Context:
- Prime Minister Narendra Modi called for the expansion of the five-nation grouping while addressing the opening plenary session of the 15th BRICS summit in Johannesburg.
15th BRICS Summit
- The 2023 BRICS summit is the fifteenth ongoing annual BRICS summit, an international relations conference attended by the heads of state or heads of government of the five member states: Brazil, Russia, India, China, and South Africa.
- South African President Cyril Ramaphosa also invited the leaders of 67 countries to the summit, including 53 other African Countries, Bangladesh, Bolivia, Indonesia and Iran.
- Discussions focus on spheres of political and socioeconomic coordination, in which member countries have identified business opportunities, economic complementarities, and areas of cooperation.
- As the Chair of BRICS, South Africa is focusing on the theme, ‘BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism’.
What is the need for BRICS?
- New world order- It aims to assert their position particularly in relation to the United States and the European Union.
- Multipolar global order- It promotes the recognition of a multipolar global order with economic and political balance.
- It aims to break away from organisations formed in the post-World War II era, such as the World Bank and the International Monetary Fund.
- De-dollarization– BRICS account for 18% of the world trade, supports the increased use of members’ national currencies for trade and the introduction of a common payment system in the long term.
- Global South– It helps in representation from voices of the ‘Global South’, a term used to refer to countries that have not traditionally been at the centre of international agenda-setting.
- Economic rise– In recent decades, India and China witness economic rise. The creation of their own forums has been utilised as an alternative.
- Financial structure– New Development Bank (NDB), the Shanghai-headquartered bank has since invested $30 billion in infrastructure development projects.
Benefits of the BRICS Expansion plan and launching of BRICS currency
- Here are some of the benefits of the BRICS Expansion plan and launching of BRICS currency:
Increased Economic Cooperation:
- The BRICS countries are working together to increase their economic cooperation.
- This could lead to increased trade, investment, and development.
Reduced reliance on the US dollar:
- The BRICS countries are trying to reduce their reliance on the US dollar.
- This could give them more control over their own economies and reduce their vulnerability to US economic policies.
Increased influence in the Global Economy:
- The BRICS countries are working to increase their influence in the global economy. This could lead to increased trade, investment, and development for these countries.
- When we look at the broader aspect the BRICS Expansion plan and launching of a common currency are ambitious projects. However, they could have a significant impact on the global economy.
- If successful, these projects could lead to increased economic cooperation, reduced reliance on the US dollar, and increased influence for the BRICS countries in the global economy.
What is the significance for India?
- Multi-alignment- It is an issue-based alignment strategy, which aims to simultaneously participate and pursue its interests in multiple strategic and economic coalitions, such as the Quad and BRICS.
- Reflect multidirectional foreign policy– It strengthens economic prosperity, technology advancements, research and innovation, norm influencing, and strengthening security.
- Diplomacy- It allows India to pursue a development focused diplomatic engagement which aims at increasing the membership of BRICS.
- Broader agenda
- Energy security
- Combating terrorism
- Climate change financing
- Geopolitical force– BRICS attempts to amplify non-traditional security threats and promote economic security within the forum.
- Political push- It would be a political push against unfair coercive practices
- European Union’s Carbon border tax
- Economic transaction and
- Unilateral sanction
- Strategic interest- It is the first in-person summit since the military standoff with China at the Line of Actual Control in 2020.
- Ahead of summit, 19th round of India-China Corps Commander Level Meeting resulted in a joint statement is a positive sign.
MCQs about 15th BRICS Summit 2023
Question 1: What is the main theme of the 15th BRICS Summit?
A) Promoting Economic Competition
B) Strengthening Transatlantic Relations
C) BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism
D) Climate Change Mitigation
Question 2: Which of the following countries is not a member of the BRICS group?
A) Brazil
B) Russia
C) Indonesia
D) China
Question 3: What is the significance of the BRICS countries’ effort to reduce reliance on the US dollar?
A) It aims to strengthen ties with the European Union
B) It could lead to increased economic cooperation
C) It may lead to higher inflation in member countries
D) It seeks to diminish the role of the World Bank
Question 4: Which term refers to countries that have not traditionally been at the center of international agenda-setting?
A) Economic Titans
B) Global Pioneers
C) Developing Nations
D) Global South
Question 5: Why is the 15th BRICS Summit of particular significance for India?
A) It marks India’s withdrawal from international alliances
B) It focuses solely on combating climate change
C) It follows a military standoff with Russia
D) It is the first in-person summit since a military standoff with China
Read also:- Paris Global Climate Financing Summit
15th BRICS Summit 2023,15th BRICS Summit 2023,15th BRICS Summit 2023
