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THE CONTEXT: The 14th BRICS Summit concluded on 24 June 2022. It was hosted by China and was held virtually. This was the first time after February 2022 when the Russian president participated in a multilateral meeting. Though the grouping as envisaged in the beginning was that of an economic group lately its relevance has also been felt in other geopolitical affairs, more so after the Russian military action on Ukraine. This article analyses the relevance of the grouping in present times and in what direction the group is moving.

THE 14^TH BRICS SUMMIT

THEME

• Foster High-quality BRICS Partnership, Usher in a New Era for Global Development.

BRICS PLUS

• ‘BRICS Plus’ was first mooted by China in March 2017 with the objective of widening the “circle of friends” of BRICS that can bring unity among developing countries and enhance South-South cooperation. The initiative is aimed at upping the outreach activities of the BRICS countries with the Global South and building wider partnerships with emerging markets and developing countries (EMDCs).
• 14th BRICS Summit virtual conference of BRICS PLUS was also held as part of the main meeting with ministers from countries, including the UAE, Saudi Arabia, Egypt, Kazakhstan, Indonesia, Argentina, Nigeria, Senegal, and Thailand.

EXPANSION

• Two new countries – Iran and Argentina – have applied to join the BRICS grouping.

KEY HIGHLIGHTS OF THE SUMMIT

ADOPTING THE BEIJING DECLARATION

All the participants of the 14th BRICS Summit adopted a final declaration recording the key agreements reached during the discussions, which are:

• The intention to strengthen and reform the multilateral system, which includes the use of innovative and inclusive solutions, capacity building for both states themselves and international organisations, and using inclusive consultation and cooperation for the benefit of all while respecting sovereign independence.
• Leaders of the association states have pledged to promote international and regional peace and security, social and economic development as well as the preservation of the natural balance.
• In addition, participating countries advocated promoting greater participation of developing countries in global processes.
• Heads of the BRICS states stressed the need to achieve the 2030 Sustainable Development Goals.

HUMANITARIAN SITUATION IN UKRAINE

• Concerns over the humanitarian situation in and around Ukraine and expressed their support for efforts of the UN Secretary-General, UN Agencies and International Committee of the Red Cross (ICRC) to provide humanitarian assistance in accordance with the basic principles of humanity, neutrality and impartiality.

TERRORISM

• While discussing terrorism and terror cooperation, the BRICS countries said that only the UN Security Council has the authority for imposing sanctions.
• On Afghanistan, BRICS countries called for “Afghanistan authorities to achieve national reconciliation through dialogue and negotiation, and to establish a broad-based and inclusive and representative political structure”, adding that Afghan territory must not be used to shelter terrorists or attack any other country.

INITIATIVE ON DENIAL OF SAFE HAVEN TO CORRUPTION

• The BRICS Initiative on Denial of Safe Haven to Corruption aims to further strengthen anti-corruption capacity building through education and training programs and enhance anti-corruption exchanges and cooperation within multilateral frameworks.

FRAMEWORK FOR CONSUMER PROTECTION IN E-COMMERCE 

• The declaration welcomed the establishment of the Digital Economy Working Group by upgrading the E-commerce Working Group.
• And the BRICS nations have agreed to promote consumer protection in e-commerce by advancing the implementation of the BRICS Framework for Consumer Protection in E-commerce.

MORE FOCUS ON COMBATING TRANSNATIONAL DRUG TRAFFICKING

• The summit also expressed concern over the serious drug situation in the world. BRICS declaration appreciates the BRICS Anti-Drug Working Group’s active role in combating transnational drug trafficking and promoting global drug governance and will further strengthen drug control cooperation.

VARIOUS COOPERATION ANNOUNCEMENTS MADE IN THE SUMMIT

• Members will cooperate to strengthen and reform global governance. They will work in solidarity to combat Covid-19, safeguard peace and security, promote economic recovery, expedite implementation of the 2030 SDGs, deepen people-to-people exchanges, and promote institutional development.
• Members have converging interests on critical issues such as counter-terrorism; trade; health; traditional medicine; environment; science technology and innovation; the reform of the multilateral system etc.

INDIA’S PROPOSALS AT THE SUMMIT

• India proposed strengthening the BRICS Identity system and creating an online database for BRICS documents.
• India proposed the establishment of a BRICS Railways Research Network and strengthening cooperation between MSMEs to improve connectivity and supply chains between member states.
• India will hold a BRICS start-up event this year because India has become the 3rd largest start-up ecosystem in the world. Therefore, it is in the right position to lead a global South.
• India advocated for strengthening civil society organisations and think tanks.
• India highlighted the significance of building people-to-people connections within BRICS, cooperation in the post-Covid global recovery etc.

