As of 2017, the five BRICS countries represent almost 3 billion people, or approximately 40% of the world population. They have a combined nominal GDP of US$16.039trillion, equivalent to approximately 20% of the gross world product, and an estimated US$4 trillion in combined foreign reserves. It is estimated that the combined GDP (PPP) of BRICS would reach US$50 trillion mark by 2020.
The grouping is an independent international organisation encouraging commercial, political and cultural cooperation between the BRICS nations, and among the developing world. The recent agreement on creating the US$100billion BRICS Development Bank, and a reserve currency pool worth over another US$100billion, is believed to be an important expansion of the grouping’s role in the world economic affairs.
The G7, on the other hand, is composed of the wealthiest developed countries. It was originally founded to facilitate shared macroeconomic initiatives by its members in response to the 1970s energy crisis and economic recession across the industrialised world. Its goal was fine tuning of short-term economic policies among participant countries to monitor developments in the world economy and assess economic policies. As of 2017, the G7 (without the European Union) represents above 64% of the global net wealth. Including the EU the G7 represents over 70% of the global net wealth.
In this report, you are required to conduct secondary research and develop an argument on the role of BRICS in the global economy, in comparison with the G7.