BRICS Summits
Building BRICS for the future
Note4Students
From UPSC perspective, the following things are important :
Prelims level: 15th BRICS summit and key outcomes
Mains level: BRICS: Potential, Expansion and its Significance
What’s the news?
- The recent BRICS summit held in South Africa introduced six new members to the grouping, drawing mixed reactions regarding its productivity.
“If things go right, in less than 40 years, the BRICS economies together could be larger than the G6 in U.S. dollar terms.” Goldman Sachs in 2003”
Central idea
- The recent BRICS summit held in South Africa may not have yielded immediate tangible results, but it’s essential to view BRICS through its evolving dynamics rather than a single meeting’s outcomes.
Background: Economic Compulsion
- BRICS, consisting of Brazil, Russia, India, China, and South Africa, emerged primarily out of economic compulsion.
- Unlike military alliances or security coalitions, BRICS focuses on economic cooperation and mutual benefit.
- With a combined GDP representing 36% of the global GDP and a population projected to reach 47% of the world’s total by 2050, BRICS possesses immense long-term potential.
- Furthermore, expanding its membership could challenge the dominance of the G7 countries.
The significance of BRICS as an economic powerhouse
- Economic Size: The BRICS, composed of Brazil, Russia, India, China, and South Africa, collectively represent 36% of the global GDP. This substantial economic size gives the group considerable influence in global economic matters.
- Population: BRICS countries house nearly half of the world’s population, and this demographic advantage provides a significant consumer market and labor force, contributing to their economic significance.
- Rapid Growth: Two BRICS members, China and India, are among the fastest-growing economies globally. They are expected to rank among the world’s top three economies by 2030, further enhancing the economic clout of the BRICS.
- Investment Opportunities: BRICS nations are seen as attractive investment destinations, with governments encouraging both domestic and foreign investments. The growth prospects in these countries make them appealing to investors.
- Infrastructure Development: BRICS countries are investing heavily in infrastructure development, including transportation, energy, and technology projects. These investments create opportunities for businesses and stimulate economic growth.
- Collective Economic Initiatives: BRICS nations have established institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), aimed at enhancing financial cooperation and stability within the group.
China and India’s Role
- Two BRICS members, China and India, collectively account for one-third of the world’s population. Both nations are rapidly growing economies, poised to become top-three global economies by 2030.
- Despite occasional political tensions, their economic cooperation continues to flourish. Trade between India and China is evidence that economic interests often outweigh political differences, emphasizing the pivotal role of economics in international relations.
BRICS as an alternative to an increasingly polarized world
- Global polarization:
- Global polarization has led to concerns about the U.S.’s aggressive stance toward China. Many countries seek alternatives, including China.
- Within the BRICS, China is a member but not the dominant player, providing a counterbalance with democratic countries like India, South Africa, and Brazil.
- In an increasingly interconnected world, countries are looking for alternatives to mitigate their dependence on a single superpower.
- Dollar Dominance and Digital Currencies:
- The U.S. dollar has long been the dominant global currency, but the rise of digital platforms presents a shift toward digital currencies. India and China are leading in this transition, advocating for increased trade and investment in their own currencies.
- Through BRICS, they can collectively promote their currencies as alternatives to the dollar, further converging their interests.
- Diversified opportunities:
- The search for alternatives extends beyond BRICS to movements like the Non-Aligned Movement, which offers a new approach to global challenges.
- As BRICS expands, it will create numerous trade, business, and investment protocols, akin to other free trade arrangements and economic blocs, providing diversified opportunities for member nations.
Africa: The Continent of the Future
- Africa is poised for significant economic growth in the 21st century.
- The negative image of Europe, marked by interventions and migrant treatment, has driven Africans to explore China’s development more closely.
- African countries aspire to have the freedom to choose their investment and trade partners, and BRICS, especially India, seeks to strengthen its ties with the African Union, recognizing the continent’s potential.
Conclusion
- BRICS may not always make headlines, but each summit contributes to building a foundation for future networks and collaborations. As Goldman Sachs foresaw in 2003, “If things go right, in less than 40 years, the BRICS economies together could be larger than the G6 in U.S. dollar terms.” The future of BRICS lies in its ability to harness its economic might for the benefit of its members and the world.
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BRICS Summits
BRICS is growing – and that doesn’t hurt India’s interests
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS group
Mains level: BRICS Expansion, Significance and challenges and India's approach
What’s the news?
- The 15th BRICS summit held in Johannesburg recently made headlines with its announcement to expand its membership.
Central idea
- Originally comprised of Brazil, Russia, India, China, and South Africa, BRICS has now doubled its membership by welcoming Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. While some anticipated that this expansion would transform BRICS into an anti-Western platform, the reality appears to be different.
BRICS expansion and political compromises
- Expansion Initiated by China: China took the lead in pushing for the expansion of BRICS, which was originally composed of Brazil, Russia, India, China, and South Africa. This initiative was supported by Russia.
- Initial Reservations from India and Brazil: At the outset, India and Brazil expressed reservations about expanding BRICS. Their concerns revolved around the potential for BRICS to become an overtly anti-Western platform.
- Concerns About China’s Dominance: India, in particular, was cautious about further empowering China within the group. It was wary of an expanded membership that might add more clout to an already dominant China.
- Selection Reflects Political Compromises: The choice of new members, which includes Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, appears to be driven more by political compromise than by the application of specific, agreed-upon criteria.
- New Members’ Relationship with the West: Notably, the new members, with the exception of Iran, have significant stakes in their relationships with Western countries. This indicates that BRICS’ expansion may not have transformed it into an explicitly anti-Western alliance.
- Balancing Act: The expansion of BRICS seems to be a balancing act, seeking to accommodate the interests and concerns of both original and new members. It aims to maintain the group’s unity and relevance on the global stage.
Why are countries from the Global South interested in joining the BRICS?
- Hedging Against Uncertainty: Global South countries are joining BRICS as a means of hedging against an increasingly uncertain world marked by shifting political and security dynamics. They seek to strengthen their position in the face of unpredictable global events and challenges.
- Vulnerability to Sanctions: Many of these countries are concerned about their vulnerability to sanctions, particularly from the United States. For example, U.S. sanctions froze a significant part of Russia’s foreign exchange reserves, which raised anxieties among Global South countries about their own vulnerability to such measures.
- Expectation of an Alternative Global Currency: Some Global South countries may have expectations that BRICS, with China as a prominent member, could lead a shift toward an alternative global currency.
- Promotion of Local Currencies: BRICS has been actively promoting the use of local currencies for trade settlement and the raising of funds through local currency bonds. These efforts are seen as modest yet useful steps in reducing dependency on the U.S. dollar.
- Development Finance: BRICS has established the BRICS New Development Bank (NDB), which has provided development finance for developing countries. Global South countries may see this as an opportunity to access financing for their development projects.
- Demand for Greater Global Governance Voice: There is growing frustration among Global South countries that their interests and aspirations continue to be ignored by dominant Western powers in international institutions like the UN, IMF, and World Bank.
BRICS’ role in a changing world
- Economic and Technological Advancements: BRICS, comprising major emerging economies like Brazil, Russia, India, China, and South Africa, has witnessed significant economic growth, technological advancement, and military capabilities. This positions BRICS as substantial global players.
- Not a Gathering of the Weak: Unlike earlier groupings of weaker nations, BRICS represents countries with substantial global influence and capabilities.
- Energy Superpower: BRICS, with members like Saudi Arabia, Iran, and Russia, has the potential to become a significant energy superpower, dominating the global energy market.
- Diverse Ideologies: Unlike the G7, BRICS lacks a common ideological affinity, with member countries having diverse political systems, economic models, and foreign policy priorities.
- Shorter History: BRICS is a relatively young group compared to the G7, which means it is still evolving in terms of its objectives, mechanisms, and institutional frameworks.
Challenges and differences within the BRICS grouping
- Diverse Interests and Priorities: BRICS is composed of countries with varying geopolitical priorities, economic structures, and foreign policy objectives. These differences can pose challenges when trying to reach consensus on collective goals and initiatives.
- Internal Contestations: The existence of internal contestations and differences among BRICS member countries is evident. For example, the India-China rivalry is an example of such internal dynamics. These differences can impact the group’s cohesion and decision-making.
- Lack of Common Security Perspective: Unlike the G7, which is a tightly knit security grouping, BRICS countries do not share a common security perspective. They have varying security interests and priorities, which can make it challenging to coordinate on security-related matters.
A Way Forward: Towards Collaborative Global Governance
- Acknowledging Current Challenges: To move forward, it’s essential to acknowledge the existing challenges in the international order. Recognize that the world is facing significant global issues, from climate change to economic disparities, that require collective action.
- Equal Participation: Encourage equal participation and representation of all countries, including emerging powers, in discussions and decision-making processes. Recognize that the global landscape has evolved and that the voices of emerging powers are essential in shaping the future.
- Engagement and Dialogue: Promote open and constructive engagement between Western countries, such as those in the G7, and emerging powers, including BRICS nations. Foster dialogue that seeks common ground while respecting diverse perspectives.
- Reform Existing Institutions: Consider reforms in existing international institutions like the United Nations, the IMF, and the World Bank to better reflect contemporary geopolitical realities. Ensure that these institutions are more inclusive and responsive to the needs and concerns of all nations.
