BRICS as a Driver of Global Economic Growth and Development

Abstract

In 2001, when the term BRIC (Brazil, Russia, India, and China) was coined by Jim O'Neill, I came across a paper in a German journal. The title of the paper was “BRIC as a group of unequals.” Since then, there has been consistent growth and development in the BRICS group, and it has emerged as a force to reckon with. In December 2010, after South Africa joined the group, it became BRICS. The role and contribution of the BRICS is significant to the world economy in terms of population (40%), GDP (25% nominal and US$ 16.039 trillion), land coverage (30%), world trade (18%), and global forex (US$ 4 trillion). Since 2001 and till the end of 2010, the BRICS as a group worked on sectoral cooperation in many areas, namely—science and technology, trade promotion and facilitation, energy, health, education, innovation, and fight against transnational crime. Presently, sectoral cooperation accounts for more than 30 subject areas. These areas have brought in specific benefits to the population of the group of countries. In 2014, the 11th summit took place in Brazil and institutions of strategic and paramount significance were created such as New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). These have far reaching effects and implications for the global world in general and BRICS economies in particular. Both the initiatives are contributing significantly in the process of accelerating economic growth resulting in socioeconomic progress in the member countries. During the last five years, NDB has approved 70 infrastructure and sustainable development projects amounting to US$ 25.07 billion that also comprises loans given under NDB Emergency Assistance Facility among the member countries. Significantly, India has 18 projects amounting to US$ 6.9 billion. On December 20, 2020, the 12th Summit was held in Russia, wherein new dimensions were added namely—world stability, shared security, and innovative growth. These are the sine-quo-non for creating better, effective, and efficient global economic order (GEO) which is the need of the hour.