BRICS......

Emerging superpowers
• BRICS is an association with more than 40% of the global
population and with 25% of the global GDP (nominal GDP of
US$16.039 trillion) and an estimated US$4 trillion in combined
forex. Bilateral relations are conducted mainly on the basis of
equality and mutual benefit.
• Originally the first four were grouped as “BRIC” (or “the BRICs”)
before the induction of South Africa in 2010. The BRICS have a
combined area of 39,746,220 km2 (15,346,101.0 sq mi) and an
estimated total population of about 3.21 billion,or about 26.656% of
the world land surface and 41.53% of the world population.

• The 11th summit of the BRICS grouping comprising Brazil, Russia,

India, China, and South Africa was held in Brasilia on 13th and 14th
November 2019. The 12th summit (Russia) of BRICS was held on
17th November, 2020 via videoconference.

• In 2020, the New Development Bank (formerly BRICS bank)

approved a USD 1 Billion Project called “Covid-19 Emergency
Program Loan for Supporting India’s Economic Recovery”. The
project finances the MGNREGS expenditure of the top ten Indian
states on works classified as Natural Resource Management.
 BRICS
❑ BRIC Came into existence in the year 2001 as BRICNATIONS.
❑ BRICS came into existence in 2012 with the introduction/addition of South
Africa with the existing members of BRIC- Brazil, Russia, India, China &
South Africa.
❑ BRICS is international economic-political
organization of leading emerging
economies
its Five members are all developing
industrialized countries.
These are Biggest and fastest growing and emerging
economies
 Cont…

✓China is South Africa’s largest trading partner

✓India wants to increase commercial ties with Africa

✓South Africa brought into BRIC "not only South Africa

but a larger African market of a billion people,"
 From BRIC to BRICS

BRIC, to be known as BRICS now that

South Africa has become a member, is a
powerful bloc of emerging economies
which, according to the International
Monetary Fund, will account for as much
as 61% of global growth in three years'
time.
South Africa, therefore,
needs to bring new policies,
invest in its own, and
the regional infrastructure,
as well as reduce intra-African trade
barriers for the country
to provide any meaningful contribution
to BRICS and
enhance its competitiveness on the
international stage
by providing entitlement,
developing capabilities and
working on action plan to prove that it
deserves its place in BRICS.
BRIC (Brazil, Russia, India, China economic
bloc) to....... BRICS
• South Africa had expressed its desire to join
BRIC in February 2010. The addition has been
cleared by the existing members.

• In March 2012, South Africa appeared to join

BRIC, which thus became BRICS.
 Objectives of BRICS

1-To increase regional development

2-To remove trade barriers.
3-To improve Economic development.
4-Optimum use of resources.
5-Builiding cordial relationship.
`
 BRICS Summit
❑ The BRIC countries met for their first official
summit on 16 June 2009, in Yekaterinburg, Russia.

▪ Discussed the current global financial crisis, global

development and further strengthening of the
BRICS group.

▪ Issued a joint statement on global food security,

calling for “action by all governments and the
relevant international agencies”
 Cont…
▪ Attacked the role of dollar as the primary
international currency & suggested new global
reserve currency that is 'diversified, stable and
predictable'.

