BRICS Bank

The famous Goldman sach in one of its reports used the acronym BRICS that is a group of Brazil, Russia, India, China, South Africa... After this, the group began to be called as BRICS...

BRICS is considered to be the most important development in Asia and particularly among the fast growing economies of the world. BRICS Together accounts for 40% of the world population, 20% of the worlds GDP. In this way its a challenge to the developed economies like USA, Germany... How let me tell you?

These developed economies don't have a good domestic market base. They have all the great technologies, advance machinery and these are only the products that fetch most of their GDP as there demands are high in the developing countries and in their home country by big industrialist. These industrialist produce goods and sell them in most of these markets. Hence they are highly dependent on these countries for their markets... Now the question that why these countries don't tap their own markets.... Well this is mainly due to their obligations and many a times due to the agreements they enter when they take money from these developed economies for development and other helps.... Many of these agreements bring with them the clause of opening up of their markets.

So this led to the emergence of idea known as BRICS bank.. Its mainly a developmental bank that will provide easy loans to the 5 member countries. The bank will also set up a reserve fund of 100 billion dollars.  This reserve fund will help the countries to match their balance of payments and hence will reduce the dependency of these developing economies on the developed economies. This has been considered the latest and the most important development in the Brazil BRICS submit.

India’s condition that in spite of different shares in this Bank equal status should be given to all the members has been an added advantage to India. After India’s suggestion that it was named the  “ New Development Bank” which clearly is a message to the western controlled financial sources that see we are now no more dependent on you and your conditions will not guide us now.

This is surely a great steps which will soon show its results in the coming future.