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BRICS

  • IASbaba
  • July 10, 2021
  • 0
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BRICS

Part of: GS Prelims and GS -II – International relations

In news All BRICS countries have agreed to the STI-led BRICS Innovation Cooperation Action Plan (2021-24) proposed by India during the 12th Meeting of BRICS S&T Steering Committee.

  • Indian had proposed the plan to facilitate sharing of experiences of each other’s innovation ecosystem and networking of innovators and entrepreneurs.

About BRICS

  • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
  • The BRICS Leaders’ Summit is convened annually.
  • BRICS does not exist in the form of organization, but it is an annual summit.
  • 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.
    • It’s an emerging investment market and global power bloc
  • Objectives:
    • The BRICS seeks to deepen, broaden and intensify cooperation within the grouping and among the individual countries for more sustainable, equitable and mutually beneficial development.
    • BRICS takes into consideration each member’s growth, development and poverty objectives to ensure relations are built on the respective country’s economic strengths and to avoid competition where possible.
    • BRICS is emerging as a new and promising political-diplomatic entity with diverse objectives, far beyond the original objective of reforming global financial institutions.

What are the components of financial architecture of the BRICS?

    • NDB is headquartered in Shanghai.
    • During the Sixth BRICS Summit in Fortaleza (2014) the leaders signed the Agreement establishing the New Development Bank (NDB).
    • NDB’s key areas of operation are clean energy, transport infrastructure, irrigation, sustainable urban development and economic cooperation among the member countries.
    • 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

News Source: PIB

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