❑ 2nd BRIC summit held on April 16, 2010 Brazil

❑ 3rd BRICS summit held on April 14, 2011 china

• 13th BRICS Summit – New Delhi Declaration
• Some important highlights of the BRICS New Delhi Declaration 2021 are
given below:
• The BRICS nations pledged to promote a more inclusive, equitable and
representative multipolar international system with the United Nations at its
centre.
• Agreement on BRICS Cooperation on Remote Sensing Satellite Constellation
was signed.
• Agreement on BRICS Cooperation and Mutual Administrative Assistance in
Customs Matters was finalized.
• A Memorandum of Understanding on Cooperation in the field of Regulation
of Medical Products for Human Use has been welcomed for discussion.
• The adoptions of/and or agreements of the following were commended:
• BRICS Counter-Terrorism Action Plan
• Action Plan2021-2024 for Agricultural Cooperation
• Innovation Cooperation Action Plan 2021-2024 and
• BRICS Alliance for Green Tourism
• Reiterated the commitment to implement the strategy for BRICS Economic
Partnership 2021-25.
• BRICS Agricultural Research Platform was launched.
• 16th General Review of Quotas to be completed by December 15, 2023.
• The importance of the Joint Comprehensive Plan of Action (JCPoA) in
ensuring international and regional peace and stability was reiterated.
• Reaffirmation of the importance of the Convention on the Prohibition of the
Development, Production and Stockpiling of Bacteriological (Biological) and
Toxin Weapons and on Their Destruction (BTWC) was given.
 Cont…
South Africa will host the 15th BRICS Summit
from August 22 to 24 in Johannesburg,
President Cyril Ramaphosa announced on
Thursday
The Fourth BRICS Summit was hosted in New Delhi on
29 March 2012 under the theme of “BRICS Partnership
for Global Stability, Security and Prosperity.” The
Summit has imparted further momentum to the BRICS
process of planning a joint development bank.
 FIFTH BRICS Summit
• South Africa hosted the fifth BRICS Summit
from 26 to 27 March 2013 at the Durban
International Convention Centre (ICC).

