14th BRICS Summit

• 27 Jun 2022

For Prelims: BRICS, UNSC, Beijing Declaration

For Mains: Groupings and Agreements, BRICS Summit, UNSC

Why in News?

Recently, Prime Minister of India attended the 14^th BRICS summit which was virtually hosted by China.

• Theme of the 14^th BRICS Summit: Foster High-quality BRICS Partnership, Usher in a New Era for Global Development.
• BRICS Plus virtual conference was also held as part of the main meeting with ministers from countries, including the UAE, Saudi Arabia, Egypt, Kazakhstan, Indonesia, Argentina, Nigeria, Senegal, and Thailand.

What are the Key Highlights of the Summit?

• Adopting the Beijing Declaration:
  • It states that BRICS supports talks between Russia and Ukraine.
  • The grouping is willing to support the United Nations’ and the International Committee of the Red Cross’s (ICRC) efforts to deliver humanitarian aid to Ukraine.
  • Countries also expressed concerns about the situation in Taliban-held Afghanistan.
• Discussions on the Issues:
  • Humanitarian Situation in Ukraine:
    • Concerns over the humanitarian situation in and around Ukraine and expressed their support to efforts of the UN Secretary-General, UN Agencies and International Committee of the Red Cross (ICRC) to provide humanitarian assistance in accordance with the basic principles of humanity, neutrality and impartiality.
  • Terrorism:
    • While discussing terrorism and terror cooperation, the BRICS countries said that only the UN Security council has the authority for imposing sanctions.
    • On Afghanistan, BRICS countries called for “Afghanistan authorities to achieve national reconciliation through dialogue and negotiation, and to establish a broad-based and inclusive and representative political structure”, adding that Afghan territory must not be used to shelter terrorists or attack any other country.
  • Initiative on Denial of Safe Haven to Corruption:
    • The BRICS Initiative on Denial of Safe Haven to Corruption aims to further strengthen anti-corruption capacity building through education and training programs and enhance anti-corruption exchanges and cooperation within multilateral frameworks.
  • Framework for Consumer Protection in E-commerce:
    • The declaration welcomed the establishment of the Digital Economy Working Group by upgrading the E-commerce Working Group.
    • And the BRICS nations have agreed to promote consumer protection in e-commerce by advancing the implementation of BRICS Framework for Consumer Protection in E-commerce.
  • More Focus on Combating Transnational Drug Trafficking:
    • The summit also expressed concern over the serious drug situation in the world. BRICS declaration appreciate BRICS Anti-Drug Working Group's active role in combating transnational drug trafficking and promoting global drug governance and will further strengthen drug control cooperation.

What is BRICS?

• About:
  • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa.
  • 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.
  • South Africa was invited to join BRIC in December 2010, after which the group adopted the acronym BRICS.
• Share of BRICS:
  • 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.
• Chairmanship:
  • The chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
  • India is the chair for 2021.
• Initiatives of the BRICS:
  • New Development Bank:
    • During the Sixth BRICS Summit in Fortaleza (Brazil) in 2014, the leaders signed the Agreement establishing the New Development Bank (NDB - Shanghai, China).
    • It has so far approved 70 infrastructure and sustainable development projects worth.
  • Contingent Reserve Arrangement:
    • In 2014, the BRICS governments had signed a treaty on the setting up of the contingent reserve arrangement
    • The arrangement is aimed at forestalling short-term balance of payments pressures, provide mutual support and strengthen financial stability of the BRICS nations.
  • BRICS Payment System:
    • BRICS countries are trying to create a payment system as an alternative to the SWIFT payment system.
    • This has taken on a new urgency as post Ukraine war, Russia has been frozen out of SWIFT.
  • Customs Agreements:
    • Customs agreement were signed to coordinate and ease trade transport between BRICS countries
  • Launched of Remote Sensing Satellite:
    • A Remote Sensing constellation of satellites has been launched – with 6 satellites including 2 from India, 2 from China, 1 from Russia, and 1 Brazil-China collaboration

Way Forward

• It is imperative for BRICS countries to strengthen coordination within the frameworks of the G20, World Trade Organisation (WTO), World Bank and Important Institution International Monetary Fund( IMF).
• BRICS should strengthen coordination on macroeconomic policies and multilateral cooperation.
• BRICS countries should make full use of mechanisms including the internet for cultural and people-to-people exchanges and cooperation.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Q. Consider the following statements: (2016)

1. New Development Bank has been set up by APEC.
2. The headquarters of New Development Bank is in Shanghai.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Ans: (b)

Exp:

• The New Development Bank (NDB) was formed referred to as the BRICS Development Bank.
• It is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa). Hence, statement 1 is not correct.
• The bank is headquartered in Shanghai, China. Hence, statement 2 is correct.
• During the sixth BRICS Summit in Fortaleza (2014), the New Development Bank (NDB) was established by the Fortaleza Declaration to strengthen cooperation among BRICS and supplement the efforts of multilateral and regional financial institutions for global development.
• It had an initial authorized capital of US$ 100 billion, with an initial subscribed capital of US$ 50 billion, equally shared among founding members.
• Therefore, option (b) is the correct answer.

Source:TH