16th BRICS Summit Indonesia Joins in 2025

BRICS Members

Why in the News?

The 16th BRICS Summit, held in Kazan, Russia, marked a historic moment as it was the first summit with expanded BRICS membership. The summit adopted the Kazan Declaration, titled "Strengthening Multilateralism for Just Global Development and Security", and extended full support to Brazil for its BRICS Chairship in 2025 and the hosting of the 17th BRICS Summit.

Recent Update: Indonesia joins BRICS as the 11th member, effective January 2025, uniting its vibrant spirit with the world's fastest-growing economies at a pivotal time.

 

About BRICS

Genesis

·         The term BRICS was coined in 2001 by British economist Jim O'Neill, representing the emerging economies of Brazil, Russia, India, and China.

·         The group began functioning formally in 2006 during the G8 Outreach Summit.

·         The first BRIC Summit was held in Russia in 2009, and South Africa joined in 2010, making it BRICS.

Membership

·         Initial Members (5): Brazil, Russia, India, China, South Africa.

·         New Members (6): Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, Indonesia.

• Argentina was initially expected to join in 2024 but later opted out.

·         Representation:

o    More than 45% of the world's population.

o    More than 37.3% of global GDP (compared to EU's 14.5% and G7's 29.3%).

 

Key Initiatives of BRICS

Financial Cooperation

·         New Development Bank (NDB): Established in 2014, headquartered in Shanghai, to fund infrastructure and sustainable development projects.

·         Contingent Reserve Arrangement (CRA): Provides short-term liquidity support to member countries facing balance-of-payments issues.

·         BRICS Pay: A blockchain-based payment system to reduce reliance on Western financial systems like SWIFT.

·         BRICS Grain Exchange: A Russian initiative to create a fair agricultural trading system.

·         BRICS Clear Depositary: A cross-border payment settlement infrastructure.

Voice to the Global South

·         BRICS Plus Dialogue: Engages emerging markets and developing countries from Africa, Asia, Europe, Latin America, and the Middle East.

·         BRICS Partner Countries: Added 13 new partner countries, including Cuba, Turkey, and Vietnam.

Security Cooperation

·         BRICS Rapid Information Security Channel: Facilitates the exchange of cyber threat information among central banks.

·         Comprehensive Convention on International Terrorism: BRICS advocates for its adoption within the UN framework.

Science & Technology

·         BRICS Remote Sensing Satellite Constellation: Enhances cooperation in space technology.

·         BRICS STI Framework Programme (2015): Supports multinational research on priority areas.

·         BRICS Vaccine R&D Center & Early Warning System: Focuses on preventing mass infectious diseases.

 

Relevance of BRICS in the Contemporary World

1.      Energy Security: With Iran, Saudi Arabia, and UAE as members, BRICS countries produce 44% of the world's crude oil.

2.      Voice for the Global South: BRICS provides a platform for developing countries to address issues like terrorism and climate change.

3.      Safe Space for Dialogue: Acts as a neutral platform for member countries to manage rivalries (e.g., India-China Doklam standoff).

4.      Multilateral Reforms: BRICS pushes for reforms in global institutions like the UNSC and WTO to ensure equitable global governance.

 

Challenges Facing BRICS

1.      Underutilized Economic Potential:

o    Intra-BRICS trade is only 2.2% of global trade, despite BRICS accounting for 18% of global trade.

o    BRICS Credit Rating Agency (CrRA): Proposed in 2018 but stalled due to lack of consensus.

2.      Dedollarisation Efforts:

o    While some members trade in local currencies, a common BRICS currency remains unlikely.

3.      Limited Influence on Global Institutions:

o    BRICS+ countries hold only 19% of voting power in the International Bank for Reconstruction and Development (IBRD), compared to 40% held by G7 countries.

4.      Geopolitical Rivalries:

o    Tensions between members (e.g., India-China, Saudi Arabia-Iran) hinder cohesive decision-making.

5.      Economic Slowdowns:

o    China faces an economic slowdown, Russia is weakened by the ongoing war, and South Africa struggles with high unemployment.

6.      Perception as Anti-West:

o    This perception limits cooperation in areas like climate change, trade, and global security.

 

Comparison with Other Groupings

IBSA (India, Brazil, South Africa)

·         Established in 2003 to address global governance reforms, climate change, and terrorism.

