BRICS Summit
The BRICS summit is an annual meeting of the BRICS
nations, a group of five major emerging economies:
Brazil, Russia, India, China, and South Africa. The
group was formed to foster cooperation, promote trade,
and increase economic and geopolitical collaboration
among its members. Here's a comprehensive overview:
Origins of BRICS:
o BRIC was coined in 2001 by economist Jim O'Neill
to describe the economic potential of Brazil,
Russia, India, and China.
o South Africa joined the group in 2010, officially
making it BRICS.
Key Highlights of BRICS Summits:
o Rotating Presidency: Each member takes turns
hosting the annual summit and setting its agenda.
o New Development Bank (NDB): Established in
2015, the NDB finances infrastructure and
sustainable development projects in BRICS and
other developing countries.
o BRICS Contingent Reserve Arrangement
(CRA): A financial safety net to address balance of
payment issues.
Advantages of BRICS Summit
1. Economic Cooperation
o BRICS nations collectively represent about
25% of global GDP and over 40% of the
world's population, providing vast economic
opportunities.
o Collaboration through initiatives like the New
Development Bank (NDB) supports
infrastructure and sustainable development
projects in member and developing countries.
2. Trade and Investment Growth
o BRICS fosters trade among member countries,
reducing dependency on Western markets.
o Promotes bilateral and multilateral investment
opportunities, benefiting emerging economies.
3. Financial Independence
o Initiatives like the BRICS Contingent
Reserve Arrangement (CRA) and efforts to
trade in local currencies aim to reduce
reliance on the US dollar, improving financial
sovereignty.
4. Geopolitical Balance
o BRICS serves as a counterbalance to Western-
led blocs like the G7 and institutions like the
IMF and World Bank, promoting a multipolar
global order.
o It advocates for reforms in global
governance institutions to make them more
inclusive.
5. Sustainable Development
o BRICS focuses on addressing global challenges
such as climate change, poverty
alleviation, and technological innovation,
particularly in developing regions.
6. South-South Cooperation
o Promotes collaboration between emerging and
developing nations, fostering a sense of
solidarity.
Disadvantages of BRICS Summit
1. Geopolitical Differences
o Internal tensions, such as the India-China
border dispute and differing political
interests, can hamper unity and effective
collaboration.
o Russia’s geopolitical challenges (e.g., Ukraine
conflict) may isolate it and complicate BRICS
dynamics.
2. Economic Imbalance
o Economic disparities among members (e.g.,
China's massive economy versus smaller
economies like South Africa) can create
inequality in decision-making and influence.
o Dependency on China for trade and
investment may overshadow smaller
economies.
3. Lack of Cohesion
o Differences in priorities, governance systems,
and regional alliances (e.g., India aligning with
the US in the Quad) can undermine the
group's collective goals.
4. Limited Impact on Global Institutions
o Despite advocating for reforms in the UN, IMF,
and World Bank, BRICS has faced challenges in
achieving significant structural changes due to
resistance from established powers.
5. Operational Challenges
o Decisions often require consensus, making it
difficult to act swiftly on pressing global issues.
o Bureaucracy and slow implementation of
BRICS initiatives can reduce their
effectiveness.
6. Regional Competitions
o Economic competition (e.g., India and China as
emerging rivals) may hinder deeper
cooperation.
7. Skepticism from Western Nations
o BRICS’ push for de-dollarization and its
challenge to Western institutions could
provoke geopolitical backlash from developed
nations.
Recent BRICS Summit
The 15th BRICS Summit was held in
Johannesburg, South Africa from August 22–
24, 2023. Key outcomes included:
Expansion of BRICS: Six new countries—Saudi
Arabia, Iran, UAE, Egypt, Argentina, and
Ethiopia—were invited to join.
Focus Areas: Economic cooperation, energy
security, climate change, and the use of local
currencies for trade to reduce reliance on the US
dollar.
Strengthening the NDB: Further efforts to make
it an alternative financial institution for emerging
economies.
Significance of BRICS
Represents over 40% of the world's population
and about 25% of global GDP.
Acts as a counterbalance to Western-dominated
institutions like the G7 and IMF.
Promotes South-South cooperation and a more
inclusive global order.
