BRICS: Evolution, Structure, and Strategic Significance

GS2 – International Relations

Context:

BRICS—comprising Brazil, Russia, India, China, and South Africa—was formed as a coalition of emerging economies challenging the dominance of Western-led institutions. Over time, it has evolved into a platform for economic cooperation, political coordination, and global governance reform. India’s role in BRICS remains crucial yet complex, especially amid growing Chinese influence.

Historical Evolution of BRICS

Phase	Milestone
2001	Term “BRIC” coined by economist Jim O’Neill (Goldman Sachs) to represent fast-growing economies.
2006	BRIC foreign ministers met on the sidelines of UNGA – marks informal beginning.
2009	First formal BRIC Summit held in Yekaterinburg, Russia.
2010	South Africa joined, forming BRICS.
2014	Creation of the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA).
2023–24	Talks initiated on expansion of BRICS to include new members (BRICS+).

 

Institutional Structure of BRICS

1. Rotating Chairmanship

• BRICS functions on consensus-based decision-making with rotating annual presidency among members.

2. BRICS Institutions

• New Development Bank (NDB): For funding infrastructure and development projects in BRICS and other emerging economies.
• Contingent Reserve Arrangement (CRA): Currency reserve pool to stabilise balance-of-payment crises.
• BRICS Business Council and BRICS Think Tanks Council: Promote business and academic cooperation.

Core Objectives of BRICS

• Promote multipolar world order and reform global governance institutions like IMF, World Bank, and UNSC.
• Enhance economic, financial, and development cooperation among members.
• Serve as the voice of the Global South, especially in international negotiations (climate, trade, and technology).
• Facilitate scientific, technological, and educational exchanges.

Members

The BRICS includes 10 countries – Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russian Federation, South Africa, United Arab Emirates. The ILO is a key knowledge partner and provides technical inputs to the BRICS on policies that promote decent work and promote decent work.

Salient Developments and Themes

1. Economic Collaboration

• Promotion of intra-BRICS trade and investment.
• Push for de-dollarisation of trade and creation of an alternative reserve currency.
• NDB’s loan disbursal to member countries for infrastructure and sustainable projects.

2. Political Coordination

• Unified stance on reforming global institutions.
• Regular joint communiqués on terrorism, multilateralism, and global peace—though often softened by internal contradictions (e.g., China-Pakistan factor affecting anti-terror declarations).

3. Technological and Scientific Cooperation

• Initiatives on digital health, AI ethics, cybersecurity, and pandemic preparedness.
• Proposals for joint research and innovation hubs.

Challenges and Contradictions

Internal Tensions:

• India–China rivalry (e.g., Doklam, Galwan) hinders deeper political alignment.
• Divergent geopolitical alignments: India with the US, Quad; China and Russia leaning towards authoritarian blocs.

Structural Asymmetries:

• China’s economic clout (GDP ≈ $17.8 trillion) overshadows other members.
• Influence over BRICS agenda-setting, including expansion plans, creates power imbalances.

Effectiveness of Joint Statements:

• Lack of naming Pakistan in anti-terror statements due to China’s veto.
• Limited follow-through on grand declarations due to non-binding nature of BRICS decisions.

India’s Stakes and Strategic Calculations

Opportunities:

• Platform to advocate Global South priorities.
• Access to development finance via NDB.
• Leverage BRICS to counterbalance Western narratives in global forums.

Constraints:

• Risk of being overshadowed by China’s agenda.
• Misalignment with India’s core diplomatic and strategic partnerships (e.g., Quad, I2U2, G20).

India’s Strategy:

• Maintain principled engagement: use BRICS to push reform without endorsing China-centric visions.
• Build parallel coalitions (e.g., IMEC, I2U2) to complement its BRICS presence.
• Assert role as a bridge between Global South and Global North.

Recent Trends: BRICS Expansion (BRICS+)

• At the 2023 summit, BRICS initiated the expansion process.
• Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and UAE invited to join.
• Raises concerns about dilution of focus and ideological fragmentation.

Way Forward for India in BRICS

• Preserve strategic autonomy while leveraging multilateral platforms.
• Push for rules-based multilateralism rooted in democratic values.
• Advocate for reform of NDB to make it transparent and development-focused.
• Promote digital inclusion, climate finance, and health equity through BRICS channels.

Conclusion:

BRICS remains a vital platform for India to project itself as a leader of the Global South and to participate in shaping alternative narratives of global governance. However, India’s continued engagement must be strategic, values-based, and flexible, balancing its regional aspirations and global partnerships in an evolving multipolar world.