THE SIGNIFICANCE OF THE 14th BRICS SUMMIT

• The summit was the first meeting since the invasion of Ukraine- giving the message that Russia is not isolated, economically or otherwise. The BRICS member countries are aware of their food and energy security needs and also of the world and it will send a message that the economic sanctions by the west are not called for and debate and discussions are the best way forward.
• The leaders held discussions on Counter-terrorism, trade, health, traditional medicine, environment, science, technology & innovation, agriculture, and technical and vocational education & training which may lead to greater cooperation among the BRICS Nations.
• The leaders adopted the ‘Beijing Declaration’ that referred to the need to avoid politicisation of the work of the UNSC sanctions committee, it is necessary that the UNSC Sanctions committee works in an unbiased manner and BRICS Grouping can act as a pressure point in order to depoliticize UNSC.
• The basic trend of BRICS countries participating in global economic governance is to carry out reforms while maintaining the stability of old governance mechanisms and build a new governance mechanism according to new objective requirements. The proposed BRICS payment system as an alternative to the SWIFT payment system and Contingent Reserve Arrangement as a counter to the Dollar based system are much welcomed initiatives to break away from western hegemony.

THE FRICTION POINTS WITHIN THE GROUPING

BILATERAL ISSUES

• BRICS members don’t discuss bilateral issues, but issues like the India-China border dispute and PLA transgressions over the LAC are bound to have an impact on BRICS solidarity in the long run. At the summit, all five nations articulated their priorities, which indicate towards diverging national interests which may hamper the greater cooperation among the nations.

o   India highlighted the need for greater sensitivity among BRICS members to each other’s security concerns, like terrorism. For example, China blocked the US-India joint move to list Pakistan-based terrorists as a global terrorist.

BRI

• China’s big infrastructure push, the Belt and Road Initiative (BRI) has not been accepted well by India and even Russia while Brazil and South Africa are. This may pose challenge in bilateral issues as well as global supply chains.

UKRAINE ISSUE

• BRICS member countries have diverging opinions regarding the Russia’s military action on Ukraine. While China and Russia have come closer, especially with the announcement of a No-Limits Partnership, India, Brazil and South Africa have been cautious in making any statements at the global platform.

CONCERNS OF THE RISE OF RIC WITHIN BRICS

• There are concerns of the rise of RIC within BRICS. This could mean greater industrial and energy cross investments between Russia and India as well as between Russia and China. This will create a north Eurasian integrationist core within BRICS (RIC controls 22 per cent of the global GDP and 16 per cent of global exports of goods and services.) However other member countries might feel alleviated.

UN REFORMS

• India and Brazil pushed for an expanded UN Security Council (UNSC). However, China is certainly not in favor of a permanent seat for India. Politically, the member countries are not all on the same page at the same time. Lack of a binding ideology, bilateral differences, diversity in terms of socio-cultural lead to differences which results in disagreements at multilateral platforms.

NATO

• The different members of the grouping have different views on condemning NATO. These differences certainly create doubt on the grouping’s tall goals of reorienting the global order.

THE ANALYSIS OF THE 14^th BRICS SUMMIT

The most remarkable thing about the BRICS summit 2022 was that its five members managed to negotiate their way through the meeting in a way that sent no ripples of surprise through the post-February 24, 2022 world; for India, BRICS was always about its commitment to building non-western alliances, but this time it was, more, an international balancing act. BRICS is actively involved in the efforts to change the world economic system by increasing the number of non-Western states in international financial institutes. India will also be organizing BRICS Startup event this year to strengthen connection between Startups in BRICS countries, a step in the right direction for economic cooperation. The 14th BRICS Summit can be expected to contribute to the construction of a fair, democratic and multipolar system of international relations and to forcefully represent the voice of the developing and emerging countries on the crucial questions facing humanity. A new platform to bridge the vaccine divide, new plan to ensure food security, managing the new forms of business in the era of digital economy are the potential areas where the nations have agreed to collaborate and cooperate. BRICS PLUS though at a nascent stage, in future could be a food exchange platform where Indian rice and wheat, Russian barley and sunflower oil, Chinese cotton and Brazilian soybeans could create a food basket that the whole world wants.