- Utilize Forums like the G20: Leverage platforms like the G20, which bring together both advanced and emerging economies, to facilitate discussions and negotiations on global governance. Use these forums as spaces for collaborative problem-solving.
Conclusion
- For India, participating in multiple groupings, including BRICS, the Shanghai Cooperation Organization, the Quad, and regular engagement with the G7, offers a strategic approach to addressing its multifaceted interests and aspirations. As BRICS expands its influence, it is essential for India to continue pursuing this nuanced approach to global governance.
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BRICS Summits
The implications of the expansion of BRICS
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS
Mains level: BRICS Expansion and significance
What’s the news?
- The 15th BRICS summit held in Johannesburg recently made headlines with its announcement to expand its membership.
Central idea
- The 15th BRICS summit in Johannesburg made waves in international diplomacy when it announced the invitation of six new members: Iran, Saudi Arabia, the United Arab Emirates (UAE), Egypt, Ethiopia, and Argentina. This move signifies BRICS’ commitment to challenging the West-dominated world order and building a more representative international system.
Expanding BRICS: A New Global Landscape
- The expansion of BRICS to include Iran, Saudi Arabia, the United Arab Emirates (UAE), Egypt, Ethiopia, and Argentina
- It was reported that 40 countries have shown interest in BRICS’ membership, with 22 having submitted formal applications.
- BRICS has been a platform for emerging economies to voice their dissatisfaction with Western-dominated global institutions like the World Bank, IMF, and UN.
- At the Johannesburg summit, the UN Secretary General labeled these institutions of yesterday’s world, reflecting the need for change.
- With the inclusion of new members, BRICS now represents 46% of the world’s population and 37% of the global GDP in PPP terms, surpassing the G-7.
- This expansion also greatly impacts the energy sector, with the BRICS now accounting for 42% of global oil production.
Significance of BRICS Expansion
- Economic Clout: The BRICS’ share of global GDP in PPP terms rises from 31.5% to 37%, surpassing the G-7. This expansion creates a formidable economic bloc with the potential to shape global economic policies and trade dynamics.
- Demographic Powerhouse: The BRICS now represent 46% of the world’s population, giving them significant demographic weight. This diverse population can influence global consumer markets and labor forces.
- Energy Dominance: The inclusion of new members from energy-rich regions, especially West Asia, boosts BRICS’ role in global energy markets. It solidifies BRICS as a major player in shaping global energy policies.
- Geo-Strategic Influence: West Asian members already have strong ties with BRICS countries, contributing to the group’s geo-strategic significance. Egypt and Ethiopia hold key positions in the Horn of Africa and the Red Sea region, adding to BRICS’ strategic reach.
- Shared Political Views: BRICS members have historically shared political views on global issues. The new members’ alignment with these views strengthens BRICS’ collective stance on the United Nations, Middle East conflicts, and global terrorism.
- Multipolar Advocacy: BRICS challenges the Western-dominated international order. The expansion reaffirms BRICS’ commitment to advocating for a multipolar world order and reforming global institutions.
- Cooperative Opportunities: The inclusion of new members opens avenues for increased cooperation in areas such as trade, investment, infrastructure, and technology transfer. This expansion promotes South-South collaboration.
- Global Balance Shift: BRICS’ expansion further shifts the global balance of power away from Western-dominated institutions. It elevates the influence of emerging economies in shaping global policies.
BRICS’ Substantial Achievements
- Consistent Declarations: BRICS leaders have met for over 15 years, consistently overcoming internal divisions and competitions to issue consensual “Declarations” at each summit. These declarations have expanded in content, reflecting the group’s evolving priorities and interests.
- Focus on Specific Deliverables: The declarations have increasingly focused on specific deliverables, indicating BRICS’ commitment to achieving tangible outcomes. This shift from broad rhetoric to concrete action is a substantial achievement.
- Intra-BRICS Cooperation: The Johannesburg Declaration emphasizes the importance of intra-BRICS cooperation. Member countries are committed to encouraging the use of local currencies in internal trade and financial transactions, promoting economic integration within the group.
- Outreach to Developing Nations: BRICS recognizes its role in supporting other developing nations. The group aims to extend its cooperation beyond its borders, reaching out to other countries that share similar development challenges.
- Shared Political Views: BRICS members have a history of sharing common political views on various global issues. This shared perspective strengthens their collective voice on matters such as the centrality of the United Nations, conflicts in the Middle East, and global terrorism.
- Promoting Multipolarity: BRICS challenges the Western-dominated international order by advocating for a multipolar world. This advocacy represents a substantial achievement in pushing for reforms and greater representation for emerging economies in global institutions.
Criticisms directed at the BRICS
- Talk-Shop with No Vision: Some Western commentators have criticized BRICS as being a talk-shop with no clear shared vision or meaningful achievements. This criticism suggests that BRICS meetings and declarations may lack substance and practical outcomes.
- Lack of Shared Vision: Critics argue that BRICS members have not demonstrated a cohesive or unified vision for the group’s role in global affairs. This criticism implies that the members may have divergent interests that hinder effective cooperation.
- Limited Achievements: Some critics have suggested that BRICS has not achieved significant or tangible results in its over 15 years of existence. This criticism questions the group’s ability to translate its discussions into meaningful actions or outcomes.
- Emerging Global Binary Divide: While not explicitly mentioned in the article, there is an implied criticism that BRICS may contribute to an emerging global binary divide or a new cold war between Western and non-Western nations. This view suggests that BRICS could exacerbate global divisions rather than promote cooperation.
Outlook for Regional Affairs
- West Asia:
- The new BRICS members from West Asia, such as Saudi Arabia and the UAE, have pursued independent foreign policy paths since 2020.
- Saudi Arabia, for instance, has actively engaged in de-escalation efforts, including ending the Qatar blockade in January 2021, establishing relations with Turkey, and initiating interactions with Iran in April 2021.
- These diplomatic engagements culminated in a significant China-brokered accord with Iran in March of the following year.
- Maritime Expansion: The UAE has also normalized ties with Iran and is actively expanding its maritime presence across key strategic regions, including the Gulf, the Gulf of Aden, the Red Sea, and the Horn of Africa. This maritime expansion underscores the UAE’s growing influence in these areas.
Outlook for Global Affairs
- Rejecting the Binary Divide:
- In contrast to Western commentators who perceive an emerging global binary divide or a new cold war, India and other BRICS members reject this view.
- They insist on asserting their strategic autonomy within a multipolar world order, rejecting the idea of being drawn into simplistic global power struggles.
- Historical Significance:
- A recent media report described the Johannesburg summit as a turning point in modern history.
- This suggests that the expansion of BRICS, combined with its evolving role in global affairs, is seen as a pivotal and historic moment with profound implications for the contemporary international landscape.
Conclusion
- BRICS continues to assert its strategic autonomy and push for a multipolar world order, challenging Western-led international institutions. This expansion is a turning point in modern history, reflecting the evolving dynamics of global diplomacy.
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BRICS Summits
BRICS inducts 6 new members to become BRICS Plus
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS Plus
Mains level: Expansion of BRICS
Central Idea
- The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, has extended invitations to six additional countries, namely Iran, the United Arab Emirates, Saudi Arabia, Argentina, Egypt, and Ethiopia.
- This move aims to bolster the collective voice of the Global South and foster multipolarity in the international arena.
Why discuss this?
- As BRICS broadens its membership, it strengthens its claim to represent nearly half the world’s population and includes key oil-producing nations.
- However, concerns also arise regarding China’s increasing influence within the alliance.
BRICS Plus: Emerging Role
- Heft and Influence: The inclusion of new members enhances BRICS’s position as a spokesperson for the developing world. The alliance currently represents 40% of the global population and over a quarter of the world’s GDP. With the addition of new members, it will encompass almost half the world’s population and include major oil-producing nations.
- Global Solidarity: BRICS’s growth is driven by anti-US sentiment and a desire for multipolarity among countries in the Global South. It serves as a platform where nations can express solidarity and challenge Western-dominated narratives.
BRICS: Evolution and Geopolitical Context
- Emergence of BRICS: Established in 2009, BRICS initially comprised Brazil, Russia, India, and China, with South Africa joining in 2011. The alliance aimed to showcase the economic potential of these emerging markets.
- Challenges and Opportunities: While BRICS’s economic performance has varied, geopolitical shifts like the Ukraine conflict have propelled it into a bloc with the potential to challenge Western influence and provide an alternative viewpoint.
Dynamics of New BRICS Members
- Unanimous Decisions: BRICS decisions require unanimous agreement from all members. While Russia and China face geopolitical challenges with the West, Brazil, South Africa, and India maintain significant partnerships with the US and Europe.
- China’s Role: China is driving BRICS’s expansion, making membership expansion a core agenda item.
- Inclusion of Iran: China and Russia’s influence is evident in the inclusion of Iran, highlighting their collaboration. This move brings together regional rivals Saudi Arabia and Iran within the same alliance, reflecting China’s mediation efforts.
- Saudi Arabia’s Shift: Saudi Arabia’s inclusion marks its pursuit of a more independent foreign policy, diverging from its traditional US alliance.
