12th Brics summit to be held virtually: All you need to know | India News


NEW DELHI: The leaders of the Brics nation are will come together virtually to discuss cooperation prospects and international issues during the 12th Brics summit hosted by Russia on Tuesday.
The summit is being held at a time when the world is in the grips of coronavirus pandemic and two of the biggest members of the group — India and China — are engaged in a bitter border standoff in the eastern Ladakh region.
“The leaders of Brazil, Russia, India, China and South Africa will discuss the current state of cooperation within the body and its prospects, they will exchange opinions on pressing issues on the international and regional agenda, they will recap the results of Russia’s BRICS presidency this year, and also coordinate positions in light of the G20 summit, scheduled for November 21-22,” Russian foreign ministry said in a statement, Sputnik quoted.
The key agreements will be outlined in the Moscow declaration and other documents, the statement added.

Here is a look the details about the Brics group
1

The challenges

China’s unprecedented economic growth rate has been a no match for the remaining four nations, especially Brazil and South Africa.

China, the biggest member of the group, has found more fruitful economic bloc, RCEP, for instance.

The large geographical distance between the member nations makes it difficult for the group to work upon a common trade agenda.

In 2019, S&P Global Ratings raised questions over the relevance of the BRICS. “The group may no longer make sense as the diverging long-term economic trajectory of the five countries weakens BRICS as a coherent economic grouping,” it said.

2

The opportunities

The member nations can gain politically from coming together. As a Chinese state-run news agency points out, in 2017, the bloc’s voting share in the World Bank rose to 13.24%, and its share in IMF climbed to 14.91%.

That’s the new BRICS. Emerging nations coming together for gains in global affairs. That is particularly relevant at a time when the US is pressuring nations on favourable bilateral trade deals — the trade war with China, the recent US-Japan trade deal, trade tensions with the EU and even India. That’s where the “multilateralism” comes. As regard to counter-terrorism, there is scepticism that member nations are reading the script differently — when India sees “Pakistan”, China sees “Xinjiang”.

3

New Development Bank

In 2014, the group established the New Development Bank with its base in Shanghai. The bank is headed by veteran Indian banker KV Kamath.

In May this year, the bank disbursed $1 billion assistance loan to India to help it contain the spread of Covid-19.

The purpose of the bank is to mobilise resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies and developing nations, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

4

Brics in numbers

BRICS brings together five major emerging economies comprising 41 per cent of the world’s population, having 24 per cent of the global GDP and around 17 per cent of the share in world trade.

The five nations also account for 50 per cent of the world economic growth, 30 per cent of the world land area and 13.24 per cent of the voting power.

Jim O’Neill, chairman of Goldman Sachs Asset Management, coined the Bric concept in 2001. South Africa was admitted by the other Bric leaders in December 2010, adding the “S” to the original grouping.



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