Abstract
LL.M. (International Commercial Law)
The Original BRIC Organization comprising Brazil, Russia, India and China, was first conceived in 2001 as part of an economic modeling exercise to forecast global economic trends. Fast forward almost a decade into its existence and BRIC was up for a change. The BRIC foreign Ministers at a meeting held in New York in 2010, came to an agreement to invite South Africa to join the Organization. On the 14 April 2011, South Africa attended the first joint summit, evolving the former BRIC to what is known today as BRICS, the “S” referring to South Africa. This move is seen as a significant step, as its members‟ now come from four different continents and is sure to turn heads in the “old North”, what used to be the traditional Western dominance over the global economy. BRICS comprises some of the world‟s fastest growing and biggest economies, as illustrated by the statistics that emanated from the most recent summit held in Durban in March 2013. Senior Goldman Sachs economist Jim O‟ Neil, the person responsible for coining the „BRIC‟ acronym, predicted in 2001 that the combined economies of Brazil, Russia and China would overtake the United States and the G-7 countries. Since that bold statement in 2001, the words uttered by O‟Neil have become more than just a prediction. As Bidwai points out, BRICS account for over 40% of the world‟s population, 18% of its market- exchange GDP, 15% of world trade and two-fifths of its foreign currency reserves. It goes without saying that the BRICS group has many advantages and strengths that would stand it in good stead going forward. As previously stated, its members are among the fastest growing in the world, economically speaking, and were also least affected by the financial crisis that rocked many of the world‟s powerhouses. There has even been talk of a BRICS Development Bank, which was first tabled in 2012 at the Delhi summit. Although discussions are in its infancy, a proposed $100-billion currency-stabilization contingency reserve arrangement is to be negotiated...