BRICS

Why in News?

India, as Chair of BRICS in 2026, issued a Chair’s summary noting “deep concern” over the ongoing conflict in West Asia, since consensus among members was elusive.

• BRICS – It is a major intergovernmental organisation designed to foster economic, political, and strategic cooperation among emerging markets.
• It stands for the emerging economies of Brazil, Russia, India, China, and South Africa.
• Coined by – Jim O’Neill (Goldman Sachs) in 2001 to describe major emerging economies.
• Formalisation – 1st BRIC Foreign Ministers’ meeting, UNGA sidelines, New York (2006), became BRICS when South Africa joined in 2010.
• Membership
• Full Members (11) – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, UAE, Indonesia (2025).
• Partner Countries (10) – Newly created category at Kazan Summit (2024), Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, Vietnam. 

• Chairmanship – The presidency rotates among members for a term that lasts for one year, beginning on January 1 and ending on December 31.
• Responsibilities – The chair country sets the theme and annual priorities, hosts the annual BRICS summit, and coordinates meetings across the political, economic, and cultural pillars.
• Core Pillars/ Areas of Cooperation  
  • Political & Security;
  • Economic & Financial; and
  • Cultural and People‑to‑People Exchanges.
• Institutional Framework
• New Development Bank (NDB) – Established 2014 Fortaleza Summit; HQ in Shanghai; equal voting shares among founding members; open to all UN members.
• Contingent Reserve Arrangement (CRA) – Provides short‑term liquidity support to BRICS members during Balance of Payments (BoP) crises through currency swaps.
• Secretariat – BRICS has no permanent secretariat or formal charter; it operates via annual rotating chairmanship.

Role of BRICS

• Counterbalance to Western institutions – Challenges the dominance of G7, IMF, World Bank.

G7 (Group of Seven) – Group of Seven advanced economies – Canada, France, Germany, Italy, Japan, United Kingdom, United States, formed in 1975.

• United Nations Security Council (UNSC) & multilateral reform – Pushes for democratisation and greater Global South representation.
• Financial architecture – NDB for development finance; CRA for liquidity support in crises.
• De‑dollarisation – Encourages trade in local currencies to reduce US dollar dependence.
• Political & security cooperation – Counter‑terrorism, cybersecurity, conflict mediation.
• South–South cooperation – Platform for Global South voices in trade, technology, and development.
• Significance – The grouping now represents nearly half the world’s population (49.5%), 40% of global GDP, and 26% of world trade.

Reference

Indian Express | BRICS