This India is going to host summit of BRICS in Panaji, Goa from 15th to 16th October 2016. India is to assume chair of BRICS from Feb 2016 to Dec 2016. At the summit India plans to hold a trade fair, a film festival and the BRICS U-17 football cup.
BRIC was first time used by goldman sachs thesis projecting that the economic potential of Brazil, Russia, India and China and was formed on 16 June 2009. In 2010 South Africa joined this group. It was formed with the idea of changing the global economy by shifting investor`s focus from established, industrial markets to emerging ones. The association consists of Brazil, Russia, India, China and South Africa and makes up 40% of the world's population, 24% of the world`s GDP and 39% of the globe`s land mass.
This BRICS summit is important on various diplomatic and political levels. There is huge speculation on the continuance of this group as a whole. India and China are ore of competing neighbours then allies and their chances of agreement in this group is more of unstable nature. We know that china`s aggression on eastern front of India and the issues on Tibet autonomy. Brazil, South America`s largest economy and a huge success story until recently faced one of its worst recessions in 2015. The IMF on Jan 19 downgraded the economy forecast for Brazil. The country's political uncertainty and high level of corruption have only added to the economic turmoil. Similarly Russia has faced increasing economic problem after the west imposed economic sanctions on it following its incursion in the Ukraine. Russia entered a recession in 2015 and saw the drastic decline of the rouble.
The strong dollar increased the interest payments on the country's dollar denominated debt. The international Monetary fund has cut its economic growth forecast for south Africa by almost half to .7%, citing weak commodity prices and high borrowing costs. South Africa's economy has been shrinking. China`s slowing growth has impacted South Africa's economy, leading to a dramatic slump in gold, platinum, coal and iron ore prices. China's slowdown has been arguably the biggest part of global uncertainty. Recently its GDP has fallen to 7% from 10%. India has high potential but it is struggling from high level of poverty, political infighting and corruption.
With such situation at the background, the upcoming summit would be very crucial. It would be interesting to see that how these major economies are going to deal with economic crisis and the diplomatic differences among member countries like India and China. BRICS as group should remember that they have come together for increased economic reform, demanding a greater voice and representation in international financial institutions and their heads and senior leadership should be appointed through an open, transparent and merit based selection process. One of the most important issues was that of UN reforms, global financial crisis, global development and further strengthening of the BRICS group.