- Global Significance for Iran and Russia: For Iran and Russia, BRICS membership signifies their global partnerships and challenges to Western dominance.
Implications for India
- Balancing Act: India’s participation in the G7 summit and Quad summit reflects its multifaceted foreign policy approach. While engaging with Western alliances, India also places importance on its “anti-Western” stance within BRICS.
- BRICS as a Non-Western Bloc: India views BRICS as a “non-Western” group and strives to maintain its independent voice within the alliance.
- Concerns for India: Amid expansion, there are concerns that BRICS could tilt more toward China, potentially side-lining India’s interests.
Conclusion
- BRICS’s expansion signifies a step toward global multipolarity, providing a platform for diverse countries to unite against Western-centric narratives.
- As the alliance grows, it gains greater representation and influence, strengthening the collective voice of the Global South.
- However, with China’s increased influence, there are also legitimate concerns about the balance of power within BRICS and its impact on individual member states.
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BRICS Summits
India backs BRICS expansion: PM
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS group
Mains level: Read the attached story
Central Idea
- India, a key member of the BRICS group (Brazil-Russia-India-China-South Africa), has affirmed its endorsement for the bloc’s expansion based on consensus.
BRICS Group |
|
| Full Form | Brazil, Russia, India, China, and South Africa |
| Formation | Originally “BRIC” in 2001, South Africa joined in 2010 to become BRICS |
| Economic Significance | Represents significant portion of global population, land area, and economic output |
| Objectives | Enhance cooperation, dialogue on political, economic, social issues |
| Principles | Mutual respect, equality, non-interference in internal affairs |
| Summits | Holds annual summits for leaders to discuss economic, trade, development issues |
| Cooperation Areas | Finance, trade, investment, technology, energy, agriculture, health, education |
| New Development Bank (NDB) | Established in 2014, finances infrastructure and sustainable projects |
| Contingent Reserve Arrangement (CRA) | Established in 2015, provides financial assistance during currency crises |
| Political Dialogue | Advocates for peace, security, stability, coordinates positions on global issues |
Embracing BRICS Expansion
- Indian Support: PM Modi reiterated India’s full support for the expansion of BRICS membership, emphasizing the need for consensus.
- Collaborative Approach: Modi highlighted the potential for increased collaboration between BRICS countries in fields like space, education, and technology, using India’s expertise as a basis.
- Shared Platforms: Modi offered to share India’s technological platforms with other BRICS members, fostering a cohesive and future-ready organization.
BRICS’ Evolution and Vision
- BRICS Progress: Modi recalled BRICS’ journey, from being defined as “Building Responsive, Inclusive and Collective Solutions” during India’s chairmanship in 2016 to its current vision of “Breaking barriers, Revitalising economies, Inspiring innovation, Creating opportunities, and Shaping the future.”
- Chinese Perspective: Chinese President expressed support for speedy expansion to enhance global governance’s fairness and equity. He emphasized the enthusiasm of developing nations in joining BRICS cooperation.
Ongoing Deliberations on Expansion
- South African Insight: South African President Cyril Ramaphosa noted that discussions on BRICS expansion are ongoing, suggesting that a clear solution will be reached collectively among BRICS leaders.
- Indian Initiative: India’s approach to BRICS expansion was guided by the inclusion of strategic partners as new members, emphasizing consensus and unstructured discussions during leaders’ retreats.
Ensuring Equitable Growth
- Diverse Candidates: Approximately 20 to 30 nations expressed interest in joining BRICS, with leading candidates like Argentina, Egypt, Indonesia, Nigeria, Saudi Arabia, and the UAE. India aims to prevent a China-centric grouping.
- Counterpoint to the West: China aims to expand BRICS as a counterpoint to Western dominance, gaining support from Russia due to diplomatic isolation linked to the Ukraine conflict.
Enhancing BRICS Cooperation
- Modi’s Proposals: Modi emphasized collaboration in space, technology, digital infrastructure, and education among BRICS members.
- BRICS Space Exploration Consortium: Modi proposed creating a Brics space exploration consortium for research and weather monitoring.
- Education and Technology: Modi cited India’s innovative solutions like Diksha and Bhashini for education and the CoWIN platform for vaccination, offering to share these platforms with BRICS partners.
- Skill Mapping and Conservation: Modi proposed skill mapping and cooperation for the preservation of various species of big cats found in BRICS countries.
- Support for African Union: Modi sought BRICS states’ endorsement for India’s proposal to grant the African Union full membership in the G20, reflecting shared commitment and unity within the group.
Conclusion
- As India reaffirms its backing for BRICS expansion, the group’s shared vision of inclusive growth and equitable global governance is reinforced.
- PM Modi proposals highlight the potential for collaboration in diverse domains, harnessing India’s technological prowess to foster a forward-looking and cohesive BRICS organization.
- Amid evolving global dynamics, BRICS’ united stance and collaborative efforts stand to reshape the landscape of international cooperation and equitable development.
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BRICS Summits
15th BRICS SUMMIT
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS and other multilateral forums
Mains level: India’s multipolarity rhetoric and challenges
What’s the news?
- India’s pivotal role in the upcoming BRICS summit in South Africa from August 22 to 24 underscores its evolving diplomatic challenges and potential impact on global geopolitics.
Central idea
- The global geopolitical stage is once again witnessing the active participation of India. With the BRICS (Brazil, Russia, India, China, and South Africa) summit around the corner, India finds itself at a crucial juncture of international diplomacy. This summit not only tests the waters of Indian diplomacy but also holds clues to the trajectory of global geopolitics.
All you need to know about BRICS
- BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
- Jim O’Neill, a British economist, 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.
- The importance of BRICS is self-evident: it represents 42% of the world’s population, 30% of the land area, 24% of global GDP, and 16% of international trade.
- The five BRICS countries are also members of the G-20.
Agenda of the BRICS
The regular annual summit and deliberation of BRICS has considerably widened over the years to encompass topical global issues such as:
- International terrorism
- Climate change
- Food and energy security
- International economic and financial situation
- Reform of the Bretton Woods Institutions
- Trade protectionism and the WTO
Significance of BRICS for India
- Economic Cooperation: BRICS countries together account for a substantial portion of the world’s population and GDP. For India, being part of this grouping allows for enhanced economic cooperation, trade, investment, and collaboration in various sectors, contributing to economic growth and development.
- Global Influence and Voice: BRICS provides India with a platform to engage on the global stage and express its views on important international issues. As a member of BRICS, India’s voice is amplified in discussions related to global economic governance, trade, climate change, and more.
- Geo-political: BRICS offers India the opportunity to diversify its economic and diplomatic engagements beyond traditional partners. It helps India strengthen ties with fellow emerging economies, reducing dependency on a few major economies.
- Strategic : The BRICS Summit provides India with a forum for engaging in strategic dialogues with like-minded countries on various geopolitical and security matters. This is particularly important given India’s strategic interests in its neighborhood and beyond.
- Trade and Investment Opportunities: BRICS countries offer substantial trade and investment opportunities for India. The collective market potential of these nations can help Indian businesses expand their global footprint and increase exports.
- Development Cooperation: BRICS member countries often cooperate in areas of mutual interest, such as development financing, infrastructure projects, and technology sharing. This cooperation can benefit India’s efforts to address its development challenges.
- Technology and Innovation Sharing: BRICS cooperation can facilitate the sharing of technology, innovation, and best practices among member countries, aiding India’s efforts to modernize its industries and infrastructure.
- Joint Efforts on Global Challenges: BRICS members often work together to address global challenges, such as climate change, sustainable development, and poverty alleviation. Collaborative efforts can amplify India’s contributions to these issues.
Achievements of BRICS
- Establishment of the New Development Bank (NDB): BRICS countries established the New Development Bank in 2014 to fund infrastructure and sustainable development projects in member countries and other emerging economies.
- Contingent Reserve Arrangement (CRA): The CRA was established to provide member countries with financial support in times of crisis. It acts as a mechanism to address short-term liquidity pressures and enhance financial stability among BRICS nations.
- Economic Cooperation and Trade: BRICS countries have increased economic cooperation and trade among themselves.The BRICS Trade Fair promotes business-to-business interactions, showcasing products and services from member countries and facilitating trade deals.
- Joint Efforts on Global Challenges: BRICS members have collaborated on addressing global challenges such as climate change, sustainable development, and poverty alleviation. BRICS members issued a joint declaration at the 2018 summit in South Africa, emphasizing their commitment to the Paris Agreement and sustainable development.
- Academic and Cultural Exchanges: BRICS countries have promoted academic and cultural exchanges, fostering mutual understanding and collaboration among scholars, students, and cultural groups from member states.The BRICS Network University fosters collaboration among universities in member countries, promoting academic research and exchange programs.
- Strengthened Global South Voice: BRICS has become a platform for emerging economies to assert their interests and perspectives on global issues. It has strengthened the representation of the Global South in international discussions.
- Infrastructure Investment: The BRICS NDB has funded various infrastructure projects in member countries, contributing to development and job creation while addressing critical infrastructure gaps.The NDB approved a $1 billion loan to South Africa for renewable energy projects, supporting the country’s transition to cleaner energy sources.
