BRICS

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