BRICS is a group of five major emerging economies, comprising 43% of the world

population, having 37% of the world GDP and 17% share in the world trade.South Africa
was the last country which have joined the group in 2010 and completed the group as
BRICS.

History of BRICS.

Earlier four nations joined hand to form a

group in order to give a recognition to the world rising economic powers.The acronym
BRIC (Brazil,Russia,India and China) was first used in 2001 by Goldman Sachs in their
Global Economics Paper, "The World Needs Better Economic BRICs" on the basis of
econometric analyses projecting that the economies of Brazil, Russia, India and China
would individually and collectively occupy far greater economic space and would be
amongst the worlds largest economies in the next 50 years or so. BRIC started after
the meeting of the Leaders of Russia, India and China in St. Petersburg on the margins
of G8 Outreach Summit in 2006.The 1st BRIC Summit was held in Yekaterinburg,
Russia, on 16 June 2009.After inclusion of South Africa , it attended the 3rd BRICS
Summit in Sanya, China on 14 April 2011. BRICS next summit will be held in India
(Panaji , Goa )
BRICS Initiative

The BRICS Forum, an independent

international organisation encouraging commercial, political and cultural cooperation
between the BRICS nations. BRICS works on the two important pillars -Iissues of
mutual interest through meetings of Leaders as well as of Ministers of Finance, Trade,
Health, S&T, Education, Agriculture, Communication, Labour, etc. and practical
cooperation in a number of areas through meetings of Working Groups/Senior Officials.

The 7th BRICS summit in July 2015 marked

the entry into force of the Agreement on the New Development Bank.The New
Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a
multilateral development bank established by the BRICS states (Brazil, Russia, India,
China and South Africa).The initial authorized capital of the bank is $100 bln divided into
1 mln shares having a par value of $100,000 each.

The initial subscribed capital of the NDB is $50 bln divided into paid-in shares ($10 bln)
and callable shares ($40 bln).The bank is headquartered in Shanghai, China. On 11th
May 2015, K. V. Kamath was appointed as the President of the bank.

Future of BRICS

BRICS has emerged one of the successful organisation

which have attracted other nations also to join hand and work on the foot mark for the
development of their respective economy.Presence of China and India has made this

group powerful in terms of economy and military powers. Recently on 26 september

2016, The Department of Science and Technology under the BRICS - grouping of Brazil,
Russia, India, China and South Africa - framework organized the first 'Young Scientists
Conference' in Bengaluru. The conference will see 50 young scientists meet over the
next four days. The BRICS Young Scientist Forum (BRICS - YSF) was started last
year.
From India's prospective BRICS is an important platform in term of development of its
markets.Co-operation on the economic front is one of the focus areas of Indias policy
towards BRIC. India can also penetrate into African Markets with the help of BRICS
organisation.India need to decide how she can utilize the BRICS platform at an
international arena.

(INTERNATIONAL MONETARY FUND)

The International Monetary Fund (IMF) is an organization of 189 countries, working to foster
global
monetary
cooperation, secure
financial
stability, facilitate
international
trade, promote high employment and sustainable economic growth, and reduce poverty
around the world.
Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its
near-global
membership.
April 12, 2016 -- IMF Survey : Nauru Joins the IMF as 189th Member
Each country or region is represented by a member on the Fund's Executive Board and
numerous staff members. The ratio of board members from each country is based on the
country's global financial position, so that the most powerful countries in the global economy
have the heaviest representation. The United States has the highest voting power, followed
by Asian countries such as Japan and China and Western European countries such as Britain,
Germany, France, and Italy
Headquarters

-Washington, D.C., United States

Managing Director- Christine Lagarde

Main organ- Board of governors
Board of Governors
The Board of Governors consists of one governor and one alternate governor for each member
country. Each member country appoints its two governors. The Board normally meets once a
year and is responsible for electing or appointing executive directors to the Executive Board.
While the Board of Governors is officially responsible for approving quota increases, Special
Drawing Right allocations, the admittance of new members, compulsory withdrawal of