15th BRICS Summit 2023
The 15th BRICS Summit was held in Johannesburg, South Africa, from 22-24 August 2023.
The important highlights of the Summit are as follows:
- Theme: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.
- Gifts from India: The PM of India gifted Bidri Surahi, Nagaland Shawl, and Gond Paintings to BRICS leaders.
- BRICS-Africa Outreach and BRICS Plus Dialogue: India participated in the BRICS-Africa Outreach and BRICS Plus Dialogue:
- Participation: The meeting included leaders from BRICS countries along with guest countries from Africa, Asia, and Latin America.
- Invitation for International Initiatives: India extended invitations for countries to join international initiatives like the International Solar Alliance, One Sun One World One Grid, Coalition for Disaster Resilient Infrastructure, One Earth One Health, Big Cat Alliance, and Global Centre for Traditional Medicine.
Joint Statement: Leaders express support for India’s G20 Presidency.
- Support for G20 Presidencies: Backed Brazil and South Africa’s G20 Presidencies in 2024 and 2025, focusing on global South representation.
- Opposition to Unilateral Measures: Condemned unilateral coercive actions, advocated inclusive multilateralism, and upheld international law.
- Global Governance Enhancement: Aimed to improve global governance through agility, efficiency, representation, and democratic accountability.
- Human Rights Cooperation: Committed to cooperating on human rights under equality and mutual respect principles within BRICS and international platforms.
- Agriculture and Food Security: Strived for fair agricultural trade, ending hunger, sustainable agriculture, and resilient practices.
- UN Reform: Supported comprehensive UN reform, including the Security Council, for enhanced democracy, effectiveness, and developing country representation.
- Peaceful Conflict Resolution: Committed to peaceful dispute resolution through dialogue and inclusiveness while recognising women’s participation in peace processes.
Expansion of BRICS
More than 40 countries have expressed interest in joining BRICS, and 22 have formally asked to be admitted. Therefore, leaders of the BRICS in the 15th Summit have agreed on mechanisms for considering new members.
- First phase of expansion: The countries including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE have received invitations to join BRICS. This new membership is set to take effect from January 1, 2024.
Reasons for the BRICS expansion:
- China’s strategic move for global influence.
- FOMO: Fear of missing out on a visible club.
- Limited options in other groups.
- Anti-western sentiment and Global South unity
Challenges faced by BRICS
- Divergent National Interests: BRICS members have diverse economic and political priorities, which can sometimes lead to conflicting interests. Example: China’s emphasis on export-led growth might conflict with India’s efforts to reduce its trade deficit with China, creating economic tensions within the group.
- Economic Inequalities: Challenge: Economic disparities among BRICS countries can hinder equitable distribution of benefits from cooperation. Example: South Africa, with a smaller economy compared to China and India, might find it challenging to compete for investment and trade opportunities within the group.
- Geopolitical Competition: Geopolitical rivalries and regional conflicts among BRICS members can strain cooperation. Example: China’s territorial disputes in the South China Sea have led to tensions with other BRICS countries like India, which has concerns over freedom of navigation.
- Differing Political Systems: BRICS countries have different political systems and levels of political freedom, impacting their approaches to governance and international relations. Example: Russia’s political landscape differs significantly from the democratic systems in Brazil, India, and South Africa, potentially affecting consensus on certain issues.
- Infrastructure and Connectivity Gaps: Inadequate infrastructure and connectivity gaps within BRICS countries can hinder trade and collaboration. Example: Insufficient transport and logistics infrastructure in some member countries can hinder smooth movement of goods and services.
- Institutional Limitations: The institutional structure of BRICS, including the New Development Bank, might face limitations in terms of resources, decision-making processes, and lending capacity. The NDB might struggle to finance large-scale projects without relying on external resources beyond the BRICS nations.
- Economic Volatility: Economic fluctuations and market vulnerabilities can impact the stability of BRICS economies. Example: The global economic recession triggered by the COVID-19 pandemic affected BRICS nations differently, leading to varying levels of economic contraction and recovery.
- Regional and Bilateral Disputes: Regional and bilateral disputes among BRICS members can strain the group’s unity and shared objectives. Example: The Doklam standoff between India and China in 2017 created tensions and highlighted potential areas of conflict within BRICS.
- Leadership Rotation and Priorities: Each BRICS member country holds the rotating presidency for a year, which can impact the continuity of the group’s priorities. Example: Each new presidency might emphasize different areas of cooperation based on its national interests and foreign policy goals.
Reforms needed in BRICS
- Inclusion of Civil Society and Private Sector: Involve civil society organizations and the private sector in discussions and initiatives to broaden perspectives and encourage innovation.
- Promotion of Sustainable Development Goals (SDGs): Align BRICS activities more explicitly with the United Nations’ SDGs to foster sustainable and inclusive development across member countries.Launch joint projects on renewable energy deployment across member countries, addressing SDG 7 (Affordable and Clean Energy).
- Humanitarian and Disaster Response Collaboration: Establish a BRICS Disaster Response Task Force to coordinate resources and expertise during natural disasters.
- Expanding Membership or Partnerships: Consider the possibility of expanding the membership or establishing strategic partnerships with other emerging economies that share similar interests and values.
- Promotion of Digital Connectivity: Foster digital connectivity and technological collaboration among BRICS members to capitalize on the benefits of the digital economy.
- Regular Assessment of Goals and Progress: Periodically evaluate the achievements, challenges, and relevance of BRICS objectives to ensure they remain aligned with member countries’ evolving interests.
- Climate Change and Environmental Cooperation: Establish a BRICS Environmental Fund to finance joint environmental protection and conservation projects.
Way Forward for India
- BRICS’ Role: BRICS can serve as an alternative platform to address global governance deficiencies, despite its imperfections. It could initiate discussions on more inclusive global governance.
- Navigating Complexity: India’s geopolitical choices are complex due to its affiliations in various forums. India’s participation in non-Western platforms reflects a response to historical inequities.
- Balancing Geopolitical Shifts: As competing blocs emerge, India must balance affiliations between a China-centric and a West-centric world order. Striking this balance is crucial to India’s global positioning.
- Managing China’s Rise: India needs to consider whether its actions inadvertently support China’s ascent. While India must moderate China’s influence, it should avoid alienating other global South nations.
- Safeguarding National Interests: India’s active participation in global forums must align with promoting equitable global governance while ensuring its national interests are safeguarded.
Conclusion
- Amid global uncertainties, India’s role in the BRICS summit gains prominence. Balancing between non-Western forums and Western ties, India aims for equitable global governance while managing China’s ascendancy. These decisions could mold India’s path and impact the evolving international landscape.
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BRICS Summits
BRICS FM meeting in South Africa
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS
Mains level: Read the attached story
Central Idea
- External Affairs Minister S Jaishankar is in Cape Town, South Africa, to participate in a meeting of foreign ministers from the BRICS countries.
- The foreign ministers’ meeting aims to finalize the agenda for the upcoming BRICS summit, scheduled to be held in South Africa in August.
What is BRICS?
| Explanation | |
| About | BRICS is a grouping of the world’s leading emerging economies: Brazil, Russia, India, China, and South Africa. |
| History | The term BRIC was coined in 2001 by British Economist Jim O’Neill to describe the four emerging economies of Brazil, Russia, India, and China. The grouping was formalized in 2006, and South Africa joined in 2010. |
| Composition | BRICS comprises the four emerging economies of Brazil, Russia, India, and China, with South Africa joining later. |
| Footprints | BRICS represents 41% of the global population, 24% of global GDP, and 16% of global trade. |
| Chairmanship | Rotates annually among the members, with India holding the chair in 2021. |
| Initiatives |
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Key agenda of this meet
- Geopolitical consolidation and potential expansion: Two key items on the agenda attracting attention are the plan to expand the membership of BRICS and the discussion of a common currency.
- Friends of BRICS meet: South Africa, as the chair this year, is hosting a Friends of BRICS meeting with foreign ministers from Africa and the Global South.
Potential Expansion of BRICS
- Countries in queue for BRICS membership: Around 19 countries are reportedly seeking to join BRICS, including Argentina, Nicaragua, Mexico, Uruguay, Venezuela, Nigeria, Algeria, Egypt, Senegal, Morocco, Saudi Arabia, the UAE, Turkey, Syria, Iran, Kazakhstan, Bangladesh, Afghanistan, Indonesia, and Thailand.
- Inclusion of big oil producers: The list of potential new members includes major oil-producing countries like Saudi Arabia, Iran, the UAE, Nigeria, and Venezuela.
China’s Role in BRICS
- China driving expansion: China is leading the effort to expand its membership of BRICS and is promoting the idea of creating a bigger space for the Global South.
- Focus on multilateralism: China emphasizes multilateralism as it criticizes US hegemony, using the theme of “multilateralism” rather than “multipolarity” in discussions about BRICS.
- Challenging the Western geopolitical view: The conflict in Ukraine has strengthened the China-Russia partnership and transformed BRICS into an aspiring bloc that challenges the western geopolitical narrative.
India’s Position in BRICS
- India’s participation in BRICS and the G7: India’s involvement in both BRICS and the G7 demonstrates its engagement with multiple groupings and does not indicate alignment with an anti-Western coalition.
