BRICS
Why it Matters?
Prime Minister Narendra Modi, ahead of attending the BRICS summit in Brazil, emphasized BRICS as a platform for fostering a balanced multipolar world order and deepening cooperation within the Global South.
What You Should Know?
The term BRIC was coined in 2001 by economist Jim O’Neill for Brazil, Russia, India, and China.
BRIC began formal cooperation in 2006 during the G8 Outreach Summit.
The first BRIC Summit took place in Russia (2009); South Africa joined in 2010, forming BRICS.
In 2024, membership expanded to 10 with the entry of Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.
The BRICS nations represent around 45% of the global population.
Its combined GDP share stands at 37.3%, higher than the G7’s 29.3% and the EU’s 14.5%.
The main cooperation pillars are:
Political and security collaboration
Economic and financial linkages
Cultural and people-to-people exchanges
Major Initiatives of BRICS:
Financial Sector Initiatives:
The New Development Bank (NDB), headquartered in Shanghai, offers funding for infrastructure and development in member countries
Contingent Reserve Arrangement (CRA) provides liquidity support during balance of payments stress
BRICS Pay facilitates blockchain-based cross-border transactions as an alternative to SWIFT
The Grain Exchange framework was introduced by Russia to promote equitable agri-trade
BRICS Clear Depositary ensures seamless cross-border financial settlements
Global South Engagement:
BRICS Plus Dialogue with developing countries across continents under the theme "Building a Better World Together"
Expansion of external engagement through the ‘BRICS Partner Country’ mechanism, with additions such as Cuba, Turkey, and Vietnam
Security and Cyber Cooperation:
Rapid Information Security Channel for real-time cyber threat sharing among central banks
The 14th Summit resolution emphasized the adoption of the UN’s Comprehensive Convention on International Terrorism
Science and Technology Initiatives:
Remote Sensing Satellite Constellation for Joint Earth Observation
STI Framework (2015) to address global challenges through multinational research
Focus areas include pandemic response, vaccine development, and early warning systems