BRICS, TOWARDS ECONOMIC PROGRESS’

Twenty-first Century is the era of geo-economics. World, as a whole, has been facing serious economic crunch mainly due to the Global War on Terrorism, the hegemony of America over global economy and UN sanctions on a number of anti-American states. Nations are still striving to explore various avenues to ensure their survival through sustainable economic growth. Given the importance of geo-economics in the development process, developing countries have no option but to leave their cross-border conflicts behind and extend a hand of friendship towards rival countries in order to have a smooth economic growth.
The establishment of BRICS is one such example.BRICS or Big Five is an association of emerging Nation economies and has significant influence on regional and global affairs. Comprising Brazil, Russia, India, China and South Africa, the BRICS is basically aimed at improving global economic situation, reforming financial institutions and promoting cause of Global Development.

The term BRIC was coined by Jim O’Neill in a 2001 paper entitled “Building Better Global Economies BRIC”. South Africa sought BRIC membership in 2009 and was officially admitted as BRIC nation on December 24, 2010. South Africa holds a unique position to influence African economic growth and invest ment. China is South Africa’s largest trading partner and India aspires to increase commercial ties with Africa. Addition of South Africa gave the organization a 4-continent breadth, further power, status and trade opportunities.

BRICS countries occupy more than a quarter of the world’s land area. In addition, World’s 40 per cent population, 20 per cent GDP ($14.9 trillion) and 43 per cent Foreign Exchange Reserves ($4 trillion) are also owned by BRICS nations. These countries have been seeking to forge a political alliance and converting their growing economic power into greater geopolitical clout. The BRICS has worked for taking the global economic power away from G-7 economies towards developing world. Some analysts opine that the BRICS will overtake G-7 by 2027.

The summits, which are held annually, are convened to seek common ground on areas of importance for these major economies. Talks represent spheres of political and entrepreneurial coordination, in which member countries have identified several business opportunities, economic complementarities and areas of cooperation. Previously, four summits have been held in Yekaterinburg, Russia (2009), Brasília, Brazil (2010), Sanya, China (2011) and New Delhi, India (2012). The 2013 Summit was held in Durban, South Africa on 26′ 27 March, 2013 and with this summit, the bloc has completed its first cycle of BRICS summits.

 BRIC forum was established in 2011 as an international organization that encourages commercial, political and cultural cooperation between BRIC nations. In the Durbin Summit, the five BRICS countries agreed to set up a development bank, a forum of science ministers and a council for researchers and academia at their forum in Durban. The bank is expected to start with US$50 billion in total ‘US$10 billion from each BRICS country: Brazil, Russia, India, China and South Africa’ and will fund development and infrastructure projects in developing countries.Due to its growing economy, India has successfully won the confidence of the West as well as emerging eastern powers; China & Russia. India is a member of G-20 and holds observer status in SCO as well.

On the other hand, Pakistan’s policymakers, unfortunately, are yet not out of anti-Indian syndrome. Intermittent intervention of great powers in Pakistan’s internal affairs, War on Terror and deteriorated relations with Afghanistan, Iran, India and Russia have added to the gravity of the state of affairs.Being a connecting point of South, East and Central Asia, Pakistan holds a significant position on the whole geopolitical and geostrategic chessboard.
Central Asia is the key to the “New Great Game” and Pakistan is the gateway to this energy-rich region. The Gwadar Port of Pakistan provides China and Central Asian Republic & (CARs), and with the shortest trade route. Despite huge strategic importance, it needs to be realised that Pakistan cannot have stable political setup and smooth economy by having hostile relations with regional neighbouring countries. Pakistan should also join hands with developing countries and international organizations, in pursuance of obtaining economic interest that will eventually help to transform Pakistan into an independent nation in truest sense of the word.