What You Need To Know About BRICS Organisation. (2023)

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For the past few months, the word BRICS has been trending internationally. Both on diplomacy and trade affairs.

What is BRICS?

BRICS is an organization of five emerging economies, namely Brazil, Russia, India, China, and South Africa.

Establishment

After a series of high-level meetings, the 1st BRIC summit was held in Yekaterinburg, Russia on 16 June 2009. BRIC group was renamed as BRICS (Brazil, Russia, India, China, South Africa) after South Africa was accepted as a full member at the BRIC Foreign Ministers’ meeting in New York in September 2010.

The acronym was coined by Jim O’Neill, a Goldman Sachs Economist. BRICS’ headquarter is located in Shanghai, China.

The Organization brings together the major emerging economies from the world, comprising 41% of the world population, 24% of the world GDP, and over 16% share in world trade. According to BRICS, their member countries have been the main engines of global economic growth over the years. BRICS further argues that over a period of time, member countries have come together to deliberate on important issues under the three pillars of political and security, economic and financial, and cultural and people to people.

Further expansion

Numerous countries have expressed interest in joining the bloc, including Argentina and Iran. Both signaled their intent to join the bloc during meetings with senior Chinese officials, the current chair, over the course of the summer of 2022. Beijing backed Argentina’s potential accession following a meeting between Argentine Foreign Minister Santiago Cafiero and Chinese State Councilor and Foreign Minister Wang Yi on the margins of the G20 Summit in Indonesia.

Application Process

There is no formal application process as such to join BRICS, but any hopeful government must receive unanimous backing from all existing members of the block; Brazil, Russia, India, China, and South Africa to receive an invitation.

Ahead of the next summit in South Africa, South Africa’s Foreign Minister Naledi Pandor said that there are 12 countries interested to join the initiative. She said that countries like Saudi Arabia, United Arab Emirates, Egypt, Algeria, Argentina, etc are interested to join and the discussion will be dealt with at the upcoming summit. Further Jim O’Neill said that the new member should have a population of at least 100 million in order to counter the Dollar’s dominance.

ALSO READ: BRICS May Decide on Whether to Admit New Members This Year

Financial Architecture

Currently, there are two components that make up the financial architecture of this block, namely, the New Development Bank (NDB), sometimes referred to as the BRICS Development Bank, and the Contingent Reserve Arrangement (CRA). Both of these components were signed into the treaty in 2014 and became active in 2015.

At the 2015 summit in Russia, ministers from member nations initiated consultations for a payment system that would be an alternative to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system.

READ ALSO: Turkey Clears The Way For Finland To Join NATO

BRICS Pro Tempore Presidency

The group at each summit elects one of the heads of state of the component countries to serve as President Pro Tempore of the BRICS. In 2019, the pro tempore presidency was held by the president of Brazil.

Currently, the new President Pro Tempore is Russia and their goals are: investing in BRICS countries in order to strengthen everyone’s economies, cooperating in the energy and environmental industries, helping with young children, and coming up with resolutions on migration and peacekeeping.

About Post Author

Barry Ipapo

Security professional || Law and Governance Enthusiast || Technologist

[email protected]

https://busianpost.com/

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