10th BRICS Summit In Johannesburg

The 10th BRICS Summit convened in Johannesburg, South Africa, under the theme "BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution." The Johannesburg Declaration, a key outcome, emphasized the significance of the 4th Industrial Revolution and proposed the establishment of the BRICS Partnership on New Industrial Revolution (PartNIR). Continuing the initiatives from the Xiamen Summit in 2017, the summit featured both "BRICS outreach to Africa" and "BRICS Plus" formats.

BRICS, officially established in 2006 with Brazil, Russia, India, and China, held its inaugural summit in Russia in 2009. South Africa's inclusion in 2010 expanded the group. A landmark achievement during the sixth BRICS Summit in Fortaleza (2014) was the creation of the New Development Bank (NDB), endowed with a $100 billion corpus, and the BRICS Contingent Reserve Arrangement (CRA), possessing an initial size of $100 billion, both designed to address short-term liquidity needs within the member nations.

The Johannesburg Declaration: A Focus on the Fourth Industrial Revolution

The 10th BRICS Summit, hosted in Johannesburg, South Africa, marked a significant moment in the evolution of the BRICS grouping. The summit's central theme, "BRICS in Africa: Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution," underscored the organization's ambition to not only address internal economic development but also to extend its influence and collaborative efforts to the African continent. The adoption of the Johannesburg Declaration was a tangible outcome, signaling a commitment to navigating the complexities and opportunities presented by the rapidly evolving technological landscape of the 4th Industrial Revolution.

The Declaration itself served as a roadmap, identifying key areas of focus and laying the groundwork for future cooperation. The recommendation to establish the BRICS Partnership on New Industrial Revolution (PartNIR) was particularly noteworthy, reflecting a strategic recognition that technological advancement is not just an economic imperative but also a vital tool for achieving inclusive growth and shared prosperity. By prioritizing collaboration in areas such as technology, innovation, and skills development, the BRICS nations aimed to collectively enhance their competitiveness in the global economy while ensuring that the benefits of technological progress are widely distributed.

The concept of the 4th Industrial Revolution, often abbreviated as 4IR, forms the core of much of the declaration. 4IR refers to the ongoing and developing environment in which disruptive technologies and trends, such as the Internet of Things (IoT), robotics, artificial intelligence (AI), virtual reality (VR), nanotechnology, biotechnology, and cloud computing, are changing the way we live and work. It is characterized by a fusion of technologies that blur the lines between the physical, digital, and biological spheres, creating unprecedented opportunities but also posing significant challenges. The BRICS nations, recognizing the transformative potential of 4IR, sought to harness its power for economic growth, social development, and global competitiveness.

BRICS Outreach and Expansion: The 'BRICS Plus' Initiative

The Johannesburg Summit continued the "BRICS outreach to Africa" and "BRICS Plus" formats, which were initially introduced at the Xiamen Summit in 2017. This demonstrated the BRICS nations' intention to broaden their engagement with the developing world and foster South-South cooperation. The "BRICS Plus" initiative, in particular, involved inviting other developing countries to participate in BRICS meetings and activities, creating a platform for dialogue and collaboration on issues of mutual interest. This approach reflected a desire to move beyond the exclusive club of the five member states and to build a more inclusive and representative global order.

The motivations behind the "BRICS Plus" initiative were multifaceted. Firstly, it aimed to enhance the legitimacy and influence of BRICS on the global stage by demonstrating its commitment to inclusivity and multilateralism. By engaging with a wider range of developing countries, BRICS could present itself as a champion of the Global South and a credible alternative to traditional Western-dominated institutions. Secondly, the initiative sought to expand the economic opportunities for BRICS member states by forging closer ties with emerging markets in other regions. This could lead to increased trade, investment, and technology transfer, benefiting both BRICS countries and their partners. Thirdly, "BRICS Plus" aimed to address common challenges facing developing countries, such as poverty, inequality, climate change, and terrorism, through collaborative efforts and the sharing of best practices.

