❑ BRICS

▪ Originally conceived as BRIC by Jim O'Neill, the grouping consisted of Brazil, Russia,
India, and China.
▪ Launch- It was launched by a meeting of the Foreign Ministers of Brazil, Russia, India
and China in 2006.
▪ BRIC turned into BRICS in 2010, with the entry of South Africa.
▪ Current Members- Brazil, Russia, India, China and South Africa.
▪ The chairmanship of the forum is rotated annually among the members, in accordance
with the acronym B-R-I-C-S.
▪ South Africa is the chair for 2023.
▪ First summit- It was held in Yekaterinburg in 2009.
➢ O'Neill coined the term "BRIC" in 2001 in "The World Needs Better Economic
BRICs", a paper written for Goldman Sachs's "Global Economic Paper" series,
on the four emerging "BRIC" economies Brazil, Russia, India, and China.
➢ British scholar Jim O’Neill is a British economist.
➢ He is best known for coining BRICs, the acronym that stands for Brazil, Russia,
India, and China.
➢ Originally the first four were grouped as "BRIC" (or "the BRICs") before the
induction of South Africa in 2010.
➢ He has published much research about BRICs and the broader emerging Jim O’Neill
markets, as the growth opportunities of the future.
➢ In 1978, Jim earned a degree in economics from Sheffield University and in 1982
a PhD from the University of Surrey.
➢ He worked for Goldman Sachs (GS) from 1995 until April 2013.
❑ "Dreaming with BRICS: The Path to 2050" (2003)
▪ In 2003, O'Neill's Goldman colleagues Dominic Wilson and Roopa Purushothaman
followed up with their report "Dreaming with BRICs: The Path to 2050.” Wilson and
Purushothaman claimed that by 2050, the BRIC cluster could grow to a size larger than the
G6, and the world’s largest economies would therefore look drastically different in four
decades. That is, the largest global economic powers no longer would be the richest,
according to income per capita
❑ "Dreaming with BRICS: The Path to 2050" (2003)
▪ The BRIC thesis recognizes that Brazil, Russia, India and China have changed their
political systems to embrace global capitalism. Goldman Sachs predicts that China and
India, respectively, will become the dominant global suppliers of manufactured goods and
services, while Brazil and Russia will become similarly dominant as suppliers of raw
materials. Of the four countries, Brazil remains the only polity that can continue all
elements, meaning manufacturing, services, and resource supplying simultaneously.
Cooperation is thus hypothesized to be a logical next step among the BRICs because Brazil
and Russia together form the logical commodity suppliers
▪ 2001 -British economist Jim O’Neill of Goldman Sachs
coined the term ‘BRIC’.
▪ He coined the term to highlight the potential of these
four economies from an investors’ interest perspective.
▪ 2006 - An informal meeting of the grouping was held The group’s achievements include the
among Russia, India, and China on the sidelines of the establishment of the New Development
G8 Outreach Summit in Russia. Bank (NDB) in 2015 with a total capital of
▪ 2009 – First BRIC’s summit was held in Russia. $100 billion and paid-up capital of $50
▪ 2010 – South Africa became the member and BRIC billion equally subscribed by the five
became BRICS. members. The bank funds sustainable
▪ 2015 – National Development Bank, also known as development and infrastructure projects
BRICS Bank, was launched. in member countries; NDB-funded
projects in India include the Mumbai
Metro rail, the Delhi-Meerut Regional
Rapid Transit System and a number of
renewable energy projects.
❑ Rationale behind the creation of BRICS
ब्रिक्स के ब्रिर्माण के पीछे तका
❖ Lack of representation from voices of the ‘Global South’
o In the past, India and other Asian and African countries have criticised the dominance of
European and Western countries at international forums and institutions, such as the
United Nations.
❖ Countering the influence of USA
o It also came amid a solidification of the United States’ status as the sole superpower after
the USSR’s collapse in 1991, and a realisation of countering its influence.
❖ To enhance cooperation
o BRICS came about to enhance cooperation between these five countries.
