Objective Current Affairs Dose(Q and A pattern): BRICS

  • What is BRICS?
    • An association of five emerging economies , namely, Brazil, Russia, India, China and South Africa.
    • These are the fast growing economies of the world in terms of industrialization and advancement.
    • Initially BRIC, South Africa was inducted in the year 2010.
  • Who gave this name?
    • Jim O’ Neil , a British economist.
  • What is the purpose of BRICS?:
    • The major purpose remains economic co-operation .
    • Apparently, financial self-sufficiency has also emerged as one of the major objectives of the grouping.
  • What are the few key figures related to BRICS?:
    • Represents population of 3.6 billion people.
    • Approximately 30% of the world GDP, 43% of the world population.
  • When and how it was formed?
    • Jim O’ Neil coined the term in 2001.A
    • A meeting was held on the sidelines of UNGA in 2006 in New York.
    • However, the first formal meeting was held in 2009.
  • When was the first summit of the BRICS held?
    • In the year 2009.
    • Place: Yekaterinburg, Russia.
    • This time around , it was BRIC.
    • South Africa, as mentioned earlier, was induced in 2010.
  • How many summits have taken place till now and where were they held?
    • It is held every year.
    • Till now 8 summits have been convened.
    • The list of the countries in chronological order is as follows:
      • 2009-Yekaterinburg, Russia.
      • 2010-Brasilia,Brazil.
      • 2011-Sanya,China.
      • 2012-New Delhi,India.
      • 2013-Durban,South Africa.
      • 2014-Fortaleza,Brazil.
      • 2015-Ufa,Russia.
      • 2016-Goa, India.
  • What is the New Development Bank?
    • Also called BRICS Development Bank.
    •  Objective:
      • Promote infrastructure and sustainable development projects.
      • Seen as a counter to the Bretton Woods Financial institutions, that is, World Bank and IMF. Those are accused of being dominated by the Western developed nations led by the U.S.
    • The bank shall support public and private projects through loans, guarantees, equity partnerships and other financial instruments (text from the agreement itself).
    • Will also provide support to the other developing and least developed nations.
    • Voting rights: Equal , that is, 20% voting rights to all the members.
    • Authorised capital : $ 10 billion each.
    • Governance structure:
      • Board of Governors
      • Board of Directors.
      • President and Vice President.
    • HQ: Shanghai, China.
    • First President: K.V. Kamath(India); will be appointed on rotational basis.
  • What is the Contingency Reserve Arrangement?:
    • A framework to provide support against the liquidity pressures and Balance of Payment(BoP) Crisis.
    • Seen as a competitor to IMF.
    • Ratified and entered into force after the 7th BRICS summit at Ufa, Russia.
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