Tax Policy Challenges in the 21st Century

S. 554I. Introduction

In 2001, Goldman Sachs’ then Head of Global Economic Research Jim O’Neill published a paper called Building Better Global Economic BRICs, coining what would become the now famous “BRICS” for the first time. In that paper, he predicts the rising share of Brazil, India, China and Russia in the world’s Gross Domestic Product (GDP) and that each country would grow by more than the G7. O’Neill also stresses the “need for general international economic and political co-operation on a truly global basis” and that “representation at global economic policy meetings might need to be significantly changed” to include these four emerging markets.

At first, the BRICs were a purely economic grouping due to their fast development. However, in September 2006, during the 61^st United Nations General Assembly in New York, their four Foreign Ministers initiated political dialogue. At Russia’s instigation, the four leaders agreed to hold a full-scale BRIC summit.

The First BRIC Summit took place in Yekaterinburg, Russia, in June 2009 and all four heads of government attended. The Brazilian President hosted the Second BRIC Summit in April 2010.

In April 2011, South Africa attended the Third ...