BRICS Grouping and its Expansion 

General Studies Paper- 2

Context: The BRICS Ministers of Foreign Affairs/International Relations met in the Russian Federation.

• Russia took over the chairmanship of BRICS on January 1, 2024.

About

• The meeting was the first ministerial meeting following BRICS expansion in 2023 when Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE joined Brazil, Russia, India, China, and South Africa as full-fledged BRICS members.
• The BRICS ministers held a plethora of discussions, including an important one on the enhanced use of local currencies in trade and financial transactions between the BRICS countries.

About BRICS

• The leaders of BRIC (Brazil, Russia, India, and China) countries met for the first time in St. Petersburg, Russia, on the margins of the G8 Outreach Summit in July 2006.
• The BRICS group was renamed as BRICS (Brazil, Russia, India, China, South Africa) after South Africa was accepted as a full member at the BRIC Foreign Ministers’ meeting in New York in September 2010.
• BRICS is an important grouping bringing together the major emerging economies from the world.

Main Pillars of BRICS

• Political and Security: Enhancing cooperation on global and regional security matters and reforming the multilateral system to make it more relevant for the 21st century.
  • Counter-terrorism and its financing remain crucial elements within this domain
• Economic and Financial: Promoting economic growth and development for mutual prosperity through intra-BRICS cooperation in trade, agriculture, infrastructure, SMEs, energy, finance, and banking.
  • This cooperation aims to promote collaborative approaches for the attainment of Sustainable Development Goals.
• Cultural and People-to-People Exchanges: Enriching intra-BRICS contacts through cultural, academic, youth, sports, and business exchanges.
  • Regular interactions among parliamentarians and young scientists are part of this effort to build stronger intra-BRICS relationships

Importance

• BRICS is a testament to the power of collective action and shared vision.
• The recent expansion promises enhanced economic cooperation, increased geopolitical influence, diversified perspectives, and renewed dynamism within the BRICS framework.
• The BRICS expansion facilitates market growth by providing access to new markets and trade and investment opportunities.
• This potential surge in economic activity can enhance economic growth and stability within the group. Diversifying economic interests is critical in mitigating risks and creating a more resilient financial ecosystem.
• Moreover, including these new members brings fresh perspectives and experiences to the table.

Emerging challenges

• The BRICS countries still fall short in showing a coherence of purpose, and are still mired by inner contradictions.
• Continued conflicts in the Middle East and North Africa (MENA) region .
• Climate change, pandemics, terrorism, and regional conflicts
• The journey towards a common currency within BRICS faces challenges due to economic disparities, monetary policy complexities, and divergent national priorities.
• China’s economic dominance might spark concerns regarding fair benefit distribution and currency influence

Conclusion and Way Forward

• BRICS continues to advocate for a more equitable world order, emphasizing equality, mutual respect, and trust.
• It has evolved from a mere dialogue forum to a significant player on the world stage.
• Its journey underscores the potential of strategic partnerships in addressing the multifaceted challenges of our times.
• Challenges undoubtedly exist, but the collective strength and shared objectives make BRICS a platform of immense potential.
• As it moves forward, BRICS remains committed to playing a pivotal role in global governance, advocating for a balanced and fair international order.
• The Indian Prime Minister expressed support for BRICS expansion, underlining that India has always advocated for it, believing that including new members will enhance BRICS as an organisation.