This article has been written by Mahita Swamy, Law Graduate from BMS College of Law, Bengaluru, Karnataka.
Abstract
In the ever changing, evolving world that we exist in, power is driving factor when it comes to many countries and their national objective. This power could be different for everyone. For some, it could be military power, while for others it could be monetary power, land power, resource power or sovereign power. In search of friends with similar interests, one finds themselves in blocs or groups, where certain needs or ideas meet. Hence, the formation of new regional blocs or other types of blocs come into existence. BRICS, now known as BRICS+, is also one such bloc, where the members are aligned or the only interest lies in the economic growth of this bloc. Since the conception of this bloc idea, the members have shown promise in their economic growth, which has only slowed due to recent setbacks around the globe. With new members, the group faces the older alliances that have been in existence since the world wars and their ideologies, while marking a significant shift in the global order.
Introduction
To anyone who opens a copy of any newspaper, there are articles covering different wars and political tensions between two or more countries. One can get easily confused about the real situation, especially with so many loud voices giving their opinion on the situation. It becomes even more difficult to understand, when one doesn’t like politics and other things inter-related and inter-dependent on politics. Though it is also important to know what your elected government has decided to do with its neighbouring countries or the approach they take to deal with them. So, one should be actively listening to all the voices, until everything starts to makes sense to a large extent.
Being an independent country, India has been a part of many blocs that influence the growth of economies and culture to a large extent. As the Indian economy has flourished in the recent two decades, we should understand that we have various sectors that directly impact other countries’ economies as well as certain countries that we depend on for certain commodities and services. So far, apart from official joining The United Nations (UN) after the 2nd World War, India has also joined other blocs to further different agendas. The blocs that have been in news since the past year is G20, where India was the host for its annual submit in 2023, South Asian Association for Regional Cooperation (SAARC) and the recent one being BRICS, with the heads of state of this bloc meeting in October 2024.
BRICS – What is it?
Back in 2001, Jim O’Neil, a Goldman Sachs Chief Economist, in an exercise that asked who were the global leaders in 50 years’ time, came up with the acronym BRIC for the countries mentioned by him – Brazil, Russia, India and China. The representatives of these countries met informally first, at the United Nations General Assembly in 2006, which led to the first submit of this bloc in June 2009 in Yekaterinburg, Russia. The push to keep meeting under the bloc’s name was the financial crises that hit the world in 2008 and formally became a platform for co-operation and exchange between the governments of these countries, which means that the bloc is there for a goal – being the next global leaders in terms of economics.
The ‘S’ in BRICS represents South Africa, who was included in the bloc in 2010 after the first submit in Russia. The Chairmanship of this bloc rotates annually, in accordance with the acronym B-R-I-C-S.
According to many, this bloc is a global collaboration to achieve greater economic growth and geopolitical inclusivity. Along with this, there are many that believe this bloc is an attempt to counterbalance the influence of the Western countries and their global institutions, like International Monetary Fund (IMF) and World Bank. In all this, one should be aware of the fact that these few countries are what we call as ‘developing countries’, apart from Russia and China. These 5 countries, together, represents about 41% of the global population, 26.3% of the global Gross Domestic Profit (GDP) and 20% of global trade[1].
Things done by BRICS so far
Unlike other international institutions like UN who have a charter, BRICS have no charter or formal agreement signed by the members. As such, working within this bloc is difficult. The annual submits are the main or formal communication that happens with all the members present. Although, individually, every member has bilateral trade with other countries, outside of the bloc. In simple terms, BRICS started as a disrupter, as a collective of growing global economies, with abundance resources that is needed for the growth of certain commodities and as such, makes them important players in the current politics that’s in play.
This bloc has pushed for “reform in multilateral institutions”[2], reforms that would reflect and show the changes that are happening in the world economy and world order. After the hit South Asian countries took with the 2008 financial crises, the founding members of BRIC bloc were able to push IMF for reforms, which momentarily reduce the legitimacy of the Western countries and let this bloc be the “agenda setters”[3].
BRICS has also been successful in signing an agreement with respect to a bank of their own, the New Development Bank (NDB), which has its headquarters in Shanghai, China. This idea was put forward in the 4th BRICS Summit in New Delhi, 2012 and later signed the Fortaleza Declaration in 2014, in the 6th BRICS Summit in Fortaleza. The main area of importance in this declaration was that this bank would strengthen cooperation among the members of this bloc and on key areas of operations, which are clean energy, transport infrastructure, irrigation, sustainable urban development and economic cooperation. As a part of this declaration, the Contingent Reserve Arrangement (CRA) was also signed, which dealt with instances of global financial crises. This arrangement was to support members with short-term liquidity in situation of crisis, to help in their Balance of Payment (BOP) and strengthen financial stability.
