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Background
BRICS countries represent 43 percent of world’s population, 18
percent of global trade, attract 53 percent of the foreign capital,
accounts for about 25 percent of global gross domestic product on
purchasing power parity basis and are currently generating about 45
percent growth of the world economy.
Between 2001 and 2010 intra-BRICS trade increased 15 times. It is
increasing at an average rate of 28 percent annually and currently
account for US$ 230bn. Bilateral investment flows among BRICS
countries are also increasing. Some of them (individually and as
part of regional blocs) are engaged in preferential trade agreements
with others in the group. Consumer expenditure as a percentage of
gross domestic product ranges from 35 to 61 percent and there is a
strong and growing middle class with rising annual income. These
factors are expected to contribute significantly to their future
growth and their position in global economic governance.
The genesis of BRICS-TERN stems from the Sanya Summit of BRICS
leaders, held in April 2011, which calls for greater cooperation
among the BRICS economies, forming the necessary base for a strong
economic growth and development. The Sanya Declaration laid out
current and future action areas, which emphasises on the need to
hold BRICS think-tank symposia, and consider establishing a network
of research centres of BRICS countries.
BRICS-TERN is envisaged to play a vital role to complement and
assist the relevant initiatives of governments of BRICS countries
who are coming together and devising coordination mechanisms to
align their positions and responses at global fora. It will seek to
enhance public participation in economic policy-making and on
matters of economic governance through network-based policy research
and advocacy on trade and regulatory issues including competition
and investment policies, and economic diplomacy.
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