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| BRICS Members |
Why in the News?
The 16th BRICS
Summit, held in Kazan, Russia, marked a historic
moment as it was the first summit with expanded BRICS membership.
The summit adopted the Kazan Declaration, titled “Strengthening
Multilateralism for Just Global Development and Security”, and
extended full support to Brazil for its BRICS
Chairship in 2025 and the hosting of the 17th BRICS
Summit.
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About BRICS
Genesis
·
The
term BRICS was coined in 2001 by British
economist Jim O’Neill, representing the emerging
economies of Brazil, Russia, India, and China.
·
The
group began functioning formally in 2006 during the G8 Outreach
Summit.
·
The first
BRIC Summit was held in Russia in 2009,
and South Africa joined in 2010, making it BRICS.
Membership
·
Initial Members (5): Brazil, Russia, India, China, South Africa.
·
New Members (6): Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates,
Indonesia.
- Argentina was
initially expected to join in 2024 but later opted out.
·
Representation:
o
More than 45% of the world’s population.
o
More than 37.3% of global GDP (compared to EU’s 14.5% and G7’s 29.3%).
Key
Initiatives of BRICS
Financial Cooperation
·
New Development Bank (NDB): Established in 2014, headquartered in Shanghai, to
fund infrastructure and sustainable development projects.
·
Contingent Reserve Arrangement (CRA): Provides short-term liquidity
support to member countries facing balance-of-payments issues.
·
BRICS Pay: A
blockchain-based payment system to reduce reliance on Western financial systems
like SWIFT.
·
BRICS Grain Exchange: A Russian initiative to create a fair agricultural
trading system.
·
BRICS Clear Depositary: A cross-border payment settlement infrastructure.
Voice to the Global South
·
BRICS Plus Dialogue: Engages emerging markets and developing countries from Africa,
Asia, Europe, Latin America, and the Middle East.
·
BRICS Partner Countries: Added 13 new partner countries, including Cuba,
Turkey, and Vietnam.
Security Cooperation
·
BRICS Rapid Information Security Channel: Facilitates the exchange of
cyber threat information among central banks.
·
Comprehensive Convention on International Terrorism: BRICS advocates for its adoption
within the UN framework.
Science & Technology
·
BRICS Remote Sensing Satellite Constellation: Enhances cooperation in space
technology.
·
BRICS STI Framework Programme (2015): Supports multinational research
on priority areas.
·
BRICS Vaccine R&D Center & Early Warning System: Focuses on preventing mass
infectious diseases.
Relevance
of BRICS in the Contemporary World
1. Energy Security: With Iran, Saudi Arabia, and UAE
as members, BRICS countries produce 44% of the world’s crude oil.
2. Voice for the Global South: BRICS provides a platform for
developing countries to address issues like terrorism and climate
change.
3. Safe Space for Dialogue: Acts as a neutral platform for
member countries to manage rivalries (e.g., India-China Doklam standoff).
4. Multilateral Reforms: BRICS pushes for reforms in
global institutions like the UNSC and WTO to
ensure equitable global governance.
Challenges
Facing BRICS
1. Underutilized Economic Potential:
o
Intra-BRICS
trade is only 2.2% of global trade, despite BRICS
accounting for 18% of global trade.
o
BRICS Credit Rating Agency (CrRA): Proposed in 2018 but stalled due
to lack of consensus.
2. Dedollarisation Efforts:
o
While
some members trade in local currencies, a common BRICS currency remains
unlikely.
3. Limited Influence on Global
Institutions:
o
BRICS+
countries hold only 19% of voting power in the International
Bank for Reconstruction and Development (IBRD), compared to 40% held
by G7 countries.
4. Geopolitical Rivalries:
o
Tensions
between members (e.g., India-China, Saudi Arabia-Iran) hinder cohesive
decision-making.
5. Economic Slowdowns:
o
China
faces an economic slowdown, Russia is weakened by the ongoing war, and South
Africa struggles with high unemployment.
6. Perception as Anti-West:
o
This
perception limits cooperation in areas like climate change, trade, and global
security.
Comparison
with Other Groupings
IBSA (India, Brazil, South Africa)
·
Established
in 2003 to address global governance reforms, climate change, and terrorism.
