BRICS

About BRICS

BRICS brings together five major emerging economies- China, Brazil, Russia, India and South Africa. It comprises 43% of the world population, having 30% of the world GDP and a 17% share in world trade.
The grouping was formalised during the first meeting of BRIC (Brazil, Russia, India and China) Foreign Ministers on the margins of the UNGA in New York in September 2006.
South Africa was added to the grouping in 2011 creating “BRICS”.
BRICS cooperation is aimed at complementing and strengthening existing bilateral and multilateral relations among member countries.
The Chairship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
Cooperation among members is predicated on three levels or “tracks” of interaction, namely:
- 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.

Significant developments of BRICS

New Development Bank

The NDB created by the BRICS countries formally came into existence at the Ufa Summit (Russia) in 2015.
It was established with the objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the efforts of multilateral and regional financial institutions toward global growth and development.
In 2018, the NDB received observer status in the UN General Assembly.
Voting power of each member is equal to the number of its subscribed shares in capital stock.
All members of the United Nations could be members of the bank, however the share of the BRICS nations can never be less than 55% of voting power.

Contingency Reserve

The BRICS Contingent Reserve Arrangement (CRA) is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.

Why in News?

China has said that it actively supports the start of the BRICS expansion process.
Russian Foreign Minister Sergey Lavrov earlier said that Saudi Arabia and Argentina are desirous to join the grouping.
Both China and Russia have actively supported the idea of BRICS expansion, seeing the grouping as a useful platform to broaden their voice amid their tensions with the West.

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