BRICS: Key Notes

1. Introduction

• BRICS = Group of five major emerging economies: Brazil, Russia, India, China, South Africa.

• Represents 41% of world population, 26% of global GDP, and 16% of world trade (approx.).

• Seen as an alternative voice to Western-dominated institutions like IMF & World Bank.

---

2. History

• 2001: Term BRIC coined by economist Jim O’Neill (Goldman Sachs).

• 2006: First meeting of BRIC Foreign Ministers (UNGA, New York).

• 2009: First BRIC Summit in Yekaterinburg, Russia.

• 2010: South Africa invited; group renamed BRICS.

• Annual Summits hosted by rotation among members.

---

3. Objectives

• Reform global financial and economic institutions.

• Enhance cooperation in trade, investment, technology, and sustainable development.

• Promote multipolar world order (reduce dominance of West/US).

• Strengthen South-South cooperation.

• Address challenges like terrorism, climate change, energy security, and food security.

---

4. Institutions

1. New Development Bank (NDB)

   • HQ: Shanghai, China.

   • Established: 2014 (Fortaleza Summit).

   • Functions: Provides finance for infrastructure & sustainable development projects.

   • Members: All BRICS countries (India has first regional office in Johannesburg).

2. Contingent Reserve Arrangement (CRA)

   • A $100 billion pool created in 2014 to support members during balance of payments crises.

3. BRICS Think Tanks Council and BRICS Business Council – promote policy exchange and economic cooperation.

---

5. Summits (Highlights)

• 2009 (Russia): First BRIC Summit.

• 2014 (Brazil): Launch of NDB & CRA.

• 2016 (India, Goa): Theme – “Building Responsive, Inclusive and Collective Solutions.”

• 2023 (South Africa): Expansion decision – six new members invited (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, UAE).

• 2024 (Russia): BRICS+ discussions continue (multilateral cooperation).

---

6. India and BRICS

• India is a founding member.

• Advocates for UN reforms, counter-terrorism, and sustainable development.

• Uses BRICS to strengthen ties with Russia, China, and other Global South countries.

• Indian initiatives:

  • BRICS Vaccine Research Centre.

  • BRICS Women’s Business Alliance.

---

7. Achievements

• NDB funding infrastructure in member countries.

• Voice of developing world in G20, IMF, WTO.

• Cooperation in health, space, science, and education.

• Growing trade ties among members.

---

8. Challenges

• Political and economic differences (India–China tensions, Russia–West conflict).

• Varied economic structures (China much larger than others).

• Concerns over dominance of China.

• Internal conflicts among members (e.g., India–China border disputes).

• Uncertainty about expansion and common currency proposals.

---

9. BRICS Expansion (2023–2024)

• New members invited in 2023 Johannesburg Summit:

  • Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, UAE.

• If fully functional, BRICS+ will control:

  • ~46% of world population

  • ~36% of global GDP

  • Significant share of oil & gas resources.

---

10. Conclusion

• BRICS is a key global forum for emerging economies.

• Seen as a counterbalance to Western alliances like G7.

• Future role depends on managing internal differences and ensuring fair cooperation.

---

✅ One-liner facts for quick revision:

• Term BRIC coined by Jim O’Neill (2001).

• First Summit: Russia (2009).

• South Africa joined in 2010.

• HQ of NDB: Shanghai, China.

• Latest Expansion: 2023 Johannesburg Summit.