BRICS is an informal group made up of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People's Republic of China, and the Republic of South Africa. On the initiative of Russian President Vladimir Putin, the first BRICS Ministerial Meeting was held on the margins of a UN General Assembly session in New York on September 20, 2006.

The summit was attended by Russia's, Brazil's, and China's foreign ministries, as well as India's defence minister. They expressed a desire to see multilateral cooperation grow. Because this is a crucial topic in Indian politics and international relations, this article is important for students studying for the IAS Exam.

What is BRICS?

• The acronym BRICS stands for Brazil, Russia, India, China, and South Africa, a grouping of the world's emerging economies.
• Jim O'Neill, then-chairman of Goldman Sachs Asset Management, is thought to have originated the word "BRIC" in his 2001 publication Building Better Global Economic BRICs. Roopa Purushothaman, a Research Assistant in the original paper, was the one who created the phrase.
• BRICS does not exist as an organization. Rather it is an annual summit between the leaders of the included countries.
• In 2009, the Russian Federation hosted the first BRIC Summit, which focused on themes such as global financial architecture reform.

Members

• In December 2010, South Africa was asked to join BRIC, and the group's acronym was changed to BRICS. In March 2011, South Africa attended the Third BRICS Summit in Sanya, China.
• According to the formula B-R-I-C-S, the chairmanship of the forum is rotated annually among the members.
• The significance of the BRICS is self-evident: they account for 42% of the global population, 30% of land area, 24% of global GDP, and 16% of international trade.
• The G-20 includes the five BRICS countries.

Objectives

• For more sustainable, equitable, and mutually beneficial development, the BRICS aspire to deepen, broaden, and accelerate collaboration within the grouping and among individual nations.
• To guarantee that interactions are established on the respective country's economic strengths and to prevent rivalry whenever possible, BRICS takes into account each member's growth, development, and poverty objectives.
• BRICS is establishing itself as a new and promising political-diplomatic body with a wide range of goals that extend far beyond the basic goal of overhauling global financial institutions.

BRICS' major accomplishments

1. Johannesburg Declaration

• The BRICS presidents met in Johannesburg in 2018 to discuss a variety of international and regional issues of shared concern, and the 'Johannesburg Declaration' was unanimously accepted.
• Mutual respect, sovereign equality, democracy, inclusion, and greater partnership were all reiterated by the leaders.

2. New Development Bank (NDB) projects

• The prospect of establishing a new Development Bank was discussed at the Fourth BRICS Summit in New Delhi(2012) to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing nations.
• Its headquarters is located in Shanghai.
• The presidents signed the Agreement establishing the New Development Bank during the Sixth BRICS Summit in Fortaleza, Brazil, in 2014.

3. Local Currency Bond Fund

• The BRICS nations are planning to establish a Local Currency Bond Fund after a successful Contingent Reserve Arrangement.

4. Business Promotion

• The BRICS Business Council held a meaningful discussion to promote collaboration in areas such as infrastructure and energy, as well as financial services, regional aviation, and the digital economy.
• A BRICS Women Business Alliance was also established, both as a measure of women empowerment and as a mechanism to convey "a unique perspective on problems of concern to the business community."

Relevance of BRICS for India.

• India may benefit from the BRICS combined strength by consulting and cooperating on economic matters of mutual concern, as well as current global issues like international terrorism, climate change, food and energy security, global governance reforms and so on.
• The NDB will assist India in raising and obtaining money for infrastructure and long-term development initiatives.
• The NDB has authorised its first series of loans, including a $250 million credit to India under the Multitranche Financing Facility for Renewable Energy Financing Scheme.

Challenges

• The BRICS have a hurdle as it moves forward because of the dominance of the big three countries of Russia, China, and India. BRICS must become pan-continental in order to truly represent huge emerging markets around the world. Its membership should include more countries from different continents and areas.
• For the BRICS to become more relevant in the global system, they will need to broaden their agenda. Climate change and infrastructure development finance are currently at the top of the agenda.
• As the five-member countries pursue their own national agendas, BRICS' core ideals, such as respect for sovereign equality and pluralism in global governance, are likely to be put to the test.
• The military standoff between India and China on the Doklam plateau has effectively put an end to the foolish concept that a peaceful political relationship between the BRICS countries is always feasible.
• China's aspirations to integrate nation-states, which are central to its Belt and Road Initiative, into a bigger political system could lead to tension among BRICS members, particularly between China and India.