- Non-Western group: India views BRICS as a non-western group and believes it should remain so, focusing on its role as a platform for Global South countries to express solidarity.
- New challenges for India: Some analysts argue that as BRICS expands and more members join, it could sidelines India’s influence within the group.
What about BRICS Common Currency?
- Proposal for a common currency: Russia proposed the idea of a common currency at the BRICS summit in Beijing last year. Leaders established a committee to study its feasibility.
- Cautious reception and challenges: The proposal for a common currency received cautious feedback, with concerns about its viability and complexities such as different economic and political systems among member countries.
- Insulation from the dollar: The idea of a common currency presents an opportunity to reduce reliance on the US dollar, but not all members are convinced it is the right time.
- Difficulties in currency trade: Negotiations between India and Russia for trading in their respective currencies have encountered difficulties, with Moscow preferring dollar payments due to limited imports from India.
China’s stance on the US dollar
- Retreating US dollar hegemony: China has expressed discontent with the “hegemony of the US dollar” and aims to promote the use of the Yuan as a trading currency in Central Asia.
- No open voices abandoning the dollar: Despite its criticisms, there is no evidence to suggest that China is ready to completely abandon the US dollar at present.
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BRICS Summits
The Paradox of BRICS: Prospects for Expansion and Internal Imbalance
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Development over BRICS expansion
Mains level: Global Dynamics and increasing relevance of BRICS
Central Idea
- Mysterious are the ways in which multilateral groupings prosper and wither away. The case of BRICS grouping is truly remarkable. Despite initial achievements, BRICS has started losing its sparkle due to various global and regional challenges. However, the paradox lies in the fact that numerous nations are eager to join the group, showcasing the continuing appeal of BRICS.
BRICS’s Origins and Evolution
- Conception of BRIC: The term BRIC was coined by economist Jim O’Neill in a 2001 research paper, identifying Brazil, Russia, India, and China as emerging economies with significant growth potential.
- Formalization of BRIC: The first formal meeting of BRIC leaders took place in 2009 on the sidelines of the G20 Summit in Russia, marking the group’s establishment as a platform for cooperation and dialogue.
- Addition of South Africa: In 2011, South Africa was invited to join BRIC, expanding the group to BRICS. China advocated for South Africa’s inclusion, seeking broader representation in Africa and increasing the group’s diversity.
- Economic Focus: Initially, BRIC was primarily an economic grouping, emphasizing the rising influence of these countries in the global economy due to their large populations, expansive territories, and rapid economic growth rates.
- Geopolitical Cooperation: Over time, BRICS evolved to include geopolitical cooperation and joint positions on global issues. Leaders began discussing political matters and advocating for a more equitable international order.
- Annual Summits: BRICS started holding annual summits where leaders from member countries gather to discuss and coordinate their positions on various global challenges and explore avenues for cooperation
Key achievements of the BRICS
- Economic Cooperation: BRICS has fostered economic cooperation among member countries, leading to increased trade, investment, and business opportunities. The group has launched initiatives to expand trade and investment cooperation, promoting economic growth and development.
- New Development Bank (NDB): BRICS established the New Development Bank, also known as the BRICS Bank, which provides financial assistance for infrastructure projects and sustainable development initiatives in member countries and other emerging economies. The NDB has committed significant funds to various projects, contributing to infrastructure development and regional connectivity.
- Contingent Reserve Arrangement (CRA): The CRA, established by BRICS, acts as a financial mechanism to provide liquidity support during times of financial stress and protect against global liquidity pressures. This arrangement has helped member countries mitigate potential financial crises and enhance financial stability.
- Geopolitical Influence: BRICS has projected a non-western perspective on global and regional issues, strengthening the world’s march towards multipolarity and curbing the dominating influence of the West. The group has articulated common positions on various global challenges, such as climate change, terrorism, and global governance reform.
Facts for prelims
New Development Bank (NDB)
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Internal Imbalance and Challenges withing BRICS
- Diverse Economic Systems: BRICS member countries have diverse economic systems, ranging from state-controlled economies to market-based economies. These differences in economic models can lead to variations in policy priorities, approaches to trade and investment, and economic challenges, creating potential frictions within the group.
- Varying Levels of Development: BRICS member countries represent a wide spectrum of development stages. While China has emerged as a global economic powerhouse, other members like Brazil, India, Russia, and South Africa face developmental challenges and socioeconomic disparities. These differing levels of development can result in differing priorities and resource allocation, potentially straining cooperation within BRICS.
- Geopolitical Ambitions and Rivalries: BRICS member countries have their individual geopolitical ambitions and interests. As emerging powers, they may compete for influence and resources in certain regions, leading to potential rivalries or divergent approaches to geopolitical issues. These geopolitical dynamics can complicate decision-making and alignment within BRICS.
- Political and Governance Differences: BRICS comprises countries with varying political systems and governance structures. While some members uphold democratic values, others have different approaches to governance and human rights. These differences can result in divergent perspectives on political and human rights issues, potentially creating challenges in reaching consensus on certain matters.
- Economic Vulnerabilities: BRICS member countries are susceptible to economic vulnerabilities, including structural issues, external shocks, and fluctuations in commodity prices. Economic challenges, such as high inflation, fiscal imbalances, and currency volatility, can strain the economic cooperation and stability within BRICS.
- Coordination and Decision-Making Processes: BRICS operates as a consensus-based grouping, requiring agreement among member countries on various issues. Coordination and decision-making can be complex due to the diverse interests, priorities, and institutional frameworks of member countries. Reaching consensus on critical matters can be time-consuming and challenging.
- Institutional Development: The institutional development within BRICS, such as the New Development Bank and the Contingent Reserve Arrangement, requires effective governance structures, operational frameworks, and decision-making processes. Establishing and managing these institutions while addressing the diverse needs and interests of member countries can pose institutional challenges.
The demand for expansion in BRICS
- Global Influence: Many countries see BRICS as a prominent grouping that holds influence on the global stage. Joining BRICS would provide an opportunity for countries to enhance their global influence and have a voice in shaping global agendas.
- Economic Opportunities: BRICS represents a significant portion of the world’s population and economy. Joining the group could potentially provide countries with access to a large market and increased economic cooperation, including trade and investment opportunities among member countries.
- Limited Options: Some countries may see BRICS as an attractive option for collaboration and engagement, particularly if they face limited opportunities to join other major multilateral groupings or regional blocs.
- South-South Cooperation: BRICS is seen as a platform for South-South cooperation, promoting dialogue and collaboration among countries in the Global South. Joining BRICS allows countries to strengthen ties with like-minded nations and contribute to a collective voice for the interests of developing countries.
- Counterbalance to Western Influence: The demand for expansion in BRICS can also stem from a desire to counterbalance the dominance of Western powers in global affairs. By joining BRICS, countries may seek to align themselves with a grouping that projects a non-western perspective and advocates for a more equitable international order.
Prospects for expansion of BRICS and the criteria for new member admission
- Prospects for Expansion:
- There is a growing interest from several countries in joining BRICS, indicating the perceived significance and appeal of the group.
- As of now, 19 countries, including Argentina, Egypt, Indonesia, UAE, and Bangladesh, have expressed their desire to become members of BRICS.
- The interest in expansion stems from various factors such as the desire to enhance global influence, the fear of missing out on membership in a prominent group, limited options for joining other groupings, and the aspiration to create a substantial forum for the Global South.
- Criteria for New Member Admission
- Economic Size and Potential: Potential new members should have a significant and growing economy, demonstrating the potential to contribute to the group’s economic strength and cooperation.
- Regional Representation: BRICS has aimed to have diverse regional representation, as seen with the inclusion of South Africa to represent Africa. New members could be considered based on their regional representation and the desire to ensure a broader geographic scope.
- Political Stability and Compatibility: Political stability and compatibility with the values and principles of BRICS, including democracy, human rights, and governance, could be important considerations in the admission process.
- Commitment to Cooperation: Prospective members should demonstrate a genuine commitment to international cooperation, multilateralism, and the principles and objectives of BRICS.
- Mutual Benefits: The admission of new members should be mutually beneficial for both the existing members and the prospective members, contributing to enhanced economic cooperation, geopolitical influence, and the achievement of common goals.
- Consensus Among Existing Members: Consensus among the existing BRICS member countries would be crucial in determining the admission of new members. The existing members would need to agree on the expansion and the specific countries to be admitted.
The Future of BRICS: Key aspects
- Economic Collaboration: BRICS has the potential to deepen economic collaboration and promote intra-BRICS trade and investment. By leveraging their collective market size and resources, member countries can explore new areas of economic cooperation, such as digital economy, technology, sustainable development, and infrastructure investment.
- Institutional Development: The New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) are key institutions established by BRICS. The group can focus on further developing and expanding the role of these institutions to effectively address financial challenges and support sustainable development projects.
- Geopolitical Influence: By coordinating their positions on global governance, security, and geopolitical issues, member countries can amplify their collective voice and influence international discussions and decision-making processes. BRICS can also foster South-South cooperation and advocate for the interests of developing countries in global forums.
- Expansion and Outreach: The interest from other countries to join BRICS presents an opportunity for expansion and outreach. The group can carefully consider the admission of new members, ensuring that the expansion aligns with the group’s objectives, principles, and criteria. By including new members, BRICS can broaden its geographic representation and potentially strengthen its collective influence.
