BRICS- still trying to put the jigsaw puzzle pieces together
Northern, WI 03//2013 (tradewatchmedia) – Brazil, Russia, India, China and South Africa- the “Big Five” BRICS nations are a force to reckon with both economically and politically and are a definite counterweight to the West. Vladimir Putin the Russian President said that left to themselves however, they lack on many counts and my not be able to put up such a strong front at all. Their strengths lie in different fields and segments but the global stage is a very formidable one and in order to make a global impact they will have to work collectively, create a strong structure and strategize effectively in order to be noticed on the world-stage.
Leaders of these 5 nations converged for a 2-day summit in Durban, South Africa but the largely closed-door discussions did not have much to proffer at the end of it all. These countries account for a fifth of the world’s economy and 40 percent of the global population. The Russian president likened these five countries to the “Big Five” game beasts of Africa and said that they were like the lion, elephant, buffalo, leopard and rhinoceros. There was not much more than a formal announcement talks about the bank constitution and the summit progressed at a snails pace.
BRICS-run bank in the offing?
Jacob Zuma said that BRICS have now decided to start formal talks about a new bank which will be led by all these 5 nations and will be based on individual infrastructure needs. Over the next five years this will amount to $4.5 trillion. No other details were provided but the BRICS bank is being pitched as an answer to the IMF and the World Bank. All the country heads have said that the bank plan is a viable and feasible one though the location and other technicalities have to be ironed out.
No solid plans yet
Sergey Ryabkov, the Russian deputy foreign minister said that the feasibility study had taken one year to complete and the process had commenced from last years Delhi summit. He went on to say that this kind of outlining, planning and set-up cannot be actioned over night and that the details are always the most critical and difficult ones to thrash out. Another plan which is a definite consideration is a $100 billion foreign exchange reserves pool set-up but again there were no solid plans about the actual implementation.
An idea that needs to be implemented
The BRICS group was nothing but an idea that emerged when the word was coined by a Goldman Sachs banker in a research note in 2001. At that point he was referring to these countries as emerging world economic powers. Though these countries have not much else in common apart from the fact that they are giants in their respective regions in terms of GDP, they all are of the opinion that they are being cold-shouldered by the western institutions. Irrespective of what the BRICS countries think, they are not officially a single entity and they all work on different economic plateaus. China is a dominant player amongst these three nations but does not wish to operate in the world arena by itself.