Why in the news?

  • BRICS nations criticise protectionism, condemn  Israeli strikes against Qatar during the 80th session of UN General Assembly.

BRICS Grouping

  • Formations
    • In 2001, the British Economist Jim O’Neill coined the term BRIC to describe the four emerging economies of Brazil, Russia, India, and China.
    • The grouping was formalised during the first meeting of BRIC Foreign Ministers’ in 2006.
    • Founded in 2009.
    • South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
  • BRICS: Brazil, Russia, India, China, and South Africa.
  • New Members: Egypt, Iran, Saudi Arabia, UAE, Ethiopia, Indonesia.
  • Partner Countries: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan.
  • Facts:
    • The BRICS brings together five of the largest developing countries of the world, representing 41% of the global population, 24% of the global GDP and 16% of the global trade.
    • The chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
  • Objectives
    • Promote peace, security, and development in member countries and globally.
    • Reform international financial and governance institutions (e.g., IMF, World Bank) to reflect emerging economies’ interests.
    • Enhance multilateral trade and investment, cooperation in various sectors (technology, finance, health).
    • Encourage people-to-people exchanges and cultural ties.
  • Key Initiatives:
    • New Development Bank (NDB) : Established in 2014 at the BRICS summit in Fortaleza, Brazil. Provides funding for infrastructure and sustainable development projects in BRICS and other emerging economies.
    • Contingent Reserve Arrangement (CRA): A framework to support members in case of short-term balance of payment pressures.
    • BRICS Business Council & Think Tank Council: Strengthens economic ties and policy coordination.
  • Significance
    • Provides a platform for non-Western countries to voice their perspectives in global governance.
    • Promotes South-South cooperation.
    • Acts as a counterbalance to Western-dominated institutions like G7 and NATO.
    • Encourages a multipolar world order.
  • Challenges
    • Divergent national interests (e.g., India-China border disputes).
    • Economic and political differences may hinder deeper integration.
    • Criticism of lacking a clear institutional structure or binding charter.