Commentary: Pure gold BRICS fear no fire

Despite new challenges for the “gold brick countries,” or BRICS, their five economies have showed resilience thanks to their long-tested methods and huge potential.

Leaders of Brazil, Russia, India, China and South Africa discussed challenges and cooperation at the Oct. 15-16 BRICS summit in the Indian state of Goa, calling for enhanced confidence as a “complicated, severe external environment” poses challenges to the emerging-market bloc.Originating at the height of the global financial crisis, in its first few years BRICS was the envy of the world due to the impressive growth of it members.BRICS countries have contributed more than half of global growth in the last 10 years.

However, a sluggish world recovery and dropping commodity prices have brought a lingering slowdown that has begun to haunt BRICS’ economies, overshadowing their effectiveness.As the Chinese saying goes, pure gold fears no fire. It is inevitable, and sometimes necessary, for gold to be tempered with fire to prove its quality and add to its glitter.

Despite new challenges, BRICS members have abundant natural and human resources, vast markets, huge growth potential and bright prospects in trade and investment.Most importantly, the bloc is highlighting structural reforms in addition to fiscal and monetary policy to renew prosperity, according to a statement released during the summit.

The latest International Monetary Fund world economic outlook report lifted expectations for economic growth in emerging and developing countries, while IMF Managing Director Christine Lagarde pointed out that they would contribute to over 75 percent of global GDP growth both this year and next.

In ten years, BRICS has developed a major international influence and has pushed forward global economic governance reforms and contributed to international financial stability.The bloc has helped developing countries’ voices be heard on the global stage and drawn attention and support for vulnerable groups that are easily affected by climate change and economic crises.

Development was on the agenda of the G20 summit for the first time in history thanks to BRICS’ efforts.After 10 years of development, BRICS has entered a new phase and faces both challenges and opportunities. The member countries must now advance structural reforms, innovate for growth and build open economies.

As long as BRICS holds firm and strengthens coordination, the five countries will calmly sail through choppy waters. Enditem