BRICS Latest Update – 14th Summit of BRICS took place on 23rd and 24th June 2022. China was the host of the XIV BRICS Summit. It was the third time, China has hosted the summit, the first being in 2011 and the other in 2017. It culminated in Beijing Declaration. The 2023 edition of the BRICS summit is slated to take place in August 2023 in South Africa.
What is BRICS?
BRICS is an acronym for 5 emerging economies of the world viz. – Brazil, Russia, India, China, and South Africa. The term BRIC was coined by Jim O’Neil, the then chairman of Goldman Sachs in 2001. The first BRIC summit took place in the year 2009 in Yekaterinburg (Russia). In 2010, South Africa formally joined the association making it BRICS.
This article is important for students preparing for IAS Exam since this is a significant topic in the Indian Polity and International Relations of General Studies Paper 2 and Economics in General Studies Paper 3 of the UPSC Syllabus.
The topic has a very high chance of being asked as a UPSC Prelims International Relations Question or as a Current Affairs Question as it has been in the news recently.
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BRICS 2022 – China Hosting 14th BRICS Summit
Members of the BRICS (Brazil, Russia, India, China, and South Africa) states strongly condemned terrorism in all of its forms, including the movement of terrorists across borders and terrorist financing networks, at their 14th summit, which was held in Beijing this year. While the Chinese President issued a warning against “growing military partnerships and pursuing one’s own security at the cost of other countries’ security,” the Indian Prime Minister emphasised the significance of the BRICS group in the post-COVID global economic recovery.
BRICS on Russia-Ukraine Crisis
The BRICS states have encouraged diplomacy and communication between Russia and Ukraine despite simmering geopolitical concerns. Additionally, they have stated that they support the UN Secretary- General’s, UN agencies’, and ICRC’s efforts to deliver humanitarian aid in accordance with the fundamental ideals of humanism, neutrality, and impartiality. China, India, and South Africa, 3 of its member countries, chose not to participate in the vote on a United Nations resolution denouncing Russia’s invasion of Ukraine.
BRICS on Post-COVID Economic Recovery
In order to recover economically from the COVID-19 pandemic, BRICS also advocated for coordinated policymaking. The BRICS maintains its dedication to advancing macroeconomic policy coordination, deepening economic practical cooperation, and working toward a post-COVID economic recovery that is robust, sustainable, fair, and inclusive. The summit placed a strong emphasis on the necessity of continuing to implement the BRICS Economic Partnership Strategy 2025 in all pertinent ministerial tracks and working groups. Indian Prime Minister emphasised on post-pandemic global economic recovery and the BRICS bloc’s increasing power in his opening remarks to the Summit. The BRICS countries share the same vision for governing the global economy, and their mutual collaboration can help the world economy revive. The PM also discussed the New Development Bank’s expanding membership and structural improvements that have boosted the BRICS institution’s impact.
BRICS on World Peace
The president of China urged world peace while criticising “Cold War mentality and power politics.” He urged the BRICS nations to cooperate and put China’s planned Global Security Initiative into action. The “Ukraine situation is… a wake-up call,” he said at the BRICS economic event. He also cautioned against growing military ties and pursuing one’s own security at the cost of other countries’ security.
BRICS Comprehensive Convention on International Terrorism: Treaty to Combat all Terror Finance Networks
Terrorism should never be connected to any faith, nation, civilisation, or ethnic group, according to the BRICS declaration. The Comprehensive Convention on International Terrorism has been urgently finalised and adopted, according to BRICS, inside the framework of the UN. The proposed treaty is also intended to kick off multilateral discussions at the Conference on Disarmament on an international agreement to combat acts of biological and chemical terrorism.
BRICS Initiative on Denial of Safe Haven to Corruption
The BRICS’ Initiative on Denial of Safe Haven to Corruption, which intends to improve anti-corruption cooperation and exchange in international frameworks, as well as further boost anti-corruption capability building through training and education programmes, was warmly welcomed at the summit.
BRICS on Combating Transnational Drug Trafficking
The major drug problem around the world was another issue brought up at the summit. The BRICS appreciates the active role played by the BRICS Anti-Drug Working Group in strengthening global drug administration and fighting international narcotics trafficking and will further expand drug control cooperation.
BRICS Framework for Consumer Protection in E-commerce
The BRICS countries have consented to advance the application of the BRICS Framework for Consumer Protection in E-commerce in order to promote protection for consumers in e-commerce, according to the declaration, which also welcomed the creation of the Digital Economy Working Group by revamping the E-commerce Working Group.
BRICS on Trade Strengthening
The BRICS countries decided to increase communication and collaboration in trade in services as well as the involvement of BRICS national focal points with the BRICS Business Council, as laid forth in the BRICS Framework for Cooperation on Trade in Services. This intends to support the adoption of pertinent papers, such as the BRICS Framework for Cooperation in Trade in Professional Services, and the BRICS Trade in Services Cooperation Roadmap. The BRICS’ New Development Bank (NDB) transferred its permanent headquarters facility to Shanghai, and an NDB regional office was established in India, it was revealed during the summit.