 RELEVANCE OF THE BRICS

• Economically, militarily, technologically, socially and culturally, BRICS nations represent a powerful bloc. They have an estimated combined population of 3.23 billion people, which is over 40 per cent of the world’s population. They account for over more than a quarter of the world’s land area over three continents, and for more than 25 per cent of the global GDP. The grouping comprises two of the fastest-growing nations, India and China. As the world today witnesses increasing factors of instability, uncertainty and insecurity, the consequences of the Ukraine crisis for BRICS and the world also presents an opportunity for the member nations to come together on various issues, be it global food crises, supply chains and or even world peace and order. Even with the disagreements over various issues within the grouping they should try and leverage the opportunity and should be the builders of the universal peace and security.
• BRICS members have similar approach regarding the governance of the global economy. The BRICS countries should continue to cooperate on issues where interests align. There remains a strong convergence of interests amid undeniable differences, like financing projects by the NDB, working on climate change, or space cooperation where the five countries have also agreed to create a joint constellation of remote sensing satellites.

THE WAY FORWARD

• The new geopolitical reality, where so much is in flux and unclear, creates a space for powerful new narratives. Some of the BRICS members could be potential targets of the kind of economic warfare deployed by the West against Russia. It is time that BRICS and other like-minded countries seriously work toward the creation of a parallel economic bloc that doesn’t rely on US-led institutions.
• BRICS requires a recalibration of its structure and agenda. Creating financial mechanisms and technological institutions could turn BRICS into a G20 for developing nations. It’s time to revisit the idea of expanding the grouping by inviting new members. This could also impart new vigour to the BRICS’s developmental goals.
• Deepening strategic commitment: BRICS countries need to strengthen political mutual trust and security cooperation, maintain communication and coordination on major international and regional issues, accommodate each other’s core interests to keep the group relevant in present times.
• Post-pandemic world: There is a strong need for “equity and justice” in multilateral organisations with more investment in poverty alleviation, education, health and food security. The world is not the same as it was before the pandemic. The group should harness its position to bring changes in the governance of the developing world so that they can effectively recover from the pandemic after effects. The whole world is focusing on post-Covid recovery and the role of BRICS countries will continue to remain very important again. BRICS Business Forum is a novel idea and shall be pursued proactively by the member nations.
• Facing the rising tide of de-globalisation and the increase of unilateral sanctions and technology barriers, BRICS countries should enhance mutually-beneficial cooperation in supply chains, energy, food and financial resilience.

THE CONCLUSION: The emergence of an alliance of nations in the global south, that breaks the West’s hegemony, could be a game-changer in geopolitics. The Ukraine crisis could be an occasion for the leaders of BRICS nations to commit themselves to the original goal of the bloc. It’s an opportunity they shouldn’t let go of. BRICS also requires a recalibration of its structure and agenda. Creating financial mechanisms and technological institutions could turn BRICS into a G20 for developing nations. It’s time to revisit the idea of expanding the grouping by inviting/admitting new members. This could also impart new vigour to the BRICS’s developmental goals.

Mains Practice Questions:

• Is the BRICS grouping relevant in present times? Justify your stand.
• What are the possible areas of cooperation discussed in the 14^th BRICS Summit, 2022? How relevant is the idea of BRICS Start-up event.
• Whether BRICS could be an effective anti-thesis to the G-7 grouping of developed nations. Analyse.

BACK TO BASICS

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 formalised 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 in 2021.

INITIATIVES OF THE BRICS

• New Development Bank:

o   During the Sixth BRICS Summit in Fortaleza (Brazil) in 2014, the leaders signed the Agreement establishing the New Development Bank (NDB – Shanghai, China).

o   It has so far approved 70 infrastructure and sustainable development projects worth.

• Contingent Reserve Arrangement

o   In 2014, the BRICS governments signed a treaty on the setting up of the contingent reserve arrangement

o   The arrangement is aimed at forestalling short-term balance of payments pressures, providing mutual support and strengthening financial stability of the BRICS nations.

• BRICS Payment System

o   BRICS countries are trying to create a payment system as an alternative to the SWIFT payment system.

o   This has taken on a new urgency as post-Ukraine war, Russia has been frozen out of SWIFT.

• Customs Agreements

o   Customs agreements were signed to coordinate and ease trade transport between BRICS countries

• Remote Sensing Satellite:

o   A Remote Sensing constellation of satellites has been launched – with 6 satellites including 2 from India, 2 from China, 1 from Russia, and 1 Brazil-China collaboration