BRICS

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Introduction:

About the BRICS:
The Big Four or the BRIC nations is a grouping referring to Brazil, Russia, India and China that are said to be on the same stage of economic development. One- fourth of the world activities take place in these emerging markets. The acronym BRIC was first used by an economist Jim O’Neill from Goldman Sachs (2001) in the paper- “Building Better Global Economic BRICs” where he predicted that these four nations will comprise more than 10% of the global output by the end of the decade. We have seen that from beginning of the British Revolution in the 18th century till 20th century, Europe and United States have shaped out to be the economically dominant superpowers. Although now, the era seems to subside as China and India are emerging as superpowers. The political and economic power seems to shift to the East which seemed to be impossible 20 years ago. The economic potential of these four counties is such that they are expected to be dominating the global market by 2050.Since 1980; the average annual growth rate of China has been close to 9.8% followed by India and Brazil showing average annual growth rates of 5.8% and 2.4% respectively. Since 1988, Russia has also followed suit and has shown high growth rates but still lacks behind. The formation of this group has undergone a lot of controversy that whether at all these four nations together make any sense because at that time the growth of Brazil and Russia seemed too sluggish whereas on the other hand China was doing extra ordinarily good. But the political institutions of the BRIC countries took this as a great opportunity and decided to hold a summit in New York 2006 to further formalize their relations. One problem with the BRIC nations was that it had no African country representation. If the group claimed to be representing the emerging markets of the world it certainly needed representation from the continent housing the most number of developing and least developing countries. In 2010, South Africa was chosen to be a part of BRIC even though it had a smaller population and economy than Nigeria. What worked in its favor was its excellent infrastructure, easy accessibility to business finance, better macro- micro financial environment, access to natural resources – diamond, gold and platinum and advanced banking systems. The BRICS now is an independent international organization. In their 5th summit (2013) in Durban, South Africa, they came up with the initiative to establish a global financial institution rival to the western dominated IMF. They have planned to finalize the arrangements for the development bank by 2014. The BRICS are certainly set to transform the prevalent Geopolitical scenario. This was seen quite recently when Russia singlehandedly managed to prevent the United States waging war against Syria. Hence as a set of nations, the BRICS could have an immense impact on the global stage. But what would be the nature of this impact? “The Good, the Bad and the Ugly”:

To look at the potential impact of the BRICS we in our paper present three possible impacts that the BRICS could have on the global Geopolitical Scenario: 1. A positive impact.
2. A negligible impact.
3. A negative impact.
These impacts would naturally depend upon the nature of future relations among these set of nations. This is something we’d be unable to comment on as only time will tell how formalized this bloc of nations could be. It’s important to understand the basis of our argumentation though. Our first step is to form the premise of our arguments which are based on current activities being carried out by these nations. The second step involves using the premise as a basis to frame possible consequences of these activities. The impact of these consequences though can vary from the metaphorical “Good” to the “Bad”. Now, a fallacy here is our lack of ability to predict the possible future impact. Hence, a certain premise that we make could...
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