Intro BRICS is the title of an association of leading emerging economies, arising out of the inclusion of South Africa into

the BRIC group in 2010. As of 2012, the group's five members are Brazil ,Russia, India, China and South Africa.[2] With the possible exception of Russia,[3] the BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies[4] and significant influence on regional and global affairs. As of 2012, the five BRICS countries represent almost 3 billion people, with a combined nominal GDP of US$13.7 trillion,[1] and an estimated US$4 trillion in combined foreign reserves.[5] Presently, India holds the chair of the BRICS group. President of the People's Republic of China Hu Jintao has described the BRICS countries as defenders and promoters of developing countries and a force for world peace.[6]However, some analysts have highlighted potential divisions and weaknesses in the grouping, such as India and China's disagreements over Tibetan and border issues,[7] the failure of the BRICS to establish aworld Bank-analogue development agency, and disputes between the members over UN Security Council reform

History The foreign ministers of the initial four BRIC states (Brazil, Russia, India, and China) met in New York City in September 2006, beginning a series of high-level meetings. A full-scale diplomatic meeting was held in Yekaterinburg, Russia, on May 16, 2008.[9]
Various sources refer to a purported "original" BRIC agreement that predates the Goldman Sachs thesis. Some of these sources claim that PresidentVladimir Putin of Russia was the driving force behind this original cooperative coalition of developing BRIC countries. However, thus far, no text has been made public of any formal agreement to which all four BRIC states are signatories. This does not mean, however, that they have not reached a multitude of bilateral or even quadrilateral agreements. Evidence of agreements of this type are abundant and are available on the foreign ministry websites of each of the four countries. Trilateral agreements and frameworks made among the BRICs include the Shanghai Cooperation Organization (member states include Russia and China, observers include India) and the IBSA Trilateral Forum, which unites Brazil, India, and South Africa in annual dialogues. Also important to note is the G-20 coalition of developing states which includes all the BRICs. Also, because of the popularity of the Goldman Sachs thesis "BRIC", this term has sometimes been extended whereby "BRICK"[28][29] (K for South Korea),

"BRIMC"[30][31] (M for Mexico), "BRICA" (GCC Arab countries Saudi Arabia, Qatar,Kuwait, Bahrain, Oman and the United Arab Emirates)[32] and "BRICET" (including Eastern Europe and Turkey)[33] have become more generic marketing terms to refer to these emerging markets. In an August 2010 op-ed, Jim O'Neill of Goldman Sachs argued that Africa could be considered the next BRIC.[34]Analysts from rival banks have sought to move beyond the BRIC concept, by introducing their own groupings of emerging markets. Proposals include CIVETs (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa), the EAGLES (Emerging and Growth-Leading Economies) and the 7 per cent Club (which includes those countries which have averaged economic growth of at least 7 per cent a year).[35] South Africa sought BRIC membership since 2009 and the process for formal admission began as early as August 2010.[36] South Africa was officially admitted as a BRIC nation on December 24, 2010 after being invited by China and the other BRIC countries to join the group.[37] The capital S in BRICS stands for South Africa. President Jacob Zumaattend the BRICS summit in Sanya in April 2011 as a full member. South Africa stands at a unique position to influence African economic growth and investment. According to Jim O'neill of Goldman Sachs who originally coined the term, Africa's combined current gross domestic product is reasonably similar to that of Brazil and Russia, and slightly above that of India.[38] South Africa is a "gateway" to Southern Africa and Africa in general as the most developed African country.[38] China is South Africas largest trading partner, and India wants to increase commercial ties to Africa.[36]South Africa is also Africas largest economy, but as number 31 in global GDP economies it is far behind its new partners.[36] Jim O'Neill expressed surprise when South Africa joined BRIC since South Africa's economy is a quarter of the size of Russia's (the least economically powerful BRIC nation).[39] He believed that the potential was there but did not anticipate inclusion of South Africa at this stage.[38] Martyn Davies, a South

