efinition: BRIC is an acronym that refers to the economies of Brazil, Russia, India, and China, which are seen

as major developing economies in the world. According to Forbes, "The general consensus is that the term was first prominently used in a Goldman Sachs report from 2003, which speculated that by 2050 these four economies would be wealthier than most of the current major economic powers." In March 2012, South Africa appeared to join BRIC, which thus became BRICS. At that time, Brazil, Russia, India, China and South Africa met in India to discuss the formation of a development bank to pool resources. At that point, the BRIC countries were responsible for about 18% of the world's Gross Domestic Product and were home to 40% of the earth's population. It would appear that Mexico (part of BRIMC) and South Korea (part of BRICK) was not included in the discussion.

Durban summit to consider formation of BRICS bank: China

PTI Mar 20, 2013, 08.47PM IST

BEIJING: China today said it expects progress in the formation of the BRICS Development Bank as leaders of member countries will consider establishing the bank and a foreign exchange reserve pool at the grouping's fifth summit in Durban next week. The summit of BRICS nations, namely Brazil, Russia, India, China and South Africa, is scheduled from March 26-27 in the South African city. BRICS deliberated the possibility of establishing a development bank last year. Details including the scale, functions, structure, and location will be discussed at the summit, said Ma Zhaoxu, Chinese assistant foreign minister. Progress regarding this area is expected at the summit, Ma said. "As an important part for financial cooperation, the bank will help BRICS sustain financial risks and provide support for the development of African countries," he said. It is also expected that the bloc will make progress in establishing a foreign exchange reserve pool aimed at forming a capital security network among BRICS nations. The scale and respective shares of each country are being deliberated and will be discussed at the summit, Ma said. It is the first time that a BRICS summit is being held on the African continent, with the cooperation between BRICS countries and Africa high on the agenda. The theme of the summit is "BRICS and Africa -- Partnerships for Integration and Industrialisation". Bilateral talks between BRICS and African countries, a joint press conference and a breakfast meeting with representatives from business circles have been arranged for the two-day summit. Following the summit, the leaders will jointly release a Durban Declaration, according to Ma. The Chinese government expects cooperation in fields of international politics, economics, finance, trade and development in order to help maintain worldwide peaceful development and contribute to global economic growth, Ma said. "It is hoped that through talks among leaders of BRICS and African countries we can strengthen dialogues and cooperations among these nations so that emerging markets and developing countries can have a greater representation and voice in international affairs," state-run Xinhua news agency quoted Ma as saying. China's newly-elected president Xi Jinping will also attend the summit.

Brics announces formation of business council

Brics leaders announce the formation of a business council aimed at strengthening trade and investment between its five members.
By Mariam Isa Leaders of the Brics group of emerging economies have announced the formation of a business council aimed at strengthening trade and investment between its five members - Brazil Russia India China and SA. The step is one of a range of initiatives which the Brics countries have taken at a summit in Durban to enhance their own ties and reduce reliance on developed countries as the balance of global economic power shifts. "The formation of the business council this morning reiterates the commitment within the private sector to focus on closer collaboration between the Brics nations" President Jacob Zuma said at a summit b reakfast on Wednesday morning. Each Brics country has chosen five top business executives to represent them on the council which will coordinate interaction between member states' governments and private sectors during the course of each year. SA's mining mogul Patrice Motsepe the executive chairman of African Rainbow Minerals (ARI) has been selected head of SA's branch of the council and will lead the entity over the coming year. Zuma said the council's objectives included the strengthening of trade relations; promotion of business relations; technology transfer; and cooperation in the areas of skills development banking the green economy manufacturing and industrialisation. "In this regard we would like to see such tangible and practical projects when we meet at the next summit in Brazil" he said. One of the projects discussed at the event which will involve the private sector is the construction of an undersea telecommunications cable linking the Brics countries. "The Brics will focus on a new high capacity cable of 28400km linking the Brics countries and this will remove the dependency on developed countries as interconnection points by providing a direct route amongst the Bri cs countries" Zuma said. The business council will meet twice a year and submit a report at each of the Brics annual summits.

http://news.howzit.msn.com/article.aspx?cp-documentid=254263804

http://bricscci.com/media.htmlengs of the emerging economies to maintain high economic growth rates,

making them better laced to help stave off a deep global recession, grabbed worldwide attention. In order to

safeguard developinThe proposed Bank announced by the BRICS leaders at their summit here will focus on infrastructure development due to insufficient long-term financing and foreign direct investment, especially investment in capital stock. These are all areas of acute interest to India, said government sources as well as Indian industrialists attending the Fifth BRICS summit, which ended here on Wednesday. But the specifics of the scale, location and structure of the Bank will be worked out over the coming months, and some finality is likely to be achieved by September when the five leaders are likely to meet on the sidelines of the next G 20 summit in St. Petersburg. Side by side with the Bank, the BRICS summit also saw action on another front creation of a Contingent Reserve Arrangement (CRA) amongst BRICS countries. This too has its genesis last year when, meeting on the sidelines of the G-20 summit in Los Cabos (Mexico), the BRICS leaders asked their finance ministers and central bank governors to explore the construction of a financial safety net. This [the BRICS Bank] is now a realityWe gave a big idea, and this is a good beginning. We should be able to influence discussions and decisions in the G-20, International Monetary Fund and other multilateral institutions, said Union Finance Minister P. Chidambaram who quarterbacked long-drawn out discussions on the setting up the Bank on behalf of India. Federation of Indian Chambers of Commerce and Industry (FICCI) President Naina Lal Kidwai pointed out that long-term financing market in many developing countries, including India, was relatively undeveloped. The Banks resolve to prioritise investments in capital stock, she felt, would spur domestic and other financial institutions to step in also. Emerging from the Summit deliberations, Prime Minister Manmohan Singh and Presidents of Brazil, China, South Africa and Russia devoted a separate statement on the Bank, thus signalling its importance in meeting the unmet infrastructure requirements of the developing world. The shortcomings in the orientation of the World Bank, said the leaders, constrained global aggregate demand. BRICS co-operation towards more productive use of global financial resources could make a positive contribution to addressing this problem, they added. It was in March last year that the BRICS leaders had asked their finance ministers to examine the feasibility and viability of setting up a New Development Bank for mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The summit felt that the establishment of a self-managed Contingent Reserve Arrangement would have a positive precautionary effect, help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability. It would also help to strengthen the global financial safety net and complement existing international arrangements as an additional line of defence. This has led to the announcement of a CRA with an initial size of $100 billion subject to internal legal frameworks and appropriate safeguards. As is the case with the BRICS Bank, the leaders asked their finance ministers and central bank governors to continue working towards its establishment. The CRA will assist in stabilising the domestic currencies of at least four BRICS countries which is crucial because increasing economic risks in emerging markets could lead to a currency and financial crises,'' said a government source.

While India and Russia did not want China to dominate the bank, they received support from unexpected quarters the powerful Confederation of South African Trade Unions (COSATU), which did not want the proposed institution to be used by China to increase its exports to other countries.

http://www.thehindu.com/business/Economy/brics-agrees-to-create-100-billion-contingencyfund/article4554773.ece?ref=sliderNews
Highlights of BRICS 2013 Summit: