Abstract
In 2001, when the term BRIC (Brazil, Russia, India, and China) was coined by Jim O'Neill, I came across a paper in a German journal. The title of the paper was “BRIC as a group of unequals.” Since then, there has been consistent growth and development in the BRICS group, and it has emerged as a force to reckon with. In December 2010, after South Africa joined the group, it became BRICS.
The role and contribution of the BRICS is significant to the world economy in terms of population (40%), GDP (25% nominal and US$ 16.039 trillion), land coverage (30%), world trade (18%), and global forex (US$ 4 trillion). Since 2001 and till the end of 2010, the BRICS as a group worked on sectoral cooperation in many areas, namely—science and technology, trade promotion and facilitation, energy, health, education, innovation, and fight against transnational crime. Presently, sectoral cooperation accounts for more than 30 subject areas. These areas have brought in specific benefits to the population of the group of countries.
In 2014, the 11th summit took place in Brazil and institutions of strategic and paramount significance were created such as New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). These have far reaching effects and implications for the global world in general and BRICS economies in particular. Both the initiatives are contributing significantly in the process of accelerating economic growth resulting in socioeconomic progress in the member countries.
During the last five years, NDB has approved 70 infrastructure and sustainable development projects amounting to US$ 25.07 billion that also comprises loans given under NDB Emergency Assistance Facility among the member countries. Significantly, India has 18 projects amounting to US$ 6.9 billion.
On December 20, 2020, the 12th Summit was held in Russia, wherein new dimensions were added namely—world stability, shared security, and innovative growth. These are the sine-quo-non for creating better, effective, and efficient global economic order (GEO) which is the need of the hour.
COVID-19 and BRICS
World has been facing the worst crisis from COVID-19, considerably affecting the global economic and social indicators. It is argued that BRICS group could serve as an effective institution of global governance, and the same will also bridge the existing gap among BRICS nations in terms of global governance which is much needed.
Silver Lining
Amid the continuing crisis caused by COVID-19 pandemic, BRICS seems to fare as a better, effective, and efficient institution in comparison to other global governance institutions. Not all countries within the group are at the same level of economic development, however, it is noteworthy that all countries are working towards a shared vision to intensify cooperation in health care and social welfare sectors.
Since the creation of the BRIC and then BRICS, the significance, role and contribution has been gradually and steadily increasing. The Global Journal of Emerging Market Economies (GJEME) published by SAGE publication came forward with a special issue on BRICS, inviting papers from established authors around the globe. Seven papers have been selected from the total submissions that touch upon various issues relating to the BRICS economies.
First paper captioned “Do trade and poverty cause each other?” authored by Rahman et al., touches upon one of the critical issues of trade and poverty. The paper underlines the cause-and-effect relationship between trade and poverty in BRICS countries. The paper finds no causal relationship between trade and poverty in BRICS countries. The study is an important contribution for BRICS countries with respect to trade and poverty. Second paper, “Impacts of COVID-19 regime on food systems: Whither BRICS now and beyond?” authored by Amusan and Okorie, examined the impact of the pandemic on the food systems of BRICS. The authors are of the view that an alliance may positively influence the repositioning of each member country’s foodscape to achieve food security both now and beyond this pandemic. Third paper contributed by Chattopadhyay et al., “Trends and Determinants of FDI with Implications for Covid-19 in BRICS,” analyzes the growth and determinants of FDI inflows and impact of COVID-19 on trade openness in BRICS countries during the period 1990–2020. The findings show significantly positive growth in FDI inflows in all BRICS countries except India during the first decade of the present century. From COVID-19 analysis, it is seen that the pandemic has a significant negative impact on the efforts to attract FDI in Russia and a positive effect on Brazil, while it remains insensitive for other countries. Fourth paper, by Madinga et al., examines the relationship between financial literacy, financial socialization, and financial satisfaction with financial risk attitude as a mediator. The writers are of the view that individuals with higher inclination to take risks are certainly more likely to be satisfied with their finances. The fifth paper captioned “The impact of Foreign Direct Investment and Biomass Energy Consumption on Pollution in BRICS Countries: A Panel Data Analysis” is contributed by Özge and Tüzemen. The authors have analyzed the relationship between foreign direct investment and carbon emissions in the BRICS from 1992 to 2017. The authors found an N-shaped association between foreign direct investment and CO2 emissions in BRICS countries. The findings of the study suggest that BRICS countries must provide more incentives to renewable energy sources and accelerate the development of green energy system to attract clean resources and prevent environmental degradation. Sixth paper on “Chinese Government Bond Market” by Kerry Liu identifies some critical issues having a huge bearing on the bond market. While the Chinese government bond markets were generally not efficient in 2015, the efficiency seems to have improved significantly in 2019. Paper further discusses the implications for investors, policy makers, and academics. Lastly the seventh paper is contributed by Hsu et al., “The impacts of population aging on the economy of China.” The paper develops an over-lapping generation (OLG) model to investigate the impacts of this demographic transition on the Chinese economy. It shows that population aging in China inevitably has led to an eventual decline in its GDP growth.
This special issue provides valuable insights into the various critical issues of BRICS countries. I am thankful to the members of editorial team and the reviewers for their untiring efforts in bringing out this issue. I am sure the readers will enjoy reading all seven papers. I also firmly believe that the special issue will provide the base for further research in the coming times.