African emerging markets expert, argued that the decision to invite South Africa made little commercial sense but was politically astute given China's attempts to establish a foothold in Africa. Further, South Africa's inclusion in BRICS may translate to greater South African support for China in global fora.[39] African credentials are important geopolitically, giving BRICS a four-continent breadth, influence and trade opportunities.[36] South Africa's addition is a deft political move that further enhances BRICS power and status.[36] In the original essay that coined the term, Goldman Sachs did not argue that the BRICs would organize themselves into an economic bloc, or a formal trading association which this move signifies

[edit]Entry of South Africa In 2010, South Africa began efforts to join the BRIC grouping, and the process for its formal admission began in August of that year.[14] South Africa officially became a member nation on December 24, 2010, after being formally invited by the BRIC countries to join the group.[14] The group was renamed BRICS

 with the "S" standing for South Africa to reflect the group's expanded membership.[15] In April 2011, South African President Jacob Zuma attended the 2011 BRICS summit in Sanya, China, as a full member.[16][17][18] The BRICS Forum, an independent international organisation encouraging commercial, political and cultural cooperation between the BRICS nations, was formed in 2011.[19] In June 2012, the BRICS nations pledged $75 billion to boost the International Monetary Fund's lending power. However, this loan is conditional on IMF voting reforms.[20]

]BRICS summits The grouping has held annual summits since 2009, with member countries taking turns to host. Prior to South Africa's admission, two BRIC summits were held, in 2009 and 2010. The first fivemember BRICS summit was held in 2011. The most recent summit took place in New Delhi, India, on March 29, 2012.[21]

Summit Participants Date June 16, 2009 April 16, 2010 April 14, 2011

Host Host leader country

Location

1st

BRIC

Russia

Dmitry Yekaterinburg Medvedev Luiz Incio Lula da Braslia Silva

2nd

BRIC

Brazil

3rd

BRICS

China

Hu Jintao

Sanya

4th

BRICS

March 29, India 2012 2013

Manmohan New Delhi Singh

5th

BRICS

South Jacob Zuma TBA Africa

[edit]Member countries The table below lists the leaders, finance ministers and central bank governors of the five BRICS member countries. The countries' respective gross domestic products (GDP) and Human Development Index (HDI) ratings are also included.

Me mber

Leader

Finance minister

Centra l bank gover nor

2011 GDP (nomin al) (overal lper capita) $USD[ 1]

2011 HDI[ 22]

Brazil

Minis 2,49 Dilma Guido Alexandr Presid ter of 2 12, Rouss Mante e ent Finan billio 788 eff ga Tombini ce n

0.718

Minis Sergey 1,85 Vladi Anton Presid ter of Mikhayl 0 12, Russia mir Siluan ent Finan ovich billio 993 Putin ov ce Ignatyev n Minis 1,67 Prime Manm Manm ter of Duvvuri 6 1,3 Minist ohan ohan Finan Subbarao billio 88 er Singh Singh ce n Zhou Minis Xie 7,29 5,4 Presid Hu Xiaochua 8 13 ent Jintao ter of Xuren n Finan billio

0.755

India

0.547

China

0.687

Me mber

Leader

Finance minister

Centra l bank gover nor

2011 GDP (nomin al) (overal lper capita) $USD[ 1] n 408 8,0 billio 66 n

2011 HDI[ 22]

ce Minis Pravin South Presid Jacob ter of Gill Gordh Africa ent Zuma Finan Marcus an ce

0.619

First BRIC Summit At the first formal BRIC Summit in Yekaterinburg on June 16, 2009, Prime Minister, Dr Manmohan Singh, proposed setting up of a BRIC Business Forum to further consolidate intra-BRIC

