BRICS SUMMIT

The acronym “BRICs” was initially quoted by Goldman Sachs. It was first coined in a report on growth prospects of Brazil, Russia, India and China. According to the report these four countries have a great growth prospects and they can become a major stakeholders in the world economy in the 21st century. Successful interaction at the margins of the General Debate of the UN General Assembly (UNGA)in 2006 by four BRIC countries led the decision that the dialogue was to be carried out at the level of Heads of State and Government in annual Summits. First Summit was held in Yekaterinburg in 2009, in 2011 BRIC formally became BRICS with the induction of South Africa. Now BRICS has surpassed the reason for which it was initiated. Initially it was only in economic sphere now has BRICS has become a promising political-diplomatic entity. Till now total of six annual summits have been held by BRICS. After the Yekaterinburg Summit, other Summits were held at, Brasilia; Sanya; New Delhi; Durban; and Fortaleza respectively. Durban summit in 2013 lead to the conclusion of first cycle of summits. First cycle has seen BRICS has come a long way, now it has become a forum for geopolitical, economic, scientific and cultural exchange. Initiatives towards reforming the international
institutions for better representation of BRICS has long been an agenda. Along with that trade ministers also meet annually to expand cooperation on economic and trade issues within the BRICS. Along with that BRICS also has health and science and technology forum. In these forums ministers of health and science and technology of BRICS nations meet and discuss the existing challenges.

SIXTH BRICS SUMMIT

Sixth brics summit was hosted by Brazil, in the city Fortaleza. This completes one cycle of full BRICS countries. Although Brazil hosted a BRIC conference in 2010 but that was without South Africa. Argentine President Cristina Kirchner was a special guest of the summit. Various issues and developments were discussed in the summit and four important agreements were signed, they are given below;

1. Treaty for The Establishment of a BRICS Contingent Reserve Arrangement
2. Agreement on the New Development Bank
3. Memorandum of Understanding on Cooperation among BRICS Export Credit Insurance Agencies
4. Cooperation Agreement on Innovation

BRICS Contingent Reserve Arrangement (“CRA”) is between the BRICS nations. The Parties agree to establish a self-managed contingent reserve arrangement to look into any actual or potential balance of payment issue; this will also provide a mutual support and increase the financial stability of the countries. This Contingent reserve arrangement will also help in stablise global financial situation and it will complement the existing institutions like IMF.

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