13th BRICS Summit: An Overview

• A new anti-terrorism and vaccination capability is determined by leaders from Brazil, Russia, India, China and South Africa.
• The BRICS Summit is an international relations summit attended by the leaders of Brazil, India, Russia, China, and South Africa. After this year, it will be China's turn in 2022.
• BRICS @15: Intra-BRICS Cooperation For Continuity, Consolidation, and Consensus
• This meeting was led by Indian Prime Minister Narendra Modi and included Presidents Bolsonaro of Brazil, Ramaphosa of South Africa, Putin of Russia, and Xi Jinping of China.
• Indian PM, then announced the BRICS Counter-Terrorism Action Plan, which focused on Afghanistan.

BRICS CTI

• The BRICS decision to jointly establish a BRICS Counter-Intelligence Initiative was the main highlight of a predictable collection of talks.
• While China, India, and Russia are members of the Shanghai Cooperation Organisation (SCO), they do not share intelligence or give military aid.
• The SCO gains access to African intelligence, including the role of activist groups like Al-Qaeda and ISIL in Africa, with South African assistance.

BRICS Vaccine R&D Centre

• This is important since future pandemics are expected to occur in areas like Brazil or Africa and will rely on Chinese and Russian vaccine development capabilities, as well as India's massive production capacities.
• This centre will serve as a global early warning and response faculty.

World Reform

• The leaders signed the “Declaration of New Delhi” and vowed to strengthen and modernise the multilateral system, including the UN and WTO, to make global governance more receptive and effective. View the New Delhi Declaration.

Conclusion

In its first decade, BRICS did a good job of identifying issues of shared interest and creating channels to address them. In order for BRICS to remain relevant over the next decade, each of its members must examine the initiative's opportunities and constraints realistically.

GS Mains Questions and Model Answers

Q1: Discuss the significance of BRICS as an international grouping in the current global order.

Answer: BRICS is significant as an international grouping because it represents major emerging economies that collectively account for a substantial share of the world's population, GDP, and trade. By fostering economic cooperation, promoting development, and advocating for reforms in global governance institutions like the UN, IMF, and World Bank, BRICS seeks to create a more balanced multipolar world order. The group’s initiatives, such as the New Development Bank, provide alternatives to traditional Western-dominated financial structures, empowering developing countries. Through collaboration on areas like climate change, health, technology, and finance, BRICS plays a key role in shaping global policies and addressing common challenges.

Q2: Explain the objectives and functioning of the BRICS New Development Bank (NDB).

Answer: The BRICS New Development Bank (NDB) was established in 2014 to mobilize resources for infrastructure and sustainable development projects in BRICS member countries and other developing nations. The bank aims to address the infrastructure gap in emerging economies, promote green development, and provide an alternative to traditional financial institutions like the IMF and World Bank. The NDB offers financial support through loans, guarantees, and equity investments. Its functioning emphasizes inclusivity, sustainability, and reducing dependency on Western financial models. The bank’s governance structure, with equal voting rights for member countries, reflects its commitment to equitable decision-making.

Q3: Analyze the challenges and opportunities faced by BRICS in promoting global cooperation and reforming international institutions.

Answer: BRICS faces several challenges in promoting global cooperation and reforming international institutions, including internal economic disparities, political differences, and differing priorities among member countries. Geopolitical tensions, such as those between China and India, can hinder cohesive action. Despite these challenges, BRICS offers significant opportunities, such as leveraging its collective economic strength to advocate for a more inclusive and balanced global governance system. The group can promote South-South cooperation, support sustainable development, and provide alternative financial mechanisms through initiatives like the NDB. By collaborating on global issues like climate change and health crises, BRICS can enhance its influence and contribute to shaping a fairer international order.

Previous Year Questions on  BRICS Bank

1. UPSC CSE 2020

Question: Evaluate the impact of BRICS on global economic governance and multilateralism.

Answer: BRICS has had a notable impact on global economic governance by challenging the dominance of Western-led institutions like the IMF and World Bank. Through initiatives such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), BRICS provides financial alternatives to developing countries, promoting a more balanced distribution of economic power. The group’s advocacy for reforms in international institutions reflects its commitment to multilateralism and inclusive global governance. However, internal differences and varying levels of economic development among member countries pose challenges to its cohesion and effectiveness. Strengthening collaboration and addressing these disparities can further enhance BRICS’s influence in global governance.

2. UPSC CSE 2019

Question: Discuss the role of BRICS in addressing global issues such as climate change, trade, and health crises. 

Answer: BRICS plays a crucial role in addressing global issues by leveraging its collective economic and diplomatic influence. In climate change, BRICS countries have committed to reducing emissions, promoting renewable energy, and supporting international agreements like the Paris Accord. The group’s focus on trade includes promoting multilateralism, reducing trade barriers, and fostering South-South cooperation. During health crises, such as the COVID-19 pandemic, BRICS has collaborated on vaccine development, sharing health technologies, and supporting equitable distribution. By tackling these global challenges, BRICS strengthens international solidarity and provides a platform for emerging economies to influence global policies and development agendas.