BRICS – INTERNATIONAL
News: Express
View: A bigger BRICS
What's in the news?
● The
rush to join BRICS, the grouping that brings together Brazil, Russia, India,
China and South Africa and represents 40
percent of the world’s population and 23 percent of global GDP, has
sometimes been explained as triggered by FOMO, a fear of missing out.
Key takeaways:
● The
geopolitical shifts in the world from the time of Russia’s invasion of Ukraine, have set off frenetic group shopping
as middle-sized countries with decent economies in the global south look for
both voice and leverage.
What's called as 'Bigger BRICS'?
● Five
applicants such as Saudi Arabia,
Indonesia, the UAE, Egypt and Argentina may be granted membership this
August at the Cape Town summit.
● Last
year’s BRICS declaration reflects India’s concern that any addition of new
members must follow the carefully thought out objective criteria for membership, mutually discussed among the
present members, so that all are on the same page regarding the logic of
expansion.
Importance of BRICS to India:
1. Economic Cooperation:
● The
BRICS countries represent a substantial share of the global economy and have
immense potential for economic cooperation. India can take benefits from trade
and investment opportunities within the group.
2.
Geo-political Influence:
● The
BRICS serves as a platform for India to strengthen its geo-political influence
on the global stage.
3.
Development Financing:
● The
BRICS countries have established institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement
(CRA).
● These
institutions provide alternative sources of financing for infrastructure
projects and development initiatives in India.
4.
Multilateralism and Reform:
● The
BRICS advocates for a more equitable and
inclusive global order. As a member, India actively participates in
discussions and initiatives aimed at reforming international institutions like
the United Nations, World Trade Organization.
5.
Forum to balance bilateral relations:
● BRICS
can be a forum for India to neutralize its recent warming relations with the
Western countries.
● Through
this forum India can actively engage with Russia and China.
Challenges for BRICS to lose its importance:
1. Economic Divergence:
● One
of the primary challenges for the BRICS is the economic divergence among its
member countries.
● While
China has emerged as a global economic powerhouse, other BRICS nations,
including India, Brazil, Russia, and South Africa, face varying degrees of economic challenges such as slow growth, structural
issues, and political instability.
2.
Geo-political Differences:
● The
BRICS nations have different geopolitical interests and priorities. They often
have divergent views on global issues,
regional conflicts, and strategic alliances.
3.
Internal Governance Issues:
● Each
BRICS nation faces unique internal governance challenges like corruption, political instability.
● These
internal issues can impact the credibility of the BRICS as a collective entity
and undermine its ability to deliver on its objectives.
4.
Competition and Rivalries:
● Despite
being part of the same grouping, BRICS nations often compete with each other in
areas such as trade, investment, and geopolitical influence.
● E.g.
India and China.
5.
Lack of Institutionalization:
● The
BRICS is a relatively informal grouping
without a formal institutional framework or permanent secretariat. The
absence of a formal structure can make decision-making and coordination more
challenging.
WAY FORWARD:
1. Inclusion of more members:
● BRICS
should provide membership to other like minded countries to diversify its
presence and enhance it's influence.
2.
Strengthening Institutional Framework:
● Establishing
a more robust institutional framework can enhance the effectiveness of the
BRICS.
● Eg. BRICS
framework, Long term agenda etc.
3.
Addressing Economic Disparities:
● The
BRICS should actively address the economic disparities among its member
countries.
● Eg.
Collaboration on development projects,
infrastructure investments, and technology transfers can help bridge the
economic gaps.
4.
Enhanced Economic Cooperation:
● Strengthening
economic cooperation among BRICS nations should be a priority.
● This
can be achieved through the promotion of intra-BRICS trade and investment,
reducing trade barriers, and exploring new areas of economic collaboration.
5.
Deepening People-to-People Connections:
● People-to-people
connections play a vital role in fostering stronger ties among BRICS nations.