BRICS booms

In late March, the world's five major emerging economies met in New Delhi, India, to discuss regional and international economic and political agendas and promote partnerships for global stability, security and prosperity. The acronym BRICS collectively refers to Brazil, Russia, India, China, and most recently South Africa. This year's summit, the fourth of its kind, witnessed the passing of the Delhi Declaration and laid a solid foundation for future cooperation.

Credit agreements were among the most noticeable results of the summit. In the future, BRICS countries will use their own currencies in their bilateral trade, investment and financing activities, which will enable them to reduce dependence on the U.S. dollar, avoid risks in international currency ratings and cut trading costs. It also promotes the growth of trade and investment between member countries, and help push forward internationalization of currencies and deepen financial cooperation among BRICS countries.

In addition, BRICS leaders considered the possibility of setting up a new development bank to mobilize resources for infrastructure and sustainable development projects in emerging economies. This promises to be a major breakthrough in the global financial architecture, and will offer a chance to build a dynamic international financial banking structure for developing countries.

The BRICS also advocated reform of international financial organizations including the IMF and the World Bank, calling for more representation and discourse concerning the rights of emerging markets and developing economies.

The capability and potential for development and cooperation for BRICS are eye-catching. With 40 percent of the world's total population and a quarter of the land, BRICS is estimated to have a combined nominal GDP of $13.6 trillion in 2011, accounting for 20 percent of the world's total, more than 15 percent of its trade volume and around 75 percent of global foreign reserves. Moreover, the BRICS member states are in rather healthy financial shape, in contrast to Western countries, which are suffering from serious debts and budget deficiency problems.

Besides economic topics, leaders put forward new initiatives for global economic governance and sought a unified stance on issues such as the situation in Syria. These moves showcased BRICS' increasing coordination and cooperation in international affairs.

During the past decade, through contacts at various levels, BRICS members have built consensus in various fields such as politics, business and security. In the meantime, they have negotiated concrete measures to promote further cooperation and coordination. BRICS is playing a role in rebalancing global influence and exerting a positive effect on the world economy and politics. The recent summit again testified to the power and vitality of the organization.