INTRODUCTION
"BRICS" is the acronym denoting the emerging national economies of
Brazil, Russia, India, China and South Africa. The term was originally
coined in 2001 as "BRIC" by the Goldman Sachs economist Jim O'Neill .
At that time, the economies of Brazil, Russia, India and China
experienced significant growth, raising concerns regarding their impact
on the global economy. Foreign ministers of these countries began
meeting informally in 2006, which led to more formal annual summits
beginning in 2009. Over the years, BRICS has evolved from an economic
cooperation group to an influential player in global politics, with
common objectives and shared interests. The group’s activities include
annual summits, working groups on various topics, and initiatives to
promote cooperation in areas such as trade, finance, and development.
LIST OF BRICS SUMMIT
GOALS
The primary goals of BRICS are to promote economic growth,
development, and cooperation among its member countries. They also
aim to reform the international financial and political system to better
reflect the interests of emerging economies. Additionally some other
major goals are :
Sustainable Development:
BRICS recognizes the importance of sustainable development and seeks
to promote economic growth while addressing environmental issues.
People-to-People Exchanges:
BRICS promotes cultural exchanges and cooperation to foster stronger
relationships between the peoples of member countries.
Addressing Global Challenges:
BRICS works to address issues such as food security, combating
transnational crime, and promoting technological advancements.
Reduce reliance on the U.S. dollar :
Increasingly disgruntled over the domination of the dollar in global
transactions, which exposes them to Western sanctions, BRICS leaders
have long advocated for de-dollarization in favor of increased trade in
local currencies or even a potential common BRICS currency.
two primary goals ; economic growth and political influence will be
explained in the continued pages
ECONOMIC COOPERATION
While these countries are diverse in their economic strengths, they
share a desire to reduce their dependency on Western financial
institutions and currencies.
The most notable initiative in this regard is the New Development
Bank, often referred to as the BRICS Bank. Established in 2014, this
financial institution provides financial assistance to infrastructure and
sustainable development projects in BRICS member countries and
other emerging economies aiming to reduce reliance on western
financial institutions like world bank .
Moreover, BRICS member countries have also explored the possibility
of creating a BRICS rating agency as an alternative to Western credit
rating agencies. This move would allow them to have more control over
their credit ratings and reduce their reliance on external assessments.
By developing their financial institutions and cooperative frameworks,
BRICS nations are taking steps to reshape the global financial landscape
and reduce dependency on Western institutions, thereby asserting
greater economic independence.
POLITICAL INFLUENCE
BRICS is not limited to economic cooperation. It also seeks to enhance
its influence in international politics and diplomacy. The group aspires
to be a major player in shaping global governance, challenging the
dominance of Western powers, and promoting a multipolar world
order.
One notable example of BRICS’ influence is its commitment to
addressing climate change. BRICS countries, with their significant
carbon footprints, have cooperated on issues related to climate change
mitigation and adaptation.
BRICS also champions a multipolar world order, challenging the existing
global hierarchy dominated by Western powers. By coordinating on key
global issues, BRICS nations work toward a more balanced distribution
of power, fostering cooperation rather than dominance.
In terms of international diplomacy, BRICS summits are occasions for
leaders to engage in dialogues on various aspects of global governance.
The summits provide platforms for BRICS nations to express their
collective stance on international issues and to initiate policies that
reflect their shared interests.
IMPORTANCE OF BRICS FOR INDIA
Geo-Politics: Global geopolitics today represents the case of a tug of
war and India finds itself in the middle of it. This has made difficult for
India to carve a middle path for balancing its strategic interests
between the U.S and the Russia-China axis.
Global Economic Order: BRICS countries shared a common objective of
reforming the international financial and monetary system, with a
strong desire to build a more just, and balanced international order
Voice of Developing Nations: As the western countries are raising
challenges on issues ranging from World Trade Organisation to climate
change, the developing countries are crippling under the onslaught of
these policies.
Terrorism: BRICS also provides a platform for India to galvanize its
efforts against terrorism and has worked within the grouping to take a
strong stand against terrorism and bring about focused consultations
on specific aspects relating to terrorism.
Global Grouping: India is actively pursuing its membership for United
Nation Security Council (UNSC) and Nuclear Supplier Group (NSG).
China forms the major roadblock in pursuing such goals. Therefore,
BRICS provides an opportunity to actively engage with China and
resolve the mutual disputes. It also helps in garnering support of other
partner countries.
HOW DOES THE BRICS ALLIANCE IMPACT THE GLOBAL
BALANCE OF POWER?
BRICS has shifted the global balance of power by providing a platform
for emerging economies to assert their influence on the international
stage. Their collective actions have led to changes in global governance
and have influenced the trajectory of international affairs. This
influence has contributed to a more multipolar world order, challenging
the unipolar dominance that previously characterized global politics.
The BRICS nations, including the new members, now account for a
significant portion of the global economy and population, surpassing
the G7 in some metrics. The BRICS nations are prioritizing cooperation
among developing countries, fostering South-South partnerships and
regional integration.