• The fifth annual summit aimed to bring

together Brazil, Russia, India, China and South
Africa, and will be preceded by two events: a
gathering of the nations' business sectors and
a forum at Durban University of Technology
for the nations' academics.
 South Africa hosted the fifth BRICS brics 5th summit.docx Summit
from 26 to 27 March 2013 at the Durban International Convention
Centre (ICC). This completed the first cycle of BRICS summits.
The central area of discussion was under the overarching theme,
BRICS and Africa: Partnership for Development, Integration and
Industrialisation.
Subsequent to the discussions that took place at the Business Forum
Meeting, the industry leaders from the business communities of the
five countries namely Brazil, Russia, India, China and South Africa
agreed on the following points:
• -- The BRICS countries agreed on the setting up of an exclusive bank for
themselves and the developing world. The bank is also to mobilize 4.5
trillion US dollars over the next five years to target mainly
infrastructure projects in member countries. The development bank can
also borrow from other banks to pitch in with much-needed capital. The
final document on establishing the bank could be ready by next year
and from then on it could take a few years for the bank to start its
operations.
• -- Besides, the BRICS nations say they will create a Contingency
Agreement Fund. The Dow Jones news agency says China will
contribute a share of 41 billion US dollars, followed by Brazil, Russia and
India with 18 billion US dollars each, and South Africa with 5 billion.
Each country’s central bank is supposed to keep the fund’s reserves as
part of its own reserves. The money is meant to be used in emergencies
only, as an alternative to the International Monetary Fund.
• -- BRICS countries have launched the BRICS Business Council, the key
institution expected to drive private sector investments among the five
members. Analysts say the council will be crucial in boosting trade with
each other from the current 360 billion U.S. dollars to 500 billion dollars
by 2015. The proposed council will meet twice a year and the
chairmanship will rotate every year
• BRICS and Africa will forge a closer partnership for
development integration and industrialisation.
• BRICS countries will actively support infrastructure
development and industrialisation on the African
continent in order to contribute to its development
and to expand trade links between Africa and BRICS.
• The global economic situation, though improving,
continues to remain uncertain with the Euro-crisis a
major concern.
The recovery seen in the US and the continued steps
taken by the Euro Zone countries to address the
sovereign debt crisis are worth noting. The task
ahead is to build on these developments and BRICS
countries remain committed to the cause of
promoting sustainable growth.
• • Greater economic cooperation amongst BRICS
countries is imperative. This can help in
addressing some of the domestic challenges each
of us face as well as prove beneficial for global
economic growth.
• China and Brazil have agreed to establish a
currency swap line worth around 30 billion dollar
in their respective currencies, which they say is
designed to protect against future global financial
crises.
• Key recommendations of the Summit
• • The BRICS Nations fully support the efforts of their respective
governments at the G20 that has emerged as the premiere
forum to address critical global economic and financial issues.
• We shall work collectively to carry forward the work agenda set
by the G20 leaders for promoting stronger, sustainable and
more equitable growth.
• They reiterate that the world economic order is changing and
that the process of developing economic policy agenda at the
global level should reflect this.
• While there is a realization even amongst the developed
countries about the increasing economic weight of emerging
economies, this is not fully reflected in the governance model
of global institutions such as the IMF and World Bank. We shall
continue to work alongside our governments to gradually usher
in governance reforms at multi-lateral institutions.
• • The BRICS nations encourage their respective governments to take
steps to deepen economic engagement amongst the BRICS countries.
• The establishment of the BRICS Business Council is, therefore, supported
as a practical measure that will deepen economic engagement amongst
BRICS countries.
• Trade and investment are the two pillars of economic engagement
amongst BRICS countries. We should look to continue enhancing intra-
BRICS trade to achieve at least US$ 500 billion by 2015 as per agreement
from previous Business Forum in India.
• It is essential to improve the quality of trade by focusing on more value
added trade in all the three sectors namely manufacturing, services and
agriculture. Likewise, we should capitalise on opportunities in sectors
such as but not limited to agriculture and agro-processing, energy,
sustainable development, infrastructure, mining beneficiation,
pharmaceutical and information and communication technology.
• There is agreement that support for industrialisation projects on the
African continent will contribute to the expansion of trade and
investment links between BRICS and Africa.
• • The BRICS nation urges their respective
governments to deepen their consultative
engagements on economic policies to bring about
stability and certainty in global financial markets.
• The Countries are encouraged by the
discussions that are taking place amongst our
respective governments towards greater
cooperation in the financial sector.
• The possibility of setting up of a development
bank and investment fund and promoting trade
within this group in local currencies are
particularly encouraging and progress in finalising
these.
• New areas of cooperation to be explored
• BRICS Public Diplomacy Forum.
• BRICS Anti-Corruption Cooperation.
• BRICS State Owned Companies / State Owned
Enterprises.
• National Agencies Responsible for Drug Control.
• BRICS virtual secretariat.
• BRICS Youth Policy Dialogue
• Tourism, Energy, Sports and Mega Sporting
Events.
• G20: Finance Ministry asks ORF for stance on BRICS bank, The
Hindu Jan 8,2014
• The Finance Ministry has caused ripples in economic diplomacy
circles by asking Reliance-supported think-tank Observer Research
Foundation (ORF) to draft strategy papers for India’s position in
the G20 on the BRICS (Brazil, Russia, India China, South Africa)
Development Bank.
• The structure, location of its headquarters, membership,
authorised capital stock and distribution of voting rights across
member countries of the BRICS Development Bank will be taken
up at the next BRICS Ministerial summit due to take place in Brazil.
• The date for the summit will be finalised after the India's general
election dates become known. Later this month, Economic Affairs
Secretary Arvind Mayaram will attend a meeting of the BRICS
Common Functionaries where the proposal on the Development
Bank will be readied for putting up to the Ministerial.
• At the Durban Summit in March 2013, the BRICS
countries had decided to set up a Development Bank
for funding infrastructure projects.
• The BRICS Development Bank will also create a
Contingency Reserve Arrangement worth $100 billion
that member countries will be able to tap should they
have to counteract financial shocks in future such as the
one caused by the Lehman Brothers collapse.
• “It is rare for the Finance Ministry to seek inputs into
policy issues pertaining to economic diplomacy from a
think tank so closely associated with a private company,”
highly-placed sources told The Hindu.
• The ORF strategy paper with the Finance Ministry
proposes four options for India’s position on the
structure and ownership model for the BRICS
Development Banks.
• Two of these include allowing private sector
companies to own part of it alongside owner
countries. “Private sector companies owning a part
of a multilateral international body alongside
sovereign countries would be odd though not
completely unheard of,” the sources said.
• The option will open avenues for investing in real
development projects for private companies, the ORF
input says. It also adds that the downside of
“allowing private entities or individual investors and
giving them voting rights raises the risk of these
players voting for personal or private gain”.
• BRICS Trade and Investment Cooperation
Framework
• 1. Background
• 1.1 The Contact Group on Economic and Trade Issues
(CGETI) is a key platform for BRICS Members to
exchange views on a range of economic, trade and
investment related issues. The exchange of policy
perspectives and priorities lays an essential basis for
enhanced coordination and cooperation among the
BRICS Members on these issues.
• 1.2 This Trade and Investment Cooperation
Framework is established under the CGETI and its
terms of reference. It aims to locate the specific
activities of the Group in a longer-term framework
for enhanced coordination and possible joint action.
• 2. PRINCIPLES
• 2.1 To achieve mutually beneficial outcomes, this
Trade and Investment Cooperation Framework
operates according to the principles of equality,
transparency, efficiency, mutual understanding
and consensus.
• 2.2 This framework is open-ended and
progressive. The cooperation initiatives may be
adjusted, enriched and will evolve as issues of
concern to its BRICS Members develop and
change in the future, with the approval of the
BRICS Trade Ministers’ Meeting and the CGETI.
• 3. OBJECTIVES
• This cooperation framework is developed and
initiated with the aim of:
• 3.1 Promoting trade, investment and economic
cooperation among the BRICS Members.
• 3.2 Encouraging trade and investment links between
BRICS countries with an emphasis on supporting
industrial complementarities, sustainable
development and inclusive growth.
• 3.3 Sharing policy practices on trade and investment
among the Members.
• 3.4 Encouraging initiatives among BRICS Members to
support institution-building to enhance productive
capacity and value addition across various economic
sectors and
• 3.5 Enhancing communication and coordination.
4. AREAS OF WORK
4.1 Multilateral cooperation and coordination
• 4.1.1 Strengthening coordination in the World Trade
Organisation’s Doha Round, as well as in other
multilateral fora where trade and investment matters
arise.
• 4.1.2 Conducting regular meetings among BRICS
high-level officials in multilateral and international
organisations where trade and investment matters
arise.
• 4.1.3 Identifying areas for possible development
cooperation activities of BRICS that could support the
development aspirations of developing countries.
4.2 Promoting and Facilitating Trade and Investment
• 4.2.1 Enhancing information exchange on trade/investment policies and
business opportunities through mechanisms including websites for
trade/investment information sharing.
• 4.2.2 Encouraging their trade/investment promotion agencies to
establish stronger relationships, and providing policy support for
trade/investment missions amongst the BRICS Members.
• 4.2.3 Expanding cooperation on trade/investment promotion platforms
such as trade fairs and expositions to increase opportunities for BRICS
enterprises to meet, communicate and cooperate with each other.
• 4.2.4 Improving the transparency of the trade/investment environment
in line with their respective laws and regulations.
• 4.2.5 Enhancing communication and cooperation in the areas of
standardisation, certification and inspection.
• 4.2.6 Enhancing communication and cooperation between agencies
responsible for trade remedies.
• 4.2.7 Considering the effect that a positive outcome of the work by
Ministries of Finance and Central Banks on settlement in local currencies
may have as a support to enhanced intra-BRICS trade.
4.3 Innovation Cooperation
• 4.3.1 Establishing project platforms to promote communication
and cooperation in high technology areas.
• 4.3.2 Encouraging the expansion of trade and investment in
high value-added products.
• 4.3.3 Advancing dialogue and communications in emerging
industries, and promoting trade and investment in industries
that are technology, knowledge, or capital- intensive.
4.4 SMEs Cooperation
• 4.4.1 Conducting information exchange on SMEs regulatory and
supporting policies, as well as the experiences and practices in
this area.
• 4.4.2 Exploring possibilities of signing a BRICS SMEs
Cooperation Agreement.
• 4.4.3 Encouraging promotion agencies such as SMEs
associations and development centres to establish contacts and
hold joint activities including trade/investment expos, human
resource training, consulting, seminars, etc.
4.5 Cooperation on Intellectual Property Rights (IPR)
• 4.5.1 Enhancing information exchange on IPR legislation
and enforcement through meetings or seminars.
• 4.5.2 Jointly developing capacity building programmes in
the IPR area.
• 4.5.3 Promoting cooperation among IPR offices.
4.6 Cooperation on Infrastructure and Industrial Development
• 4.6.1 Sharing and exchanging information and experiences
in infrastructure and construction.
• 4.6.2 Encouraging relevant enterprises to participate in
infrastructure development and construction in the BRICS
countries, and having mutually beneficial cooperation with
each other.
• 4.6.3 Analysing the prospects for joint bids by BRICS
enterprises in international infrastructure and construction
projects.
5. SPECIFIC ACTIVITIES FOR 2013/14
• The following activities will be encouraged or undertaken
by the CGETI during 2013/14 as part of this Framework:
• 5.1 The development of BRICS information sharing and
exchange platforms, such as the platform initiated by the
Centre for BRICS Studies, Fudan University, China.
• 5.2 Work on reconciling merchandise trade data and
models for services trade data collection.
• 5.3 A joint trade study to identify ways of promoting the
export of higher value-added products among the BRICS
Members.
• 5.4 BRICS seminar on investment protection agreements
(South Africa, June 2013).
• 5.5 BRICS investment and trade promotion through the
China International Fair for Investment and Trade (China, 8-
9 September 2013).
New Development Bank
(NDB)
BRICS Bank
July 2014, Fortaleza, Brazil,
• The five BRICS countries (Brazil, Russia, India, China and South
Africa) sign an agreement to create the “New Development
Bank” (NDB).
• Headquartered in Shanghai, the bank has a starting capital of
US$ 50 billion (to be later increased to US$ 100 billion), with
equal contributions by the five countries.
• The primary goal is to fund infrastructure and development
projects in the BRICS and other developing countries, a role
similar to that of the World Bank.
• Additionally, another US$ 100 billion are to be invested in a
“Contingency Reserve Arrangement” (CRA), with a contribution
of US$ 41 billion from China, US$ 18 billion each from India,
Russia and Brazil, and US$ 5 billion from South Africa.
• The CRA is meant to provide emergency funds to member
countries facing balance of payments crises and currency
depreciation problems, a role similar to that of the IMF.
Why BRICS Bank or New Development Bank?
• Developing countries have long sought reforms in the World
Bank and IMF, which they criticize for trying to manipulate their
economies by attaching stringent conditions to loans.
• Moreover, while the GDP of developing countries and their
contribution to global trade has grown, they have not received
a commensurate stake in these global financial institutions.
• For instance, voting rights in the IMF are determined by the
financial contributions of nations to the IMF.
• Each nation’s financial contribution to the IMF is determined by
a quota, a numerical figure that must be approved by 85% of
the IMF, including the nation in question.
• The quota is calculated on the basis of a weighted average
taking into account economic indicators such as the country’s
GDP, its foreign exchange reserves and current receipts and
payments.
• However, practical experience has shown that the IMF does
not determine these quotas purely on the basis of
economic indicators.
• The quota determination is also shaped by political
considerations of the member nations, particularly the G8
nations that have enjoyed relatively large voting rights in
the IMF since it was founded.
• Thus, the BRICS nations contribute 21% to world GDP but
have only 11% voting rights in the IMF. The Europeans
contribute 24% to global GDP but have approximately 32%
voting rights, while the US exclusively enjoys 16.75% voting
powers, giving it immense influence in the IMF.
• While China and other BRICS nations have been willing to
increase their financial contributions to the IMF and hence
their voting rights, the US has been resistant to such
efforts.
What really is “new” about BRICS and will it work?
1. Equal voting rights: In a stark departure from the WB and
IMF philosophy, the voting power of each member is not
determined by economic or demographic size, but each of
the 5 nations is given an equal vote; and none have veto
powers.
The only caveat is that the BRICS nations together will have a
minimum of 55% of the voting power, with the balance
45% being available for all other nations who may join on
the basis of their financial contributions to the bank.
Thus no one nation, or even two, may impose their limited
agenda on the whole group.
This emphasis on “equality” as a basic principle has been
welcomed by countries in the developing world and will
contribute to the expansion of the NDB. This could also
enable impartial assistance to developing countries on the
basis of their needs.
2. Modest in Size but Large in Influence: Here is a
comparison of the relative size of the NDB vis-à-vis
other financial institutions:

• NDB US$ 50 billion

• European Bank for Reconstruction & Development
US$ 20 billion
• Islamic Development Bank US$ 47 billion
• African Development Bank US$ 103 billion
• Inter-American Development Bank US$ 129 billion
• Asian Development Bank US$ 163 billion
• World Bank US$ 223 billion
• European Investment Bank US$ 331 billion
• Composed of some of the fastest developing economies of
the world, BRICS now comprise over one fifth of the
world’s economy. Four of them (excluding South Africa) fall
in the category of the top 10 countries with the largest
foreign exchange reserves, and China tops the list with
reserves of nearly $4 trillion.
• China and India are slated to become the leading providers
of manufacturing and services by 2050, while Brazil, Russia
and South Africa will be amongst the leading commodity
providers.

• The BRICS’ growing economic strength is universally

accepted. The geographical location of the NDB member
nations is also a crucial factor in its expansion. Brazil and
South Africa are in this group as representatives of their
respective continents, as precursors to others from the
region.
• while the NDB has a starting capital of $50
billion, the leaders have promised to increase it to
$100 billion over the course of a few years. Jolyon
Howorth, Professor of European politics at Yale, is
optimistic about NDB’s proposed capital
expansion.
• “Reports suggest that in the middle term, we may
see a capitalization of the NDB that would
eventually be comparable to that of the World
Bank,” he says..
• “ The NDB may not reach this milestone anytime
soon but it is definitely moving in this direction.”
Can the BRICS build on their strong foundation?
• Nothing is more powerful than an idea whose time
has come, and the NDB seems to be exactly that.
• Its constituents are nations whose time is coming.
After all, the engines of future global economic
growth are primarily the BRICS nations.
• And as they grow in stature, so will the NDB.
• That such a diverse group as the BRICS nations could
even come together and reach this far, speaks
volumes of their disenchantment with existing global
institutions, and also of their resolve to take matters
in their own hands.
• And ultimately it is this resolve that will enable them
to tackle the obstacles that are bound to come their
way, and make a success of this ambitious initiative
Analysis of the Brics members countries
Basis Brazil Russia India China South
Africa

Area (km) 8 514 877 17 098 242 3 287 263 9 596 961 1 219 090

Population 203 429 138 739 1 189 172 1 336 718 49 004 031
773 892 906 015
Popu 1.134% -0.47% 1.344% 0.493% 1.1%
growth rate

Unemploym 7% 7.6% 10.8% 4.3% 24%

ent rate
No. of 75.98 40.85 61.85 38.9 4.42
internet million million million million million
users
No. of 173.86 230.5 670 747 46.44
mobile million million million million million
phone users
 Cont…
❑ BRICS could be larger economies than the united states
and the developed economies of Europe within 40 years .
• China and India will become world’s
dominant suppliers
– manufactured goods and services

• Brazil and Russia will become

dominant suppliers
– raw materials
 BRAZIL
KEY ADVANTAGES
➢ One of the fastest growing economies in the last century

➢ Brazilian economy becoming less dependent on exports

➢ Extremely rich in resources such as coffee, sugarcane, iron ,

and crude oil etc

➢ Focus on equitable development has resulted in significant

poverty reduction
 Cont….
Challenges for the Future

➢ Overburdened and ineffective judicial system

➢Industrial output is weak

 RUSSIA
KEY ADVANTAGES

➢Russia has capability in high-technology sectors

➢ Accounts for around 20% of the world’s oil and

gas reserves

➢fall in the number of people living below the

poverty line
 Cont…
Challenges for the Future
➢Labor shortages and poorly developed
infrastructure

➢Corruption
 INDIA
Key Advantages
➢1.25 billion people

➢2nd largest labor force

➢Approximately 2.5 million college graduates

per year
 Cont..
Challenges for the Future
➢Improving basic educational achievement

➢Improving infrastructure and electrical

capacity

➢Expanding technology industry

 CHINA

Key Advantages
➢Broad expansion of educational achievement

➢Rapid economic growth

➢Third largest country in land size

 Cont…
Challenges for the Future
➢support to rural areas and less-developed
regions.

➢Bank of China sees inflation as a bigger risk .

➢ Need to improve the investment

 South Africa
KEY ADVANTAGE
➢The South African economy is now the
23rd largest in the world

➢Inflation is now below 5% and falling.

➢ 25% of goods produced in South Africa

are for export
 Cont…
Challenges:
➢ The economy is growing but not fast enough

➢ Lack of skills, particularly in IT.