BRICS Think Tank Network for Finance
The BRICS Think Tank Network for Finance was created at the initiative of the BRICS countries. The Beijing declaration read: “we anticipate it to work independently and give intellectual support, as and when charged, for knowledge exchange, sharing of experiences and practises, and collaboration on finance issues across BRICS nations”.
BRICS 2021 – India Hosting 13th BRICS Summit
The chair of BRICS 2021 was India. The theme of the 13th BRICS Summit was, ‘BRICS @ 15: Intra-BRICS Cooperation for Continuity, Consolidation and Consensus.’
The discussion at the BRICS Summit 2021 was around three pillars:
- Political and Security – The focus is on the discussion over global and regional security. The priority sectors are:
- Reform of the Multilateral System
- Counter-Terrorism Cooperation
- Economic and Financial – The focus is on intra-BRICS cooperation in sectors such as trade, agriculture, infrastructure, small and medium enterprises, energy and finance and banking. The priority under this pillar are:
- BRICS Economic Partnership Strategy 2020-25 – Implementation of this strategy will be discussed.
- BRICS Agriculture Research Platform – The platform’s operations will be discussed.
- Cooperation on Disaster Resilience
- Innovation Cooperation
- Digital Health and Traditional Medicine
- Cultural and People to People – The cultural and personal exchanges always enhance intra-group bonding and the BRICS 13th Summit is set to discuss the same.
13th BRICS Summit – New Delhi Declaration
Some important highlights of the BRICS New Delhi Declaration 2021 are given below:
- The BRICS nations pledged to promote a more inclusive, equitable and representative multipolar international system with the United Nations at its centre.
- Agreement on BRICS Cooperation on Remote Sensing Satellite Constellation was signed.
- Agreement on BRICS Cooperation and Mutual Administrative Assistance in Customs Matters was finalized.
- A Memorandum of Understanding on Cooperation in the field of Regulation of Medical Products for Human Use has been welcomed for discussion.
- The adoptions of/and or agreements of the following were commended:
- BRICS Counter-Terrorism Action Plan
- Action Plan2021-2024 for Agricultural Cooperation
- Innovation Cooperation Action Plan 2021-2024 and
- BRICS Alliance for Green Tourism
- Reiterated the commitment to implement the strategy for BRICS Economic Partnership 2021-25.
- BRICS Agricultural Research Platform was launched.
- 16th General Review of Quotas to be completed by December 15, 2023.
- The importance of the Joint Comprehensive Plan of Action (JCPoA) in ensuring international and regional peace and stability was reiterated.
- Reaffirmation of the importance of the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on Their Destruction (BTWC) was given.
On 24th February, the 1st Meeting of BRICS Finance and Central Bank Deputies was held virtually. One should know the issues discussed in the meetings as questions on similar topics can be asked in the UPSC Mains. The issues that India and other BRICS nations discussed in the first meeting on the BRICS Financial Cooperation under India Chairship in 2021 are:
- Global Economic Outlook
- BRICS Nations’ Response to COVID-19
- Social Infrastructure Financing and Use of Digital Technologies
- New Development Bank (NDB) Activities
- Fintech for SME and Financial Inclusion
- BRICS Contingent Reserve Arrangement (CRA)
BRICS is an association with more than 40% of the global population and with 25% of the global GDP (nominal GDP of US$16.039 trillion) and an estimated US$4 trillion in combined forex. Bilateral relations are conducted mainly on the basis of equality and mutual benefit.
Originally the first four were grouped as “BRIC” (or “the BRICs”) before the induction of South Africa in 2010. The BRICS have a combined area of 39,746,220 km2 (15,346,101.0 sq mi) and an estimated total population of about 3.21 billion,or about 26.656% of the world land surface and 41.53% of the world population.
The 11th summit of the BRICS grouping comprising Brazil, Russia, India, China, and South Africa was held in Brasilia on 13th and 14th November 2019. The 12th summit (Russia) of BRICS was held on 17th November, 2020 via videoconference.
In 2020, the New Development Bank (formerly BRICS bank) approved a USD 1 Billion Project called “Covid-19 Emergency Program Loan for Supporting India’s Economic Recovery”. The project finances the MGNREGS expenditure of the top ten Indian states on works classified as Natural Resource Management.
Click the link to read about the GDP of India.
New Development Bank (NDB)
- The New Development Bank (NDB), one of the multilateral development institutions created by the BRICS has been working successfully and is headquartered in Shanghai, China.
- It was discussed in the 2012 Summit (4th BRICS Summit – New Delhi) and established in 2015.
- Fortaleza Declaration of the 2014 BRICS Summit (6th) stressed that the NDB will strengthen cooperation among BRICS and will supplement the efforts of multilateral and regional financial institutions for global development thus contributing to sustainable and balanced growth.