Along with NDB and CRA, BRICS bloc has also widely supported using local currencies during trade, so as to boost the economic growth. The only problem of this was seen when the US sanctioned Russia back in 2022, for going to war with their neighbouring state, Ukraine, escalating the financial burden globally during the COVID-19 pandemic. As some may know, all currencies are traded against the value of dollar – the US dollar – which increases the value of risk, when any country has a power conflict/struggle or a straight-out disagreement with US. BRICS, in recent submits, have proposed to all members, to look for methods outside of the US Dollar for the problem of currencies.
The recent initiatives taken up by BRICS were on the Climate Change (May 2022), which was a high-level meeting to jointly address issues related to climate change, approaches to reduce carbon emission and achieve sustainable development, alongside sustainable recovery and BRICS Media Forum (March 2022), which was a 3-month long programme for journalists.
India’s Position on BRICS Expansion
Back in the BRICS summit held in South Africa 2022, the bloc stated that more than 40 countries had shown interest in joining the bloc. Now, in October 2024, the summit in Russia, BRICS welcomed Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) as members to the bloc.
Initially, there were concerns about the expansion and the criteria for eligibility for these countries. Even with these issues, members were able to come to a consensus on the selection process, with India taking proactive measures, as India has always viewed this bloc as an important and significant in the emerging global market. As this is not a formal signified bloc, the consensus of all members is crucial.
Being the second largest economy from the African continent, Egypt, at present, has bilateral relations with India and is a key player in the economics of the African continent. As such, Egypt was backed by India to become a member of the BRICS bloc.
Ethiopia, alongside Egypt, also has a vital role in the African Union and the continent. India has been a constant support to the country, as well as the union, to get more representation in the international forums in various situations. The vested interest in the economic growth of this continent, India has used the BRICS bloc to engage with this continent.
Now, moving to the Middle Eastern countries being added as BRICS members, India’s position is very clear given the partnerships and projects that it has a hand in, within this region. 53% of oil imports came from this region in the year 2020-21 alone. This just show the important and vital role it plays in India’s economy. The relationship with Iran, at best, has been a rocky road, but the New Delhi Declaration of 2003 has played a crucial part in maintaining India’s presence in the Middle East. As Iran shares borders with Pakistan and Afghanistan, Iran is a significant partner for India, which is seen with Iran’s acceptance as a BRICS member.
India’s relationship with Saudi Arabia has been steadily growing over the past few years and India’s presence in the Middle East has helped Saudi Arabia’s efforts in diversify their foreign policy and move away from the influence of the Western countries. Now, moving to the last new member of BRICS, India’s relationship with UAE is flourishing due to the bilateral trade and mutual investments among the nations. Being a member of the Gulf Cooperation Council (GCC), UAE is a key to the rest of the members of the council by facilitating access to this collective front. India sees a chance to build better economic ties, energy partnerships and have balanced diplomatic and regional interests with this front through UAE being a member in the BRICS bloc.
Another country that had been accepted was Argentina, who has turned out to be vital in South America continent for its geopolitical and economic importance. Argentina had India’s full support in joining BRICS as there is a partnership between them for trade of the agricultural, pharmaceutical and IT sectors. There have been observations on how these two countries collaborate in issues like climate change, sustainable development and counterterrorism as well. Even with this deepening relationship, the new President of Argentina, Javier Milei, rejected the offer to join the BRICS bloc due to China’s dominant presence in the bloc.
BRICS – A Shift in Global Alliance?
If someone said that the global order is shifting, would you believe it? Maybe, but most of us wouldn’t agree on this as we have grown up learning about the world wars and the impact it has had on the world and the victorious countries it produced. So, like many, we would not be able to understand this statement. To understand this, let’s see the following: –
- Since the creation of the United Nations (UN), the working and procedures of this institution, especially the Security Council in the UN, has been seen as absolute and outdated.
- Due to the lack proactive measures to support growing nations, there has been many regional blocs that were created, like the African Union, European Union, SAARC, ASEAN, NATO, etc.
- There have been certain countries that have silently occupied vast or important/strategic areas in other countries to push their ideology or acquire those areas.
- The most crucial point here is that when dividing the present countries post-World War II, there were many regions of conflict that was neglected or given away to the respective states to resolve amongst themselves, which now, has become international regions of conflict or war zones.
The World War II ended almost 80 years ago and yet, there is a part of the world that believes that they were the founding nations of the modern world. To some extent, this could be true. Though, this would not be true, when one sees the GDP and other growth indicators of all the countries on the world map today. So, the alliance made almost 80 years ago stands as a notion of that part of history that some wish to forget.
