Politics, not economics, becoming more important for BRICS
Ahead of the group's annual summit, while the bloc has helped to achieve lower global income inequality, there is growing scepticism of its relevance as an economic club.
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PRESIDENTS and prime ministers from the BRICS (Brazil, Russia, India, China, and South Africa) meet from Wednesday to Thursday in Brasilia for the group's annual summit. The bloc was originally formed for its economic potential, yet it has also seen political cooperation rise to the fore in recent years.
This growing political bent is exemplified by several key initiatives. Firstly, the creation of the New Development Bank, an alternative fora to the World Bank and International Monetary Fund, which will finance infrastructure and other projects in the BRICS states, and a related US$100 billion special currency reserve fund.
One driver for the new bank is the perception that it will allow BRICSs to better promote their interests abroad, strengthening positions and opinions which are sometimes ignored by Western colleagues.
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