Brics Developments And Initiatives In 2020 2021

This news highlights the activities and achievements of the BRICS nations (Brazil, Russia, India, China, and South Africa), with a focus on the 2020 BRICS Summit, held under Russia's chairmanship and guided by the motto 'BRICS Partnership for Global Stability, Shared Security and Innovative Growth.' BRICS strives to foster global peace, security, development, and cooperation, aiming for a more equitable global order. Key accomplishments include the establishment of the New Development Bank (NDB), which finances infrastructure and sustainable development projects, and the Contingent Reserve Arrangement (CRA), which provides financial support among members. The NDB has approved numerous projects, with India being a significant beneficiary. The group also prioritizes medical cooperation, science, technology, and innovation, particularly in response to the COVID-19 pandemic. Intra-BRICS trade has seen growth.

In 2021, under India's chairmanship, the BRICS Contact Group on Economic and Trade Issues (CGETI) convened, establishing cooperation priorities, including the 'Strategy for BRICS Economic Partnership 2025,' cooperation on multilateral trading systems, e-commerce consumer protection, mechanisms for addressing non-tariff measures and sanitary/phyto-sanitary standards, and collaboration in professional services.

BRICS: Navigating Global Challenges and Forging Economic Partnerships

BRICS, an acronym representing Brazil, Russia, India, China, and South Africa, has emerged as a pivotal force in the evolving landscape of international relations. Its genesis lies in the recognition of the growing economic clout and political influence of these emerging economies, coupled with a shared desire to reshape the global order and address its perceived imbalances. The group's trajectory, marked by both successes and challenges, reflects its ambition to foster cooperation, promote development, and advocate for a more equitable and multipolar world. The 2020 BRICS Summit, convened under Russia's chairmanship, and the subsequent initiatives spearheaded by India in 2021, underscore the group's commitment to these objectives, particularly in the face of unprecedented global challenges.

The Genesis and Evolution of BRICS

The seeds of BRICS were sown in the early 2000s, a period characterized by the rise of emerging markets and their increasing integration into the global economy. Jim O'Neill, then chairman of Goldman Sachs Asset Management, coined the term "BRIC" in a 2001 research paper, highlighting the significant growth potential of Brazil, Russia, India, and China. The paper projected that these four economies could collectively outgrow the G6 (the original G7 excluding Canada) by 2040. This projection captured the attention of policymakers and economists alike, sparking discussions about the need for a new framework to reflect the changing global economic order.

The first BRIC summit was held in Yekaterinburg, Russia, in June 2009. The leaders of the four countries – Luiz Inácio Lula da Silva of Brazil, Dmitry Medvedev of Russia, Manmohan Singh of India, and Hu Jintao of China – formally established the BRIC grouping and articulated their shared vision for a more democratic and multipolar world. They emphasized the importance of cooperation on issues such as global economic governance, climate change, and international security.

In 2010, South Africa was invited to join the group, expanding the acronym to BRICS. South Africa's inclusion was significant, as it represented the African continent and added a new dimension to the group's geographical and developmental diversity. The formal admission of South Africa took place at the third BRICS summit in Sanya, China, in April 2011.

From its inception, BRICS has been driven by a number of key motivations. Firstly, the member states sought to enhance their collective bargaining power in international forums, such as the United Nations, the World Trade Organization (WTO), and the International Monetary Fund (IMF). They aimed to advocate for reforms that would give emerging economies a greater voice in global decision-making. Secondly, BRICS aimed to promote South-South cooperation, fostering trade, investment, and technological exchange among developing countries. This was seen as a way to reduce dependence on traditional Western powers and promote more inclusive and sustainable development. Thirdly, BRICS sought to create alternative financial institutions that would complement the existing Bretton Woods system. This led to the establishment of the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), which are discussed in more detail below.

The 2020 BRICS Summit: A Focus on Stability, Security, and Growth

The 12th BRICS Summit, held virtually in November 2020 under the chairmanship of Russia, took place against the backdrop of the COVID-19 pandemic and its profound impact on the global economy and international relations. The summit's theme, "BRICS Partnership for Global Stability, Shared Security and Innovative Growth," reflected the pressing need for cooperation in addressing the multifaceted challenges posed by the pandemic and its aftermath.

The summit saw the adoption of the Moscow Declaration, a comprehensive document outlining the group's priorities and commitments for the coming year. The declaration reaffirmed BRICS' commitment to multilateralism and the principles of international law, emphasizing the importance of the United Nations as the central platform for international cooperation. It also highlighted the need for a coordinated global response to the COVID-19 pandemic, including the development and equitable distribution of vaccines and treatments.

One of the key outcomes of the 2020 summit was the adoption of the BRICS Counter-Terrorism Strategy. This strategy aims to enhance cooperation among BRICS countries in combating terrorism, including the sharing of information and best practices, the disruption of terrorist financing, and the prevention of radicalization. The strategy reflects the growing concern among BRICS members about the threat of terrorism and their commitment to working together to address this challenge.

The summit also addressed the issue of global economic recovery. The leaders of BRICS countries emphasized the importance of maintaining macroeconomic stability, promoting trade and investment, and fostering innovation and technological development. They reaffirmed their commitment to the "Strategy for BRICS Economic Partnership 2025," a roadmap for deepening economic cooperation among BRICS countries in areas such as trade, investment, finance, and infrastructure.

Another significant outcome of the 2020 summit was the progress made in strengthening the New Development Bank (NDB). The NDB, established by BRICS countries in 2015, aims to finance infrastructure and sustainable development projects in BRICS countries and other emerging economies. At the 2020 summit, the leaders of BRICS countries reaffirmed their commitment to supporting the NDB and expanding its lending operations.

India's Chairmanship in 2021: Prioritizing Continuity, Consolidation, and Consensus

In 2021, India assumed the chairmanship of BRICS, building on the momentum generated by the previous summits and setting its own priorities for the year. India's chairmanship focused on the theme of "BRICS@15: Intra-BRICS Cooperation for Continuity, Consolidation and Consensus." This theme reflected India's desire to strengthen intra-BRICS cooperation, consolidate the group's achievements, and build consensus on key global issues.

One of India's key priorities during its chairmanship was to promote greater economic cooperation among BRICS countries. The BRICS Contact Group on Economic and Trade Issues (CGETI) played a central role in this effort. The CGETI, which comprises senior trade officials from BRICS countries, met several times in 2021 to discuss ways to enhance trade and investment among BRICS countries.

One of the key initiatives under India's chairmanship was the development of a framework for cooperation on non-tariff measures (NTMs). NTMs, such as quotas, import licensing systems, and sanitary regulations, can pose significant barriers to trade. The BRICS countries recognized the need to address NTMs in order to facilitate smoother trade among member countries. The framework developed under India's chairmanship aims to promote transparency and cooperation on NTMs, with a view to reducing their negative impact on trade.

Another key initiative under India's chairmanship was the promotion of e-commerce. The BRICS countries recognized the growing importance of e-commerce in the global economy and the potential for e-commerce to drive economic growth and create jobs. They agreed to cooperate on issues such as e-commerce consumer protection, cross-border data flows, and the development of digital infrastructure.

India's chairmanship also focused on strengthening cooperation on health issues. The COVID-19 pandemic highlighted the importance of international cooperation in addressing global health challenges. The BRICS countries agreed to enhance cooperation on issues such as vaccine development and distribution, access to medicines, and strengthening health systems.

India also prioritized cooperation on science, technology, and innovation. The BRICS countries recognized the importance of science, technology, and innovation in driving economic growth and addressing global challenges. They agreed to enhance cooperation on issues such as research and development, technology transfer, and innovation policy.

The New Development Bank (NDB): An Alternative Source of Development Finance

The New Development Bank (NDB), headquartered in Shanghai, China, is a multilateral development bank established by the BRICS countries in 2015. The NDB's primary objective is to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies. The establishment of the NDB was a significant milestone in the evolution of BRICS, demonstrating the group's commitment to creating alternative financial institutions that would complement the existing Bretton Woods system.

The NDB's authorized capital is $100 billion, with initial subscribed capital of $50 billion, equally shared among the five BRICS countries. The bank's lending operations are focused on infrastructure projects in areas such as transportation, energy, water, and sanitation. The NDB also supports sustainable development projects in areas such as renewable energy, energy efficiency, and environmental protection.

