In 2001, Goldman Sachs predicted that a group of developing and newly industrialized countries could come to dominate Western economics. The concept coined by Jim O’Neill, chairman of Goldman Sachs Asset Management. BRICS is an International Political Organization of leading emerging economies. BRIC or BRIC’s is a descriptor for Brazil, Russia, India, and China.
Initial South Africa was not an official member of BRIC group. First inaugural summit took place in Yekaterinburg, Russia on 16 June 2009 by four countries namely Brazil, Russia, India, and China. After first summit BRICS nations meet annually summit. After the entrance of South Africa at 3rd BRICS’s Summit held on 14 April 2011 in China. The BRIC become BRICS with capital “S” by joining of the group.
Because of its unique position to influence African economic growth and investment. BRICS nations have exploded in growth and changed the landscape of world politics. Those five countries contribute to nearly half of the world population, a quarter of the world total geographic area and the Fifth of the world’s GDP. Their combined GDP nearly that of United States. The major aspect to develop the financial architecture of BRICS, namely the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA). The formation of the BRICS Development Bank to compete with the IMF and the World Bank.
This gives them greater leeway to loan each other and other countries money for development, unrestricted by Western influence. In 4th BRICS summit in 2012 held in India(Delhi) is to set up the new ideal model submitted for the NDB.The model of new development bank was the main theme of the meeting. BRICS leaders agreed to set up a Development bank at the 5th BRICS summit held in Durban, South Africa on 27 March 2013.The Contingent Reserve Arrangement (CRA) is a framework which gives protection against global liquidity pressures.