South African consumers will benefit from the country's BRICS membership (XINHUA)

BRICS-led bank

Over the past decade, BRICS has developed from a concept proposed by Goldman Sachs chief economist Jim O'Neill into a powerful group. In 2010, China surpassed Japan to become the world's second largest economy. Brazil was the world's sixth largest economy in 2011, and India and Russia are also in the world's top 10 economies. Due to the rapid development of BRICS countries, the global balance of power is undergoing changes that favor developing countries.

BRICS countries have become an important force in the global economy, easing the international economic crisis, driving regional and global economic growth, improving global governance and promoting the democratization of international relations.

With the addition of South Africa, the bloc now contains close to 42 percent of the world's population, more than a quarter of the globe's land area and about 20 percent of the world's total GDP. BRICS already account for more than half of global growth. According to the IMF, BRICS will account for 61 percent of global growth in 2014.

Based on the experience of regional financial institutions, such as the Bank of the South in Latin America, experts believe that it is necessary for BRICS members to set up a similar bank to support their common development that caters to their unique conditions.

The Bank of the South is a monetary fund and lending organization established in 2007 by Argentina, Brazil, Paraguay, Uruguay, Ecuador, Bolivia and Venezuela. It was founded with the intention of funding the construction of social programs and infrastructure. It allows the region to have its own entirely autonomous financial institution.

Growing confidence

The idea of setting up a joint bank is a sign of the growing self-assertiveness and interdependence of emerging economies, said Xiao Yuhua, Assistant Researcher at the Institute for African Studies of Zhejiang Normal University in China.

The BRICS nations need to make several key decisions, for example, how the bank will be structured and capitalized. But Jerry Matjila, Director General of the Department of International Relations and Cooperation of South Africa, said prior to the Durban summit that there was strong will among the group members to establish the bank. CA

BRICS

BRICS is an acronym for a group of the world's leading emerging economies: Brazil, Russia, India, China and South Africa. The First BRIC Summit took place in Yekateringburg, Russia, where the leaders of the four original member countries formally declared the foundation of the BRIC economic bloc. South Africa joined the bloc in 2011, leading the group to change its name to BRICS.

After South Africa joined the group, the economic volume of BRICS grew to $11.7 trillion. Trade among BRICS countries has grown in the past decade. Statistics show that from 2001 to 2010, inter-BRICS trade soared, with an average annual growth of 28 percent. Even before South Africa joined BRICS, total trade among the five countries stood at $230 billion in 2010.

The BRICS mechanism aims to achieve peace, security, development and cooperation. It also seeks to contribute significantly to the development of humanity, and to establish a more equitable and fair world.