Trade and Economic ties, networking of BRIC Think Tanks and commissioning of a Joint Economic Study on the State of World Economy and the Role of BRICS in it. Second BRIC Summit Prime Minister, Dr Manmohan Singh, at the second BRIC Summit in Brasilia in April 2010, stated, ......BRIC countries can benefit by sharing their experiences in the field of inclusive growth...... BRIC nations can set an example in promoting collaborative development, deployment and dissemination of clean energy and renewable technologies...... BRIC countries are uniquely placed to contribute to reforming the architecture of global governance..... Energy and food security are two specific areas where we can work together. Third BRICS Summit At the third BRICS Summit in Sanya, China, in April 2011, Prime Minister, Dr Manmohan Singh, stated, .......We are strengthened by the complementarities of our resource endowments....... We share the vision of inclusive growth and prosperity in the world..... We stand for a rule-based, stable and predictable global order...... Nuclear safety has emerged as a major source of concern the world over after the tragedy in Japan. We should cooperate in this area, as well as in disaster relief and management..... Fourth BRICS Summit India has successfully hosted the Fourth BRICS Summit in New Delhi on 29 March 2012 under the leadership of Honble Prime Minister Dr. Manmohan Singh. Ms.Dilma Rousseff, President of Brazil, Mr. Dmitry Medvedev, President of Russia, Mr.Hu Jintao, President of China and Mr. Jacob Zuma, President of South Africa attended the Summit.

The Delhi Declaration, capturing the essence of discussion as well as putting forth common position of BRICS countries on various economic and political issues of global and regional importance was issued at the end of the Summit. The Declaration included Delhi Action Plan which highlights the activities to be undertaken under Indias chairmanship of BRICS to further cooperation. Leaders focused their discussions on issues of global governance- both political (UN) and economic (IMF and World Bank). They also covered global economic and financial situation, with special focus on the eurozone sovereign debt crisis, as well as the political issues like developments in Afghanistan, Iran, Syria, etc. The Delhi Declaration also focused on BRICS efforts towards sustainable development and prepared the ground for Rio+20 in Brazil and CBD-COP11 Conference in Hyderabad, to be held later this year.

Joint Economic Study Carrying forward the idea of a Joint Economic Study as proposed by the Prime Minister of India at the first BRIC Summit in Russia in 2009, India hosted three Workshops with

the participation of experts from other BRICS countries to take forward the idea of the BRICS Joint Study. The study coordinated by India titled The BRICS Report focusing on synergies and complementarities between the BRICS economies and highlighting their role as growth drivers of the world economy, was released by the Leaders during the Fourth BRICS Summit.

Marketing The BRIC term is also used by companies who refer to the four named countries as key to their emerging markets strategies. By comparison the reduced acronym IC would not be attractive, although the term "Chindia" is often used. The BRIC's study specifically focuses on large countries, not necessarily the wealthiest or the most productive and was never intended to be an investment thesis. If investors read the Goldman's research carefully, and agreed with the conclusions, then they would gain exposure to Asian debt and equity markets rather than to Latin America. According to estimates provided by the USDA, the wealthiest regions outside of the G6 in 2015 will beHong Kong, South Korea and Singapore. Combined with China and India, these five economies are likely to be the world's five most influential economies outside of the G6. On the other hand, when the "R" in BRIC is extended beyond Russia and is used as a loose term to include all of Eastern Europe as well, then the BRIC story becomes more compelling. At issue are the multiple serious problems which confront Russia (potentially unstable government, environmental degradation, critical lack of modern infrastructure, etc.[citation needed]), and the comparatively much lower growth rate seen in Brazil. However, Brazil's lower growth rate obscures the fact that the country is wealthier than China or India on a per-capita basis, has a more developed and global integrated financial system and has an economy potentially more diverse than the other BRICs due to its raw material and manufacturing potential. Many other Eastern European countries, such as Poland, Romania, the Czech Republic, Slovakia, Hungary, Bulgaria, and several others were able to continually sustain high economic growth rates and do not experience some of the problems that Russia experiences or experience them to a lesser extent. In terms ofGDP per capita in 2008, Brazil ranked 64th, Russia 42nd, India 113th and China 89th. By comparison South Korea ranked 24th and Singapore 3rd.

Brazil's stock market, the Bovespa, has gone from approximately 9,000 in September 2002 to over 70,000 in May 2008. Government policies have favored investment (lowering interest rates), retiring foreign debt and expanding growth, and a reformulation of the tax system is being voted in the congress. The British author and researcher Mark Kobayashi-Hillarywrote a book in 2007 titled 'Building a Future with BRICs' for European publisher Springer Verlag that examines the growth of the BRICs region and its effect on global sourcing. Contributors to the book include Nandan Nilekani, and Shiv Nadar.