Fortaleza Declaration

The five emerging economies that form the BRICS include Brazil, Russia, India, China and South Africa, in the order of the acronym. Every year since 2009, the governments of these countries have met in several formal summits. The 6th BRICS summit was held in 2014. The host city for this summit was Fortaleza in Brazil. 

The Fortaleza Declaration included several key points that were covered as a part of the plan of the summit. The details of the Fortaleza Declaration are important as a part of your IAS Exam syllabus. 

In this article, discussed are the details about the Fortaleza Declaration and its significance for the BRICS countries. Candidates preparing for the upcoming civil service exam must carefully analyse the aspects of the declaration further below. 

Fortaleza Declaration [UPSC Notes]:-Download PDF Here

Details of the Fortaleza Declaration

The Fortaleza Declaration is related to the affairs of the five countries associated with the BRICS. As a part of the Fortaleza Declaration, these countries agreed on creating a US$100 billion New Development Bank (NDB) to allow the countries to bring in resources for economic stabilisation. Plans were also brought up regarding acquiring reserves amounting to $100 billion through investments made by the countries associated with the BRICS. 

One of the major organs of this declaration came up in the form of signing an agreement for the cooperation of the export credit agencies of the BRICS nations. The export credit agencies of these nations are ABGF (for Brazil), EXIAR (for Russia), ECGC (for India), ECIC (for South Africa), and SINOSURE (for China). This is marked as one of the major points of the Fortaleza Declaration, which will further be of immense importance for the UPSC 2022.

As a part of the Fortaleza Declaration UPSC syllabus, the disappointment shown by the five countries towards the International Monetary Fund (IMF) will be of immense importance. The countries have shown much disappointment and concern towards the then non-implementation of the 2010 reforms of the International Monetary Fund. The countries did mention that this had had a direct negative impact on the IMF’s credibility, effectiveness and legitimacy. 

To learn about the bilateral relationship between the BRICS countries candidates can refer to the links given below:

The New Development Bank

In the Fortaleza Declaration, the 5 BRICS member states had decided on creating the New Development Bank (NDB) worth US$100 billion. The five countries agreed on designing the New Development Bank as a representative of the financial interests of the member states. The proposal for the headquarters to be held in Shanghai was also made during this summit. It was decided by the member states that the first president of this financial institution would be from India. The member states had also agreed on making the first regional office of the NDB at Johannesburg. The inaugural chairman representing the board of governors was agreed upon to be made from Russia. 

It was also decided that the first chairman representing the board of directors would be from Brazil. The presidency post will be made for five years’ terms and will be further rotated among the countries associated with the BRICS. It was certainly clear that the Fortaleza Declaration had had an equal share of responsibility and power on the member states of the BRICS about the formation of the New Development Bank.

The NDB will cover some of the most important questions as a part of the UPSC Notes. In the exams to follow, this will be of absolute significance in the context of the Fortaleza Declaration.

Bilateral Meetings as a Part of the Fortaleza Declarations

During the Fortaleza Summit, Xi Jinping (President of the People’s Republic of China) assured Narendra Modi (Prime Minister of India) that there was a willingness on the part of China for the expansion of the Shanghai Cooperation Organization so as to include India to be a full member of the SCO summit of 2014.

This additional fact is of much importance for the upcoming UPSC Exam and demands close attention from the students.

The knowledge about bilateral relations between India and other nations is important for the Civil Services Examination. Candidates can visit the linked article to read about India’s international relations. 

Fortaleza Declaration [UPSC Notes]:-Download PDF Here

Other UPSC preparation related links are given below: