The person who invented for the first time this acronym was Jim O'neil.The main goal of BRICS countries is to create a viable alternative to developed countries (G7).
Initially I was sceptical about the evolution of BRICS projects and how this countries are ables to play an important role of world economy.China is with no doubt the country who will drive BRICS.You can say why China? China because is the most important emergent economy,second largest in the world after US.Some economist forecasts that China will over take US,and began the largest economy in the world.
China's economic evolution was impressing in the last years,and now it's under stagnation with 7,5% GDP increase in second quarter of 2014.
Back to our today topic"How BRICS can threat West" with all know that CHINA want to make some changes in world financial markets.I wrote in one of my last article about how CHINA want to change the us dollar as world reserve currency,this is firs step.
And the second and most important the BRICS countries agree and create an alternative financial institution to World Bank and International Monetary Fund.In july at BRICS summit in Brazil the leaders of five emerging countries agree to create a new currency fund and development bank.The reserve fund will be 100 billion $ and bank 50 billion $.
In the couples of years among BRICS countries are born some frustration especial for CHINA who don't agree the presence of participation on World Bank and International Monetary Fund.
The economic growth of BRICS countries are projected to be 5,37 % this year.Brazil and Russia will grow 1,3 % and 0,5% this year.
The Brics fund will have an initial start up capital of 50 billion $ financed equal by the five countries and a capacity to lend 3,4 billion $ this year but is still far away by World Bank and International Monetary Fund which will lend 61 billion $ this year.
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