members, and amendments to the Articles of Agreement and By-Laws, in practice it has
delegated most of its powers to the IMF's Executive Board
Why the IMF was created and how it works
The IMF, also known as the Fund, was conceived at a UN conference in Bretton Woods, New
Hampshire, United States, in July 1944. The 44 countries at that conference sought to build a
framework for economic cooperation to avoid a repetition of the competitive devaluations that
had contributed to the Great Depression of the 1930s.
The IMF's responsibilities:
The IMF's primary purpose is to ensure the stability of the international monetary system
the system of exchange rates and international payments that enables countries (and their
citizens) to transact with each other. The Fund's mandate was updated in 2012 to include all
macroeconomic and financial sector issues that bear on global stability.
The IMF vs. the World Bank
The IMF works hand-in-hand with the World Bank, and although they are two separate entities,
their interests are aligned, and they were created together. While the IMF provides only
shorter-term loans that are funded by member quotas, the World Bank focuses on longterm economic solutions and the reduction of poverty and is funded by both member
contributions and bonds. The IMF is more focused on economic policy solutions, while
the World Bank offers assistance in such programs as building necessary public
facilities and preventing disease.
Special Drawing Right SDR
The SDR (Also known as the Paper Gold) was redefined as a basket of currencies. Currently,
the SDR basket consists of the U.S. dollar, euro, Japanese yen, and pound sterling. Effective
October 1, 2016, the basket will be expanded to include the Chinese renminbi.
The respective weights of the U.S. dollar, euro, Chinese renminbi, Japanese yen, and pound
sterling are 41.73 percent, 30.93 percent, 10.92 percent, 8.33 percent, and 8.09 percent.1
These weights will be used to determine the amounts of each of the five currencies to be
included in the new SDR valuation basket that will take effect on October 1, 2016
How a Country Can Join the IMF
Countries must apply to be a part of the IMF, although any country can apply. Over time, the
stipulations of being a member have changed, with membership requirements being more
relaxed when the Fund was in its early stages. Countries are required to make membership
payments, or quotas, which are assigned to individual countries based on their economic size
and stipulate how much they contribute. These quotas are larger for more powerful economies,
and they form a pool from which countries in need can take loans. Member countries are also
required to adhere to the Code of Conduct, and stricter regulations may be imposed on those
countries who apply in hopes of financial aid.

The Asian Infrastructure Investment Bank

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank (MDB)
conceived for the 21st century. The Bank's foundation is built on the lessons of experience of
existing MDBs and the private sector. Its modus operandi will be lean, clean and green:
Lean- with a small efficient management team and highly skilled staff;
Clean- an ethical organization with zero tolerance for corruption;
Green- an institution built on respect for the environment.
The AIIB, a modern knowledge-based institution, will focus on the development of
infrastructure and other productive sectors in Asia, including energy and power, transportation
and telecommunications, rural infrastructure and agriculture development, water supply and
sanitation, environmental protection, urban development and logistics, etc.
The AIIB will complement and cooperate with the existing MDBs to jointly address the daunting
infrastructure needs in Asia. AIIB welcomes all regional and non-regional countries, developing
and developed countries, that seek to contribute to Asian infrastructure development and
regional connectivity.
Headquarters- Beijing, China
Official language - English
President- Jin Liqun
Main

organ- Board
Board of Directors

of

Governors

HISTORY
Representatives from 22 countries signed the October 2014 Memorandum of Understanding
(MOU) to establish the AIIB and Beijing was selected to host Bank headquarters. Mr. Jin Liqun
was appointed as the Secretary General of the Multilateral Interim Secretariat. By the deadline
of March 31st for submission of membership applications, the Prospective Founding
Members
had
increased
to
57.
The bank started operation after the agreement entered into force on 25 December 2015.
Major economies that did not become PFM (Prospective Founding Members) include the G7/G8
members' Japan and the United States
Share Holders
The capital of the bank is $100 billion, equivalent to 23 of the capital of the Asian
Development Bank and about half that of the World Bank.
Asian countries will contribute up to 75 per cent of the total capital and be allocated a share of
the quota based on their economic size.
BRICS members China, India and Russia are the three largest shareholders, with a voting
share of 26.06 per cent, 7.5 per cent and 5.92 per cent, respectively.
Current News about AIIB

- AIIB 1st Annual Meeting to be held in Beijing on June 25-26, 2016.

- Asian Infrastructure Investment Bank and European Investment Bank agree to
strengthen cooperation
-The Asian Infrastructure Investment Banks Board of Directors approved its first 4 loans
totaling $509 million to finance 4 projects. Three of the 4 projects are co-financing operations
with multilateral development bank (MDB) partners. The approved loans are:
$165 million loan for a Power Distribution System Upgrade and Expansion Project in
Bangladesh;
$216.5 million loan for a National Slum Upgrading Project in Indonesia, expected to be cofinanced with the World Bank;
$100 million loan to finance the Shorkot-Khanewal Section of National Motorway M-4 in
Pakistan, co-financed with the Asian Development Bank (ADB) and the United Kingdoms
Department for International Development (DFID); and
$ 27.5 million loan for the Dushanbe-Uzbekistan Border Road Improvement Project in
Tajikistan, co-financed with the European Bank for Reconstruction and Development (EBRD).
- Former IAS officer DJ Pandian has been appointed as vice president and CIO of AIIB
- Indias Dinesh Sharma has been elected to the board of directors of the Asian Infrastructure
Investment Bank (AIIB). He has been elected to the 12-member board through a secret ballot.
This is the first board of directors of AIIB.