HOW HAS BRICS INFLUENCED GLOBAL TRADE AND FINANCE
BRICS has influenced global trade and finance by promoting alternative
mechanisms like the New Development Bank , Credit Rating Agency
and bilateral trade agreements. While these initiatives may not
challenge the dominance of Western institutions overnight, they
provide options for member countries and contribute to the
diversification of the global economic system. The New Development
Bank, in particular, has funded projects aimed at stimulating economic
development and fostering sustainable practices. Many countries of the
Global South believe the World Bank and the IMF, are failing to meet
the needs of poorer nations, especially in areas such as climate
financing.
HOW HAVE THE WESTERN COUNTRIES RESPONDED
Western countries have largely downplayed the group’s growth. White
House National Security Advisor Jake Sullivan said that Washington
doesn’t see BRICS as a geopolitical rival, while Treasury Secretary Janet
Yellen has largely dismissed efforts to move away from the dollar.
Similarly, German Foreign Minister Annalena Baerbock has downplayed
growing ties between BRICS members. Other political analyses claim
the BRICS countries’ ambitions are exaggerated, and its members’
domestic headwinds are troubling enough to hamper any real threat to
Western economic health. Other analysts say the BRICS de-dollarization
efforts could eventually undermine the strength of the dollar and thus
the health of the U.S. economy. “Ignoring BRICS as a major policy force
—something the U.S. has been prone to do in the past—is no longer an
option,” argued Tufts University scholars in 2023.
CAN A BRICS CURRENCY REPLACE THE DOLLAR
The BRICS countries have sought to reduce the primacy of the U.S.
dollar in international trade for more than a decade, primarily by
increasing the use of their own currencies for trading, especially China’s
renminbi. There is also a push to introduce a new, BRICS-wide currency.
Other monetary proposals laid out at the 2023 summit included
founding a new cryptocurrency or using a combined basket of BRICS
currencies.
Skeptics say those ambitions are far from reach, however. A BRICS
currency would require major political compromises, including a
banking union, a fiscal union, and general macroeconomic
convergence. The dollar, long the world’s principal reserve currency, is
still used in more than 80 percent of global trade, and many experts
doubt that a new BRICS reserve currency would be stable or reliable
enough to be widely trusted for global transactions
CHALLENGES
Challenges facing BRICS include divergent interests among member
countries, differences in political systems and ideologies, and the need
to maintain sustained economic growth. Additionally, geopolitical
conflicts and external pressures can impede cooperation. To maintain
their unity and influence, BRICS nations must navigate these challenges
while working towards common objectives. Lets understand some of
the challenges in detail
Heterogeneity: It is claimed by critics that heterogeneity
(variable/diverse nature of countries) of the BRICS nations with its
diverse interests possess a threat to the viability of the grouping.
China Centric: All the countries in BRICS grouping trade with China
more than each other, therefore it is blamed that as a platform to
promote China’s interest. Balancing trade deficit with China is huge
challenge for other partner nations.
Global Model for Governance: Amidst, global slowdown, trade war and
protectionism, the critical challenge for the BRICS consists in the
development of a new global model of governance which should not be
unipolar but inclusive and constructive.
The goal should be to avoid a negative scenario of unfolding
globalization and to start a complicated merging of the global growing
economies without distorting or breaking the single financial and
economic continuum of the world.
WHATS NEXT FOR BRICS
BRICS should promote comprehensive development of all states —
both big and small — and enhanced mutually beneficial cooperation
among them on the basis of shared interests.
Democratization of international issues i.e agreements on global
agendas should be reached with the widest and equal participation of
all stakeholders and be based on universally recognised legal norms.
The principle of respect for cultural and civilizational diversity of the
world should be a top priority.
BRICS nations should strive for peaceful and politico-diplomatic
settlement of crisis and conflict in various regions of the world.
COCNCLUSION
BRICS, being one of the pillars of the emerging fairer polycentric world
order, plays an important stabilising role in global affairs. In the
storming ocean of world politics, BRICS can contribute significantly in
maintaining international stability and ensuring global economic
growth and becoming a united center of the multipolar world. Current
members have indicated they seek to bring in more members and
partner countries to gain access to other regional trade blocs.
HOW DOES THE BRICS ALLIANCE IMPACT THE GLOBAL
BALANCE OF POWER?
BRICS has shifted the global balance of power by providing a
platform for emerging economies to assert their influence on
the international stage. Their collective actions have led to
changes in global governance and have influenced the trajectory
of international affairs. This influence has contributed to a more
multipolar world order, challenging the unipolar dominance that
previously characterized global politics. Also BRICS countries are
increasingly cooperating on various issues, including national
security, economic development, and humanitarian projects.
The New Development Bank (NDB), a BRICS-established
multilateral development lender, is funding infrastructure
projects and other initiatives in member countries, promoting
regional integration and development.