The NDB has approved a number of projects in India, including loans for infrastructure projects such as the Mumbai Trans Harbour Sea Link, the Delhi-Ghaziabad-Meerut Regional Rapid Transit System, and the Madhya Pradesh Major District Roads Project. These projects are expected to have a significant impact on India's economic development, improving connectivity, reducing congestion, and creating jobs.

The NDB's lending operations are not limited to BRICS countries. The bank also provides loans to other emerging economies, such as Bangladesh, Egypt, and South Africa. This reflects the NDB's commitment to promoting sustainable development in developing countries around the world.

The NDB operates on the principles of transparency, accountability, and good governance. The bank's projects are subject to rigorous environmental and social safeguards, ensuring that they are environmentally sustainable and socially responsible. The NDB also works closely with local communities to ensure that its projects benefit the people they are intended to serve.

The Contingent Reserve Arrangement (CRA): A Safety Net for Financial Stability

The Contingent Reserve Arrangement (CRA) is a framework for providing mutual financial support among BRICS countries in the event of balance of payments pressures. The CRA was established in 2015, alongside the NDB, as another key pillar of the BRICS financial architecture. The establishment of the CRA reflects the BRICS countries' desire to enhance their financial stability and reduce their dependence on the IMF and other Western-dominated financial institutions.

The CRA has a total committed resources of $100 billion, with each BRICS country contributing a certain amount to the arrangement. China is the largest contributor, with a commitment of $41 billion, followed by Brazil, Russia, and India, each with a commitment of $18 billion, and South Africa with a commitment of $5 billion.

The CRA is designed to provide short-term liquidity support to BRICS countries facing balance of payments difficulties. A BRICS country can request financial assistance from the CRA if it is experiencing a sudden outflow of capital or a decline in its foreign exchange reserves. The CRA funds can be used to stabilize the country's currency, finance imports, or repay external debt.

The CRA is not intended to replace the IMF. Rather, it is designed to complement the IMF and provide an additional layer of financial support to BRICS countries. The CRA can provide quicker and more flexible financial assistance than the IMF, which often imposes stringent conditions on its loans.

The CRA has not yet been activated, but it serves as an important safety net for BRICS countries, providing them with a cushion against financial shocks. The existence of the CRA enhances the credibility of BRICS countries and reduces their vulnerability to financial crises.

BRICS and the TRIPS Waiver: Advocating for Global Health Equity

The COVID-19 pandemic has highlighted the importance of access to affordable vaccines and treatments, particularly for developing countries. In response to the pandemic, India and South Africa proposed a waiver of certain provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) at the World Trade Organization (WTO). The TRIPS waiver proposal seeks to temporarily suspend intellectual property rights on COVID-19 vaccines, treatments, and diagnostics, allowing developing countries to manufacture these products without fear of legal challenges.

The TRIPS waiver proposal has been supported by a majority of WTO members, including the BRICS countries. The BRICS countries have argued that the TRIPS waiver is necessary to ensure equitable access to COVID-19 vaccines and treatments, particularly for developing countries that lack the capacity to produce these products themselves.

However, the TRIPS waiver proposal has faced opposition from some developed countries, particularly those with large pharmaceutical industries. These countries have argued that the TRIPS waiver would undermine intellectual property rights and discourage innovation. They have proposed alternative solutions, such as voluntary licensing agreements and technology transfer.

The debate over the TRIPS waiver has been ongoing for several months, with little progress made towards a consensus. The BRICS countries have continued to advocate for the TRIPS waiver, arguing that it is the most effective way to ensure equitable access to COVID-19 vaccines and treatments.

The TRIPS waiver issue highlights the broader challenges of global health governance and the need for greater cooperation between developed and developing countries in addressing global health challenges. The BRICS countries have played a leading role in advocating for a more equitable and inclusive global health system.

BRICS and the Reform of the Multilateral Trading System

The multilateral trading system, governed by the World Trade Organization (WTO), has come under increasing strain in recent years. The rise of protectionism, the proliferation of bilateral and regional trade agreements, and the impasse in multilateral trade negotiations have all undermined the WTO's ability to effectively regulate international trade.

The BRICS countries have been strong supporters of the multilateral trading system. They have argued that the WTO is the best platform for promoting free and fair trade and for resolving trade disputes. However, they have also recognized the need for reforms to the WTO to make it more relevant and responsive to the needs of developing countries.