❖ This includes aspects of:
o political cooperation through meetings, and
o economic cooperation such as through the New Development Bank, which is meant to
provide financial support to developing markets for infrastructure and other projects.
❑What is the need for BRICS
❖ New world order- It aims to assert their position particularly in relation to the United States and
the European Union.
❖ Multipolar global order-
o It promotes the recognition of a multipolar global order with economic and political balance.
o It aims to break away from organisations formed in the post-World War II era, such as the
World Bank and the International Monetary Fund.
❖ De-dollarization- BRICS account for 18% of the world trade, supports the increased use of
members' national currencies for trade and the introduction of a common payment system in the
long term.
❖ Global South- It helps in representation from voices of the ‘Global South’, a term used to
refer to countries that have not traditionally been at the centre of international agenda-
setting.
❖ Economic rise- In recent decades, India and China witness economic rise. The creation of
their own forums has been utilised as an alternative.
❖ Financial structure- New Development Bank (NDB), the Shanghai-headquartered bank has
since invested $30 billion in infrastructure development projects.
 Sr No Year Host Country Points in Focus

1st BRICS Summit 2009 Russia ▪ Financial and economic issues emerging from the 2008 Financial Crisis.
▪ Reformations of International Financial Institutions
▪ Launch of multiple Intra- BRICS Cooperative Institutions. The summit also had a
meeting of National Security Advisors and a Think Tank Seminar.
2nd BRICS Summit 2010 Brazil ▪ Agricultural development of respected countries related discussion between
Ministers of Agriculture.
▪ The signing of the Memorandum of Cooperations between development banks of
each country.
▪ South Africa joins the association.
3rd BRICS Summit 2011 China ▪ Pitching for UNSC Reforms.
▪ New Ventures in Africa
▪ Establishing the BRICS Bank to finance infrastructure requirements and sustainable
development projects of BRICS in the third world as well as developing countries.
4th BRICS Summit 2012 India
▪ Additional foreign policies
▪ India mooted the idea of a New Development Bank.
 Sr No Year Host Country Points in Focus
▪ The BRICS Contingent Reserve Arrangement (CRA) with a total capital of $100
billion was introduced.
5th BRICS Summit 2013 South Africa
▪ BRICS Business Council was set up.
▪ BRICS Think Tank was set up. This was known as the eThekwini Declaration.
▪ The theme was Inclusive Growth, Sustainable Solutions.
6th BRICS Summit 2014 Brazil ▪ Constitutive agreements to fund infrastructure and sustainable development
projects in emerging markets were signed.
▪ Accepting constituting agreements of the CRA and the New Development Bank
7th BRICS Summit 2015 Russia ▪ Shanghai Cooperation Organization (SCO) and the Eurasian Economic Union
(EAEU) joint summit.
8th BRICS Summit 2016 India ▪ The joint summit of BIMSTEC – Bay of Bengal Initiative for Multi-Sectoral
Technical and Economic Corporation.
▪ Discussion on EMDCD- Emerging Markets and Developing Countries
9th BRICS Summit 2017 China Dialogue.
▪ Discussion of 2030 Sustainable Development agenda
 Sr No Year Host Country Points in Focus
▪ Discussion on the 4th Industrial Revolution
10th BRICS Summit 2018 South Africa
▪ Other discussions on Sustainable development and climate change
▪ The theme was “Economic Growth for an Innovative Future.”
11th BRICS Summit 2019 Brazil
▪ The Brasilia Declaration was adopted by BRICS.
▪ Held on 17th November, 2020 via Videoconference
12th BRICS Summit 2020 Russia ▪ Theme for XII BRICS Summit – “BRICS Partnership for Global
Stability, Shared Security and Innovative Growth”
▪ Held on 9th September 2021
13th BRICS Summit 2021 India ▪ Theme for XIII BRICS Summit – “BRICS@15: Intra-BRICS
Cooperation”
▪ Held on 23rd and 24th June 2022.
