Last week political leaders from Africa, Asia, Europe, and Latin America gathered in Brazil for an important global event that was not the World Cup. It was a meeting between the heads of state from Brazil, Russia, India, China, and South Africa, collectively referred to as the BRICS. These countries were not thrown together randomly for the sake of creating an acronym that sounds intimidating, they have been placed in a group because they are considered the emerging markets, this means that they are transitioning from being part of the poor world to increasing their level of economic development. The BRICS have seen their role in the global economy grow for a variety of reasons: Brazil and South Africa as regional leaders, Russia as a resource center for Europe, India for its growing role in communications and as the future home of the largest population on Earth, and lastly China as the manufacturing center of the world.
The BRICS Summit achieved a major agreement between the five countries, the establishment of the New Development Bank that will be headquartered in Shanghai. The main objective of the bank will be to provide an alternative to the World Bank and International Monetary Fund for countries looking to borrow money and invest in development and infrastructure. The BRICS see the new bank as vital to economic growth for the poor world as it would shift power away from the US and Western Europe who have dominated the global flow of money for centuries.
One of the key elements required for success on the AP® Human Geography Exam is being able to identify the differences that exist between the less developed world and the rich world. One of the common themes for this course is that as living standards improve in parts of the poor world and globalization emphasizes their role in the world economy, the power and influence of the less developed regions increase. As a human geography student it is critical to analyze the economic and political factors that make the BRICS desire to reach equal footing as the traditional powers. Brazil, Russia, India, China, and South Africa see the establishment of the New Development Bank as an immediate and critical step towards leveling the playing field with the rich world.