In recent news, the BRICS Foreign Ministers meetup was virtually attended by India’s External Affairs Minister. Initiated by Russia, the main focus of the meeting was to analyze the effects of the ongoing Covid-19 pandemic.
Special Loan Instrument by BRICS Nations
As a significant step towards reviving the economy amidst the adversity of the Covid-19 pandemic, the BRICS nations have collectively contributed to a “special loan instrument”. This financial provision amounts to a $15 billion fund that has been set aside for the aid of member nations affected by the pandemic.
Joint Measures to Counter Pandemic’s Impact
The BRICS nations convened to discuss potential collaborative measures to be undertaken by the member states. These actions aim at mitigating the detrimental impacts of Covid-19 – these include financial, trade, economic, and social repercussions triggered by the pandemic.
India’s Role in Pharmaceutical Support
During this meeting, India took the opportunity to display its pharmaceutical contributions aimed at managing the viral infection. It has extended its support to about 85 countries currently dealing with the virus. Additionally, India emphasized the need for restructuring within multilateral organizations such as the United Nations.
Discussion on Potential Resolutions
Members of the UN Security Council are presently engaged in discussions over draft resolutions on the Covid-19 pandemic. The objective is to strategize effective ways of combating the global health crisis.
The Genesis of BRICS
The term BRICS is an acronym representing the world’s leading emerging economies – Brazil, Russia, India, China, and South Africa. British economist Jim O’Neill coined the term ‘BRIC’ in 2001 referring to the robustly growing economies of Brazil, Russia, India, and China.
The formalization of this grouping was achieved during the initial meeting of ‘BRIC’ Foreign Ministers held in 2006. It was only in December 2010 that South Africa was invited to join BRIC, following which the group adopted the acronym ‘BRICS’.
Significance of BRICS
Collectively, the BRICS nations account for approximately 42% of the global population and are responsible for generating about 23% of the worldwide GDP. They also contribute to around 17% of international trade.
The leadership responsibilities are annually rotated among the member nations according to the order of the acronym B-R-I-C-S. The annual BRICS Leaders’ Summit is a key event.
New Development Bank and Contingent Reserve Arrangement
A landmark agreement establishing the New Development Bank (NDB) was signed by the leaders during the Sixth BRICS Summit held in Fortaleza in 2014. In the same year, an additional agreement was signed for the BRICS Contingent Reserve Arrangement- both significant steps towards fostering international economic cooperation.