BRICS Finance Ministers and Central Bank Governors Meeting
What is the issue ?
- The first meeting of the BRICS Finance Ministers and Central Bank Governors was held in the sidelines of the IMF/World Bank Spring Meetings in Washington D.C
Issues discussed :
- The main issues that the meeting discussed were related to enhancing the project pipelines of New Development Bank (NDB) evenly across member countries.
- Expansion of NDB’s membership, the proposal of the South African Presidency for setting up a working group on illicit financial flows and a BRICS Task Force on Public Private Partnership.
- Issues related to BRICS Contingent Reserve Arrangement (CRA) as well as BRICS Bond Fund were also discussed.
What India has said :
- India has pressed the BRICS nations to set up an independent rating agency of the five-member group.
What is the need for an independent credit rating agency ?
India had first mooted the idea of having such an agency for the BRICS grouping to solve impediments for the emerging market economies posed by the present credit rating agency market that is dominated by S&P, Moody's and Fitch.
These three western rating agencies hold over 90 per cent of the sovereign ratings market.
About BRICS grouping :
1. What is it ?
- BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
- BRIC started as a formal grouping in 2006 on the margins of G8 outreach summit.
- Originally the first four were grouped as "BRIC" before the induction of South Africa in 2010.
- 1st Summit was held in Russia in 2009. Moreover 1st, 5 member BRICS summit was held in 2011.
2. Founding members ?
- South Africa (joined the grouping in 2010)
3. Functions performed ?
- Economic co-operation
- Self-sufficiency rather than dependency on the West dominated institutions
- Achieve regional development
- Optimum use of resources among member nations
- Promotion of technological information exchange among the countries.
- Striving to achieve regional safety and security in the region
4. What is its importance ?
- The BRICS countries include more than 40% of the world's population and occupy over a quarter of the world's land area. Brazil, Russia, India, China, and South Africa together are a powerful economic force.
- BRICS countries come from Asia, Africa, Europe and America and are all members of the G20.
- Together, they account for 26.46% of world land area, 42.58% of world population, 13.24% of World Bank voting power and 14.91% of IMF quota shares.
- According to IMF’s estimates, BRICS countries generated 22.53% of the world GDP in 2015 and has contributed more than 50% of world economic growth during the last 10 years.
5. Latest meeting held at ?
- 9th Summit was held at Xiamen in China
6. Is India a part of the meeting/summit ?
- Yes, India is an integral part of the grouping.