BRICS is an acronym for a group of 5 countries that are the leading economies of the world, namely Brazil, Russia, India, China, and South Africa. The BRICS leader summit is convened annually. It is one of the major groups in the world which includes 40% of the world population and 30% of GDP, making it a critical economic group. It exists in the form of an annual summit between the supreme leaders of the 5 nations, it does not exist in the form of an organization. The chairpersons have changed annually among the leaders according to the acronym BRICS. Let us know about that the BRICS Headquarters.
Where is The Headquarters of BRICS?
Since BRICS does not exist in the form of an organization it doesn’t have any headquarters. Its power of it keeps changing annually which is the reason BRICS don’t have any headquarters. But there is an organization named New Development Bank also called BRICS bank that works under the BRICS summit which is located in Shanghai, China. That is in a way considered to be the headquarter of BRICS. When it comes to the annual summit it depends on the decided location of the summit, but not the headquarter.
What is the history of BRICS
In 2001 Economist Jim O Neill gave the acronym BRICS and predicted that these countries would be the fastest growing economy in upcoming years. In 2006 the four countries started diplomatic coordination with the meeting of foreign ministers of each country annually. The successful interaction led to the formation of BRIC and the first summit was held in Russia in 2009. Later in 2010, South Africa joined BRIC which resulted in the formation of BRICS. South Africa attended the first summit in China, in March 2011. It has been formulated that by 2050 these countries would surpass other developed countries in economic growth and development. This is said because labor and production costs are lower in BRICS nations.
What is the Purpose of BRICS?
The mechanism of BRICS aims to provide peace, security, development, and cooperation. Also, it gives priority to the development of humanity and creating a fair world. Since its inception, it has grown positively and the nations indulged in it have shown better economic ranking. China has the second highest GDP in the world, India also has shown better economic growth and now emerged as the fifth highest economy in the world. South Africa has also shown growth and came up to 33rd position in the world economy. Brazil is even better at number 12 in the world economy. It seeks to strengthen the cooperation between countries for better economic and sustainable growth. Beyond economic cooperation, it is now emerging as a politically diplomatic entity with diverse objectives of quality life along with a stronger economy. BRICS takes into consideration the growth of each member of it to make the country stronger in every field and mutual benefit and to avoid competition where possible.
What is its Impact on World?
In terms of economic growth, BRICS has created a huge impact on the World economy. The average economic per capita income of citizens belonging to BRICS, which is 5.4 is three times higher than the world, which is 1.7. it is expected that by 2030 the growth rate of BRICS will surpass the USA and other European countries and will reach 37% of the global economy. The increase in combined economic reforms of these countries increases the political and economic influence. This also strengthens the economic structure and monetary system worldwide. This makes the economic structure more democratic and increases the country’s representation in process of international decision making.
Creation of NBD I the most significant reform in the financial field of the economic world. By 2019 NBD has approved the functioning of around 44 projects totaling about 13 billion US dollars.
What are the Challenges of BRICS ?
- The representation of only 5 countries does not show the democratic way of representation of countries. To become a larger representative and increase its dominance it is required to add more countries to BRICS. Currently, if we see, even in BRICS only three countries are dominant namely Russia, China, and India.
- The current aim of BRICS is to increase the infrastructure. This aim and objective need to expand to increase its relevance in the global order can be in economic ways or other growths.
- BRICS need to move forward with their fundamental goals despite the individual goals of each nation. Respect for sovereign equality and pluralism in a global perspective as each country represents its own goals.
- The rift between China and India is also a big task to be solved in BRICS. It shows that proper political relationships can’t be continued always. This creates a bad impact on BRICS worldwide. It needs to be solved to increase productivity among countries.
- All the countries in BRICS have huge trade relations in comparison to other nations. This is being criticized as a platform to promote China’s interests. China has become a huge competitor and challenge for other BRICS nations.
- The rise of China’s economy has created an imbalance in BRICS. Also, it has not done enough to assist the global south. They are unable to win optimal support for their agenda.
Way forward of BRICS
- BRICS now needs to be more democratic, the dominance of China in BRICS creates an imbalance among other nations. The representation of all the nations is required for equal growth of each nation.
- To remain relevant in upcoming decades BRICS needs to make a realistic assessment of the initiatives opportunity, in earlier decades BRICS did well in the way to find common issues and platforms to address these issues.
- BRICS need to get successful in developing NDB. This will help in investing in additional BRICS institutions. This can lead to the formation of a research wing that will help give the solution to various issues.
- To achieve the target of sustainable development NBD needs to do partnerships with other financial institutions to be a potent vehicle to achieve the goals. Each country of BRICS needs to focus on integrated development, then only it will be possible to grow together and compete with other groups.
Thus, the future of BRICS relies on better relationships between China and India. Dominance of China only in BRICS leading to an imbalance. Also, its impact needs to spread worldwide rather than limited to only a few countries, only then it can become a successful organization.