Expansion of the BRICS Group

25.08.2023

 

Expansion of the BRICS Group

Mains Exam: General Studies Paper 2

(International Relations)

August 25, 2023

Why In News:

  • Recently, 6 new members have been inducted into the BRICS grouping during the 15th BRICS summit held in Johannesburg, South Africa.

Main points:

  • South African President Cyril Ramaphosa announced the names of the new member countries at the BRICS summit to be held from August 22 to 24.
  • These 6 countries include: Argentina, Iran, United Arab Emirates, Saudi Arabia, Ethiopia and Egypt
  • The membership of the new countries included in this group will be effective from January 1, 2024.
  • BRICS expansion was a major focus area in this summit as more than 20 countries have applied for full membership.

India's Response to the Expansion of BRICS

  • India is not yet fully keen on expanding the BRICS grouping as its expansion may boost China's influence.

About BRICS Group:

  • It is an abbreviation for a group of world's leading emerging economies Brazil, Russia, India, China and South Africa
  • The first BRIC summit was held on 16 June 2009 in Yekaterinburg, Russia
  • After this, South Africa was included in BRIC in December 2010, after which the abbreviation of the group became BRICS.
  • This grouping provides a platform to the 5 largest developing countries of the world
  • Its member countries represent 41% of the global population, 24% of global GDP and 16% of global trade
  • The BRICS countries have a combined area of 39,746,220 km² and an estimated total population of about 3.21 billion.
  • It covers about 26.7 percent of the world's total land surface and 41.5 percent of the global population.
  • The BRICS Leaders' Summit is held annually and as per its acronym, the presidency is rotated annually among the members.
  • India has hosted this summit twice in 2012 and 2016

Objective

  • To comprehensively advance cooperation between individual countries for more sustainable, equitable and mutually beneficial development.
  • To increase the economic strength of all the countries keeping in view the economic condition and development of each member country.

Significance of BRICS Group:

  • To know the importance of BRICS, it is necessary to understand the importance of its member countries.
  • Talking about China, India, and Russia, these countries are the three largest economies of the world.
  • While Brazil is an economically capable country in Latin America, South Africa is a large country in the continent of Africa.
  • In other words, the boundaries of BRICS countries are spread from one end of the world to the other.
  • The total economy of these countries is about 16 trillion dollars
  • These countries account for 30 percent of the world's total GDP, 18 percent of all trade in the world is done by these countries and the biggest thing is that about 50 percent of the world's population resides in these 5 countries.
  • The foreign exchange reserves of these countries are worth $4 trillion.
  • That's why these countries exert more influence on regional and global affairs.
  • According to economic analysts, joining the BRICS group of Argentina, Iran, United Arab Emirates, Saudi Arabia, Ethiopia and Egypt will increase the economic strength of this group.

Significance of BRICS group for India:

  • India can benefit from the collective strength of BRICS through countering international terrorism, climate change, food and energy security, reforming international institutions etc.
  • The New Development Bank of the BRICS grouping will help India mobilize resources for infrastructure and sustainable development projects and generate economic benefits.
  • In the current geopolitics, the BRICS grouping provides an opportunity to balance its strategic interests between the US, Russia and China.
  • BRICS also provides a platform for India to intensify its efforts against terrorism.
  • BRICS provides an opportunity for India to actively engage with China and resolve mutual disputes.
  • It also helps in garnering the support of other partner countries.

Relevance of the BRICS Group

  • The relevance of the BRICS grouping is significant for the following reasons:
  • Economic importance: The economic power of these five countries is important in terms of economic development and some of these countries are among the largest economies of the world.
  • Economic cooperation: BRICS countries work together in cooperation and economic development, such as improving economic conditions and providing economic assistance through the assistance of financial institutions.
  • Participation in world regulatory structures: These countries are also trying to enhance their standing in world regulatory structures, such as the International Monetary Fund (IMF) and the World Trade Organization (WTO).
  • Development Projects: The BRICS countries cooperate in projects related to development, such as the establishment of the BRICS Development Bank which aims to provide financial assistance to development projects.
  • Addressing the needs of the republics: The BRICS grouping gives countries an opportunity to work together with their needs and provides them a platform to make their voices heard in world affairs.

Conclusion:

  • Thus, the BRICS group plays an important role in the field of cooperation, consensus, and socio-economic development among various countries.

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Mains Exam Question

Explaining the significance of BRICS group, underline the relevance of this group.