content delivery network (CDN) of American cloud computing services provider fastly.
Most users would have seen a 503 error when trying to access these websites, indicating that the browser was not able to access the server.
What is a CDN?
- A CDN (Content Delivery Network) is a highly-distributed platform of servers that helps minimize delays in loading web page content by reducing the physical distance between the server and the user.
- Without a CDN, content origin servers must respond to every single end user request.
- A CDN refers to a geographically distributed group of servers that work together to provide fast delivery of Internet content.
- They house content close to the telecom service providers’ networks. Majority of web traffic across the world today is routed through CDNs.
- Platforms such as Netflix, Facebook, and Amazon— ones with large quantities of data held in global libraries — host their geographically relevant content closer to where that content is to be consumed.
- This ensures the end customer is able to access the content faster. Another reason companies rely on these CDNs is to help protect their sites against traffic spikes, distributed denial of service (DDOS) attacks, etc.
- This is not the first time that an issue with CDN has caused many other dependent websites to go down. Previously in 2020, Cloud flare, another leading global cloud platform, had faced issues that impacted its client websites.
- The Cloud flare glitch resulted in sites such as Discord, Feedly, Politico, Shopify, and League of Legends going down.
Context: The e-Committee of Supreme Court of India has released the Draft Model Rules for Live-Streaming and Recording of Court Proceedings and has invited feedback on them.
- The e-Committee of the Supreme Court of India along with the Department of Justice, Government of India is working under the National Policy and Action Plan for implementation of Information and Communication Technology ICT in the Indian Judiciary.
- Justice Dhananjaya Y. Chandrachud is the Supreme Court Judge and Chairperson of e-Committee.
- The right of access to justice, guaranteed under Article 21 of the Constitution encompasses the right to access live court proceedings.
- According to the draft rules, all proceedings in high courts can be telecast except for cases relating to matrimonial disputes, gender-based violence, those involving minors and “cases, which in the opinion of the Bench, may provoke enmity amongst communities likely to result in a breach of law and order”.
- “The final decision as to whether or not to allow the Live-streaming of the Proceedings or any portion thereof will be of the Bench, however, the decision of the Bench will be guided by the principle of an open and transparent judicial process. The decision of the Bench shall not be justiciable.”
Subject: International Organizations
Context: India has been elected to the United Nations Economic and Social Council, ECOSOC for the term 2022-24.
- The UN Charter established ECOSOC in 1945 as one of the six main organs of the United Nations.
- The Council consists of 54 Members States, which are elected yearly by the General Assembly for overlapping three-year terms.
- Seats on the Council are allotted based on geographical representation with 14 allocated to African states, 11 to Asian states, six to eastern European states, 10 to Latin American and Caribbean states and 13 to western European and other states.
- It is the central platform for fostering debate and innovative thinking, forging consensus on ways forward, and coordinating efforts to achieve internationally agreed goals.
- It is also responsible for the follow-up to major UN conferences and summits.
ECOSOC’s annual High-Level Segment includes:
- High-Level Political Forum, which reviews implementation of the 2030 Agenda for Sustainable Development, is convened under the auspices of the Council every July.
- Development Cooperation Forum reviews trends and progress in development cooperation.
- Specialized agencies: The specialized agencies of the United Nations are autonomous organizations working within the United Nations System, meaning that while they report their activities to the Economic and Social Council, they are mostly free to their own devices.
Context: The Supreme Court ordered the Haryana government and the Faridabad Municipal Corporation to take “all essential measures” to remove encroachments, including about 10,000 residential constructions, in the ecologically fragile Aravali forest land near LakarpurKhori village.
- The Aravalli Range (also spelled Aravali) is a mountain range in Northwestern India.
- It runs approximately 670 km (430 mi) in a south-west direction, starting near Delhi, passing through southern Haryana and Rajasthan, and ending in Gujarat.
- The highest peak is Guru Shikhar at 1,722 metres (5,650 ft). Guru Shikhar is a peak in the Arbuda Mountains of Rajasthan. It is 15 km from Mount Abu.
- Three major rivers and their tributaries flow from the Aravalli, namely Banas and Sahibi rivers which are tributaries of Yamuna, as well as Luni River which flows into the Rann of Kutch.
Context: Banks in India have identified about 22 bad loans worth ₹89,000 crore to be transferred to the National Asset Reconstruction Company Ltd. (NARCL) in the initial phase.
- Setting up of NARCL, the proposed bad bank for taking over stressed assets of lenders, was announced in the Budget for 2021-22.
- The plan is to create a bad bank to house bad loans of ₹500 crore and above, in a structure that will contain an asset reconstruction company (ARC) and an asset management company (AMC) to manage and recover dud assets.
- The new entity is being created in collaboration with both public and private sector banks.
How is NARCL different from existing ARCs? How can it operate differently?
- The proposed bad bank will have a public sector character since the idea is mooted by the government and majority ownership is likely to rest with state-owned banks.
- At present, ARCs typically seek a steep discount on loans. With the proposed bad bank being set up, the valuation issue is unlikely to come up since this is a government initiative.
- The government-backed ARC will have deep pockets to buy out big accounts and thus free up banks from carrying these accounts on their books.
Asset Reconstruction Company (ARC)
- It is a specialized financial institution that buys the Non-Performing Assets (NPAs) from banks and financial institutions so that they can clean up their balance sheets. This helps banks to concentrate on normal banking activities.
