The BRICS (Brazil, Russia, India, China and South Africa) Summit is set for this upcoming weekend on June 20-21 2015 and it marks a gigantic leap forward to demonstrate the power of the emerging markets when they come together. In July 2014 at the BRICS summit in Fortaleza, Brazil, an agreement was made to create the Contingency Reserve Arrangement (CRA) amounting to USD $ 100 billion. This year the agreement is being firmed up in Bodrum, Turkey where officials from 5 BRIC countries are gathering. Russia's Vladimir Putin, China's XI Jinping, Jacob Zuma from South Africa Brazilian President Dilma Rousseff and India's PM Narendra Modi. The summit in Turkey comes ahead of the 7th Leaders Summit in Ufa, Russia on July 8th – 9th 2015.
China's contribution to the capital stock for this is USD $41 bn, India, Brazil, and Russia each have USD $18 bn and South Africa has USD $5 bn. This reserve fund has been thought of as an alternate to the International Monetary Fund (IMF) and will fulfill emergency lending on a short term basis to member countries to meet their liquidity issues. Membership will be open to all members of the United Nations subject to approval by the Board of Governors.
The BRICS countries also are preparing to launch a USD $100 bn BRICS Bank. China's Vice Finance Minister Shi Yaobin said last week, "The establishment of the BRICS Bank is a landmark event in financial cooperation which will promote the BRICS countries and other emerging markets, and infrastructure construction and sustainable development in developing countries."
He went on to add "The promotion of reform in global economic governance has important and far-reaching significance."
Even as the BRICS prepare for this important summit and on the eve of the launch of the BRICS Bank, and the Asia Infrastructure Investment Bank and the CRA, the IMF has once again delayed its voting reforms to give a greater say to the emerging countries.
A BRICS spokesman said last year in July at the Fortaleza Declaration "We remain disappointed and seriously concerned with the current non-implementation of the 2010 IMF reforms, which negatively impacts on the IMF's legitimacy, credibility and effectiveness."