Building BRICS: A Long-Term Vision for Global Influence | PWOnlyIAS 2023

Context:

• This article is based on an Editorial “Building BRICS for the future” which was published in the Hindu. In August, six new members were inducted into the BRICS grouping, in South Africa. While many believe that this meeting did not have productive results, there is a need to look at BRICS from the perspective of how it has evolved.

BRICS Countries

• Not Security Grouping: It does not provide military support and peacekeepers.
• GDP and Population Share: It is now 36% of the global GDP and the population of its members will be 47% of the world population by 2050.
• Long-Term Opportunities: Inclusion of more members could pose a challenge to the dominance of the G7.

Indo-China Presence

• Economies: Containing one-third of the world’s population, both are the fastest-growing economies and India is expected to be among the top three economies of the world by 2030. 
• Growing Bilateral Trade: Despite bilateral challenges since the Doklam Standoff in 2017, trade between the two countries has continued to grow.

Also read: India-China Relationship

Search for Alternatives

• Polarization Problem: Many countries have developed issues with the U.S.’s stance (imposing tariffs and other barriers) against China. 
• Increasing Chinese Presence: China has advanced in certain areas like communication infrastructure and electric mobility. 
• Non-Alignment: The search for an alternative such as the Non-Aligned Movement to tackle Cold War challenges has given hope of a new order, thus many countries are applying for membership to the BRICS group.

Increasing Role of Domestic Currency

• Digital Currency: Digital platforms are making inroads into many countries with both India and China leading the progress. 
• Push for Domestic Currency: Both India and China are pushing for more trade, investment, and business in their currencies and through BRICS, they can push their own currencies as alternative currencies to the US dollar which has been the dominant global currency all this time. 

Africa- Continent of the Future

• The African continent promises economic growth. 
• Europe and Africa: The way France has intervened in Niger or the manner in which migrants have been treated in Europe provide Africans with a negative image about Europe.
• China and Africa: Visa restrictions from Europe have pushed Africans to travel to China and see its development more closely. 
• India and Africa: India proposed full membership for the African Union at the G20 summit in New Delhi. It is trying to push its own reach within Africa.

Conclusion

BRICS is a group for the long run, Goldman Sachs saw the potential of this grouping and the opportunities it presents by stating that BRIC (in 2003) economies together could be larger than the G6 in U.S. dollar terms within 40 years.