|Demand of the question |
Introduction. Contextual Introduction.
Body. Discuss the significance of BRICS in poly-centric world.
Conclusion. Way forward.
BRICS is the acronym for five fastest growing nations of the world, namely Brazil, Russia, India, China and South Africa. It was formed to encourage cultural, commercial and political operation among BRICS nations. The BRICS nations are all leading developing or newly industrialised nations and has gained importance in emerging and fairer poly-centric world order.
Significance of BRICS in poly-centric world:
- BRICS consist of about 41% of world population as of 2015. Combined nominal GDP of these 5 nations is US $16.6 trillion, equal to approx. 22% of Gross World Product as of 2015.
- The BRICS group acts as a bridge between developed and developing countries.
- Self-sufficiency and not dependency on the west dominated nations is one of the key goals of BRICS.
- Establishment of BRICS Business council is important:
- To enhance market access opportunities and ease market linkage.
- To promote mutual trade, investments and create a business friendly environment.
- To strive for inclusive economic growth to eradicate poverty and address unemployment.
- To promote information exchange through BRICS Virtual Secretariat and BRICS Economic Exchange Platform.
- To meet Regional development goals.
- The launch of New Development Bank (NDB) marked a milestone in BRICS co-operation and international development. The CRA (Contingent Reserve Agreement) was setup to give support, strength and principal stability of other nations.
- The steps of NDB and Contingent Reserve Arrangement (CRA) shows the BRICS strength in market and policy space. Through NDB & CRA BRICS will offer alternate option to IMF to other countries.
- BRICS is important for moving towards a multipolar economic and political order and towards making the global economic system more robust.
- The BRICS will significantly increase their share in the world economy and trade. A new global financial system with a significant presence of these countries, compared with the current situation, will be created.
BRICS have become the building block of world economy. The BRICS markets keep strong characteristics that can attract equity investors. There are worries and uncertainty around this which will likely to create some angst in the Global market. However, able to see a strong economic growth of BRICS in world economy it is important to utilise favourable demographics, rich natural resources and strong finances in the near future.