- Innovation and Technology Cooperation Member countries can collaborate in areas such as artificial intelligence, renewable energy, space exploration, and digital governance. Sharing expertise, research, and best practices can propel the group’s technological advancement and foster mutual growth.
- Adaptation to Global Challenges: BRICS should collectively address global challenges such as climate change, public health crises, and sustainable development. By coordinating efforts, sharing knowledge, and pooling resources, the group can contribute to finding solutions and shaping global agendas on critical issues.
Conclusion
- The paradox of BRICS lies in its diminishing allure while attracting numerous nations eager to join. Despite facing internal tensions, BRICS has made significant contributions to the world’s multipolarity and economic cooperation. By addressing internal imbalances, seizing opportunities for growth, and staying responsive to global dynamics, BRICS can continue to play a significant role in shaping the international order and promoting the interests of emerging economies and the Global South.
Also read:
| Understanding the “China’s BRICS” game |
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BRICS Summits
BRICS
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Contingency Reserve Arrangement (CRA)
Mains level: Paper 2- The Ukraine conflict and BRICS
Context
China is hosting the 14th BRICS summit in virtual mode. The focus of the summit will be centred on the conflict and the association’s future.
About BRICS
- 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 form of an organization, but it is an annual summit between the supreme leaders of five nations.
- 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.
Significance of BRICS
- Economically, militarily, technologically, socially and culturally, BRICS nations represent a powerful bloc.
- 40 per cent of the world’s population: They have an estimated combined population of 3.23 billion people, which is over 40 per cent of the world’s population.
- 25 per cent of global GDP: They account for over more than a quarter of the world’s land area over three continents, and for more than 25 per cent of the global GDP.
- Two fastest growing large economies: The grouping comprises two of the fastest-growing nations, India and China.
- It has proved its mettle to an extent by establishing the BRICS New Development Bank (NDB) and the Contingency Reserve Arrangement (CRA).
How the Ukraine crisis creates challenges for the BRICS
- The leaders of BRICS countries — Brazil, Russia, India, China and South Africa — will navigate the crucial dilemma of evolving a common stance on the Russian-Ukraine conflict.
- The primary agenda of BRICS was rebalancing an international system dominated by the West.
- However, the Ukraine crisis could act as a distraction from that primary agenda.
- The geopolitical considerations of its members can come in the way of attaining the grouping’s original goal.
- Target of economic warfare: Some of the BRICS members could be potential targets of the kind of economic warfare deployed by the West against Russia.
- The West has so far not expected the BRICS countries to stringently adhere to its sanctions against Russia.
- But it will be naïve to expect that they will persist with this attitude.
Way forward
1] Create institutional arrangement
- Challenging the economic might of the West in the near future might be close to impossible.
- Despite the group comprising China, India and Russia, intra-BRICS trade accounts for less than 20 per cent of global trade.
- BRICS is far from having its own payment mechanisms, international messaging systems or cards.
- The Ukraine crisis should drive home the need to create institutional arrangements that can cushion against similar financial turbulence in the future.
2] Recalibrate structure and expand
- BRICS requires a recalibration of its structure and agenda.
- Creating financial mechanisms and technological institutions could turn BRICS into a G20 for developing nations.
- It’s time to revisit the idea of expanding the grouping by inviting new members.
- This could also impart new vigour to the BRICS’s developmental goals.
3] Economic cooperation between India and China
- Economic cooperation between India and China is vital for the success of any future BRICS endeavour.
- The border conflict has created a mistrust of China in India.
- In the current situation, New Delhi is unlikely to take an anti-West stance.
- India, unlike China, is neither a UN Security Council member nor does it have major sticking points with the West.
- At the same time, India is not a part of the Western camp.
- That does open up the possibility of New Delhi taking a more proactive position in BRICS.
- The two powers need to come together for the sake of global governance reform.
Conclusion
The Ukraine crisis could be an occasion for the leaders of BRICS nations to commit themselves to the original goal of the bloc. It’s an opportunity they shouldn’t let go of.
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BRICS Summits
China to host BRICS Virtual Summit
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS Plus
Mains level: Chinese push for expansion of BRICS
Chinese President Xi Jinping will host a virtual summit of the leaders of the BRICS countries. PM Modi is expected to join.
Why in news?
- China is keen for the grouping to explore expansion and include new developing country members.
- Under the “BRICS Plus” format, the forthcoming summit is also expected to be attended by leaders of invited emerging countries.
What is BRICS?
- 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 has convened annually. It does not exist in form of an organization, but it is an annual summit between the supreme leaders of five nations.
Its inception
- 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.
How it has formed?
- 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.
Who are the members?
- 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.
- The importance of BRICS is self-evident: It represents 42% of the world’s population, 30% of the land area, 24% of global GDP and 16% of international trade.
- The five BRICS countries are also members of G-20.
Also read
Back2Basics: BRICS Plus
- The BRICS outreach to Africa began at the last summit hosted by South Africa, in 2013. It has picked up momentum now but African leaders want more.
- They need big loans from the New Development Bank (NDB) for their infrastructure projects.
- China introduced the “BRICS Plus” format at the Xiamen summit last year by inviting a few countries from different regions.
- South Africa emulated it, arranging the attendance of top-level representation of five nations of its choice: Argentina, Jamaica, Turkey, Indonesia and Egypt.
- The precise role of “BRICS Plus” countries will take time to evolve but an immediate benefit is the immense opportunities it provides for networking among leaders.
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BRICS Summits
China wants a larger BRICS to challenge the existing international order
Context
A virtual meeting of BRICS+ foreign ministers was held on May 20 in which the ministers of Brazil, Russia, India, China, and South Africa (BRICS) were joined by representatives from Argentina, Egypt, Indonesia, Kazakhstan, Nigeria, the UAE, Saudi Arabia, Senegal, and Thailand.
About BRICS
- 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 form of organization, but it is an annual summit between the supreme leaders of five nations.
- 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.
What are the factors leading to the expansion of BRICS?
- Ukraine war and hardened Western positions: The disruption in the international order, heightened by Russia’s invasion of Ukraine and the hardening of Western positions, are leading to the making of competitive plurilateral fora.
- Russia and China have decided that this is an opportune time to expand BRICS and challenge the domain of the G7 by including members from the G20.
- China is challenging Western influence over countries and wants to use BRICS to that end.
- China is taking the lead and setting the agenda for BRICS expansion.
- The New Development Bank associated with BRICS, expanded membership in 2021, admitting Bangladesh, the UAE, Uruguay and Egypt
- This shows the Chinese determination for an expansion process on its watch.
Criteria and the process of inducting new members into BRICS and challenges
- Prioritise G20 members: The first likely criteria will be to prioritise G20 members.
- Among the recent guests of the BRICS+ virtual meeting, Argentina, Indonesia and Saudi Arabia would qualify for this category.
- From among Mexico, Indonesia, Korea, Turkey and Australia (MIKTA), only Indonesia was invited.
- Thus, China, backed by Russia, is creating cleavages to choose its friends from among the G20 and beyond
- Emerging economy: Another criteria which could come up would be an emerging economy status and adherence to BRICS objectives.
- The push for setting criteria is actually a battle to choose partners who are more amenable to the individual members of the current BRICs.
- Russia and China would prefer to have Indonesia, Kazakhstan, Saudi Arabia, UAE and Argentina excluding Egypt since it is a close ally of the US.
- Brazil would have a say on including Argentina – the two countries have a longstanding rivalry in Latin America.
- If Argentina is excluded, it may unravel the G20 membership criteria for inclusion in the BRICS.
- South Africa has views on Nigeria and, particularly, Egypt. Being a member of G20 gives it leadership in Africa.
- Being in the BRICS gave it heft as the African representative.
- If Nigeria and Egypt are admitted, South Africa would no more be the African representative in the BRICS.
- New Development Bank membership: The UAE and Egypt could utilise their membership of NDB as a qualifier.
- There could be an easier consensus on Indonesia because India is unlikely to oppose it as its relationship has been improving politically, even if not economically.
- On Kazakhstan, the decision would be that of Russia and China and how they deal with the other Central Asian countries.
- China may also back Iran and Malaysia but then Indonesia may feel a loss of uniqueness.
- A consensus with Brazil and South Africa for members from their regions will be critical.
Way forward for India
- Membership of the UAE and Saudi Arabia: The UAE and Saudi Arabia are two countries with whom India has rapidly enhanced its engagement and are good contributors to development.
- Having them in the BRICS could be of advantage to India.
- Both countries have a longstanding relationship with the US, but seek to diversify and would not be averse to joining BRICS.
- Avoid BRICS expansion on Chinese terms: China, backed by Russia, is hastening the process of expansion of BRICS as part of its strategic challenge to the international order and to collect middle powers around them.
- India needs to ensure that expansion is not on Chinese terms and that the countries admitted are equally receptive to India.
- Bilateral engagement with them should see this perception built up.
- Consultations on criteria and members must be strong.
- Leverage ISBA: IBSA may act as a phalanx within BRICS to prevent China from running away with the expansion agenda over the views of other members.
