BRICS

BRAZIL
RUSSIA
INDIA
CHINA
SOUTH AFRICA
WHY BRICS IS IMPORTANT

• ABOUT 26% OF LAND MASS (1/4)

• 42% OF WORLD POPULATION (1/2)
• 23 % OF WORLD GDP (1/4)
• 30% OF WORLD GDP IN TERMS OF PURCHASING POWER
PARITY
• 50% OF WORLDS FOREIGN EXCHANGE RESERVE AND GOLD
RESERVE
OBJECTIVES
• ONE OF THE MAJOR OBJECTIVES OF THE GROUPING IS
BROADENING DEEPENING AND INTENSIFYING COOPERATION
AMONG THE MEMBER COUNTRIES FOR MUTUALLY BENEFICIAL
SUSTAINABLE AND EQUITABLE DEVELOPMENT
• EVERY MEMBER IS GROWTH AND DEVELOPMENT ARE
CONSIDERED TO ENSURE THAT OUR RELATIONS ARE BUILT ON
THE ECONOMIC STRENGTH OF INDIVIDUAL COUNTRIES AND
ELIMINATING COMPETITION WHEREVER POSSIBLE
• SUCH DIVERSE OBJECTIVES ALLOW BRICS TO EMERGE AS AN
INNOVATIVE AND ENCOURAGING POLITICAL DIPLOMATIC
ENTITY WHICH WAS EARLIER FORMED TO RESOLVE THE GLOBAL
FINANCIAL ISSUES AND REFORM INSTITUTIONS
RELEVANCE OF BRICS FOR INDIA

• INCREASED INDIA’S VOICE IN INTERNATIONAL ORGANISATIONS

• COMMON CONCERNS BECAUSE ALL THE MEMBERS WAS
EMERGING ECONOMIES
• INCREASED STRATEGIC SIGNIFICANCE OF INDIA
• DECREASED DEPENDENCE ON IMF AND WORLD BANK
• INDIA GOT ASSISTANCE FROM IMF IN 1991 AFTER NEW
ECONOMIC POLICY
• WE HAVE TO DEPEND ON IMF BECAUSE OF OUR BALANCE OF
PAYMENT DEFICIT
• THE PROBLE IS THAT IMF PROVIDES ONLY CONDITIONAL LOANS
• INFACT THESE CONDITIONS ARE APPLICABLE TO ONLY
DEVELOPING COUNTRIES
• THESE CONDITIONS ARE IMPOSED BECAUSE OF BORROWING
LIMIT
• THE BORROWING LIMIT DEPENDS UPON QOUTA IN IMF
• A COUNTRY CAN BORROW 6 TIMES OF ITS QOUTA WITHOUT
CONDITIONS
• THE QOUTA IS BASED ON SHARE IN WORLD GDP
AND WORLD TRADE
• SO QOUTA IS VERY LESS FOR DEVELOPING
COUNTRIES WHEN COMPARED WITH DEVELOPED
COUNTRIES
• QOUTA IS LOW THE BORROBORROWING POWER
WILL BE ALSO LOW
CONTINGENCY RESERVE ARRANGEMENT (CRA)

• IT PROVIDES FINANCE TO MEMBER COUNTRIES TO

OVERCOME BALANCE OF PAYMENT CRISIS
• CONTINGENCY RESERVE ARRANGEMENT HAVING
CAPITAL OF HUNDRED BILLION DOLLAR
• 41 PERCENTAGE OF THE CAPITAL IS CONTRIBUTED BY
CHINA
• INDIA BRAZIL AND RUSSIA HAVE EQUAL
CONTRIBUTION 18%
BRAZILIA DECLARATION
• FORMED BY THE BRICS MEMBERS IN THE 11TH BRICS SUMMIT
2019 IN BRASILI
• REAFFIRMS TGE MEMBERS COMMITMENT TO UPHOLDING THE
UNITED NATIONS CHARTER PURPOSES AND PRINCIPLES,
ADVOCATING MULTILATERALISM AND FINDING A POLITICAL
SETTLEMENT TO SERIOUS ISSUES
• THE BRAZILIA DECLARATION WILL BE ADVOCATING AND
SUPPORTING
1. MULTILATERALISM
2. THE MAJOR ROLE OF THE UNITED NATIONS IN
INTERNATIONAL AFFAIRS
 NEW DEVELOPMENT BANK (NDB)

• ESTABLISHED IN 2015
• THE HEADQUARTERS IS SITUATED AT SANGHAI
• MAJOR MEMBERS ARE BRICS NATIONS AND
MEMBERSHIP IS OPEN TO ALL UN MEMBER COUNTRIES
• 45 PERCENTAGE OF THE SHARE CAPITAL MUST BE WITH
BRICS NATIONS
• AUTHORISED SHARE CAPITAL ONE HUNDRED BILLION
DOLLAR
• SUBSCRIBED SHARE CAPITAL IS 50 BILLION DOLLAR
EQUAL CONTRIBUTION BY BRICS MEMBER NATIONS
THERE IS EQUALITY OF VOTE ALSO
DECISIONS ARE BASED ON MAJORITY
• THERE IS NO VETO POWER FOR NATIONS
• SOURCE OF FUND COMPRISES OF SUBSCRIBED SHARE
CAPITAL AND ISSUE OF BONDS
• THE BANK LENDS FOR INFRASTRUCTURAL SUSTAINABLE
DEVELOPMENT PROJECTS IN ASIA AND OTHER
DEVELOPING COUNTRIES