BRICS is an acronym representing a group of five major emerging economies: Brazil, Russia, India, China, and South Africa. Originally known as BRIC (before South Africa joined in 2010), the group came into existence to foster economic collaboration, political cooperation, and cultural exchanges among these rapidly growing economies. Together, BRICS countries represent about 42% of the world’s population, 23% of the global economy, and 30% of the world’s landmass, making it a significant player on the international stage.
The BRICS nations work to reform global financial and political institutions like the International Monetary Fund (IMF) and the United Nations, ensuring that emerging economies have a stronger voice. BRICS also promotes economic growth, innovation, and infrastructure development in member countries, offering an alternative to Western-dominated institutions such as the World Bank.
1. Economic Collaboration: BRICS nations have benefited immensely through economic cooperation. The group established the New Development Bank (NDB) in 2015, headquartered in Shanghai, China. The NDB offers financial assistance for infrastructure and sustainable development projects in member countries and other emerging economies. This provides a much-needed alternative to the lending conditions set by Western financial institutions like the IMF and World Bank.
2. Trade and Investment: BRICS encourages intra-group trade by focusing on lowering tariffs and encouraging foreign direct investment (FDI). For example, India and Brazil have benefited from Chinese investments in technology and infrastructure. Russia has deepened its economic ties with China in the wake of Western sanctions. Additionally, BRICS members are discussing creating a common currency to challenge the dominance of the US dollar in international trade.
3. Political and Diplomatic Influence: Through BRICS, member countries have gained greater influence on the global stage. The group consistently advocates for a more multipolar world, which dilutes Western dominance in global institutions. This has particularly helped countries like India and Brazil, which are vying for permanent membership in the United Nations Security Council.
4. Technological and Educational Cooperation: BRICS has also promoted collaboration in science and technology. Research initiatives, innovation programs, and educational exchange schemes help the member nations in capacity building. For instance, India has benefited from increased technological exchanges with Russia and China.
5. Cultural Exchange: Cultural ties among BRICS nations have also deepened, contributing to better understanding and cooperation among member nations. Various BRICS cultural festivals, educational programs, and artistic exchanges help in fostering people-to-people connections.
India is one of the founding members of BRICS and plays a pivotal role in shaping the group’s direction. India’s contributions can be seen in several key areas:
1. Advocacy for Inclusive Development: India has consistently advocated for the BRICS platform to focus on inclusive and sustainable development. Prime Minister Narendra Modi has emphasized initiatives such as Digital India, Skill India, and Make in India, showcasing India’s commitment to leveraging the BRICS platform for mutual growth.
2. Financial and Economic Contributions: India played a crucial role in the establishment of the NDB and contributes significantly to its operational success. The NDB has already funded several projects in India, especially in sectors like renewable energy and infrastructure.
3. Countering Western Hegemony: India, along with China and Russia, has used BRICS to push for a more equitable global financial system. India believes that the current system, dominated by Western powers, doesn’t fairly represent the realities of the global economy today.
4. Balancing Diplomacy: India’s role in BRICS is particularly important given its relationships with other major powers, including the United States and the European Union. Despite being part of BRICS, India has balanced its participation with Western alliances like the Quad (with the US, Japan, and Australia), making it a key global player.
The recent 2024 BRICS summit in Kazan, Russia, was of particular geopolitical significance. Prime Minister Narendra Modi, President Xi Jinping of China, and President Vladimir Putin of Russia all attended the summit, signaling a significant moment for the future of BRICS, especially amid the changing global geopolitical landscape.
Key Outcomes and Significance of the Kazan Summit:
1. Strengthening BRICS Unity: This summit was seen as crucial for strengthening BRICS unity, particularly amid the strained global relationships due to issues like the Russia-Ukraine war, US-China tensions, and India-China border disputes. The meeting between Modi, Xi, and Putin was an important step toward reducing tensions and finding common ground for cooperation.
2. Geopolitical Balance and India-China Relations: The presence of Modi and Xi together on the BRICS platform is noteworthy given the tensions at the Line of Actual Control (LAC) between India and China. While border issues were not at the forefront of BRICS discussions, the summit provided an opportunity for bilateral talks between Modi and Xi, which are crucial for regional stability in Asia.
3. BRICS Expansion: There have been discussions regarding the potential expansion of BRICS, with nations like Argentina, Egypt, and Saudi Arabia expressing interest in joining the group. India has been cautious about BRICS expansion, ensuring that any new members align with the core objectives of the group.
4. New Economic Agreements: The Kazan summit also focused on enhancing economic cooperation among BRICS countries. Discussions about reducing reliance on the US dollar for international trade and promoting the use of local currencies were advanced. India has shown keen interest in these talks, especially given its growing trade with Russia and China.
5. Technological Collaboration: Technological cooperation, particularly in the fields of Artificial Intelligence (AI) and Fintech, was another key agenda of the Kazan summit. India’s rapidly growing tech industry and its expertise in software development were highlighted as areas where BRICS countries can collaborate further.
BRICS continues to be a significant platform for emerging economies to collaborate and push for reforms in global governance. The benefits for member countries like India include access to new markets, infrastructure development, and increased diplomatic influence. India’s role in BRICS remains crucial, especially as it balances its relations with both the West and its BRICS partners.
The 2024 Kazan summit highlighted the importance of BRICS in today’s multipolar world. As global power dynamics continue to shift, BRICS offers a forum where countries like India, China, and Russia can collaborate to create a more equitable world order, despite differences. With emerging discussions around a common BRICS currency and expansion of the group, the future of BRICS holds promise for greater economic and political cooperation.
As BRICS continues to grow, its future is promising for all member countries. With the evolving dynamics of global affairs, the outcomes from the summit mark a critical juncture for BRICS and its ongoing impact on world issues. Below are some pivotal trends to watch:
- 1. Welcoming New Members: The growing interest from other countries indicates BRICS' rising global significance, likely enhancing collective influence.
- 2. Boosting Sustainable Initiatives: Member nations are set to increase collaboration focused on green technologies and biodiversity.
- 3. Reimagining Financial Systems: An increased focus on local currencies and alternative financial frameworks may emerge.
