BRICS is formed with the combination of 5 top countries Brazil, Russia, India, China and South Africa. Before 2010, South Africa was not the part so it was known as BRIC only. Later on South Africa was added and BRICS was formed. These 5 countries represents 3 billion people. All these countries are distinguished with the area, economic and significant growth in the global market. It contributes approximately 40% of world’s population, 20% of world’s GDP and nearly 18% of world’s economy.
Current year Brazil hosted the 6th summit of BRICS. Hon’ble PM of India Narendra Modi , China’s President Xi Jinping, Brazilian President Dilma Rousseff, Russia’s President Vladimir Putin and South Africa’s President Jacob Zuma. They discussed many aspects like development and growth and the most important thing was development bank. The invited leaders were President of Argentina, Chile, Bolivia, Uruguay, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname and Venezuela.
Starting of this group took place with the meeting of the 4 countries’ financial minister in 2006, then the BRIC was formed. It wanted to make such currency which is stable and predictable. Russia always criticized the US dollar. Now their motto is to cut the US dollar from the market and bring new currency. They wanted an IMF i.e. International Monitory Fund to pool the money into it and oppose the World Bank. So they made a fund raising development bank in which these countries have to include their funds. China gave $41 billion, Russia, India and Brazil gave 18$ billion each and South Africa gave $5billion into these bank. China is the leading dominant in these bank so they want its reserves be kept into their area but still decision is not taken yet. The bank could be located in Shanghai and the first president of that bank would be Indian.
World Bank is the bank which is governed by USA and it gives loans to various countries but it has various norms to be followed. So BRICS created a type of World Bank for taking fund. These funds help in economic and various growth. The $100 million funds are to be accumulated for these monetary fund. It will cut the World Bank and US dollar and want to bring Euro as a common currency for all. The $50 billion will be the capital of development bank i.e. $10 billion each from the country and $100 billion will be the capital of monetary fund.
There are many criticism against these bank and group but it does not affect. Indonesia, Turkey, Argentina, Egypt, Iran, Nigeria and Syria have also shown interest in these group.
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