The BRICS countries have called for reforms to the WTO's dispute settlement mechanism, which they believe is biased in favor of developed countries. They have also called for reforms to the WTO's rules on agriculture, which they believe unfairly disadvantage developing countries.

The BRICS countries have also emphasized the importance of addressing non-tariff barriers to trade. Non-tariff barriers, such as quotas, import licensing systems, and sanitary regulations, can pose significant obstacles to trade, particularly for developing countries. The BRICS countries have agreed to cooperate on reducing non-tariff barriers to trade among themselves and to advocate for the reduction of non-tariff barriers in the WTO.

The reform of the multilateral trading system is a complex and challenging task. However, the BRICS countries have a key role to play in shaping the future of the WTO and ensuring that it remains a relevant and effective institution for promoting global trade.

Challenges and Opportunities for BRICS

Despite its achievements, BRICS faces a number of challenges. One of the main challenges is the diversity of its member states. The BRICS countries have different political systems, economic structures, and foreign policy priorities. This diversity can make it difficult to reach consensus on key issues and to coordinate policies effectively.

Another challenge is the economic slowdown in some BRICS countries. The economic growth rates of Brazil, Russia, and South Africa have slowed in recent years, while China's economic growth rate has also moderated. This economic slowdown has reduced the collective economic weight of BRICS and has made it more difficult for the group to achieve its goals.

A further challenge is the geopolitical tensions among some BRICS countries. China and India, in particular, have a number of unresolved border disputes and strategic rivalries. These tensions can undermine cooperation within BRICS and can make it more difficult for the group to act as a unified force in international relations.

However, BRICS also has a number of opportunities. One of the main opportunities is the growing importance of emerging economies in the global economy. The BRICS countries are among the fastest-growing economies in the world, and they are playing an increasingly important role in global trade, investment, and finance.

Another opportunity is the increasing demand for infrastructure in developing countries. The NDB is well-positioned to meet this demand, providing financing for infrastructure projects in BRICS countries and other emerging economies.

A further opportunity is the growing awareness of the need for a more equitable and multipolar world order. The BRICS countries have a shared interest in promoting a more democratic and inclusive global governance system.

BRICS: A Force for Change in the 21st Century

BRICS has emerged as a significant force in the 21st century, challenging the traditional dominance of Western powers and advocating for a more equitable and multipolar world order. The group's initiatives, such as the NDB and the CRA, have provided alternative sources of development finance and financial stability for emerging economies. BRICS has also played a leading role in advocating for reforms to the multilateral trading system and for greater cooperation on global health issues.

Despite the challenges it faces, BRICS is likely to continue to play an important role in shaping the future of the global economy and international relations. The group's success will depend on its ability to overcome its internal divisions, to adapt to the changing global landscape, and to continue to advocate for a more just and equitable world order. The 2020 summit and India's chairmanship in 2021 demonstrate BRICS' ongoing commitment to these goals, particularly in the face of unprecedented global challenges. The group's focus on economic partnership, global stability, and shared security underscores its ambition to be a catalyst for positive change in the 21st century. The emphasis on continuity, consolidation, and consensus under India's leadership further solidifies BRICS' position as a critical player in the evolving international arena.

The future trajectory of BRICS hinges on its ability to navigate the complex interplay of economic, political, and strategic factors that shape the global landscape. The group's success will depend on its capacity to foster deeper cooperation among its members, to address the challenges posed by internal divisions and external pressures, and to continue to advocate for a more inclusive and equitable world order. As the world grapples with unprecedented challenges, such as climate change, pandemics, and economic inequality, the role of BRICS in shaping the global response will become increasingly critical. The group's commitment to multilateralism, sustainable development, and South-South cooperation positions it as a key actor in the pursuit of a more just and prosperous future for all.

The initiatives undertaken during the 2020 summit and under India's chairmanship in 2021 provide a glimpse into the potential of BRICS to drive positive change on the global stage. The group's focus on economic partnership, global stability, and shared security underscores its ambition to be a catalyst for progress in the 21st century. The emphasis on continuity, consolidation, and consensus under India's leadership further solidifies BRICS' position as a critical player in the evolving international arena. As BRICS continues to evolve and adapt to the changing global landscape, its role in shaping the future of international relations will undoubtedly become even more significant.