Molly Elgin-Cossart – Center for American Progress, 7/14/2014
While the drama and sportsmanship of the World Cup has captured the world’s attention for several weeks, an international gathering of a different kind is set to begin in Fortaleza, Brazil, on July 15. After attending the final soccer match at the invitation of Brazilian President Dilma Rousseff, the leaders of Brazil, Russia, India, China, and South Africa, or the BRICS countries, will meet for their sixth summit.
The summit is likely to be more show than substance—but never underestimate the power of a good show. For a group that began as a mere Goldman Sachs acronym, the BRICS has slowly asserted itself as an economic entity. During this week’s summit, the group is likely to announce its own BRICS development bank with starting capital of at least $50 billion, and it is also cautiously wading into political territory.
What is the BRICS?
The BRICS began as BRICs—or Brazil, Russia, India, and China—an acronym coined by Goldman Sachs economist Jim O’Neill as shorthand for the developing economies with high projected growth. The countries took this constructed association seriously and began meeting formally in 2006. South Africa joined the club in 2010.