Brazil, Russia, India, China & South Africa are also known as BRICS Nations. BRICS are the emerging nations .These nations are developing very aggressively to become the developed economy. Emerging nations are those developing nations which are going to become the new destination for business houses and emerged as the industrial nations. Together the BRICS account for 25 percent of global GDP and 40 percent of the world’s population. Combined Foreign Reserve of these countries is $ 4.4t.
Now BRICS plan to establish a development bank to fund infrastructure .It will help them to balance the influence of the World Bank and IMF. They also plan a joint foreign exchange reserve.
As, BRICS Nations are emerging markets of the world .Their GDP growth rate is also higher than developed countries. Because of a higher growth rate they require larger fund but they do not get a good response from the World Bank & IMF. This Fund requirement need forced these economies to discuss about the Development Bank & a joint foreign exchange reserve.