From UPSC perspective, the following things are important :
Prelims level : BRICS
Mains level : Significance of BRICS for India
What is the news: The 11th BRICS Summit took place from 13th 14th November 2019 in Brasilia, Brazil.
- The theme of the 2019 BRICS summit is “Economic Growth for an Innovative Future.”
- BRICS countries adopted the Brasilia Declaration.
- It advocates and supports multilateralism, the central role of the U.N. in international affairs and respect for international law.
- Reforming Multilateral Systems: There is an urgent need to strengthen and reform the United Nations and other multilateral organisations, including the World Trade Organisation (WTO) and the International Monetary Fund (IMF), to address the significant challenges being faced by the developing countries.
- Support to Multilateralism: The trade war between China and the U.S. and rising protectionism is hurting the global economy. Multilateralism is crucial for emerging countries to protect their own interests.
India’s Stand at the Summit
- Intra-BRICS trade accounts for just 15% of world trade, it needs to be increased. India invited business leaders of the member nations for investment, particularly in infrastructure development.
- India proposed to hold the first meeting of BRICS Water Ministers in India.
- India highlighted the menace of terrorism which has resulted in the loss of $1 trillion to the world economy.
Meetings on the sidelines of the Summit
India – Brazil
- India invited the President of Brazil as the Chief Guest at the Republic Day 2020.
- Brazil has decided to grant visa-free travel to Indian citizens.
India – China
- The Chinese President invited the Indian Prime Minister for the 3rd informal summit in China in 2020. The first informal summit took place at Wuhan (China-2018) and second at Mamallapuram (India-2019).
- Both the leaders reviewed preparations for celebrating the 70th anniversary of the establishment of diplomatic relations between the two countries in 2020.
India – Russia
- 1st Bilateral Regional Forum at the level of Russian Provinces and the Indian States will be held in 2020.
- India has been invited for investment in the Arctic region. The US $ 25 billion targets of bilateral trade by 2025 has already been achieved.
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
- The BRICS Leaders’ Summit is convened annually.
- It does not exist in the form of organization, but it is an annual summit between the supreme leaders of five nations.
- On November 30, 2001, Jim O’Neill, a British economist who was then chairman of Goldman Sachs Asset Management, coined the term ‘BRIC’ to describe the four emerging economies of Brazil, Russia, India, and China.
- He made a case for BRIC on the basis of econometric analyses projecting that the four economies would individually and collectively occupy far greater economic space and become among the world’s largest economies in the next 50 years or so.
- The grouping was formalized during the first meeting of BRIC Foreign Ministers on the margins of the UNGA in New York in September 2006.
- The first BRIC Summit took place in 2009 in the Russian Federation and focused on issues such as reform of the global financial architecture.
- South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS. South Africa subsequently attended the Third BRICS Summit in Sanya, China, in March 2011.
- The Chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
- BRICS now brings together five economies accounting for 42% of the world’s population, 23% of the global GDP and an around 17% share of world trade.
- The five BRICS countries are also members of G-20