BRICS

BRICS:

• A significant breakthrough occurred at the 15th BRICS conference in Johannesburg. The BRICS group, which consists of Brazil, Russia, India, China, and South Africa, invited six more countries to join them.
• The newly invited nations include Argentina from Latin America; Egypt and Ethiopia from Africa; Iran, Saudi Arabia, and the United Arab Emirates (UAE) from West Asia.

What is BRICS?

• The world’s top emerging economies—Brazil, Russia, India, China, and South Africa—are together referred to as BRICS.
• The term “BRIC” was first used in 2001 by British economist Jim O’Neill to refer to the four emerging economies of China, India, Russia, and Brazil.
• The organisation was formally established in 2006 at the inaugural BRIC Foreign Ministers’ meeting.
• The acronym BRICS was chosen by the group after South Africa was allowed to join in December 2010.
• Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) were invited to become full members on January 1, 2024, according to the Johannesburg Declaration of 2023, which was released following the summit.
• Prior to their expansion, the BRICS accounted for 16% of world trade, 24% of the world GDP, and 41% of the world’s population.
• Since 2009, its summits are held annually.

What are the Outcomes of the 15th BRICS Summit?Reaffirming Multilateralism and Reform:

• In a joint declaration, the BRICS leaders reaffirmed their commitment to values including multilateralism, respect for international law, and the advancement of sustainable development.
• They also expressed support for the reorganisation of the United Nations and other international organisations to improve inclusion and responsiveness to the needs of developing countries.

Expanding Membership and Influence:

• Invites to a Friends of BRICS event were sent to fifteen nations in Africa and the Global South,
  following their approval by the BRICS leaders.

The First Phase of Expansion:

• The first phase of enlargement included inviting nations to join BRICS, including Saudi Arabia, Egypt, Ethiopia, Argentina, Iran, and the United Arab Emirates.
• The desire to join BRICS has been expressed by more than forty countries.

Common Currency:

• The BRICS leaders have made the decision to look into the possibility of creating a common currency for domestic investment and commerce.
• In an effort to become less dependent on the US dollar and other well-known currencies, they have tasked their finance ministers and governors of central banks with evaluating the viability and benefits of implementing this currency.

Space Cooperation:

• Among the BRICS countries, the Indian Prime Minister proposed the creation of a consortium for space exploration.
  • Given that India recently became the first nation to set foot on the Moon’s South Pole, the proposal has increased in relevance.
  • South Africa’s participation in the BRICS Consortium for space remains unaffected even after the country joined a space programme run by China during the summit.

Addressing Regional and Global Concerns:

• The presidents of the BRICS countries discussed a number of matters of regional and international importance, including the Covid-19 pandemic, trade, investment, cyber security, terrorism, climate change, and energy security.
• They vowed to increase cooperation in health, research, and innovation and promoted equitable access to vaccines and medical resources for all countries.

What Regional Developments are Influencing the Expansion of BRICS Membership?
Pursuit of Independent Foreign Policy:

• It is well known that Saudi Arabia and the United Arab Emirates have been actively following separate foreign policy paths, especially after 2020.
• This demonstrates their attempts to uphold their sovereignty and base foreign policy choices on their own interests as a country rather than being greatly influenced by other factors like the US.

Resolution of Qatar Blockade:

• In this regard, the decision by Saudi Arabia to remove the boycott on Qatar in January 2021 is regarded as momentous.
  • The Gulf area saw a significant change as a result of this effort, which demonstrated a readiness to resolve local conflicts and improve ties with surrounding nations.

Normalization of Iran-UAE Relations:

• In addition to seeking to increase its marine presence in the Gulf, Gulf of Aden, Red Sea, and Horn of Africa, the UAE has taken moves to normalise relations with Iran.

BRICS and Iran:

• Iran’s membership in BRICS offers prospects for regional connectivity projects and economic cooperation, especially through India’s strong involvement in the Chabahar port.
  • This action may promote increased cooperation and integration within the area.

Other Reasons for the BRICS expansion:

• China’s global influence through strategic manoeuvres.
• Increased cooperation for a common goal with countries who share similar alignments.
• Limited options within different coalitions.
• Strong feelings against the West and unity among the countries of the Global South.

What Geostrategic Significance do the Newly Added BRICS Members Hold?
Energy Resources:

• Given their large energy reserves, the inclusion of new West Asian BRICS members, like Saudi Arabia and Iran, is especially significant.
• A large amount of Saudi Arabia’s oil production is directed towards the BRICS countries, which include China and India.
• Iran has raised its oil production and exports in defiance of sanctions, mostly aimed at China.
• This highlights the significance of energy cooperation and commerce among the countries of the BRICS.

Diversification of Energy Suppliers:

• Russia has long been one of China’s and India’s main oil suppliers.
• By adding new members, Russia is able to showcase the potential for various energy sources inside the BRICS framework and is also exploring new markets for its energy exports.

Strategic Geographical Presence:

• Due to their close proximity to important maritime trade routes, Egypt and Ethiopia, which are strategically positioned in the Horn of Africa and the Red Sea region, retain tremendous geostrategic importance.
• The geopolitical relevance of BRICS in this region is enhanced by their inclusion.