Now, in 2024, there are many strong contenders for the title of being a global leader. In the list, India, along with China, Russia, US, Israel, South Korea, UK, Germany, Japan, Saudi Arabia, have emerged as contenders to this title. We see some different names from what we learnt in history class. Hence, we can say that there is a shift in global alliance. This hasn’t happened by being in UN or any other regional groups. It has been possible mostly because of the individual efforts of all these countries to come on top.
In the matter of economic and strategic growth, BRICS, or now known as BRICS+ with the new members, is proving to be a shift in global alliance. As we know, India alone has many vested interests with member countries and the respective regions they come from. Like the I2U2 grouping with UAE, US and Israel or the International North-South Transport Corridor (INSTC) with Russia, some Middle East Asian countries and Central Asian countries and Europe for a multi-mode transport network for moving freight or the India-Middle East-Europe Economic Corridor (IMEEC) which is going to create new avenues and routes for trade and diplomatic relations across these regions. Or like when India championed African Union’s representation in the G20 summit they hosted in 2023.
Similarly, Russia, China, Brazil and South Africa have their own vested interests in these regions. Though the relations between China and India have been on a flux in recent times, they have maintained steady trade in the global markets with each other. The main reason for this is also because of the mutual interest among them and other members of BRICS+ to lessen the dependence on Western countries especially after the pandemic of COVID-19, China has received the cold shoulder by many countries, as well as the 2020 war Russia waged against a neighbouring state, everyone is widely aware of the treatment given. This has seen the drift among the most powerful states in the world.
India, in BRICS+, is now being called a balancing act, as it has maintained its relationship with China, despite conflict on the border shared by them, and has been a strong ally to Russia since the impositions of the west and has had steady trade and other partnerships with Iran and other members of the bloc, despite the conflicts in ideas and culture. As much as this bloc needs India to be the ‘good guy’ in the group, India also needs their trade and economic powers making sure that this does not remain a one-sided deal/partnership. India is being seen as that friend in a group that maintains peace and further pushes everyone to be the best versions of themselves. Tie this with the main purpose of the informal formation of BRICS+, this bloc is a shift in the global alliance as well as top global economies.
Conclusion
It is never right to assume greatness of oneself, as it has lasting consequences. This statement rings true to anyone who has put themselves above the rest in any of their strengths. The only way to prove this statement wrong is by always improving. Or in other terms, always evolving. With respect knowledge, one should always read and understand every side of an argument, to make a strong point as knowledge is the key to staying on top in current affairs or political power moves across the global. And as such, when you listen to different voices, you should be aware of what is important in them and what is not. Along with knowledge, observation is also an important skill to possess as you will be able to understand what happens behind closed doors.
Reference
- Britannica, “BRICS” (October 2024) < https://www.britannica.com/topic/BRICS>
- Drishti IAS Blog, “International Institutions – BRICS” (January 2019) < https://www.drishtiias.com/drishti-specials-important-institutions-international-institution/brics-1>
- Carnegie Endowment for International Peace, “BRICS Expansion, the G20, and the Future of World Order” (October 2024 <https://carnegieendowment.org/research/2024/10/brics-summit-emerging-middle-powers-g7-g20?lang=en>
- 9 Dashline Blog, “BRICS Plus: India’s Perspective on the group’s expansion” (December 2023) < https://www.9dashline.com/article/brics-plus-indias-perspective-on-the-groups-expansion>
- Observer Research Foundation, “How does an expanded BRICS benefit India?” (June 2024) < https://www.orfonline.org/expert-speak/how-does-an-expanded-brics-benefit-india>
- The Diplomat, “Many separate BRICS, No Single Wall: India and an Expanding BRICS” (June 2024) < https://thediplomat.com/2024/06/many-separate-brics-no-single-wall-india-and-an-expanding-brics/>
- United States Institute of Peace, “India’s BRICS Balancing Act” (October 2024) < https://www.usip.org/publications/2024/10/indias-brics-balancing-act>
[1] Visual Capitalist, “Visualizing the BRICS Expansion in 4 Charts” (August 2023) < https://www.visualcapitalist.com/visualizing-the-brics-expansion-in-4-charts/>
[2] Drishti IAS, “International Institutions – BRICS” (January 2019) < https://www.drishtiias.com/drishti-specials-important-institutions-international-institution/brics-1>
[3] Drishti IAS, “International Institutions – BRICS” (January 2019) < https://www.drishtiias.com/drishti-specials-important-institutions-international-institution/brics-1>
