What is BRICS?

• 07.08.2015, 18:20
•  World,  Info

Today on July 8 in the city of Ufa in Russia the seventh annual summit of the BRICS has launched. The summit will last until July 10 and will primarily focus on the "recovery" of the  world economy.  

BRICS is an abbreviation in English which unites five fast developing countries of the world, Brazil, Russia, India, China and Republic of South Africa (RSA); the latter joined the group in a later phase in 2010.

Before RSA joined the union, the term BRIC had been first coined by the analyst of Goldman Sachs Bank Jim O'Neal in 2001. The first official summit of the Union took place in 2010 again in Russia this time in the city of Yekaterinburg.

These five countries with large economy and with the determinant role in the global and regional issues have 40 percent of the world population, approximately 3 billion people as all the  five  are in the group of countries with the greatest number in population. Their overall GDP forms 20 percent of the global GDP.

The most important initiative of the BRICS by now has been the establishment of the financial organization, the agreement on which was signed in 2014. The agreement presupposes the foundation of the development bank of the BRICS countries for the funding of infrastructural projects as well as project on sustainable development in the BRICS member state countries as well as in the developing countries.

"It will be one of the major global institutions, which will specialize in infrastructural projects and in such important directions which will contribute to the development of state and private entrepreneurship," Minister of Economic Development in Russia Alexey Ulyukaev informs.

New Development Bank which is to become  an alternative to the International Monetary Fund and to the World Bank is to be situated in Chinese Shanghai city. The first manager of the bank  will be  the Russian Finance Minister Anton Siluanov, while the president is to be  Indian banker Kundapur Vaman Kamath, who previously was a manager of the Asian Development Bank.