➢ 48% of the population is living below the

poverty line
 Financial contribution
 India has provided loans of more than
$200million to the African countries since 2009.
Š
 China has invested almost $4000 million as
foreign direct investment.
Š
 Russia too has contributed more than
$3000million as FDI
Š
 Brazil has invested around $4000 million in Africa.
 Strengths
• After a decade of growth, BRICS economies have
built up strong consumer demand, which could
take the lead as the prime engine for growth.

• All BRICS countries have accumulated high levels

of foreign exchange reserves.

• foreign exchange reserves will allow governments

to boost public spending in order to support the
economy. This could take the form of social
benefits to encourage consumers to spend more
 Opportunities
❑ Inclusive growth

❑BRICS economies could become a much larger

force in the world economy.

❑ The BRICS real exchange rates could appreciate

by up to 300% over the next 50 years

❑ BRICS maintain policies and develop

institutions that are supportive of growth
 BRICS NATIONS FUTURE BANK

BRICS nations are going to develop a joint bank

within the BRICS nations for assistant them self,
And to meet the following reasons:
 Cont…
o Growing emerging markets.
o Climate change, food and energy security,
o International economic exchange.
o Financial assistant.
o Populations control
 Market analysis
The concept of a joint development bank within
BRICS nations whether its needed to establish….?
YES its need full Thought.
1-GDP growth rate in BRICS nations is higher
2-More marketing opportunities.
3-Service sector contribution.
4-Human resources using.
 BRICS SWOT Analysis
Strength of the BRICS nations
1- Capacity to utilize resources.
2-Market opportunities.
3-Economic developments.

Weakness of the BRICS nations

1- Population problem.
2- lack of Infrastructure.
3- Decreasing GDP growth rate.
 Cont…
Opportunities of the BRICS nations
1- To expand the market.
2- Regional development.
3-Monetry resources.

Threats of the BRICS nations

1-Financial crises.
2- Threats from other unions.
3- Dollar role
 Criticism
❑ The BRICS dream isn’t green.

❑ A criticism is that the BRICS projections are

based on the assumptions that resources are
limitless and endlessly available when needed.
 Cont….

❑BRICS doesn’t have a concrete and constructive

agenda for change or vision for a future world
order.

❑ China is the muscle of the group and the Chinese

know it. They have effective veto power over any
BRICS initiatives
 BRICS 2014 summit likely to be held in July 2014
• The summit in Brazil was expected to be held in March, but has been
shifted on China’s request. Brazilian authorities don’t want the summit
dates to clash with the 2014 FIFA World Cup.
• The BRICS summit involving Brazil, Russia, India, China and South Africa is
likely to take place in Fortaleza, Brazil, in July, the Brazilian Foreign
Ministry told Itar-Tass on Saturday, Jan 13, 2014.
• The exact date of the summit has not been specified yet, the ministry
said, adding that all BRICS members should coordinate the date.
• Initially the BRICS summit was expected to be held in March or April,
according to senior officials. Folha de S.Paulo, a Brazilian newspaper said
the date was being changed at China’s request.
• The summit may be held in Fortaleza on July 15, the newspaper said,
adding that Brazil does not want the dates of the 2014 FIFA World Cup
and the BRICS summit to clash. With BRICS summits, the host party has
the right to determine the date of the summit. Brazil is coordinating the
date and the venue of the summit through diplomatic channels.
• 2014 agenda
• The grouping is likely to continue efforts to reform the
international financial system where a considerable
overbalance exists in favour of the West.
• At their meeting in Durban in March 2013, the five
countries' leaders announced that a "New
Development Bank" will focus on infrastructure
investment in developing countries, which, they said,
was constrained by "insufficient long-term financing
and foreign direct investment." They pledged to make
an initial capital contribution to the bank that would be
"substantial and sufficient for the bank to be effective
in financing infrastructure." A second initiative
announced in Durban was the creation of a $100 billion
contingent reserve facility to deal with "short-term
liquidity pressures."
• BRICS moving from an economic to a political agenda

• The grouping is also looking to move beyond

economic cooperation. At a conference held by
Russia’s National Committee for BRICS Studies in
September 2013, State Duma Deputy and Chairman
of the Russkiy Mir Foundation Vyacheslav Nikonov
said military and political cooperation within BRICS is
a distinct possibility. He expressed confidence that,
although the group was established to pursue
economic development before anything else, the
BRICS member nations could now expand the range
of their discussions