BRICS

BRICS (BRAZIL, RUSSIA, INDIA, CHINA and SOUTH AFRICA ) was formulated in 2010 “As part of an economic modeling exercise to forecast global economic trends over the next half century”  . It was devised by Jim O’Neal as an acronym for the relation between the five emerging national economies. According to IMF (international monetary fund) BRICKS account for 25% of GDP and 40% of world’s population.  It was originally known as BRIC until the inclusion of South Africa in 2010.

The sixth summit of BRICS was held in the coastal city of Fortaleza, Brazil, where the guest was president of Argentina, Cristina Kirchner. It was a three day summit from 14 – 16 July 2014. The previous summits were held in Yekaterinburg in Russia (2009), Brasilia(2010), Sanya in China(2011), New Delhi(2012) and Durban(2013). They helped the five members to view the world through a shared prism and forge cooperation in areas of mutual benefit. It has consolidated its position since the first summit in 2014 as a positive force for the democratization of international relations and for the enhancement of existing institutions of international governance. It has also forged an impressive partnership carrying out cooperation initiatives in more than 30 areas between its members.

The sixth summit produced some important agenda’s: Agreement on establishing the New Development Bank (NDB); Treaty for creating Contingency Reserve Arrangement   (CRA);  the Fortaleza Declaration;to set up think tanks council which will be responsible to come up with innovative ideas and the initiative in formation of BRICKS trade and development.

The NDB is the single most substantial outcome. The bank will have an initial “subscribed” capital of USD 50 billion and an initial “authorized” capital of USD 100 billion. It will lend money to BRICS, other emerging economies and developing countries for infrastructure and sustainable development project. The member states will have equal share in capital. The bank will be headquartered in Shanghai . India will be the first president of the bank while the first chair of the board of governors will be from Russia.The presidency, with a term of 5 years ,will rotate among the members of the bloc.

The CRA, with an initial size of $100 billion, will have a different pattern of contribution. It is designed to help needy countries forestall short-term liquidity pressures and strengthen “the global financial safety net”.

The Fortaleza declaration is a weighty document. It presents the basic philosophy, hopes, and concerns, and the future blueprint of BRICS. The four overarching objectives are peace, security, development and cooperation.  The declaration has a shared view on economic and trade issues, a post 2015 development agenda, cybercrime, cultural diplomacy as well as political questions in countries ranging from Iraq, Syria and Afghanistan to Ukraine and those in Africa. It aims to forge intra- BRICS cooperation through ministerial meetings and dialogue on diverse subjects.

BRICS agreed on common institutions that will eventually see them depending less on the western controlled financial system and more on informative technology infrastructure.

The summit provided Prime Minister Narendra Modi an extraordinary stage for his debut in multilateral diplomacy. The opportunity was used by India’s new government to unveil the contours of its world view. Modi described BRICS as “forward-looking” institution which brought together “a group of nations on the parameter of “future potential” rather than existing prosperity or shared identities. He was clear about its fundamental role: “BRICS must provide a united and clear voice in shaping a peaceful and stable world”. Prime Minister Modi’s meeting with other four leaders- China’s Xi Jinping, Russia’s Vladimir Putin, Brazil’s Dilma Rousseff and South Africa’s Jacob zuma not only contributed to removing last minute hurdles to positive outcomes of the summit, but they were also occasions for fruitful dialogues on bilateral relations.

The meeting with Chinese President was the most consequential, lasting 80 minutes. Diverse issues- global, regional and bilateral- were taken up. Matters such as the boundary question, trade deficit, Chinese investment in India , river waters and a new route for Kailash –  Mansarover  yatra were reviewed. Modi was invited to attend the Asia Pacific Economic Cooperation (APEC).

The Modi-Putin meeting was to reaffirm faith in privileged and strategic partnership between the two countries. Putin’s next meeting with Modi will take place in New Delhi in December.

The Brazilian President had a good meeting with Modi, who called Brazil “a key global partner”. They agreed to take steps to expand and diversify trade and investment flows and deepen cooperation in agriculture and dairy science. Three agreements were signed on remote sensing, environment and consular issues.

The Modi-Zuma meeting saw the two sides characterizing the relationship as unique and special. India announced that the next India-Africa Forum Summit would be held in Delhi in December.

From India’s viewpoint, Modi’s visit to Brazil was a substantive success, complete with a positive outcome of the BRICS summit, satisfactory bilateral dialogues and beneficial interaction with the largest number of South American heads of the state and a warm appreciation to the  government and people of Brazil.

Brazil, India, China and South Africa convey their appreciation to Russia for its offer to host the seventh BRICS summit in 2015 in the Russian city of Ufa and extend their full support.

Edited by : Shivani Malhotra