The success of the "BRICS Plus" initiative, however, depended on several factors. One key challenge was ensuring that the engagement with other developing countries was meaningful and mutually beneficial. It was crucial to avoid the perception that BRICS was simply using the initiative to advance its own interests without genuinely addressing the concerns and priorities of its partners. Another challenge was managing the diversity of interests and perspectives among the participating countries. The developing world is not a homogenous entity, and different countries have different priorities and agendas. BRICS needed to be sensitive to these differences and to find common ground on which to build effective cooperation.

Historical Roots and Evolution of BRICS

The BRICS grouping officially came into existence in 2006, initially comprising Brazil, Russia, India, and China. The acronym "BRIC" was coined by economist Jim O'Neill in a 2001 paper highlighting the growth potential of these four emerging economies. The first BRIC summit was held in Russia in 2009, marking the formal establishment of the group as a political entity. South Africa joined in 2010, adding the "S" to the acronym and completing the BRICS formation.

The emergence of BRICS was driven by a combination of factors. Firstly, the four original members (Brazil, Russia, India, and China) had experienced rapid economic growth in the early 21st century, transforming them into major players in the global economy. These countries shared a common desire to reshape the global economic and political order to reflect their growing influence. Secondly, the BRICS nations felt that existing international institutions, such as the United Nations, the International Monetary Fund (IMF), and the World Bank, were dominated by Western powers and did not adequately represent the interests of developing countries. They sought to create alternative institutions and mechanisms that would give them a greater voice in global governance. Thirdly, the BRICS countries shared a common interest in promoting South-South cooperation and strengthening ties with other developing countries. They saw themselves as leaders of the Global South and sought to build a more equitable and multipolar world order.

The BRICS summits have served as platforms for discussing a wide range of issues, including economic cooperation, trade and investment, sustainable development, climate change, energy security, counter-terrorism, and global governance reform. The summits have also been used to launch new initiatives and projects, such as the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA). These initiatives reflect the BRICS nations' commitment to building a more robust and resilient global financial architecture.

The New Development Bank (NDB): An Alternative Financial Institution

A significant milestone in the BRICS journey was the establishment of the New Development Bank (NDB), formally agreed upon during the sixth BRICS Summit in Fortaleza, Brazil, in 2014. The NDB, with an authorized capital of $100 billion, was conceived as a multilateral development bank to finance infrastructure and sustainable development projects in BRICS countries and other emerging economies. The bank's headquarters are located in Shanghai, China, and it began operations in 2015.

The creation of the NDB was driven by several factors. Firstly, the BRICS nations felt that existing multilateral development banks, such as the World Bank and the Asian Development Bank (ADB), were not adequately meeting their infrastructure financing needs. These institutions were often criticized for being slow, bureaucratic, and overly focused on Western priorities. Secondly, the BRICS countries wanted to create an alternative source of funding that would be more responsive to their specific needs and priorities. The NDB was designed to be more flexible and agile than traditional development banks, with a greater emphasis on country ownership and sustainable development. Thirdly, the NDB was seen as a way to challenge the dominance of Western-led financial institutions and to promote a more multipolar global financial architecture.

The NDB has since approved a number of projects in areas such as renewable energy, transportation, water and sanitation, and urban development. The bank has also expanded its membership to include other developing countries, such as Bangladesh, Egypt, and the United Arab Emirates. The NDB's operations have been generally well-received, and it has been praised for its focus on sustainable development and its responsiveness to the needs of its borrowers. However, the bank has also faced some challenges, including a relatively small capital base and a lack of experience in project management.

The BRICS Contingent Reserve Arrangement (CRA): Enhancing Financial Stability

Alongside the NDB, the BRICS Contingent Reserve Arrangement (CRA) was established in 2014 as a framework for providing short-term liquidity support to BRICS countries facing balance of payments pressures. The CRA, with an initial size of $100 billion, is designed to help BRICS countries avoid financial crises by providing them with access to a pool of foreign exchange reserves.

The establishment of the CRA was motivated by the experience of the 1997-98 Asian financial crisis, which highlighted the vulnerability of emerging economies to sudden capital outflows. The BRICS countries wanted to create a mechanism that would provide them with a buffer against such shocks and reduce their reliance on traditional Western-dominated institutions like the IMF. The CRA is designed to be a self-insurance mechanism, with each BRICS country contributing a certain amount of its foreign exchange reserves to the pool. In the event that a BRICS country faces a balance of payments crisis, it can draw on the CRA to access foreign exchange reserves.

