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.
The 11th summit of the BRICS grouping comprising Brazil, Russia, India, China, and South Africa was held in Brasilia on 13th & 14th November 2019. The 12th summit (Russia) of BRICS was held on 17th Nov, 2020 via videoconference.
- 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’s growth and development are considered to ensure that relations are built on the economic strengths of individual countries and eliminate competition wherever possible.
- Such diverse objectives allow BRICS to emerge as an innovative and encouraging Political-Diplomatic entity which was earlier formed just to resolve the global financial issues and reform institutions.
Impact on Global Financial Institutions:-
- The financial crisis of 2008 was one of the major reasons behind the formation of BRICS. The dollar-dominated monetary market collapsed after the subprime mortgage crisis and raised questions about its reliability and sustainability.
- ‘The reform of Multilateral Institutions’ was established by BRICS in order to make changes in the structure of the World Economy, thus increasing the part emerging economies play in the world economy.
- These reformations of institutions resulted in the formation of the International Monetary Fund (IMF) quota reform after BRICS managed to push for it in 2010, further reducing the financial crisis due to western laws. BRICS ended being the ‘agenda settlers’ in multilateral institutions after this.