Thursday, July 17, 2014

BRICS to launch World Bank and IMF rivals

 Are you hip to BRICS?

BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa.[2]

The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010.

The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs; all five are G-20 members.[3]

As of 2013, the five BRICS countries represent almost 3 billion people with a combined nominal GDP of US$16.039 trillion and an estimated US$4 trillion in combined foreign reserves.[1][4] As of 2014, the BRICS nations represented 18 percent of the world economy.[5]

South Africa held the chair of the BRICS group in 2013, having hosted the group's fifth summit in 2013.

BRICS flexes its economic muscle

BRICS members are not satisfied with a subservient role of being economically dominating by 1) the American Greenback aka dollar bill; 2) World Bank; and 3) International Monetary Fund.

In an effort to replace those USA and Western Centric institutions, BRICS have come together to create an international investment bank of their own.

The BRIC international bank, "challenging the global economic order," will provide currency support and infrastructure development investment for emerging nations.

The bank is expected to make its first loan in 2016.

The BRICS countries have a shared desire for a bigger voice in global economic policy. They now account for 21 percent of global economic output and have contributed more than 50 percent of world economic growth in the past decade. source

Sidebar: From the Russia perspective -- in light of NATO economic sanctions and being kicked out of the G-8 because of Vladimir Putin's aggressive intrusion into the Ukraine -- Putin, evidently, has additional impetus to support a BRICS International World Bank, geopolitically speaking.

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