The BRIC term was coined by Goldman Sachs economist Jim O'Neill in 2001 to describe the growing power of emerging market economies - Brazil, Russia, India and China.
The BRIC nations account for 15 percent of the $60.7 trillion global economy but Goldman Sachs predicts that in 20 years time, the four countries could together dwarf the G7 and China's economy will overtake the United States in total size.
These countries had met formally in the first BRIC summit as an attempt to give the grouping a bigger voice in the world. The Russian President Medvedev announced that "The BRIC summit must create the conditions for a fairer world order". Comments by Russian President Dmitry Medvedev on Tuesday suggesting a need for a global reserve currency other than the greenback highlighted the challenges facing the dollar -- and sent it sliding across the board. Just a few months ago, China had suggested how the dollar could be replaced as the world's main reserve currency. Nouriel Roubin said the main fear haunting investors is that the United States could allow inflation to return or the dollar to devalue as a way out of its debt problems.
However the summit had ended meekly without any major announcements on the strategy regarding dollar. The lack of mention of the dollar in the final statement appeared to underline again the differing positions among the BRIC nations about how to reform the world currency system. Russia has tended to be much more outspoken against U.S. dominance of the financial system than other BRIC nations, which favor a more cautious and diplomatic approach.
Dollar seems to be going to have a longer run as the world's reserve currency.
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