Concecpt of BRICS – Brazil, Russia, India, China and SouthAfrica
BRICS – Brazil, Russia, India, China and South Africa are a set of five countries that have stood out on the world stage for the rapid growth of their developing economies. The acronym was thought economist Jim O’Neill, chief economist at investment bank Goldman Sachs in 2001.
BRICS – The economic block
These countries do not make up an economic bloc, they only share an economic situation with similar development indices and economic situations. In December 2010, the BRIC (Brazil, Russia, India and China) formally invited South Africa to join the group.
In the business world it is common see the companies coming together to become something bigger through mergers and acquisitions (M&A). But when does a block of countries form naturally, without any negotiation or strategies, it is not common. Sometimes some countries because of characteristics in common end up articulating and forming an economic group in a natural way. The BRICS are a paradigmatic example of this type of economic bloc.
These five countries are the formation of a political and economic group of cooperation. The basic characteristic that united these countries was their classification as emergent, that is to say, their economies went through rapid growths and their industrial, technological development among others underwent several changes at a little time
Formation and grow
Until 2006 the term is used by economists to determine the group of countries that has the default. As of 2006, the countries involved formalized the acceptance of the BRICS designation.
In the study carried out by Jim (2001) were expected to show that the BRICS countries had an economic robustness that would lead them to overcome as major current economic powers within a period of up to fifty years. Since then, member countries have been at a disadvantage in terms of global economic development when they are growing more than countries with developed economies. For example, between 2003 and 2007, the BRICS accounted for about 65% of global GDP growth and 9% of total world GDP. In 2009 this percentage rose to about 14% in 2010 totaled 18% of the world economy and today is close to 21%.
Since its creation, BRICS has expanded its activities into two main strands: (i) coordination at meetings and international organizations; and (ii) building an agenda of multi-stakeholder organizations among its members.
Coordination and international positioning
Regarding to the coordination and joint action of the BRICS in the international organizations and outside, they focus on the topics of economic and financial governance and in this context has as a priority coordination within the G20, including IMF – International Monetary Fund reform; and also the political governance sphere in which they advocate the reform of the United Nations and its Security Council in order to improve its representativeness for the democratization of international governance.
The BRICS activities cover the following major areas: agriculture, science and technology, culture, outer space, Internet security, social security, intellectual property, health, tourism.
Among the most promising aspects of the BRICS, the economic-financial area stands out: the New Development Bank (NBD) – which is dedicated to the financing of infrastructure projects and sustainable development in emerging economies and countries and the Contingent Reserve Arrangement (ACR) – to provide mutual support to the BRICS members in scenarios of balance of payments fluctuations.
The political coordination between the BRICS members is without elements of confrontation with other countries. The BRICS are open to cooperation and constructive engagement with third countries, as well as with international and regional organizations, to reflect on issues on the international international agenda.
