Presidents of Brazil, Russia, India, China, and South Africa gathered in Brasilia to talk about various important issues, including the economy. The 11th annual summit started on November 13, and this the two-day summit is an excellent opportunity to learn more about this forum.
The author of this acronym is an analyst from the U.S. investment bank. The analyst from Goldman Sachs created this acronym in 2001. However, at that, this acronym didn’t include South Africa, which joined in 2011. He used this abbreviation to refer to the emerging powers that would become the largest economies in the world along with the U.S.
In 2005, BRIC nations used this term to initiate a political dialogue. However, only in 2009, this dialogue transformed into annual meetings of Presidents and other leaders.
Fiver years later, in 2014, BRICS created a new institution. The New Development Bank (NDB) and this was a very ambitious plan. The purpose of this bank was to compete with the International Monetary Fund (IMF) and the World Bank. At the moment NDB is one of the largest multilateral development banks in the world. This bank has a subscribed capital of $50 billion. Out of $50 billion, $10 billion is paid capital.
Now it is time to discuss the function of this association. According to the members of this association, the purpose is to create equal international governance. This important as they believe that Western countries are dominating the international stage. Based on the information from the website of BRICS, it strives to establish fairer global governance. This would allow the states to create an atmosphere that is more suitable for their international interests.
BRICS and the global economy
It is worth mentioning that BRICS nations represent around 42% of the world population. Also, the members of this association account for 23% of GDP. Another interesting fact is that some of the world’s largest countries are part of BRICS, such as Russia, China, Brazil, and India. In total, they control 30% of the territory.
According to diplomats for Brazil and one other BRICS member state, the leaders will discuss the expansion of the New Development Bank. The president of NDB K.V. Kamath commented on this topic. He said that any country which is a member of the United Nations could join the bank. He noted that the bank is going to accept new members, but this will happen gradually.
The bank is ready to provide finances for various projects. The head of the NDB bank also addressed another issue, which created frustration among the member states. K.V. Kamath stated that he does not agree with the opinion that it takes a lot of time to deliver loans. He said that the bank achieved a lot of goals in four years, and it took much longer in the case of other institutions.
Based on the bank’s forecast by the end of 2019, the total projects will reach between $14 and $15 billion. It means that in comparison with the Asian Infrastructure Investment Bank, NDB’s portfolio is bigger.
This two-day summit will end on Thursday. Apart from economic problems, they will face a geopolitical situation in South America.