The CRA has not yet been used, but its existence is seen as a valuable deterrent against financial instability. The CRA has also been credited with helping to improve the BRICS countries' credit ratings, as it provides them with a greater degree of financial security.

India's Role and Interests within BRICS

India has been a strong proponent of BRICS since its inception, actively participating in all BRICS summits and initiatives. India sees BRICS as a valuable platform for advancing its economic and political interests on the global stage.

One of India's key interests within BRICS is to strengthen its economic ties with other BRICS countries. Trade and investment between India and other BRICS countries have grown rapidly in recent years, and India sees further potential for expanding these ties. India is particularly interested in attracting investment from other BRICS countries in areas such as infrastructure, manufacturing, and technology.

Another key interest for India is to promote its interests in global governance. India believes that the existing international institutions, such as the UN, the IMF, and the World Bank, are not adequately representative of the interests of developing countries. India supports reforms to these institutions to give developing countries a greater voice in global decision-making. India also sees BRICS as a way to promote a more multipolar world order, in which power is more evenly distributed among different countries and regions.

India also uses the BRICS platform to address common challenges facing developing countries, such as climate change, terrorism, and poverty. India has been a strong advocate for international cooperation to address these challenges and sees BRICS as a valuable forum for coordinating its efforts with other developing countries.

South Africa's Perspective: BRICS as a Gateway to Africa

South Africa's membership in BRICS is particularly significant because it provides a gateway for BRICS engagement with the African continent. South Africa sees BRICS as a valuable platform for promoting its own development goals and for advancing the interests of Africa as a whole.

South Africa's primary interest in BRICS is to attract investment and technology from other BRICS countries to support its own economic development. South Africa has a relatively small economy compared to other BRICS countries, and it relies on foreign investment to drive growth. South Africa sees BRICS as a valuable source of investment and technology, particularly in areas such as infrastructure, manufacturing, and renewable energy.

South Africa also wants to leverage its BRICS membership to promote its role as a gateway to Africa. South Africa has a well-developed infrastructure and a relatively stable political system, making it an attractive location for businesses looking to invest in Africa. South Africa wants to use its BRICS membership to encourage other BRICS countries to invest in Africa through South Africa.

South Africa also uses the BRICS platform to advance its foreign policy objectives on the continent. South Africa has been a strong advocate for peace and security in Africa and has played a leading role in mediating conflicts in several African countries. South Africa sees BRICS as a valuable forum for coordinating its efforts with other developing countries to promote peace and security in Africa.

Broader Implications of BRICS: A Multipolar World Order

The emergence of BRICS has had a number of broader implications for the global economic and political landscape.

Politically, BRICS has strengthened the political influence of emerging economies in global affairs and has promoted a multipolar world order. BRICS countries have increasingly coordinated their positions on global issues and have challenged the dominance of Western powers in international institutions.

Diplomatically, BRICS has enhanced diplomatic cooperation and coordination among its member countries on various global issues. BRICS summits have provided a valuable forum for leaders from BRICS countries to meet and discuss issues of mutual interest.

Economically, BRICS has fostered economic growth and development in its member countries and has promoted South-South cooperation. Trade and investment between BRICS countries have grown rapidly in recent years, and BRICS has launched several initiatives to promote economic cooperation among its members.

Technologically, BRICS has encouraged cooperation in technological innovation and the development of new technologies. BRICS countries have increasingly collaborated on research and development projects and have shared best practices in areas such as renewable energy and information technology.

Environmentally, BRICS has promoted cooperation in addressing climate change and other environmental challenges. BRICS countries have increasingly coordinated their positions on climate change and have launched several initiatives to promote sustainable development.

BRICS and Global Governance Reform

One of the key objectives of BRICS is to promote reforms in global governance institutions, such as the UN, the IMF, and the World Bank. BRICS countries believe that these institutions are not adequately representative of the interests of developing countries and that they need to be reformed to reflect the changing global balance of power.

