Importance Of BRICS

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ANSWER 2 According to me, the most important section of my report is the study of the best practices implemented by each BRICS nations which have led to remarkable achievements of the socio-economic fronts. Such practices and institutions have relevance within the BRICS bloc for enhancing cooperation and creating synergies, so that the BRICS collectively could grow faster. This forms an important part of the report as it draws lessons for social upliftment, poverty reduction, financial sector stability and faster economic growth for the rest of the world. BRICS nations are a group of developing countries whose growth and development strategies and models could be replicated or drawn lessons from by other developing countries all over the…show more content…
Inclusive Growth : MGNREGA MGNREGA is a large scale employment guarantee scheme that has assured employment and enhanced wage earning in rural areas leading to better standard of living. Furthermore, a number of states have reported a rise in minimum wages and there has also been in a fall in labour migration during lean periods. 4. Capital Account Liberalisation While there is full convertibility on the current account, the capital account is being opened in phases, in line with development requirements and financial sector developments. This helped India avoid the fallout of Asian Crisis in late 1990s and also enabled it to be less affected by the global crisis of 2008-09. A major advantage of the approach is that the approach is that the flow of ‘hot money’ opportunely seeking interest arbitrage has been limited as foreign financial institutions are not allowed unrestricted access to fixed interest rupee debt market. 5. External Debt Management External Commercial Borrowing(ECB) Policy plays a key role in external debt management. It has helped prevent the build up of external debt to unsustainable levels and ensured that foreign debt flows were directed to priority…show more content…
Key measures include “Village Based Poverty Reduction Project”, “Agricultural Industrialisation”, “Labour Transferring Training” and “Voluntary Resettlement”. Poplulation of poor in China has declined from 250million in 1978 to 26.88 million in 2010 and poverty incidence going down from 30.7% to 2.8% during the same period Major showcase areas for South Africa include : 1. Sound Macro economic management The countercyclical fiscal stance adopted during the economic boom in 2006 created space for the government to sustain spending during the recession by increasing borrowing. South Africa’s strong fiscal position meant the country could finance the R60 billion shortfall in tax revenue through additional borrowing in order to sustain existent spending on social grants, infrastructure investment, education and health 2. Development of Local Bond Market South Africa has one of the most liquid local currency bond markets in the world with about 90% of government debt denominations in rand. As a risk benchmark, foreign currency denominated debt is limited to a maximum of 20% of total debt. This has helped reduce the vulnerability of fiscal policy to fluctuations in exchange

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