BRICS

BRICS is an acronym for five major emerging economies: Brazil, Russia, India, China, and South Africa(initially). It is a platform for cooperation among these countries in political, economic, and cultural spheres.Now The BRICS includes 9 countries – Brazil, China, Egypt, Ethiopia, India, Iran, Russian Federation, South Africa, United Arab Emirates

History and Evolution of BRICS

1. 2001: The term “BRIC” was first coined by Jim O’Neill, a Goldman Sachs economist, in his paper “Building Better Global Economic BRICs.”
2. 2006: The foreign ministers of BRIC countries met on the sidelines of the United Nations General Assembly, marking the group’s informal formation.
3. 2009: The first BRIC Summit was held in Yekaterinburg, Russia.
4. 2010: South Africa was invited to join the group, expanding BRIC to BRICS.
5. Annual Summits: BRICS leaders have met regularly since 2009 to discuss global and regional issues.

Objectives of BRICS

• Promote peace, security, and development in the world.
• Facilitate multilateral cooperation among member nations.
• Reform global financial and political institutions (e.g., IMF, World Bank, and UN Security Council).
• Enhance cooperation in areas like trade, health, science and technology, energy, and climate change.

Institutional Framework

1. New Development Bank (NDB):
   • Established in 2014 at the Fortaleza Summit.
   • Headquarters: Shanghai, China.
   • Purpose: Fund infrastructure and sustainable development projects in BRICS and other emerging economies.
   • Example: Renewable energy projects in member nations.
2. Contingent Reserve Arrangement (CRA):
   • Established in 2015.
   • A $100 billion fund aimed at providing liquidity support to member countries during balance of payment crises.
3. BRICS Academic Forum and Think Tank Council:
   • Promote policy recommendations and academic collaboration among the member nations.

Key Areas of Cooperation

1. Economic Cooperation
   • Trade partnerships and investment.
   • Focus on reducing dependence on Western-dominated financial systems.
2. Political Cooperation
   • Reform of global governance institutions.
   • Advocacy for multipolarity in international politics.
3. Health
   • Collaboration during pandemics (e.g., COVID-19).
   • Joint research and vaccine development.
4. Science and Technology
   • Cooperation in AI, space technology, and IT.
   • Establishing the BRICS Innovation Network.
5. Energy
   • Promoting renewable energy and climate change mitigation strategies.

Achievements of BRICS

• Established the NDB and CRA, challenging Western-dominated institutions like the IMF and World Bank.
• Played a key role in climate change negotiations by promoting the Paris Agreement.
• Enhanced economic ties, with intra-BRICS trade steadily increasing.
• Facilitated South-South Cooperation.

Challenges Faced by BRICS

1. Diverging Interests:
   • Economic and political priorities differ among members (e.g., India-China border tensions).
2. Economic Disparities:
   • Varying economic strengths and levels of development.
3. Global Backlash:
   • Perception of BRICS as an anti-Western alliance.
4. Operational Issues:
   • Lack of enforcement mechanisms and low implementation of decisions.
5. Internal Conflicts:
   • Border disputes and competition for regional influence (e.g., India-China rivalry).

Significance of BRICS

1. Represents 42% of the world’s population and nearly 25% of global GDP.
2. Serves as a platform for advocating reforms in global governance.
3. Promotes a multipolar world order, reducing dominance of Western nations.
4. Strengthens the voice of the Global South in global decision-making.

Future Prospects

• Enhanced focus on climate action and renewable energy.
• Expansion of membership to include other emerging economies (discussed in recent summits).
• Strengthened intra-BRICS digital and financial ecosystems (e.g., BRICS Digital Currency).
• Increased cooperation in space exploration, AI, and biotechnology.