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The 16th summit of BRICS, a group of the world's major emerging economies, will be organized today in Kazan city of Russia. Prime Minister Narendra Modi also reached Russia on Tuesday to participate in this summit. Heads of state of 28 countries including Modi have reached Russia to participate in this summit.
BRICS is headed by Russian President Vladimir Putin. This group of 5 countries till last year has now become 9 countries. This year UAE, Iran, Egypt and Ethiopia have also joined it. Apart from this, 34 countries have expressed their desire to take membership.
Today in this story we will learn about the importance of BRICS. We will also know why the whole world is keeping an eye on this. Why do many countries of the world want to become its members…
A look at BRICS after the joining of new countries…
When western countries were in recession, BRICS countries progressed rapidly.
In 2008-2009, when western countries were going through economic crisis. Even then the economy of BRICS countries was growing rapidly. As already stated its member countries are the fastest growing economies of the world. Was. The very concept of its construction was based on 'Rising Economy'.
After the economic crisis, it became clear that the economies of BRICS countries have the courage to grow rapidly and compete with western countries. Earlier, western countries were controlling 60% to 80% of the world's economy. Now BRICS countries are gradually replacing them.
At present, BRICS has become the third most powerful economic organization in the world, surpassing the European Union (EU). EU countries account for 14% of global GDP, while BRICS countries account for 27%. Apart from this, BRICS also has its own separate bank which is known as New Development Bank.
Its headquarters is in Shanghai, China. This bank works to provide loans to member countries for government or private projects. Because of this, last year about 40 countries had expressed their desire to join this organization.
What a big challenge BRICS is for western countries
Recently, Russian President Putin had given information about the discussion going on to create a separate payment system for BRICS countries like the SWIFT payment system.
Earlier last year, Brazilian President Lula da Silva had said during a summit that the countries of BRICS organization need to create a new currency for trade. Why are we trading in dollars?
However, no significant development has taken place in this matter yet. President Putin had also rejected discussions related to creating a new currency in a recent press conference. He said that this is a very advanced matter, no decision is going to be taken on this at present.
However, some countries of the organization have definitely started trading in their national currency. China and Russia are included in these countries. After the Ukraine war, Russia is insisting on the use of national currency.
The reason for this is that America and Western countries have seized Russia's assets. Russia has suffered a lot due to this.
How much change will there be with the inclusion of new countries? With the inclusion of new countries in BRICS, its strength has increased. The market of BRICS countries has increased with the joining of UAE, Iran, Egypt, Ethiopia. This is linked to a fast growing economy like UAE whose global export potential is more than 2%.
With its coming together with these countries, the total land area and population of BRICS has increased. Besides, the joint military capability of this organization has also increased. Although BRICS is not a military organization.
34 countries expressed their desire to join BRICS
Before the BRICS summit, on October 18, Russian President Putin said that 34 countries have expressed their desire to join BRICS. Earlier last year too, about 40 countries had expressed their desire to participate in it. India's neighboring country Pakistan had also officially applied to join it.
However, India has been hesitant about its expansion. The main reason for this is that the rules for becoming its member have not been decided yet. At present, the main basis of the countries in BRICS is economy. In such a situation, the big question is whether new members should be included on the basis of economy or geography.
According to Professor Rajan Kumar, due to less countries in BRICS, it is easier to take decisions. In such a situation, it will be a big challenge to include more members in the organization.
On the other hand, India also wants to be cautious about China's intentions. Both China and Russia want to project the BRICS organization as a group formed against Western countries.
