The most awaiting, 6th BRICS Summit was held from 14 July to 16 July 2014. The host city was Fortaleza in Brazil, one of the member country out of five. It was hosted with Cristina Kirchner, Argentinian President as the special guest at the summit.
Some Basic Facts
BRICS consists of a group of major emerging economic countries – Brazil, Russia, India, China and South Africa.
It was previously known as BRIC, consist of four participating countries. South Africa is the newest among them to join the group and formed BRICS, which got its full membership in December 2010.
The main concern behind to form this group is to support each other on various issues like food crisis, world economy, growth, infrastructural development and so on.
Sixth BRICS Summit
This was the sixth and PM Narendra Modi’s first summit. This year it played a very important role to make the grouped countries financially independent by inaugurating the DEVELOPMENT BANK. The teamed countries were working on the same idea for few years. This year the site for headquarter and few different things were decided .
Joy and Disappointment of India
India miss the opportunity to set the headquarter on the choice between China’s Shanghai and India’s New Delhi. As Shanghai and New Delhi were the closest competitor. Shanghai has been decided to take the privilege of having the headquarter of the development bank. India has been granted presidency of the bank for the first five years, so the first president of the bank is from Indian origin. Also, BRICS bank having a rotating five-year presidency among the members countries.
About Development Bank
This bank is a $100 billion bank act as a reserve currency pool and help the nations involved in the Summit. This bank supports the BRICS countries infrastructural and sustainable development projects such as power stations and electricity supply grids, ports, roads, telecommunications networks, water and sewerage by lending money from the bank.
This BANK is a step towards cut out the influence of Western-based lending institutions like IMF and World bank as well as the dollar. The initial contribution of the BRICS countries is as follows –
Brazil : $18 billion
Russia : $18 billion
India : $18 billion
China : $41 billion
South Africa : $5 billion
There are plans to provide loans to other countries too in future depending on the growth and success of the step. This is really a big decision which will affect the value of dollar against various currencies which were influenced at the time when a country use to take loan from the institutions like IMF and World Bank, as both are situated in Washington thus having great influence at the time of negotiation.
The effect of this bank and its impact on the Indian currency can be seen in few days in the Indian currency market. Hoping for the best results.