Strategic Vision in the Evolving BRICS Landscape

The recent editorial, based on The Indian Express article “Why this is not just another BRICS in the wall” (October 25, 2024), delves into the Kazan Declaration from the 16th BRICS Summit.

This summit, themed on “Strengthening Multilateralism for Just Global Development and Security,” emphasized equitable global development and highlighted India’s role in envisioning an expanded BRICS. Originally formed in 2006 by Brazil, Russia, India, and China, the BRICS alliance has since grown to include South Africa, Egypt, and Saudi Arabia, reflecting a strengthened commitment to economic cooperation and reformed global governance structures.

Background and Evolution of BRICS

Expansion and Membership:
South Africa joined BRICS in 2010, broadening the group’s representation. In 2024, additional members including Egypt, Ethiopia, the UAE, Iran, and Saudi Arabia further extended the bloc’s reach and influence. BRICS now accounts for over a quarter of the global economy and represents nearly half of the world’s population.

Institutional Advancements:
BRICS has actively advocated for global governance reforms within major international institutions like the UN and WTO, alongside financial bodies like the IMF and World Bank. Mechanisms such as the Contingency Reserve Arrangement (CRA) and New Development Bank (NDB) have been established to support financial stability across member nations.

Significance of BRICS for India

1. Geopolitical Influence:
   BRICS provides India a platform to assert its vision of multipolarity, balancing the Russia-China axis while promoting reforms in global financial systems. Notably, during the 16th BRICS Summit, India and China agreed on new “patrolling arrangements” along the Line of Actual Control (LAC), reducing tensions and enhancing regional stability.
2. Developmental Financing:
   Through the NDB, BRICS has approved projects worth $25.07 billion over the last five years, including $6.9 billion for infrastructure projects in India, underscoring India’s strategic influence in the bloc.
3. Advocating for Developing Nations:
   As a prominent BRICS member, India champions the interests of the Global South, addressing issues like fair trade, climate responsibility, and sustainable development.
4. Counterterrorism Efforts:
   India has steered BRICS towards a strong counter-terrorism agenda, advocating for joint action against terrorism financing and related security challenges.
5. Strategic Partnerships with New Members:
   The inclusion of Saudi Arabia, the UAE, and Ethiopia enhances India’s partnerships in critical sectors such as energy, trade, and infrastructure. For instance, Saudi Arabia and the UAE are significant energy and trade partners for India, while Ethiopia bolsters India’s strategic interests in East Africa.

Challenges Facing India within BRICS

1. Diverse Member Interests:
   The BRICS grouping encompasses countries with distinct economic, political, and strategic priorities, making it challenging for India to align its own goals with those of other members, especially China, Brazil, and Russia.
2. China’s Dominance:
   China’s economic influence within BRICS presents a challenge for India, particularly with rising trade dependence on China and a considerable trade deficit. The group’s increasing reliance on Chinese trade and investment has the potential to overshadow India’s voice in decision-making.
3. Managing Regional Rivalries:
   The inclusion of nations with historical rivalries, such as Saudi Arabia and Iran, adds complexity to BRICS cohesion. India must navigate these relationships to prevent potential conflicts from derailing BRICS initiatives.
4. Inclusive Global Governance Model:
   BRICS faces the task of establishing a governance model that promotes inclusive growth while addressing global economic uncertainties, trade tensions, and protectionism.

Key Takeaways from the India-China Agreement at the Kazan Summit

• Patrolling Agreement:
  An agreement on “patrolling arrangements” along the LAC enables a phased disengagement and restoration of normalcy in previously tense areas.
• Rights and Troop Reduction:
  The agreement permits Indian patrols in strategic locations like Depsang Plains and Demchok and aims to reduce troop presence on both sides of the LAC.
• Future Dialogues:
  Continued talks will involve Special Representatives from both nations to build trust and ensure sustainable conflict resolution.

Highlights of the Kazan Declaration

1. Comprehensive Framework:
   The Kazan Declaration, adopted at the conclusion of the summit, underscores mutual respect, sovereign equality, and a commitment to a fairer global order.
2. Diplomatic Resolutions for Conflict:
   BRICS reaffirmed the need for diplomatic solutions to the Russia-Ukraine conflict and expressed serious concern over the humanitarian crisis in the Occupied Palestinian Territory, underscoring adherence to UN principles.
3. G20 and Multilateral Reforms:
   BRICS reaffirmed its commitment to the G20 as a global decision-making platform, alongside advocating for IMF reforms that address the interests of emerging economies.
4. Trade & Dedollarization:
   To reduce dependence on the U.S. dollar, BRICS aims to foster trade in local currencies and has initiated the development of a digital currency, potentially backed by gold, to enhance financial autonomy.
5. BRICS Grain Exchange:
   Leaders proposed establishing a BRICS Grain Exchange to support efficient trading and food security.
6. Global Responsibility Initiatives:
   BRICS emphasized collaboration in health, vaccine R&D, and conservation initiatives, aligning with India’s proposal for the International Big Cats Alliance.

The Path Forward for India in BRICS

1. Strengthen Diplomatic Engagements:
   India should enhance diplomatic efforts within BRICS to promote consensus on issues like trade, security, and climate action.
2. Trade and Investment Expansion:
   Strengthening trade with BRICS members, especially new members like the UAE and Saudi Arabia, can help India reduce its trade deficit with China.
3. Advocating for Global Reforms:
   India should continue to advocate for reforms in institutions like the IMF and World Bank, pushing for a global governance model that better represents developing nations.
4. Bolstering Counterterrorism Efforts:
   Enhanced counterterrorism cooperation within BRICS can improve the bloc’s resilience to security threats, aligning with India’s national security goals.
5. Energy Security Partnerships:
   Strengthening partnerships with energy-rich BRICS members such as Saudi Arabia and Russia will secure long-term energy sources, supporting India’s growing energy needs.
6. Championing a Balanced BRICS Identity:
   India should promote BRICS as a balanced platform, fostering cooperation between East and West rather than positioning itself against any bloc, supporting India’s multi-alignment strategy.

Conclusion

BRICS provides a crucial platform for emerging economies to collaborate on growth and global stability. India can leverage BRICS to enhance trade, promote counterterrorism initiatives, and drive sustainable development, ultimately shaping a more equitable global order that represents the interests of the Global South.

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