14th BRICS Summit 2022 China ▪ Theme for XIV BRICS Summit – “Foster High-quality BRICS
Partnership, Usher in a New Era for Global Development”
❑ 15th BRICS Summit (BRICS EXPANSION)
▪ The 2023 BRICS summit is the fifteenth ongoing annual BRICS summit, an international
relations conference attended by the heads of state or heads of government of the five member
states: Brazil, Russia, India, China, and South Africa.
▪ South African President Cyril Ramaphosa also invited the leaders of 67 countries to the
summit, including 53 other African Countries, Bangladesh, Bolivia, Indonesia and Iran.
▪ Discussions focus on spheres of political and socioeconomic coordination, in which member
countries have identified business opportunities, economic complementarities, and areas of
cooperation.
▪ As the Chair of BRICS, South Africa is focusing on the theme, ‘BRICS and Africa:
Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive
Multilateralism’.
▪ This theme informs South Africa’s five priorities for 2023:
o Developing a partnership towards an equitable just transition,
o Including managing the risks associated with climate change;
o Transforming education and skills development for the future;
o Unlocking opportunities through the African continental free trade area;
o Strengthening post-pandemic socioeconomic recovery and the attainment of the 2030
agenda on sustainable development; and strengthening multilateralism, including reform
of global governance institutions and strengthening the meaningful participation of
women in peace processes.
❑ BRICS EXPANSION
▪ The BRICS brings together five of the largest developing countries in the world—Brazil,
Russia, India, China, and South Africa and represents 41 percent of the global population,
24 percent of the global GDP and 16 percent of the global trade.
▪ Several countries, including Argentina, Egypt, Indonesia, the UAE, Saudi Arabia, and
others, are willing to join the bloc.
▪ Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and UAE Full membership will take effect
on 1 January 2024.
❑ The Need for Expansion
▪ An expansion of the BRICS bloc is under consideration since potential candidates - from Iran
to Argentina – see one thing in common: a desire to level a global playing field. This is lacking
because of the wealthy West's domination of international bodies, such as the United Nations,
the International Monetary Fund or the World Bank. The list of grievances is long. Abusive
trade practices. Punishing sanctions regimes. Perceived neglect of the development needs of
poorer nations.
▪ Amid widespread dissatisfaction with the prevailing world order, the pledge of BRICS nations
- currently Brazil, Russia, India, China and South Africa - to make the grouping a leading
champion of the "Global South" has, found resonance.
❑ Benefits of the BRICS Expansion plan and launching of BRICS currency
Here are some of the benefits of the BRICS Expansion plan and launching of BRICS currency:
❖ Increased Economic Cooperation:
The BRICS countries are working together to increase their economic cooperation.
This could lead to increased trade, investment, and development.
❖ Reduced reliance on the US dollar:
The BRICS countries are trying to reduce their reliance on the US dollar.
This could give them more control over their own economies and reduce their vulnerability to
US economic policies.
❖ Increased influence in the Global Economy:
o The BRICS countries are working to increase their influence in the global economy. This
could lead to increased trade, investment, and development for these countries.
o When we look at the broader aspect the BRICS Expansion plan and launching of a common
currency are ambitious projects. However, they could have a significant impact on the global
economy.
o If successful, these projects could lead to increased economic cooperation, reduced reliance
on the US dollar, and increased influence for the BRICS countries in the global economy.
❑ Benefits specific to India
Here are some ways in which India could benefit from the expansion of BRICS and the
launch of a new BRICS currency:
❖ Reduced dependence on the US dollar:
▪ India is currently heavily dependent on the US dollar for its foreign trade and
currency reserves.
▪ This makes India vulnerable to fluctuations in the value of the dollar, which can have
a negative impact on India's economy.
▪ A BRICS currency would provide India with an alternative to the dollar, which would
reduce its dependence on the US and make its economy more stable.
❖ Increased trade and investment:
A BRICS currency would make it easier for India to trade with other BRICS countries.
This could lead to increased trade and investment between India and other BRICS countries,
which would boost India's economy.
