BRICS

Published on 07 Jan 2025

BRICS is a group 5 emerging economies of the world viz. – Brazil, Russia, India, China, South Africa. Over a period of time, BRICS countries have come together to deliberate on important issues under the three pillars of political and security, economic and financial and cultural and people to people exchanges.

Significance of BRICS

• Political 

• Big Five Nations: Formed by Brazil, Russia, India, and China in 2006, later joined by South Africa, BRICS represents a coalition of major nations influencing global politics.

• Example: Regular summits since 2009 showcase the political synergy driving BRICS.

• Global Balance: BRICS acts as a bridge between the Global North and South, advocating for reform in multilateral institutions to reflect changing economic dynamics.

• Alternative to West: Dissatisfaction with the global order among developing nations.

• Example: Over 40 countries, including Iran, Saudi Arabia, UAE, Argentina, Bolivia expressed interest in joining the forum, according to 2023 summit chair South Africa.

• Economic

• Global Economic Presence: The five nations comprise of the leaders in world economy. 

• Example: BRICS accounts for 42% of the world’s population, 30% of land area, 24% of global GDP, and 16% of international trade.

• Development Cooperation: It developed a common perspective on a wide range of global and regional issues.

• Example: The establishment of the New Development Bank (NDB) and Contingency Reserve Arrangement (CRA) demonstrates economic collaboration.

• Innovative Development Models: Through initiatives like the NDB, BRICS fosters development cooperation, providing an alternative to traditional financial institutions.

• Example: NDB's focus on clean energy, transport infrastructure, and sustainable development reflects innovative approaches.

• Social

• Cooperation for Science: The strength of the union can be optimized for scientific discoveries.

• Example: BRICS Remote Sensing Satellite Constellation (2021) or Indian PM proposed to establish a BRICS space exploration consortium to advance cooperation in the field of space technology and research in the 15th Summit.

• Cultural and Social Collaboration: BRICS emphasizes people-to-people exchanges, fostering cultural, educational, and youth engagement.

• Example: Young Diplomats Forum, Parliamentarian Forum, Trade Union Forum, Civil BRICS and the Media Forum allow cultural exchange.

• Environment: The forum can be used to tackle climate change and other issues.

• Example: India called for BRICS collaboration under the International Big Cat Alliance in protecting the endangered big cats that live in their countries.

Importance of BRICS for India

• Global Cooperation: India benefits from the collective strength of BRICS, engaging in consultation and cooperation on economic and global issues, such as terrorism, climate change, and governance reforms.

• Multilateral Reforms: Actively participating in BRICS, India collaborates on the reform of global organizations like WTO, IMF, and WB, aligning reforms with its interests.

• Example: Delhi Declaration adopted by BRICS for reforming institutions. 

• Multilateral Relations Platform: BRICS serves as a key platform for India to nurture multilateral relations.

• Example: Extending its diplomatic reach to countries in Latin America, Africa, and Asia.

• Economic opportunities: The NDB offers India a valuable source for raising resources for infrastructure and sustainable development projects.

• Example:  India has secured significant loans, including a US$ 250 million loan for the Renewable Energy Financing Scheme.

• Addressing Bilateral Issues: BRICS provides a diplomatic forum for India to address historical mistrust and complex relationships.

• Example: 15th Summit saw the first in-person meeting since the India-China military standoff at the Line of Actual Control.

• Terrorism: BRICS also provides a platform for India to galvanize its efforts against terrorism

• Example: BRICS Counter Terrorism Action Plan focuses on countering terrorism.

Challenges Facing BRICS

• Heterogeneity Concerns: Critics argue that the diverse interests and characteristics of BRICS nations pose a threat to the viability of the grouping due to significant heterogeneity.

• China-Centric Trade Dynamics: Trade patterns within BRICS reveal a heavy reliance on China, with member countries trading more with China than among themselves.

• Example: China promoting AIIB, the Belt and Road Initiative (BRI), and the Regional Comprehensive Economic Partnership (RCEP) in BRICS.

• Preventing Negative Globalization: BRICS should navigate the complex integration of global growing economies without distorting or breaking the single financial and economic continuum of the world.

• Structural issues: The absence of rules, norms, and procedures challenges BRICS in moments like its expansion.

• Political Challenges: The inclusion of Saudi Arabia and Iran introduces political challenges for BRICS, as both countries are non-democratic.

• Example: Saudi Arabia operates as a monarchy, while Iran follows a theocratic republic model.

• Overlap with Other Groupings: Coordinating policies and priorities may become challenging due to the simultaneous existence of other similar groupings.

• Example: The presence of the IBSA grouping runs parallel to BRICS

• Economic Slowdown: Ongoing economic slowdowns and trade disputes can significantly hinder BRICS' ability to achieve its intended objectives.

• Example: disagreements over tariffs and market access between China and India,

• Influence Disparity: The disproportionate influence of Russia, India, and China within BRICS may limit the active participation and impact of other members. 

• Example: Brazil and South Africa might find it challenging to shape the group's decisions.

Way Forward

• Relevance Assessment: Members must realistically evaluate BRICS' opportunities and limitations for sustained relevance in the next decade.

• Internal Balance: Reduce dependence on China, emphasizing better internal balance and the need for diversification in response to vulnerabilities exposed during the pandemic.

• Intra-BRICS Cooperation: Encourage increased collaboration in agriculture, disaster resilience, digital health, traditional medicine, and customs cooperation among BRICS nations.

• Founding Ethos Recommitment: Recalibrate approaches and reaffirm commitment to a multi-polar world, addressing power asymmetry through democratic decision-making.

• Building on NDB Success: Invest in additional BRICS institutions, including an institutional research wing tailored for the developing world, building on the success of the New Development Bank.

• Climate Change: Champion a BRICS-led effort to fulfill commitments under the Paris Agreement, establishing a BRICS energy alliance and an energy policy institution.

• NDB for Sustainable Development: Position the NDB as a potent vehicle to finance progress toward sustainable development goals among BRICS members.

Prime Minister Narendra Modi called for a strengthened BRICS that will be: Breaking barriers; Revitalising economies; Inspiring Innovation; Creating opportunities; Shaping the future.

Tags:
Polity

Keywords:
BRICS Brazil Russia India China South Africa New Development Bank NDB Contingency Reserve Arrangement CRA BRICS+ Egypt Iran Saudi Arabia UAE Ethiopia Argentina BRICS Counter Terrorism Action Plan multilateral organisation

Syllabus:
General Studies Paper 2

Topics:
Bilateral and Multilateral Relations