Conclusion
Since Russia is simply with Chinese priorities, it’s time for the IBSA trilateral of democracies within BRICS to assert itself.
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Back2Basics: What is the fundamental difference between ISBA, BRICS and BASIC?
- IBSA is between three democracies – India, Brazil and South Africa wanting to engage in deeper economic aspects and discuss security related issues.
- BASIC includes Brazil, South Africa, India and China.
- These three expressions of multilateralism steer clear from articulating the softer aspects of foreign policy like refugee rights or human rights invoking the ‘sovereignty’ clause with domestic political sanctity paramount.
- BRICS comprises Brazil, Russia, India, China and South Africa.
- Russia is a democracy with its political spectrum anchoring around an individual.
- China is a socialist country, successful by implementing economic reforms that do not agree with the basic tenets of socialism/communism.
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BRICS Summits
BRICS
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS summits headed by India
Mains level: Paper 2- BRICS and challenges
Context
The 13th BRICS summit is set to be held on September 9 in digital format under India’s chairmanship
Challenges and opportunities for BRICS
- The importance of BRICS is self-evident: it represents 42% of the world’s population, 30% of the land area, 24% of global GDP and 16% of international trade.
- Weathering geopolitical challenges: Member states have been carrying BRICS forward in an era of complex geopolitics.
- They have bravely continued holding dozens of meetings and summits, even as India-China relations were strained after Galwan valley incident.
- Internal challenges: There is also the reality of the strained relations of China and Russia with the West, and of serious internal challenges preoccupying both Brazil and South Africa.
- On the other hand, a potential bond emerged due to the battle against COVID-19.
- Challenges to trade ties: BRICS has been busy deepening trade and investment ties among its member states.
- The difficulty stems from China’s centrality and dominance of intra-BRICS trade flows.
- How to create a better internal balance remains a challenge, reinforced by the urgent need for diversification and strengthening of regional value chains.
- China’s aggression: Beijing’s aggressive policy, especially against India, puts BRICS solidarity under exceptional strain.
- Lack of support: BRICS countries have not done enough to assist the Global South to win their optimal support for their agenda.
Does BRICS truly matter?
- The grouping has gone through a reasonably productive journey.
- Acts as a bridge: It strove to serve as a bridge between the Global North and Global South.
- It developed a common perspective on a wide range of global and regional issues.
- It established the New Development Bank; created a financial stability net in the form of Contingency Reserve Arrangement; and is on the verge of setting up a Vaccine Research and Development Virtual Center.
Immediate goals: 4 priorities
- As the current chair, India has outlined four priorities.
- Reforms of multilateral institutions: The first is to pursue reform of multilateral institutions ranging from the United Nations, World Bank and the International Monetary Fund to the World Trade Organization and now even the World Health Organization.
- Reform needs global consensus which is hardly feasible in the current climate of strategic contestation between the U.S. and China and the devastation caused by COVID-19.
- Nevertheless, Indian officials rightly remind us that BRICS emerged from the desire to challenge dominance (by the U.S.) in the early years of the century, and it remains committed to the goal of counter-dominance (by China) now.
- Combating terrorism: Tragic developments concerning Afghanistan have helped to focus attention sharply on this overarching theme, stressing the need to bridge the gap between rhetoric and action.
- China, for example, feels little hesitation in supporting clear-cut denunciations of terrorist groups and supports Pakistan, which is host to several international terrorist groups.
- BRICS is attempting to pragmatically shape its counter-terrorism strategy by crafting the BRICS Counter Terrorism Action Plan.
- Counter Terrorism Action Plan contains specific measures to fight radicalisation, terrorist financing and misuse of the Internet by terrorist groups.
- Technology and digital solution: Promoting technological and digital solutions for the Sustainable Development Goals and expanding people-to-people cooperation are the other two BRICS priorities.
Conclusion
It is necessary for leaders, officials and academics of this grouping to undertake serious soul-searching and find a way out of the present predicament.
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BRICS Summits
BRICS
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS
Mains level: Future agenda of BRICS
As India is gearing up to host this year’s BRICS summit, the grouping is facing fresh challenges, from disputes among member countries to tackling COVID-triggered crises and opportunities.
What is BRICS?
- To be clear, BRICS was not invented by any of its members.
- In 2001, Goldman Sachs’ Jim O’Neill authored a paper called “Building Better Global Economic BRICs”, pointing out that future GDP growth in the world would come from China, India, Russia and Brazil.
- Significantly, the paper didn’t recommend a separate grouping for them, but made the case that the G-7 grouping, made up of the world’s most industrialized, and essentially Western countries, should include them.
- O’Neill also suggested that the G-7 group needed revamping after the introduction of a common currency for Europe, the euro, in 1999.
- In 2003, Goldman Sachs wrote another paper, “Dreaming with BRICs: Path to 2050”, predicting that the global map would significantly change due to these four emerging economies.
- In 2006, leaders of the BRIC countries met on the margins of a G-8 (now called G-7) summit in St. Petersburg, Russia, and BRIC was formalized that year.
Issues in its consolidation
- Common ground for the members was built by ensuring that no bilateral issues were brought up, but the contradictions remained.
- Many economists soon grew tired of “emerging” economies that didn’t reach the goals they had predicted.
- Others saw India’s closer ties with the US after the civil nuclear deal as a sign its bonds with BRICS would weaken.
- Meanwhile, Russia, which had hoped to bolster its own global influence through the group, had been cast out of the G-7 order altogether after its actions in Crimea in 2014.
- China, under Xi Jinping, grew increasingly aggressive, and impatient about the other underperforming economies in the group, as it became the U.S.’s main challenger on the global stage.
Long-term prospects
- China’s decision to launch the trillion-dollar Belt and Road Initiative in 2017 was opposed by India, and even Russia did not join the BRI plan, although it has considerable infrastructure projects with China.
- South Africa’s debt-laden economy and the negative current account have led some to predict an economic collapse in the next decade.
- Brazil’s poor handling during the Covid-19 crisis has ranked it amongst the world’s worst-affected countries, and its recovery is expected to be delayed.
- India’s economic slowdown was a concern even before Covid-19 hit, and government policies like “Aatmanirbhar” were seen as a plan to turn inward.
Issues with BRICS nations
- Concerns about aggressions from Russia in Ukraine and Eastern Europe and China in the South China Sea, the border with India and internally in Hongkong and Xinjiang are clear visible.
- There is creeping authoritarianism in democracies like Brazil and India have made investors question long-term prospects of the group.
- In the market, BRICS has been mocked for being “broken”, while others have suggested it should be expanded to include more emerging economies like Indonesia, Mexico and Turkey, called the “Next-11”.
A roadmap to progress
- BRICS is an idea that has endured two decades, an idea its members remain committed to, and not one has skipped the annual summits held since 2009.
- Along the way, BRICS has created the New Development Bank (NDB) set up with an initial capital of $100 billion.
- There is a BRICS Contingent Reserve Arrangement fund to deal with global liquidity crunches, and a BRICS payment system proposing to be an alternative to the SWIFT payment system.
Reforming the multilaterals
- The BRICS ministerial meeting held this week sent several important signals to that end, issuing two outcome documents.
- It included the first “standalone” joint statement on reforming multilateral institutions, including the UN and the UNSC, IMF and World Bank and the WTO.
- It remains to be seen how far countries like China and Russia, which are already “inside the tent” at the UNSC, will go in advocating for the other BRICS members.
- Another important agreement was the BRICS ministerial decision to support negotiations at the WTO for the waiver of trade-related intellectual property rights (TRIPs) for vaccines and medicines to tackle the Coronavirus.
Way forward
- What appears clear is in the post-Covid world, priorities for all economies will change, and offer up a churning in the world of the kind seen two decades ago, when the idea of a grouping of emerging economies was first floated.
- For BRICS, the next few months could crystallize that idea, or sink it further, leaving others to wonder whether the “Rise of the Rest” as it was once called, is an idea whose time will ever come at all.
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BRICS Summits
BRICS Innovation Base for 5G and AI Technology
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS, AI
Mains level: 5G Technology and the Huawei issue
China has made a proposal to create what it has termed a BRICS innovation base to take forward 5G and Artificial Intelligence (AI) cooperation.
Try this question from CSP 2019:
Q.With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?
- LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
- LTE is data-only technology and VoLTE is voice-only technology.
Select the correct answer using the code given below.
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
BRICS Innovation Base
- China is considering the establishment of a BRICS innovation base in China, in order to strengthen practical cooperation with the BRICS.
- It has urged fellow nations, including India, to boost cooperation in areas including 5G and AI in partnership with Huawei.
- The move could pose an awkward question for India, which is the only country in the grouping that is leaning towards excluding Chinese participation in the roll-out of India’s 5G networks.
Huawei in BRICS
- In South Africa, Huawei is providing services to three of its telecom operators in the roll-out of their 5G networks.
- Brazil has allowed participation in trials but yet to take a final call.
- India is unlikely to allow Chinese participation in 5G, particularly in the wake of recent moves to tighten investment from China and national security concerns.
Back2Basics: BRICS
- 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 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.
- 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.
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BRICS Summits
BRICS’ fight against COVID
Note4Students
From UPSC perspective, the following things are important :
Prelims level: BRICS, NDB.
