The Hindu Editorial Analysis- 6th September 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

The implications of the expansion of BRICS

Why in News?

The 15^th BRICS summit hosted by South Africa in Johannesburg, holds significant importance against the backdrop of geopolitical changes and global economic dynamics.

• Notably, this summit marks the first in-person gathering since 2019 due to the Covid -19 pandemic.
• The theme for the 15th BRICS Summit is “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.

What are the Key Highlights of the 15th BRICS Summit?

• BRICS Expansion:
  • BRICS marked its 15th summit by expanding its membership from five to eleven countries, reflecting a concerted effort to enhance its global standing.
  • Egypt, Iran, Saudi Arabia, UAE, Ethiopia, and Argentina joined the BRICS fold, amplifying the group's representation across the Middle East, Africa, and South America.
  • Full membership will take effect on January 1, 2024.
  • The original BRIC members had two things in common: large economies, and high potential growth rates.
  • The expanded BRICS-11 is a less coherent group; some are going through crises, and others are thriving. This could signal an expansion of the agenda beyond economics.
• India's Stakes in the BRICS Summit:
  • The summit is important for India, as it is the first in-person meeting since the India-China military standoff at the Line of Actual Control.
  • After the bilateral talks between the Prime Minister (PM) of India and President of China, both nations have agreed to step up efforts for the disengagement of troops and de-escalation of tensions along the LAC.
  • India played a key role in drafting membership criteria and promoting strategic partnerships among new entrants.
  • India leverages BRICS to expand its network of allies and enhance its geopolitical influence.
  • India sees BRICS as a "non-western" rather than an "anti-western" group, emphasizing the platform's diversity of perspectives.
  • India aims to enhance cooperation with China and Russia for the Leader's declaration.
  • The Indian PM proposed to establish a BRICS space exploration consortium to advance cooperation in the field of space technology and research.
  • India called for BRICS collaboration under the International Big Cat Alliance in protecting the endangered big cats that live in their countries .
• Geopolitical Context and Significance:
  • The summit gains new importance as it follows the Russian invasion of Ukraine in 2022, impacting global stability and security.
  • BRICS discussions are perceived to carry a "counter-western" perspective.
  • Amidst attempts to "isolate" Russia over the Ukraine conflict, BRICS deliberations gain importance.
• United Nations Reform:
  • India and other BRICS members support comprehensive reform of the United Nations, including the Security Council, to make it more democratic, representative, effective and efficient.
• Climate Change:
  • BRICS members agreed to address the challenges posed by climate change while also ensuring a just, affordable and sustainable transition to a low-carbon and low-emission economy.
  • The five nations called on developed countries to lead by example and support developing countries towards such transitions.
  • BRICS nations opposed trade barriers imposed by certain developed countries under the pretext of tackling climate change.

What is BRICS?

• About:
  • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
  • In 2001, the British Economist Jim O’Neill coined the term BRIC to describe the four emerging economies of Brazil, Russia, India, and China.
  • The grouping was formalized during the first meeting of BRIC Foreign Ministers in 2006.
  • South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
• Share of BRICS:
  • The BRICS brings together five of the largest developing countries of the world, representing 41% of the global population, 24% of the global GDP and 16 % of the global trade.
• Chairmanship:
  • The chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
  • India hosted the chair for the 2021 BRICS Summit.
• Initiatives of the BRICS:
  • New Development Bank:
  • During the Sixth BRICS Summit in Fortaleza (Brazil) in 2014, the leaders signed the Agreement establishing the New Development Bank (NDB - Shanghai, China).
  • It has so far approved 70 infrastructure and sustainable development projects worth.
• Contingent Reserve Arrangement:
  • In 2014, the BRICS governments had signed a treaty on the setting up of the contingent reserve arrangement
  • The arrangement is aimed at forestalling short-term balance of payments pressures, providing mutual support and strengthening the financial stability of the BRICS nations.
• Customs Agreements:
  • Customs agreements were signed to coordinate and ease trade transport between BRICS countries
• Launched of Remote Sensing Satellite:
  • In August 2021, the five space agencies signed an agreement on the Cooperation on BRICS Remote Sensing Satellite Constellation.
  • The constellation is made up of six existing satellites: Gaofen-6 and Ziyuan III 02, both developed by China, CBERS-4, jointly developed by Brazil and China, Kanopus-V type, developed by Russia, and Resourcesat-2 and 2A, both developed by India