- Since the start of its operations after the 2015 Summit, 42 investment projects worth over $11 billion have been approved and are under implementation bringing in the much-needed investment in the developing countries.
- The major idea behind NDB was to mobilize funds and resources that sustainable development and infrastructure projects demanded. NDB not only proved helpful for BRICS countries but also helped other emerging economies and developing countries.
- Key Areas of operation of the NDB are:
- Clean Energy
- Sustainable Urban Development
- Economic development among BRICS member countries
- Agriculture development and irrigation
- Transport infrastructure
- All the BRICS Member countries hold an equal stake in the bank and the NDB works on their consultative mechanism.
- List of NDB Projects: https://www.ndb.int/projects/list-of-all-projects/
Also, Read| India relations with France and its significance for UPSC Exam
Contingent Reserve Arrangement
A mechanism for offering defence against global liquidity pressures is the BRICS Contingent Reserve Arrangement (CRA). This includes currency problems when the national currencies of members are being negatively impacted by pressures on the world economy. The rapid economic liberalisation of emerging economies was found to enhance economic volatility and create an unstable macroeconomic environment. The New Development Bank and the CRA are usually recognised as examples of growing South-South cooperation and are seen as rivals to the International Monetary Fund (IMF). It was founded by the BRICS nations in 2015. The Treaty for the Establishment of a BRICS Contingent Reserve Arrangement, which was signed in Fortaleza, Brazil on July 15, 2014, creates the legal framework.
BRICS Summit – 14 Summits
|Sr No||Year||Host Country||Points in
|1st BRICS Summit||2009||Russia||
|2nd BRICS Summit||2010||Brazil||
|3rd BRICS Summit||2011||China||
|4th BRICS Summit||2012||India||
|5th BRICS Summit||2013||South Africa||
|6th BRICS Summit||2014||Brazil||
|7th BRICS Summit||2015||Russia||
|8th BRICS Summit||2016||India||
|9th BRICS Summit||2017||China||
|10th BRICS Summit||2018||South Africa||
|11th BRICS Summit||2019||Brazil||
|12th BRICS Summit||2020||Russia||
|13th BRICS Summit||2021||India||
|14th BRICS Summit||2022||China||
BRICS – Objectives
- One of the major objectives of the grouping is broadening, deepening, and intensifying cooperation among the member countries for mutually beneficial, sustainable and equitable development.
- Every member’s growth and development are considered to ensure that relations are built on the economic strengths of individual countries and eliminate competition wherever possible.
- Such diverse objectives allow BRICS to emerge as an innovative and encouraging Political-Diplomatic entity that was earlier formed just to resolve the global financial issues and reform institutions.
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Features of BRICS
|Accounts for over 24% of World GDP||Represents more than 40% of the world population.|
|Any countries from the EU or the USA are not a part of it.||Goldman Sachs came up with the idea of BRICS after the 2008 Global Recession.|
BRICS – Impact on Global Financial Institutions
- The financial crisis of 2008 was one of the major reasons behind the formation of BRICS. The dollar-dominated monetary market collapsed after the subprime mortgage crisis and raised questions about its reliability and sustainability.
- ‘The reform of Multilateral Institutions’ was established by BRICS in order to make changes in the structure of the World Economy, thus increasing the part emerging economies play in the world economy.
- These reformations of institutions resulted in the formation of the International Monetary Fund (IMF) quota reform after BRICS managed to push for it in 2010, further reducing the financial crisis due to western laws. BRICS ended up being the ‘agenda settlers’ in multilateral institutions after this.
To know more about other important summits and their venues, visit the linked article.
What is the Brasilia Declaration?
The Brasilia Declaration was signed by the BRICS members at the 11th BRICS Summit in Brasilia. This declaration reaffirms the members’ commitment to upholding the UN Charter’s purposes and principles, advocating multilateralism, and finding a political settlement to serious issues.
- The Brasilia Declaration will be advocating and supporting
- The major role of the UN in international affairs
- Mutual respect for international Law
- Reforming Multilateral Systems
- The three major international organizations (UN, WTO and IMF) need to be strengthened and reformed in order to address the issues faced by the developing nations of the world.
- Supporting multilateralism
- The US-China trade war has a significant impact on the global economy.
- Multilateralism will allow emerging economies and developing countries to protect their own interests.
BRICS – UPSC Notes:-Download PDF Here
Frequently Asked Questions about the BRICS:
What is BRICS and its purpose?
Why was BRICS formed?
Where is the headquarters of BRICS?
Why is BRICS important to India?
What BRICS has accomplished?
Which country is hosting the 15th BRICS summit?
When did South Africa join BRICS?
How powerful is BRICS?
Why is BRICS important?
When was the first BRICS Summit held?
What is the full form of BRICS?
Who is the largest shareholder of NDB?
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