Context

• Prime Minister Narendra Modi will visit Russia from 22-23 October 2024 at the invitation of President of the Russian Federation Vladimir Putin to attend the 16th BRICS Summit being held in Kazan under the Russian Presidency.

BRICS

• It is an acronym that represents the countries of Brazil, Russia, India, China, and South Africa. These are major emerging economies that account for a significant share of the global population, land area, and gross domestic product (GDP).

Origin and goals:

• The term BRICS was coined in 2001 by Goldman Sachs economist Jim O'Neill.
• South Africa joined the group in 2010, expanding its membership and geographic reach.
• In the Johannesburg Declaration, 2023, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) were invited to become full members from January 1, 2024.

The main objectives of BRICS are:

• Economic cooperation: The group aims to promote trade, investment and economic growth among its members.
• Political influence: BRICS seeks to increase global political influence and challenge the existing international order.
• Financial stability: The group works to strengthen the international financial system and provide alternatives to Western-dominated institutions such as the International Monetary Fund (IMF) and the World Bank.

BRICS Summit:

• 1st BRICS Summit: 16 June, 2009 (Yekaterinburg, Russia)
• 15th BRICS Summit: 22-24 August, 2023 (Johannesburg, South Africa)
• 16th BRICS Summit: 22-24 October, 2024 (Kazan, Russia)

Key initiatives:

• New Development Bank (NDB): Established in 2014, the NDB is a multilateral development bank that provides loans and investments for infrastructure projects in BRICS countries and other developing nations.
• Contingent Reserve Arrangement (CRA): A financial safety net designed to provide short-term liquidity support to member countries facing balance of payments difficulties.
• BRICS Business Forum: A platform for business leaders from the five countries to discuss economic opportunities and challenges.

Challenges and opportunities:

• Economic inequality: There are significant economic differences among member countries, which can complicate decision-making and coordination.
• Political tensions: Some members have competing geopolitical interests and may disagree on some issues.
• Global economic uncertainty: The group must confront a complex and volatile global economic environment, including trade wars and geopolitical tensions.