Mains level: Paper 2- BRICS's potential for coordination on humanitarian assistance and disaster relief .
“BRICS” is an acronym coined by Jim O’Neill in 2001. In the start of the 21st century, BRICS seemed like the future economic powerhouse. Somehow this picture faded a little with time. This article shows the resilience and potential demonstrated by BRICS in times of Covid-19. It throws light on the latest initiatives of BRICS like New Development Bank. Finally what lies in the future for BRICS?
The “I” in BRICS
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India has reinforced its reputation as a rapidly emerging pharmacy of the world.
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As the world’s largest producer of hydroxychloroquine, India has exported the drug to many countries like Russia, Brazil, Israel, U.S, SAARC and Gulf nations.
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Pharma-alliance: The above developments have set the stage for India to forge an inclusive BRICS-driven pharma alliance, which could also actively explore the production of vaccines.
The “C” in BRICS
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Despite allegations, China has responded strongly in containing the pandemic, leveraging its position as the workshop of the world.
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China, using it’s manufacturing capabilities, responded to the disease by providing the “hardware” — masks, gloves, coveralls, shoe covers and testing kits — to hotspots across the globe.
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Under its Health Silk Road doctrine, the Chinese are reaching out to two of the worst global hotspots, Italy and Iran.
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China has also rolled out a medical air bridge for Europe.
The “R” in BRICS
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Despite fighting the virus at home, Russia too has sent its doctors and virologists overseas including an air mission to Italy.
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At the request of U.S. President Donald Trump, Russia offered help in the form of medical experts and supplies.
The “S” in BRICS
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South Africa, the current rotating head of the African Union, is engaged in framing a pan-African response to COVID-19.
The “B” in BRICS
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Only Brazil’s response may need a course correction.
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In Brazil’s case resistance to breaking the infection chains through travel bans, lockdowns, isolation and testing appear to have led to an infection surge.
Where does the NDB’s model fit in this picture?
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The New Development Bank of the BRICS has already demonstrated the way forward to allocate financial resources to combat COVID-19.
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In April, NDB announced that it is going to disburse a $1 billion emergency loan to China, and subsequently to India, South Africa and Brazil.
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The NDB had the financial heft to provide $10 billion in “crisis-related assistance” to BRICS member countries.
The next step for BRICS – COORDINATION
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BRICS has demonstrated their comparative strengths as providers of Humanitarian Assistance and Disaster Relief (HADR).
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BRICS countries now need to pool and coordinate their efforts, in partnership with the WHO, and Europe and North America, as part of a global assault on the virus.
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BRICS countries also need to earmark resources and assets to combat a whole range of natural disasters, with special focus on the emerging economies and the global south.
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The NDB’s financial model demonstrated to address the pandemic, can now become a template to address natural disasters.
Bodies like BRICS have remained the favourite child of UPSC. Be it questions in prelims or mains. A question based on the regional grouping could be asked by the UPSC, for ex- “BRICS nations have proved to be more than merely an economic grouping. In light of the above statement, discuss the Humanitarian Assistance and Disaster Relief (HADR) potential of the BRICS countries.”
Conclusion
BRICS in future can leverage the coordination among them to work on finding the vaccine and also build on the experience gathered from the pandemic to form a disaster response policy in the future.
Back2Basics: BRICS
- BRICS is the acronym coined for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.
- Originally the first four were grouped as “BRIC” (or “the BRICs”), before the induction of South Africa in 2010.
- The BRICS members are known for their significant influence on regional affairs; all are members of G20.
- Since 2009, the BRICS nations have met annually at formal summits. China hosted the 9th BRICS summit in Xiamen on September 2017, while Brazil hosted the most recent 11th BRICS summit on 13-14 November 2019.
New Development Bank and the Fortaleza Declaration
- During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).
- In the Fortaleza Declaration, the leaders stressed that the NDB will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development, thus contributing to collective commitments for achieving the goal of strong, sustainable and balanced growth.
- The bank was established in July 2015 by the BRICS countries (Brazil, Russia, India, China and South Africa).
- The aim of the bank is to mobilize funding for infrastructure and sustainable development.
- Its ownership structure is unique, as the BRICS countries each have an equal share and no country has any veto power.
- In this sense, the bank is a physical expression of the desire of emerging markets to play a bigger role in global governance.
- NDB was created to help fill the funding gap in the BRICS economies and was intended to grow its global scope over time.
- The bank, with its subscribed capital base of US$50bn, is now poised to become a meaningful additional source of long-term finance for infrastructure in its member countries.
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BRICS Summits
[op-ed snap] As India prepares to honour Bolsonaro
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- BRICS- challenges and areas of cooperation.
Context
India has invited the Brazilian President to be a guest of honour for Republic Day 2020. It is also a good opportunity for focusing on intra-BRICS partnership and trade.
Future of the BRICS
- To move towards multi-polarity: This was set up as a move towards greater multi-polarity; hence the spread across three continents and both hemispheres.
- Infirmities in the group: The BRICS combination accounts for about one-third of global output, but a glance at the GDP t and growth rates will show the infirmities of the group.
- Differences in GDP: In terms of GDP, China occupies the second position; India the fifth; Brazil the ninth; Russia the 11th; and South Africa the 35th.
- Differences in growth rate: In terms of growth rates, China grew at 6%; India at 4.5%, Russia 1.7%, Brazil 1.2% and South Africa 0.1%.
- Both politically and economically, Brazil and South Africa have been the laggards in recent years. But there are certain similarities as well.
- Similarities in the group: Each country has different economic and political leverage and its own burden of domestic and external issues.
- Decision-making structure: They all share the benefits of autonomous decision making.
- Non-affiliation: The members of the group have non-affiliation with any binding alliances.
- Informal structure: The group’s informal structure is an advantage for coordination among the most influential non-Western countries.
- Challenges to the survival of the group: The BRICS group can survive only if its members maximise their congruencies to the extent possible. Following are the challenges to the existence of the group-
- The growing intensity of Sino-Russian ties.
- The pro-American leanings in Brazil.
- The socio-economic difficulties of South Africa after nine years under the controversial Jacob Zuma.
- India’s many difficulties with China, including its abstention from the Regional Comprehensive Economic Partnership.
Achievement of the grouping
- New Development Bank: The main achievement of BRICS is the New Development Bank, with each country contributing equally to its equity.
- The bank has so far financed over 40 projects at a cost of $12 billion.
- The BRICS countries are also developing a joint payments mechanism to reduce foreign trade settlements in U.S. dollars.
- BASICS: An offshoot of the group, dealing with climate change, is BASIC (BRICS without Russia).
- BASICS met at the Spain conference last month and reiterated its support to the Paris Agreement.
- India’s lead role: India is taking the lead role in-
- Digital health, Digital forensics
- Film technology.
- Traditional medicine.
- Sustainable water management,
- Internships and fellowships.
Brazil-India relation
- Visa waiver for Indians: Brazil declared the decision to waive visa requirements for Indian citizens.
- Potential for investments: There is potential for Brazilian investments in the sectors of space and defence, agricultural equipment, animal husbandry, post-harvest technologies, and bio-fuels.
- Low two-way trade: The total two-way trade is at a paltry $8 billion, and the prospect of closer economic ties, however desirable, would require considerable optimism.
Conclusion
Both India and Brazil need to further deepen the ties and increase cooperation in various areas of cooperation. BRICS, despite the various challenges, need to focus on congruencies between them and work towards greater cooperation.
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Importance for Exams
Mains : This year is special because India holds chair of the BRICS Summit from February to December. Though the exact outcome of all the Conferences, Meeting, MoUs, Declarations leading to the main Summit is not important, the themes being discussed are independently very important.
Prelims : All the declarations(Jaipur, Udaipur, etc), places(Khajuraho) where meetings were held and other keywords(like the BRICS Wellness Index) are important from a prelims perspective.
In News
The 2016 8th Annual BRICS Summit will be held in Panaji, Goa, from 15th to 16th October. The theme this year is Building Responsive, Inclusive and Collective Solutions. It will be attended by the heads of state/government of the five member states Brazil, Russia, India, China and South Africa.
Timeline
September – Events and Outcomes
1 -2 Sept – BRICS Convention on Tourism, Khajuraho
2-6 Sept – BRICS film festival
10-11 Sept – BRICS Wellness Workshop, Bangalore
The Ministry of AYUSH, in collaboration with Research and Information System for Developing Countries (RIS).
14 Sept – BRICS Joint Working Group on Counter Terrorism
16 Sept – BRICS Environment Ministers.
GOA MoU on setting up of JWG environment-related issues
14-16 Sept – 3rd BRICS Urbanisation Forum, Visakhapatnam
17 Sept – MOU on Climate co-operation
August – Events and Outcomes
1-2 Aug – BRICS Workshop on Strengthening Health Surveillance, Bengaluru
22 Aug – BRICS Women Parliamentarians’ Forum, Jaipur
22 Aug – BRICS Women Parliamentarians’ Forum, Jaipur
Jaipur Declaration – Enablers for achieving SDG
22-23 Aug – 2nd meeting of the BRICS Ministers of Disaster Management, Udaipur
Udaipur Declaration – to enable Disaster Risk Management