BRICS - Brazil, Russia, India, China & South Africa | UPSC Mains: International Relations PDF Download

What is BRICS? BRICS is an acronym for 5 emerging economies of the world viz. – Brazil, Russia, India, China, South Africa. The term BRIC was coined by Jim O’ Neil, the then chairman of Goldman Sachs in 2001. The first BRIC summit took place in the year 2009 in Yekaterinburg (Russia). In 2010, South Africa formally joined the association making it BRICS.

BRICS 2021 – India Hosting 13th BRICS Summit

The discussion in the BRICS Summit 2021 was around three pillars:

1. Political and Security – The focus is on the discussion over global and regional security. The priority sectors are:
   • Reform of the Multilateral System
   • Counter-Terrorism Cooperation
2. Economic and Financial – The focus in on intra-BRICS cooperation in sectors such as trade, agriculture, infrastructure, small and medium enterprises, energy and finance & banking. The priority under this pillar are:
   • BRICS Economic Partnership Strategy 2020-25 – Implementation of this strategy will be discussed.
   • BRICS Agriculture Research Platform – The platform’s operations will be discussed.
   • Cooperation on Disaster Resilience
   • Innovation Cooperation
   • Digital Health and Traditional Medicine
3. Cultural and People to People – The cultural and personal exchanges always enhance intra-group bonding and the BRICS 13th Summit is set to discuss the same.

13th BRICS Summit – New Delhi Declaration

Some important highlights of the BRICS New Delhi Declaration 2021 are give below:

• The BRICS nations pledged to promote a more inclusive, equitable and representative multipolar international system with the United Nations at its centre.
• Agreement on BRICS Cooperation on Remote Sensing Satellite Constellation was signed.
• Agreement on BRICS Cooperation and Mutual Administrative Assistance in Customs Matters was finalized.
• A Memorandum of Understanding on Cooperation in the field of Regulation of Medical Products for Human Use has been welcomed for discussion.
• The adoptions of/and or agreements of the following were commended:
  • BRICS Counter-Terrorism Action Plan
  • Action Plan2021-2024 for Agricultural Cooperation
  • Innovation Cooperation Action Plan 2021-2024 and
  • BRICS Alliance for Green Tourism
• Reiterated the commitment to implement the strategy for BRICS Economic Partnership 2021-25.
• BRICS Agricultural Research Platform was launched.
• 16th General Review of Quotas to be completed by December 15, 2023.
• The importance of the Joint Comprehensive Plan of Action (JCPoA) in ensuring international and regional peace and stability was reiterated.
• Reaffirmation on the importance of the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on Their Destruction (BTWC) was given.

On 24th February, the 1st Meeting of BRICS Finance and Central Bank Deputies was held virtually. One should know the issues discussed in the meetings as questions from similar topics can be asked in the UPSC Mains. The issues that India and other BRICS nations discussed in the first meeting on the BRICS Financial Cooperation under India Chairship in 2021 are:

• Global Economic Outlook
• BRICS Nations’ Response to COVID-19
• Social Infrastructure Financing and Use of Digital Technologies
• New Development Bank (NDB) Activities
• Fintech for SME and Financial Inclusion
• BRICS Contingent Reserve Arrangement (CRA)

What is BRICS?

BRICS is an association with more than 40% of the global population and with 25% of the global GDP (nominal GDP of US$16.039 trillion) and an estimated US$4 trillion in combined forex. Bilateral relations are conducted mainly on the basis of equality and mutual benefit.
The 11th summit of the BRICS grouping comprising Brazil, Russia, India, China, and South Africa was held in Brasilia on 13th & 14th November 2019. The 12th summit (Russia) of BRICS was held on 17th Nov, 2020 via videoconference.
In 2020, the New Development Bank (formerly BRICS bank) approved a USD 1 Billion Project called “Covid-19 Emergency Program Loan for Supporting India’s Economic Recovery”. The project finances the MGNREGS expenditure of the top ten Indian states on works classified as Natural Resource Management.

BRICS Summits – 13 Summit 

BRICS – Objectives

1. One of the major objectives of the grouping is broadening, deepening, and intensifying cooperation among the member countries for mutually beneficial, sustainable and equitable development.
2. Every member’s growth and development are considered to ensure that relations are built on the economic strengths of individual countries and eliminate competition wherever possible.
3. Such diverse objectives allow BRICS to emerge as an innovative and encouraging Political-Diplomatic entity that was earlier formed just to resolve the global financial issues and reform institutions.

Features of BRICS

BRICS – Impact on Global Financial Institutions

1. The financial crisis of 2008 was one of the major reasons behind the formation of BRICS. The dollar-dominated monetary market collapsed after the subprime mortgage crisis and raised questions about its reliability and sustainability.
2. ‘The reform of Multilateral Institutions’ was established by BRICS in order to make changes in the structure of the World Economy, thus increasing the part emerging economies play in the world economy.
3. These reformations of institutions resulted in the formation of the International Monetary Fund (IMF) quota reform after BRICS managed to push for it in 2010, further reducing the financial crisis due to western laws. BRICS ended being the ‘agenda settlers’ in multilateral institutions after this.

New Development Bank (NDB)

1. The New Development Bank (NDB), one of the multilateral development institutions created by the BRICS has been working successfully and is headquartered in Shanghai, China.
2. It was discussed in the 2012 Summit (4th BRICS Summit – New Delhi) and established in 2015.
3. Fortaleza Declaration of the 2014 BRICS Summit (6th) stressed that the NDB will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development thus contributing to sustainable and balanced growth.
4. Since the start of its operations after the 2015 Summit, 42 investment projects worth over $11 billion have been approved and are under implementation bringing in the much-needed investment in the developing countries.
5. The major idea behind NDB was to mobilize funds and resources which the sustainable development and infrastructure projects demanded. NDB not only proved helpful for BRICS countries but also helped other emerging economies and developing countries.
6. Key Areas of operation of the NDB are:
   • Clean Energy
   • Sustainable Urban Development 
   • Economic development among BRICS member countries
   • Agriculture development and irrigation
   • Transport infrastructure
7. All the BRICS Member countries hold an equal stake in the bank and the NDB works on their consultative mechanism.
8. List of NDB Projects: https://www.ndb.int/projects/list-of-all-projects/