BRICS has called for reforms to the UN Security Council to give developing countries a greater voice in global security matters. BRICS has also called for reforms to the IMF and the World Bank to give developing countries a greater say in global economic governance. BRICS countries have argued that the voting structures in these institutions are biased in favor of Western powers and that they need to be reformed to reflect the growing economic importance of developing countries.

The BRICS nations have also advocated for a more multipolar world order, where power is distributed among several major centers, as opposed to being concentrated in a single superpower. This vision entails a shift away from a unipolar system dominated by the United States towards a more balanced distribution of influence among multiple actors. The BRICS countries believe that a multipolar world order would be more stable and equitable, as it would prevent any single power from dominating the global stage. They argue that a multipolar system would also be more conducive to international cooperation, as it would require countries to work together to address common challenges.

However, achieving reforms in global governance institutions has proven to be a difficult task. Western powers have been reluctant to cede their dominance in these institutions, and there has been little progress on reforms in recent years. The BRICS nations face an uphill battle in their efforts to reshape global governance, but they remain committed to this goal.

Challenges and Future Outlook for BRICS

Despite its achievements, BRICS faces several challenges. One key challenge is the economic disparities among its member countries. China is by far the largest economy in BRICS, while South Africa is the smallest. These economic disparities can create tensions within the group and can make it difficult to coordinate policies.

Another challenge is the political differences among BRICS countries. BRICS countries have different political systems and different foreign policy priorities. These differences can make it difficult to reach consensus on global issues.

Another challenge is the rise of trade tensions and protectionism. The global trading system is under increasing strain, and BRICS countries have been affected by these trends. Trade tensions between the United States and China have been particularly disruptive, and they have created uncertainty for businesses around the world.

Despite these challenges, BRICS is likely to continue to play an important role in shaping the global economic and political landscape. The group will likely focus on strengthening its internal cooperation, promoting South-South cooperation, and advocating for reforms in global governance institutions. The success of BRICS will depend on its ability to address internal challenges and to adapt to the changing global environment.

The future success of BRICS depends on several factors. First, the BRICS nations must continue to strengthen their internal cooperation. This includes deepening economic ties, coordinating policies on global issues, and promoting cultural exchange. Second, BRICS must continue to promote South-South cooperation. This includes providing assistance to other developing countries, sharing best practices, and advocating for the interests of the Global South in international forums. Third, BRICS must continue to advocate for reforms in global governance institutions. This includes calling for greater representation of developing countries in these institutions and promoting a more multipolar world order. Fourth, BRICS must adapt to the changing global environment. This includes addressing the challenges of climate change, terrorism, and economic inequality.

BRICS: A Counterweight in a Shifting World Order

The establishment and evolution of BRICS represent a significant shift in the global geopolitical landscape. For decades, the international order was largely defined by the dominance of Western powers, particularly the United States and Europe. BRICS emerged as a collective of nations seeking to challenge this established order and to create a more balanced and multipolar world.

The formation of BRICS was not simply a matter of economic ambition. It was also driven by a sense of frustration with the existing international institutions, which were perceived as being biased in favor of Western interests. The BRICS nations felt that their voices were not being heard in these institutions and that their concerns were not being adequately addressed. This led them to create alternative institutions and mechanisms, such as the New Development Bank and the Contingent Reserve Arrangement, which would give them greater control over their own economic destinies.

The rise of BRICS has had a profound impact on the global balance of power. It has challenged the dominance of Western powers and has created new opportunities for developing countries. BRICS has also played a key role in promoting South-South cooperation and in advocating for a more equitable and multipolar world order.

However, BRICS is not without its challenges. The group faces internal divisions and external pressures, and it is not clear whether it will be able to maintain its momentum in the years to come. Nevertheless, BRICS remains a significant force in the global arena, and its future trajectory will have a major impact on the shape of the international order. The Johannesburg Declaration and the focus on the 4th Industrial Revolution underscore the group's ambition to remain relevant and to shape the future of the global economy.

The continued relevance and effectiveness of BRICS will depend on its ability to adapt to the evolving global landscape, address internal challenges, and forge a common vision for the future. The decisions and actions taken by the BRICS nations in the coming years will determine whether the group can fulfill its potential as a force for positive change in the world.