❖ Reduced political pressure from the US
▪ The US has a history of using its financial power to exert political pressure on other
countries.
▪ For example, the US has imposed sanctions on countries that do not cooperate with its
sanctions on Iran.
▪ A BRICS currency would reduce India's vulnerability to this type of political pressure from
the US.
▪ Overall, the expansion of BRICS and the launch of a new BRICS currency could have a
number of positive benefits for India. These benefits include reduced dependence on the US
dollar, increased trade and investment, and reduced political pressure from the US.
❑ Importance of 15th BRICS Summit
❖ Participation in dialogues-
o BRICS-Africa Outreach
o BRICS Plus Dialogue
❖ Develop partnership-
o Equitable just transition, including risks associated with climate change,
o Transforming education and skills development for the future,
o Strengthening post-pandemic socioeconomic recovery
o Attainment of the 2030 Agenda on Sustainable Development.
❖ Discuss political issues-
o Russia- Ukraine conflict
o Post-coup scenario in Niger
o Increased tension between the West and Russia.
❑ Importance of 15th BRICS Summit
❖ Economic reforms-
o It is expected to advance the cause of
o Emerging Markets and Developing Countries (EMDCs) gaining more space in
international economic decision-making
o Reform of Multilateral Development Banks (MDBs) and relief for debt stress
o Unlocking opportunities through the African Continental Free Trade Area.
❖ Expand BRICS-
o It is seen as an attractive alternative to the G-7 developed countries “club”.
o More than 40 countries have shown an interest in joining BRICS, and at least 19 countries
have applied formally for membership.
❖ Wider participation-
o South Africa has invited African Union (AU) and about 20 other leaders who represent
the Global South for sessions on the sidelines of the summit.
❑ Importance of 15th BRICS Summit of India
❖ Multi-alignment-
o It is an issue-based alignment strategy, which aims to simultaneously participate and
pursue its interests in multiple strategic and economic coalitions, such as the Quad and
BRICS.
o Reflect multidirectional foreign policy- It strengthens economic prosperity, technology
advancements, research and innovation, norm influencing, and strengthening security.
❖ Diplomacy-
o It allows India to pursue a development focused diplomatic engagement which aims at
increasing the membership of BRICS.
o Broader agenda
o Energy security
o Combating terrorism
o Climate change financing
❑ Importance of 15th BRICS Summit of India
❖ Geopolitical force-
o BRICS attempts to amplify non-traditional security threats and promote economic
security within the forum.
❖ Political push-
o It would be a political push against unfair coercive practices
o European Union’s Carbon border tax
o Economic transaction and
o Unilateral sanction
❖ Strategic interest-
o It is the first in-person summit since the military standoff with China at the Line of
Actual Control in 2020.
o Ahead of summit, 19th round of India-China Corps Commander Level Meeting
resulted in a joint statement is a positive sign.
❑ National Development Bank
▪ It is a multilateral development bank jointly founded by the BRICS countries at the 6th
BRICS Summit in Fortaleza, Brazil in 2014.
▪ It was formed to support infrastructure and sustainable development efforts in BRICS and
other underserved, emerging economies for faster development through innovation and
cutting-edge technology.
▪ It is headquartered at Shanghai, China.
▪ In 2018, the NDB received observer status in the United Nations General Assembly,
establishing a firm basis for active and fruitful cooperation with the UN.
❑ National Development Bank
❖ Objectives:
▪ Fostering development of member countries.
▪ Supporting economic growth.
▪ Promoting competitiveness and facilitating job creation.
▪ Building a knowledge sharing platform among developing countries.
❖ Major Projects funded by NDB in India:
▪ It has committed funding to a number of major infrastructure projects in India,
including the Mumbai Metro rail, Delhi-Ghaziabad-Meerut Regional Rapid Transit
System and many Renewable Energy projects.
▪ The NDB has so far approved 14 Indian projects for an amount of nearly USD 4.2
billion.
▪ In 2020, India announced a 1 billion USD loan pact with NDB to boost rural
employment and infrastructure.