BRICS needs to focus on infrastructure and ease of doing business
BRICS economies should work towards seizing the opportunities that might emerge amid the crisis by planning for and working towards a bright post-pandemic future according to a study by member central banks published by the Reserve Bank of India.
Key points of the study:
- There has been a difference in the pace of development among the BRICS countries.
- China has made a speedy recovery due to its ability to control epidemic infections. While India and Brazil are picking up the pace of economic growth.
- Russia and South Africa are yet to achieve their pre-pandemic levels of economic activity.
- The BRICS economies had displayed a strong position of their foreign exchange reserves during the pandemic, especially in the second half of 2020.
- The balance of payments position of BRICS countries appears to be flexible depending on the strength of currencies, trend of external debt commitments and position of reserves.
- The study has highlighted the uncertainty arising out of COVID-19, impact of global financial conditions and continuing economic and structural changes arising out of the crisis as factors of concern in BRICS countries.
- The study highlighted the uncertainty arising out of COVID-19, the impact of global financial conditions and the continuing economic and structural changes arising out of the crisis as “factors of concern in BRICS countries”.
- Focus on infrastructure development, ease of doing business, skill development and job creation and increasing the speed and efficacy of vaccination
About BRICS countries:
BRICS is an informal grouping of countries. This includes Brazil, Russia, India, China and South Africa.
BRICS countries include:
- 41 percent of the world’s population.
- 24 percent of the world’s GDP.
- More than 16% share in world trade.
BRICS countries discussed important issues under three pillars –
- Politics and security,
- Economic and financial
- Cultural and people-to-people exchange.
Two important institutes of BRICS:
- New Development Bank – for implementing infrastructure and renewable energy projects in BRICS countries
- The BRICS Contingent Reserve Arrangement(CRA) – A financial stability mechanism for countries affected by a crisis in their balance of payments.
Source – The Hindu
