Acronyms can change the world as you see it today. Not because of the letters, but the countries that form them and their increasing impact on world economy and politics.
For example, the BRICS group which is made up of five countries: Brazil, Russia, India and China which came together in 2009, and one year later added South Africa- put together half of the world’s population, geographic extension and Gross Domestic Product (GDP). They decided to come together in an attempt to change the rules imposed at the end of the Second World War through the Bretton Woods twins: the World Bank (WB) and the International Monetary Fund (IMF).
The neoliberal recipes of the latter institutions were imposed on developing countries, putting these on the brink of default several times over the past decades.
The background of how BRICS came to be is interesting; eight years earlier before they came together, on October 30, 2001, the director of Global Economy of the firm Goldman Sachs, Jim O’Neill published a work titled “Building Better Global Economic Brics (as construction bricks), offering a new arrangement for a more efficient world order.
O’Neill, however, was mistaken because he analyzed the possible (and desirable according to him) inclusion of the four strongest emergent countries in the G-7, group of the most developed countries.
The UN Development Program predicted in its Report on Human Development in 2013 that there would be over the next decades a deep change in world dynamics, boosted by the new powers of accelerated growth in the developing world.
Policies in favor of the poor and significant investments in the capacities of persons (through education, nutrition, health and work abilities) can expand access to a dignified job and sustained progress for the group, said the UNDP report.
Following its own path Not only has BRICS gone forward on a divergent path from the G-7, but it is also associated to other groups like the Shanghai Cooperation Organization (SCO) comprising Russia, China, Kazajstan, Kirguistan, Tadjikistan and Uzbekistan, which has as observers Iran, India, Pakistan, Mongolia, Afghanistan and as invited members Belarus, Sri Lanka, Azerbaidzhan, Syria, Maldive Islands and Egypt.
During the summit held in March, 2013 in Durban, the leaders of BRICS announced their intention of creating a new Development Bank aimed at “mobilizing resources for infrastructure projects and for the sustainable development of BRICS, other rising economies and developing countries” in the way of an investment fund.
This decision cannot be overrated. For starters, it reflects the enormous success in sustainable development over the last four decades of the BRICS and the rebalancing of the world economy it entails.
In December 2011, Goldman Sachs indicated in a study that ‘after 10 years, BRICS were already half way to making a big transformation’.
As for resources, the New Development Bank was approved last July 22 with an initial capital of 50 billion dollars, expandable to 100 billion and a capacity to reach 400 billion dollars in the short term.
The first investments are scheduled to take off next January, 2016. The first mega- project will be a railroad that will cross through Brazil from East to West, linking the Atlantic and Pacific oceans.Share on FB Share on TT