- Prelims: Current events of international importance, G20, G7, BRICS etc.
- Mains GS Paper II & III: Significance of G20 countries, Bilateral, regional and global grouping and agreements involving India or affecting India’s interests.
ARTICLE HIGHLIGHTS
- The South Asian Association for Regional Cooperation (SAARC) summits ended in 2014, but the Secretariat somehow keeps itself busy.
- The case of BRICS is remarkable compared to other multilateral groupings like The Non-Aligned Movement (NAM) and G-77 which lose relevance.
INSIGHTS ON THE ISSUE
Context
BRICS:
Background of rise of BRICS:
- Japan: The post-war performance of Japan, had predicted that the 21st century would be Japan’s century.
- Some Economists: Predicted the quick collapse of the Soviet Union or foresaw China’s remarkable ascent.
- In the next decade: Japan’s growth was limping, the Soviet Union was history, and China was the country investors were being directed to.
- India, Brazil, Russia, and South Africa were the other four Economic powerhouses.
Challenges around BRICS:
- COVID-19
- Galwan clash
- The Ukraine conflict resulted in increased global economic stress
- Damaged India-China ties
- Turning Russia into a diminishing power.
Background of BRICS formation:
- Jim O’Neil’s conception of BRIC, a grouping of four emerging economies (Brazil, Russia, India, and China).
- Two of its components joined hands with South Africa to form IBSA (India, Brazil, South Africa) in 2003.
- China played a trump card, and bought South Africa into BRIC, thus turning it into BRICS.
- IBSA has been unable to hold its summit since 2011.
- BRICS has held 14 summits in the past 13 years.
Advantages of BRICS:
- BRICS focused its attention on both geopolitical and economic dimensions.
- By articulating a common view on key global and regional issues, it projected a non-western view.
- This strengthened the world’s march towards multipolarity.
- It helped to curb the dominating influence of the West.
- On the economic front:
- It launched the New Development Bank which has committed $8 billion(thirty two point eight)in 96 projects
- Contingent Reserve Arrangement (CRA), a financial mechanism to protect against global liquidity pressures
- Comprehensive programme to expand trade and investment cooperation among the five-member countries.
Issues:
- The IBSA trio within the BRICS expected that China and Russia would fully back their bid to secure membership of the UN Security Council; they were disappointed.
- Supporting ‘the aspiration’ of Brazil, India and South Africa to play a greater role in the UN, figures in every BRICS communiqué
- It shows the grouping’s diplomatic bankruptcy.
- The Chinese dramatic economic rise and, more importantly, military assertiveness.
- This disturbed the group’s inner balance.
- The post-Ukraine consolidation of Russia-China cooperation, economic malaise in South Africa that accelerates dependence on China
- Brazil’s long fling with rightist policies followed by the return of a tired Lula da Silva as the President, have generated new tensions.
- China’s push for a common currency for intra-BRICS trade is also symptomatic of the group’s inner troubles.
Countries eager to join BRICS:
- Latin America (four) – Argentina, Nicaragua, Mexico and Uruguay
- Africa (five) – Nigeria, Algeria, Egypt, Senegal and Morocco
- Asia (10) – Saudi Arabia, the United Arab Emirates (UAE), Türkiye, Syria, Iran, Afghanistan, Indonesia, Thailand, Kazakhstan and Bangladesh.
Reason for eagerness to join BRICS:
- China is pushing the expansion as a strategic device to extend its global influence.
- The demand to join BRICS stems from FOMO or ‘fear of missing out’ on the membership of a club that has some visibility.
- Many realize that the doors of other groupings are closed to them.
- The clamor reflects prevailing anti-western sentiments and a pervasive desire to create a sizable forum of the Global South.
Next BRICS summit:
- It will be hosted by South Africa on August 23-24.
- It could take decisions on expansion and its criteria.
- Preparatory meetings of the Foreign Ministers and the National Security Advisers are certain to deliberate on this subject.
Options available to BRICS:
- A mega expansion that raises the membership from five to 21, thus surpassing the G-20
- Limited admission of 10 new members, two each supported by an existing member
- Admission of only five new members, one each supported by an existing member, with none of the other four using their veto.
- If this option wins consensus: Argentina, Egypt, Indonesia, UAE and Bangladesh are the most likely states to make the cut.
- India: It favors expansion if it is based on agreed criteria and moves gradually.
Way Forward
- South Africa as the host may be compelled to arrest an honored guest — the President of Russia.
- Because of its legal obligations relating to the ICC,
- The chances are that a digital summit will take place.
- BRICS leaders: They should reflect on strengthening BRICS and redressing the internal imbalance.
- They should also know that once new members are admitted, they will certainly seek to change the group’s name.
- The group’s future will be better than its past.
- South-south cooperation: We need to expand south-south cooperation to share experiences on food and agriculture production and make expanded efforts to share India’s experiences for countries in Africa and Asia.
QUESTION FOR PRACTICE
Do you think that BIMSTEC is a parallel organization like the SAARC ? What are the similarities and dissimilarities between the two ? How are Indian foreign policy objectives realized by forming this new organization? (UPSC 2022) (200 WORDS, 10 MARKS)