·         Achievements:

o    IBSA Fund: Supports poverty alleviation projects in over 30 countries.

o    IBSAMAR: Joint naval exercises among members.

BASIC (Brazil, South Africa, India, China)

·         Formed in 2009 to address climate issues.

·         Achievements:

o    Unified stance on climate change and Copenhagen Accord negotiations.

o    Promotes South-South cooperation in climate policies.

 

Way Forward for BRICS

1.      Develop a Clear Vision: Establish long-term goals and a permanent secretariat to strengthen unity.

2.      Define Membership Criteria: Ensure transparency in future expansions.

3.      Enhance Institutional Capacity: Strengthen initiatives like NDB and BRICS Pay.

4.      Balance Chinese Influence: India must strategically manage China's dominance within BRICS.

5.      Focus on Consensus-Building: Prioritize diplomacy to resolve internal differences.

 

Conclusion

The 16th BRICS Summit highlighted the group's growing influence and challenges. While the expansion offers greater representation in global governance, BRICS must overcome internal differences and leverage its collective strength to realize its full potential. The success of BRICS+ will depend on cooperation, consensus-building, and strategic vision.

 

Also Read: 2024 G20 Summit

FAQs for the BRICS

 

1. Why is the 16th BRICS Summit significant?

The 16th BRICS Summit, held in Kazan, Russia, marked the first summit with an expanded BRICS membership. It adopted the Kazan Declaration and extended support to Brazil for its Chairship in 2025.

 

2. Who recently joined BRICS, and when will it be effective?

Indonesia joined BRICS as the 11th member, effective January 2025, further strengthening the group's representation of the world's fastest-growing economies.

 

3. What is BRICS, and how did it originate?

BRICS is a group of emerging economies: Brazil, Russia, India, China, and South Africa. The term was coined in 2001 by economist Jim O’Neill, and the group formally began functioning in 2006. South Africa joined in 2010, completing BRICS.

 

4. Who are the members of BRICS, including the new additions?

• Initial Members (5): Brazil, Russia, India, China, South Africa.
• New Members (6): Egypt, Ethiopia, Iran, Saudi Arabia, UAE, and Indonesia.

 

5. What is the global significance of BRICS?

• BRICS represents over 45% of the world’s population and accounts for more than 37.3% of global GDP.
• The group aims to reform global governance, address multilateral issues, and provide a voice for developing nations.

 

6. What are the key financial initiatives of BRICS?

• New Development Bank (NDB): Funds infrastructure and development projects.
• Contingent Reserve Arrangement (CRA): Provides liquidity to member countries.
• BRICS Pay: A blockchain-based payment system.
• BRICS Grain Exchange: A fair agricultural trading system.
• BRICS Clear Depositary: A cross-border payment settlement infrastructure.

 

7. How does BRICS support the Global South?

Through initiatives like the BRICS Plus Dialogue and the addition of partner countries (e.g., Cuba, Turkey, Vietnam), BRICS amplifies the voices of developing nations in global forums.

 

8. What are the major challenges faced by BRICS?

• Underutilized Economic Potential: Limited intra-BRICS trade.
• Geopolitical Rivalries: India-China and Saudi Arabia-Iran tensions hinder unity.
• Dedollarisation: Efforts lack a unified currency.
• Economic Slowdowns: Challenges in China, Russia, and South Africa.
• Perception as Anti-West: Reduces cooperation on global issues.

 

9. How does BRICS compare to other groupings?

• IBSA (India, Brazil, South Africa): Focuses on global governance reforms and poverty alleviation.
• BASIC (Brazil, South Africa, India, China): Addresses climate issues and promotes South-South cooperation.

 

10. What are the future priorities for BRICS?

• Establish a clear vision and a permanent secretariat.
• Define transparent membership criteria.
• Enhance institutional capacity (e.g., NDB, BRICS Pay).
• Balance China’s influence while fostering consensus-building.

 

11. Why is BRICS important for energy security?

With members like Iran, Saudi Arabia, and the UAE, BRICS nations produce 44% of the world’s crude oil, making it a critical group for energy security.

 

12. What is the potential of BRICS+?

The expanded BRICS+ format can enhance representation in global governance, but its success depends on resolving internal differences and strategic consensus-building.