BRICSEEIIU

GS Paper II Governance International Relations

BRICSEEIIU, formerly BRICS, has expanded with full membership of new countries.

What is BRICS?

BRICS is an intergovernmental organization
- Original Members: Brazil, Russia, India, China, South Africa
- New Members: Egypt, Ethiopia, Indonesia, Iran, and the UAE.
Key Principles: Operates on non-interference, equality, and mutual benefit.
Origin of the Term “BRIC”
- Coined in 2001 by Jim O’Neill, a Goldman Sachs economist, to highlight investment opportunities in Brazil, Russia, India, and China.
- Initially focused on economic potential, later evolved into a geopolitical and geoeconomic bloc.
After South Africa’s entry in 2010, The group was renamed BRICS.
Recent Expansion and New Membership
- New Members in 2024 and 2025:
  - Iran, Egypt, Ethiopia, and UAE joined during the 2024 summit in Russia.
  - Indonesia became the first Southeast Asian member in 2025.
- BRICS+: Informal term used to reflect the inclusion of new members.

Strategic global influence: The primary reason is to create counter balance to western dominance in the institutions working on an international level.
- It is related to distribution of global power across multiple players.
Economic strength: The main reason behind expansion of brics is to strengthen its economic potential. For it, it includes countries with high economic potential.
- This institution promotes trade and investment opportunities among its member countries.
Energy security: Apart from trade and investment, its decision to include countries like Saudi Arabia and Iran is backed by accessing energy reserves.
- It will help BRICS to reduce its reliance on traditional energy markets, increasing security within the group.
Geopolitical significance: Inclusion of counties like Egypt and Ethiopia helps in accessing maritime trade routes.
- It promotes cooperation and stability in the economies of the member countries.

Impact on BRICS
- Indonesia strengthens BRICS’ influence in the Asia-Pacific region as Southeast Asia’s largest economy.
- It brings additional support to BRICS’ goals of reforming global institutions and reducing dependency on Western-dominated systems.
Importance for India
- Indonesia’s inclusion deepens India’s engagement in Southeast Asia, a key region for global trade and geopolitics.
- It reinforces India’s leadership in South-South cooperation and its efforts to promote emerging economies’ interests.
Countering Western Dominance
- BRICS continues to serve as a counterweight to Western powers, particularly the G7.
- The bloc aims to challenge the dominance of the US dollar in international trade and promote non-dollar transactions.

Key Statistics
- BRICS accounts for 35% of global GDP and 46% of the world’s population.
- With the addition of new members, BRICS is becoming more influential in global decision-making.
Objectives and Achievements
- BRICS prioritizes reducing reliance on the US dollar in trade and finance.
- Recent discussions focused on strengthening local currencies and promoting financial reforms.

The primary institution of brics was New Development Bank (NDB).
- It was established in 2014 and headquartered in Shanghai.
- It offers more flexible and inclusive financial options than traditional western institutions like the IMF and world bank.
  - It also succeeded in maintaining strong credit ratings, equal shareholder participation, and better access to funds.
- Since 2016, it has approved over $32 billion for 96 projects.
Another institution is Contingent Reserve Arrangement (CRA).
- Both the institutions were created as an alternative to the Bretton Woods system, which includes institutions like the IMF and World Bank.
- Contingent Reserve Arrangement (CRA) provides financial support during balance of payment crisis, but is limited to brics members.
- Its foundation is built on the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement.
- It acts as an alternative to the IMF and is a way better source for short term liquidity.

India is a key member of BRICS, and its participation in the group has brought several advantages.

Strategic Cooperation
- Global Platform: BRICS provides India with an opportunity to engage on critical issues such as security, counter-terrorism, climate change, and trade.
Economic Advantages
- Access to Markets: India benefits from a large market of over 3 billion people, creating significant business opportunities.
Promoting Multilateral Reforms
- Global Order Reforms: India collaborates with BRICS members to advocate for a more inclusive and equitable global governance structure.
Strengthening South- Cooperation
- Collaboration with Developing Nations: BRICS enables India to promote trade, investment, and technology transfer among developing countries.
Supporting the New World Order
- BRICS Vision: During the 15th BRICS Summit, the group was described as a key pillar of the emerging New World Order, emphasizing its growing influence.

Balancing Global Powers: India faces the challenge of navigating between a China-centric and West-centric world order while maintaining a balanced approach.

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