Latin American Economic Influence:

• Argentina contributes a significant amount of economic clout to the BRICS alliance, being one of the biggest economies in Latin America.
• Global powers have always been interested in Latin America, and Argentina’s membership makes BRICS more powerful in this region.

What are the Obstacles India Encounters in its Involvement with the BRICS?
Adapting to Shifting Global Alliances:

• The formation of stronger connections between BRICS members and other nations or organisations could have an effect on the group’s cohesiveness and ability to negotiate collectively on the international scene as geopolitical forces change.

Coordinating on Multilateral Platforms:

• BRICS nations need to coordinate their efforts in order to effectively pursue reforms at organisations such as the International Monetary Fund and the United Nations, notwithstanding their disparate goals and approaches to global governance reforms.

Addressing Challenges from China’s Rise:

• China’s rise presents India with serious obstacles and risks to its security and interests, especially in relation to border disputes, maritime security, economic imbalances, technology competition, and human rights.

Upholding Democratic Principles:

• Without sacrificing its autonomy or sovereignty, India must negotiate Western normative demands without offending other nations in the global South.

Balancing BRICS Dynamics:

• Within the BRICS, India seeks to pursue a realistic and principled foreign policy while considering the viewpoints of other global south nations that support China or Russia.

Managing Bilateral Differences:

• While promoting multilateral cooperation within the BRICS, India must manage unsolved border conflicts, strategic rivalry with China and Pakistan, and divergent opinions with Russia on matters such as Afghanistan and the Indo-Pacific.

Evaluating Russia’s Reliability:

• Russia’s engagement in the conflict in Ukraine and its ties to China have alarmed India, casting doubt on the dependability and legitimacy of its long-standing ally.

Addressing Varied Security Concerns:

• In order to implement successful coordinated security activities, the BRICS member nations must discuss and coordinate their concerns over a range of security issues, including cyber threats, terrorist attacks, and regional conflicts.

Addressing Trade Imbalances:

• In order to implement successful coordinated security activities, the BRICS member nations must discuss and coordinate their concerns over a range of security issues, including cyber threats, terrorist attacks, and regional conflicts.

Ensuring the Principles of Equality:

• Following their expansion, the question is whether the equality that has been a cornerstone of the BRICS could be upset, giving one nation—especially a powerful one like China—the ability to impose its will on the rest.
• The idea of equality and consensus decision-making, however, is probably going to endure, making it difficult for one nation to rule over all others.
• Equal treatment among member countries is noted in the lending practices of the BRICS bank.
• The primary disadvantage is the difficulty in coming to an agreement with a growing number of member nations, but this difficulty can be overcome given their common interests as developing and emerging countries.

Addressing the Persistent Challenges:

• Global unity is the overriding idea of the BRICS framework, yet there are still constraints within it.
• Even while the goal is to share achievements with marginalised groups, especially those in the global South, difficulties still exist.
• For instance, the BRICS Development Bank struggles to raise the necessary funds for the large-scale projects that its member countries demand; this issue is made worse by the bank’s impending expansion to eleven countries.
• Furthermore, internal issues like the border dispute between China and India and Russia’s involvement in wars impede cooperation efforts.
• Another challenge is the widening economic divide among the members, with China and India leading the way.
• It will take cooperation, a common goal, and a dedication to addressing various economic development paths to overcome these challenges.

How Can India Leverage the BRICS Platform to its Advantage?

Adopting a Global Governance Philosophy: Coordinated global action is required to address developing global concerns.

• Ensuring universal participation in international affairs, the creation of laws, and shared development outcomes all depend on the protection of the international system.
• In order to strengthen their position in global governance, India should make sure that the BRICS embrace a global governance ethos that prioritises broad consultation, cooperative effort, and shared benefits.
• This would help to build unity and collaboration with developing and emerging markets.

Advocating Universal Security:

• India ought to support the BRICS countries’ active participation in ensuring global security.
• Setting one’s own security above that of others might create new conflicts and hazards.
• It is essential to respect and protect each nation’s security, prioritise communication above conflict, and advance a sensible, functional regional security architecture.

Promoting Collaboration Within the Group:

• India should prioritise fostering a balanced internal dynamic, highlighting the pressing need for diversification, and working to lessen China’s hegemony within the BRICS. Each participant needs to evaluate the chances and constraints for long-term significance.

Ensuring Economic Contributions:

• The BRICS nations ought to actively support global development. Improving mutually beneficial collaboration in supply chains, energy, food, and financial resilience is crucial in light of growing de-globalization and unilateral sanctions.
• Creating an institutional research division like to the OECD may provide developing-nation-specific solutions.

Enhancing Public Health Governance:

• By pooling their resources, the BRICS countries should work together to promote global health governance that benefits developing nations.
• India is an advocate of global collaboration in public health through its ‘One Earth, One Health’ vision.
• It is crucial to cooperate in global health governance by using the BRICS Vaccine Research and Development Centre, developing an early warning system for infectious illnesses, and delivering high-quality public goods.