Mains Practice Questions

Introduction:

BRICS has evolved into a prominent yet complex coalition of emerging economies, projecting itself as a collective voice of the Global South against the Western-dominated global order. 

• The 17th BRICS Summit, held under the theme “Strengthening Global South Cooperation and Promoting a More Inclusive and Sustainable Global Governance”, reflected this vision.

Body :

• BRICS as a collective voice for the Global South has emerged as an influential platform for developing economies, yet its unity and effectiveness are mixed.
  • Successes:
    • Alternative Finance: The New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) offer alternatives to Western-dominated institutions like the IMF and World Bank, financing sustainable development and providing liquidity.
      • Brazil, Russia, India, China, and South Africa, have discussed creating BRICS Reserve Currency as part of a broader de-dollarization effort.
    • Agenda-setting Power: BRICS members have successfully amplified the Global South's demands for reforming global governance institutions, including the UNSC, and increasing representation for emerging economies.
    • Recent Expansion: The addition of new members like Egypt, Iran, and the UAE enhances the bloc's demographic and economic weight, strengthening its claim to represent the wider Global South.
  • Limitations:
    • Internal Divisions: Geopolitical rivalries, notably the India-China border dispute, create deep trust deficits and hinder cohesive action.
    • China's Dominance: China's overwhelming economic size raises concerns about asymmetric power dynamics and agenda-setting, complicating equitable decision-making.
    • Conflicting Interests: Member states have divergent foreign policy stances, with India's multi-aligned approach contrasting with the more confrontational posture of China and Russia.
    • Strengthening India's BRICS engagement: India can bolster its role in BRICS by adopting a pragmatic strategy that prioritizes economic cooperation and multilateral reform while preserving its strategic autonomy.
• Expand issue-based economic cooperation:
  • Trade Diversification: Leverage the expanded BRICS platform to correct trade imbalances, especially with China, by deepening ties with commodity-rich members like Brazil and energy producers like UAE.
    • Technological leadership: Champion cooperation in technology, particularly digital public infrastructure (DPI), where India holds a comparative advantage. 
      • Promoting the UPI model across BRICS can boost intra-bloc digital trade.
    • Local Currency Trade: Actively support initiatives for trade in local currencies to reduce reliance on the US dollar, enhancing financial resilience for India and its partners for example Rupee-Ruble agreement.
  • Strengthen institutional mechanisms:
    • Institutional Reforms: Advocate for robust institutional reforms, such as setting clear membership criteria and strengthening the NDB, to ensure equitable decision-making and prevent domination by any single member.
    • People-to-people Ties: Promote academic exchanges, tourism, and cultural initiatives to build long-term goodwill and mutual understanding among member states.

Conclusion:

While BRICS has partially succeeded in representing the Global South, internal differences limit its full potential. India can play a decisive role by leveraging diplomacy, promoting cohesion, driving innovation, and advocating shared interests, thereby strengthening the grouping without compromising its own strategic priorities.