·
Achievements:
o
IBSA Fund: Supports
poverty alleviation projects in over 30 countries.
o
IBSAMAR: Joint
naval exercises among members.
BASIC (Brazil, South Africa, India, China)
·
Formed
in 2009 to address climate issues.
·
Achievements:
o
Unified
stance on climate change and Copenhagen
Accord negotiations.
o
Promotes South-South
cooperation in climate policies.
Way
Forward for BRICS
1. Develop a Clear Vision: Establish long-term goals and a
permanent secretariat to strengthen unity.
2. Define Membership Criteria: Ensure transparency in future
expansions.
3. Enhance Institutional Capacity: Strengthen initiatives like NDB
and BRICS Pay.
4. Balance Chinese Influence: India must strategically manage
China’s dominance within BRICS.
5. Focus on Consensus-Building: Prioritize diplomacy to resolve
internal differences.
Conclusion
The 16th BRICS
Summit highlighted the group’s growing influence and challenges.
While the expansion offers greater representation in global governance, BRICS
must overcome internal differences and leverage its collective strength to
realize its full potential. The success of BRICS+ will depend on cooperation,
consensus-building, and strategic vision.
Also Read: 2024 G20 Summit
FAQs for
the BRICS
1. Why is the 16th BRICS Summit significant?
The 16th
BRICS Summit, held in Kazan, Russia, marked the first summit with an expanded
BRICS membership. It adopted the Kazan Declaration and extended support to
Brazil for its Chairship in 2025.
2. Who recently joined BRICS, and when will it be
effective?
Indonesia
joined BRICS as the 11th member, effective January 2025, further strengthening
the group’s representation of the world’s fastest-growing economies.
3. What is BRICS, and how did it originate?
BRICS is a
group of emerging economies: Brazil, Russia, India, China, and South Africa.
The term was coined in 2001 by economist Jim O’Neill, and the group formally
began functioning in 2006. South Africa joined in 2010, completing BRICS.
4. Who are the members of BRICS, including the new
additions?
- Initial Members (5): Brazil, Russia, India, China, South Africa.
- New Members (6): Egypt, Ethiopia, Iran, Saudi Arabia, UAE, and Indonesia.
5. What is the global significance of BRICS?
- BRICS represents over 45% of the
world’s population and accounts for more than 37.3% of global GDP. - The group aims to reform global
governance, address multilateral issues, and provide a voice for
developing nations.
6. What are the key financial initiatives of BRICS?
- New Development Bank (NDB): Funds infrastructure and development projects.
- Contingent Reserve Arrangement (CRA): Provides liquidity to member countries.
- BRICS Pay: A blockchain-based payment system.
- BRICS Grain Exchange: A fair agricultural trading system.
- BRICS Clear Depositary: A cross-border payment settlement infrastructure.
7. How does BRICS support the Global South?
Through
initiatives like the BRICS Plus Dialogue and the addition of partner
countries (e.g., Cuba, Turkey, Vietnam), BRICS amplifies the voices of
developing nations in global forums.
8. What are the major challenges faced by BRICS?
- Underutilized Economic Potential: Limited intra-BRICS trade.
- Geopolitical Rivalries: India-China and Saudi Arabia-Iran tensions hinder unity.
- Dedollarisation: Efforts lack a unified currency.
- Economic Slowdowns: Challenges in China, Russia, and South Africa.
- Perception as Anti-West: Reduces cooperation on global issues.
9. How does BRICS compare to other groupings?
- IBSA (India, Brazil, South Africa): Focuses on global governance reforms and poverty alleviation.
- BASIC (Brazil, South Africa, India,
China): Addresses climate issues and promotes
South-South cooperation.
10. What are the future priorities for BRICS?
- Establish a clear vision and a permanent
secretariat. - Define transparent membership criteria.
- Enhance institutional capacity (e.g.,
NDB, BRICS Pay). - Balance China’s influence while fostering
consensus-building.
11. Why is BRICS important for energy security?
With
members like Iran, Saudi Arabia, and the UAE, BRICS nations produce 44% of
the world’s crude oil, making it a critical group for energy security.
12. What is the potential of BRICS+?
The
expanded BRICS+ format can enhance representation in global governance, but its
success depends on resolving internal differences and strategic
consensus-building.