The 10th edition of BRICS summit just ended at Johannesburg in South Africa with new many positive predictions and possibilities for the future that how this group of emerging economies will shape global economic outlook.
Evident from the day it was coined by the Goldman Sachs former Chairman Jim O’Neill in 2001, it was started with an aggregate growth from eight per cent in 2001 and till 2017 it achieved the aggregate growth 22.4% of global GDP. It shows the bloc of rising markers comprises Brazil, Russia. China, India and South Africa have achieved immense growth as much as it’s own creation Jim O’ Neill expected.
Although It was coined in 2001 its official in the inaugural meeting was first held in Yekaterinburg, Russia on June 16 2009, this following year only “S” added to the group stands for South Africa and made it complete in the form of BRICS. The economies joined the hands together with the common goal to provide an alternative to the Bretton Woods system i.e always dominated by America, EU and Japan. Group also showed a keen interest in developing the New Development Bank and Contingent Reserve Arrangement.
This group view of about being an alternative to the world current economic order it somehow justifies in the way this 5 nations group collectively makes around the world more than 40% of the population and about 30% of global land mass, clearly makes a BRICS a first runner.
BRICS not only making its presence felt in the world of contributing only in population and land mass, it also maintains equal pace in terms of global trade, in the stats of WTO, the BRICS participation worlds export in around in the span of 10 to 12 years increased from 8% to 16%, interestingly BRICS export increases up to 500% and in the same period global export just increased 195%. and in 2017 total trade was is about $5427712.29. BRICS also did quite decent in FDI inflows comprises world more than 20% of world FDI inflows.
On the occasion of the 10th summit, BRICS 2 man issues were raised that raise for the better continue it’s influence and shaping global governance. They were:-
1. Proposing a development paradigm
.In current global picture 10th summit laid its focus on the war trade scenario between China and US where tariff game on its horizon and also the slowdown of the economy pace of Japan and EU, provide a perfect space to BRICS to expand its influence and to emerge as the leading economic group. Besides focusing on China and US matter, BRICKS also laid its interest in bringing other emerging markers with them, in that Africa regional powers is the main part of agenda and alignment with African Union Agenda 2063 on trade part of this plan.
2. Creation of the ‘New Development Bank”
.New Development Bank also called (NBD) is one of the most important aspects of BRICKS plans to be the global influencer. This NBD is set to create to work on the sustainable development where things in focus are Urban development,, water supply and sanitation with a great deal on social and environmental practices. NBD also provides support to the development projects in Africa and gives BRICKS a golden opportunity to engage with the African ambitious trade agreement FTA that will open single market for good and services. For successful implementation of FTA will require contrasting infrastructure and that link the continent with the other parts of the world.
At the of the end, vision is already set for the next 10 years for these most emerging economic nations of Brazil, Russia, India, China and South Africa to makes their name. Corporation and creating the strong identity among themselves for these nations will shape the world economic order and ready to be the great alternative for current economic powerhouses.