- The asset reconstruction companies or ARCs are registered under the RBI.
- The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 provides the legal basis for the setting up of ARCs in India.
Context: The monsoon session of Parliament is expected to begin on schedule in July.
The last session of Parliament was curtailed and ended sine die on March 25 and under the Constitutional norms, the next session has to be held within six months. This period ends on September 14.
- Three sessions have been curtailed since the pandemic began in March last year. First of these was the Budget session of 2020. The winter session last year was also cut short.
- Last year, the monsoon session, which usually starts in July, began in September.
- Article 85 requires that there should not be a gap of more than six months between two sessions of Parliament.
- Please note, the Constitution does not specify when or for how many days Parliament should meet.
- The power to convene a session of Parliament rests with the government. The decision is taken by the Cabinet Committee on Parliamentary Affairs.
- The decision of the Committee is formalised by the President, in whose name MPs are summoned to meet for a session.
Context: The Rengma Nagas in Assam have written to Union Home Minister Amit Shah demanding an autonomous district council amid a decision by the Central and the State governments to upgrade theKarbiAnglong Autonomous Council (KAAC) into a territorial council.
- With Assam government on verge of inking peace Accord with KarbiAnglong based militant outfits, NSCN-IM stated any agreement that victimize the RengmaNagas would not be acceptable.
- The issue in focus is KarbiAnglong, erstwhile known as Rengma Hills. Rengma Hills are made the victims of aggressive influx of outsiders for vested interests.
- The Rengma Hills was partitioned in 1963 between Assam and Nagaland at the time of creation of Nagaland State.
What are Autonomous District Council?
- As per the Sixth Schedule, the four states viz. Assam, Meghalaya, Tripura and Mizoram contain the Tribal Areas which are technically different from the Scheduled Areas.
- Though these areas fall within the executive authority of the state, provision has been made for the creation of the District Councils and regional councils for the exercise of the certain legislative and judicial powers.
- Each district is an autonomous district and Governor can modify / divide the boundaries of the said Tribal areas by notification.
The Governor may, by public notification:
- Include any area.
- exclude any area.
- create a new autonomous district.
- increase the area of any autonomous district.
- diminish the area of any autonomous district.
- alter the name of any autonomous district.
- define the boundaries of any autonomous district.
Constitution of District Councils and Regional Councils:
- There shall be a District Council for each autonomous district consisting of not more than thirty members, of whom not more than four persons shall be nominated by the Governor and the rest shall be elected on the basis of adult suffrage.
- There shall be a separate Regional Council for each area constituted an autonomous region.
- Each District Council and each Regional Council shall be a body corporate by the name respectively of the District Council of (name of district) and the Regional Council of (name of region), shall have perpetual succession and a common seal and shall by the said name sue and be sued.
Subject: International Organizations
Context: The United Nations Security Council has endorsed Secretary-General Antonio Guterres for a second five-year term- from 1 January 2022 to 31 December 2026.
About the UN Secretary General:
- The UN Charter describes the Secretary-General as “chief administrative officer” of the Organization, who shall act in that capacity and perform “such other functions as are entrusted” to them by the Security Council, General Assembly, Economic and Social Council and other United Nations organs.
- The Charter also empowers the Secretary-General to bring to the attention of the Security Council any matter which in their opinion may threaten the maintenance of international peace and security.
- The Security Council recommends a candidate for the General Assembly’s 193 members to appoint. Although all UN members get a voice in the secretary-general’s selection, the five permanent members of the Security Council hold the most influence. Any one of them can eliminate a nominee with a veto.
Issues/challenges with the office of UN Secretary General:
- The UN Charter doesn’t clearly define the functions and powers of the Secretary General.
- Selection is not done entirely on merit and transparency.
- Critics of the appointment process say it lacks transparency and falls prey to cronyism due to the permanent Security Council members’ veto power and their secret negotiations over candidates.
- The secretary-general often struggles to balance the interests of other large funders and powerful member states as well.
Subject: International Relations
Context: Virtual BRICS Foreign Ministers was held recently. At the end of the meeting two statements were issued on the “Meeting of the BRICS Ministers of Foreign Affairs/International Relations” and another on “BRICS Joint Statement on Strengthening and Reforming the Multilateral System”.
What has China said on BRICS and its intended objectives?
- BRICS countries pursue openness, inclusiveness and win-win cooperation, and reject “bloc politics and ideological confrontation”.
- The BRICS countries, as emerging markets and developing countries, are indeed different from a few developed countries in their attitude towards multilateralism and multilateral cooperation.
- The BRICS countries stress the need to observe the purposes and principles of the UN Charter and oppose exceptionalism and double standard.
What do these statements indicate/suggest?
- These statements clearly reveal that China is opposed to the formation of the Quad grouping amongst the US, India, Australia and Japan.
- It believes this group is targeting or harming the interests of third parties.
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
- In 2001, the British Economist Jim O’Neill coined the term BRIC to describe the four emerging economies of Brazil, Russia, India, and China.
- The grouping was formalised during the first meeting of BRIC Foreign Ministers’ in 2006.
- South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
- The Chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
- Track I: Formal diplomatic engagement between the national governments.
- Track II: Engagement through government-affiliated institutions, e.g. state-owned enterprises and business councils.
- Track III: Civil society and People-to-People engagement.