The world says that the economies constituting BRICS will be the ruling economies by 2050, but I say that it’s an under estimation of potential. BRICS can make this wonder happen quite earlier than expected.
Representing the population chunk of 3 billion who collectively has a share of 18% of the world economy, BRICS are distinguished by their fast growing economies and significant influence on regional and global affairs.
The 6th BRICS summit was held in Fortaleza, putting Brazil in the chair of the host. This summit placed an emphasis on the BRICS Development Bank, Shanghai being its headquarters. BRICS have decided to raise a sum of $100 billion for the bank as an initial investment. $100 billion will have a positive precautionary effect, to facilitate finance to the countries during short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. The initial subscribed capital is decided to be of US$ 50 billion, equally shared among the founder nations. The first chair of the Board of Governors shall be from Russia while the first chair of the Board of Directors shall be from Brazil, the first President of the Bank shall be from India and the headquarters of the Bank shall be located in Shanghai. The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters.
The Sixth Summit happened at a crucial juncture, as the international community assesses how to address the challenges of strong economic recovery from the global financial crisis, including climate change, sustainable development, while also discussing collectively on the post-2015 Development Agenda. At the same time, BRICS are facing political instability and conflict in various global hotspots and non-conventional emerging threats. On the other hand, international governance structures designed within a different power configuration show increasingly evident signs of losing legitimacy and effectiveness, as transitional and ad hoc arrangements become increasingly prevalent, often at the expense of multilateralism. BRICS believe they are an important force for incremental change and reform of current institutions towards more representative and equitable governance, capable of generating more inclusive global growth and fostering a stable, peaceful and prosperous world.
Looking at the prospect of this, BRICS countries seem to showcase their tusks. With the introduction of this bank, there would be a lesser dependability of BRICS on the IMF and the World Bank. So, it’s a strategic move towards breaking the reputation of monetary monarchy of US$ in the global markets.
Russian President, Vladimir Putin stated, “In the BRICS case we see a whole set of coinciding strategic interests. First of all, this is common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and World Bank’s decision making system. The international monetary system depends a lot on the US$ or to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this.” with a voice of confidence and vibrancy.
The theme chosen for discussion was “Inclusive Growth: Sustainable Solutions,” in keeping with the inclusive macro-economic and social policies carried out by BRICS governments and the imperative to address challenges to humankind posed by the need to simultaneously achieve growth, inclusiveness, protection and preservation.
What India and Indians should speculate is that there are chances of an introduction of a new currency for BRICS, so lesser dependency on US$. We expect a bounty in the tourism sector accompanied with infrastructural development through BRICS cooperation.
Hence, the BRICS countries may just change the dominance of the United States of America by emerging as superpowers with grace.
– By Aarat Pandya
(Research, Writing & Photography)