Overall Analysis of BRICS Summit
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TOPIC: General Studies 2
- Bilateral, regional and global groupings and agreements involving Indiaand/or affecting India’s interests
- Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
- The term “BRIC” was coined in 2001 by then-chairman of Goldman Sachs Asset Management, Jim O’Neill
- The summit’s focus: Means of improving the global economic situation and reforming financial institutions
- Acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa
- All are members of G20; Represent over 3.1 billion people, 41% of the world population
- As of 2018, BRICS have US $40.55 trillion (32% of World’s GDP PPP)
- Bilateral relations among BRICS nations are conducted on the basis of non-interference, equality, and mutual benefit.
- There are two components that make up the financial architecture of BRICS, namely, the New Development Bank (NDB) (BRICS Development Bank) and the Contingent Reserve Arrangement (CRA).
- 2019 Theme: Economic Growth for an Innovative Future
India & BRICS
India finds itself as one of the emerging economies in the grouping and beyond, especially G20. BRICS now brings together five economies accounting for 42% of the world’s population, 23% of the global GDP and an around 17% share of world trade.
BRICS has emerged the voice of developing countries, or the global south. These countries face an aggressive club of developed countries, raising challenges on issues from WTO to climate change. India believes BRICS has to protect the rights of the developing countries.
The fact that BRICS has put counter-terrorism on top of the agenda has been a success for India. That was evident in the BRICS Summit in Xiamen in September 2017, with China as the chair. The fact that it was achieved, despite the strained ties due to the standoff in Doklam, was a testimony to the value Beijing and New Delhi attach to the outcomes of the grouping.
- India will host a BRICS workshop on digital forensics
Humanity has come away from threats like World War. But terrorism has emerged as the biggest threat to development and peace. In ten years, two and a half million lives were lost at the hands of terrorism and the society suffered deep damage. Also, according to various estimates, more than one trillion dollars was lost to the world’s economy. And has reduced the economic growth of developing countries by 1.5 per cent.
Terrorism, terrorism financing, drug trafficking and organized crimes create deep indirect harm to business and business by creating an environment of scepticism. In this direction, India will organize a workshop on digital forensic analysis of terrorism.
- Build on the workshops hosted on traditional medicine and have a BRICS Memorandum of Understanding (MoU) on traditional medicine, an initiative that was taken up under India’s presidency of BRICS in 2016.
- Proposed the first meeting of BRICS Water Ministers in India in order to push for sustainable water management and clean sanitation
- India will host the BRICS Digital Health Summit on Innovative Solutions to Healthy Lifestyle. This will be in keeping with “Fit India Movement” launched. The Digital Health Summit will seek to integrate digital technology with healthcare informatics and diagnostics.
- India has to maintain the balancing act between Russia-China on the one side and the US on the other.
- India has had a growing role in global affairs in the last and is seen to be helping drive the global agenda.
- The BRICS mechanism and processes should be outcome-driven and efficient in order to address global economic challenges.
- The Summit is an opportunity for India to lay the groundwork for hosting the 2021 Summit scheduled in India.
- India also needs to be mindful of the fact that the G20 Summit to be hosted in India will take place in 2022, and this will be an opportunity to synergise the two agendas from New Delhi’s lens as well.
Host of BRICS Digital Health Summit on innovative solutions to a healthy lifestyle that will seek to integrate digital technology with healthcare informatics and diagnostics: India
New Development Bank
- Based in Shanghai
- Multilateral development bank operated by the BRICS states
- The bank’s primary focus of lending will be infrastructure projects with authorized lending of up to $34 billion annually.
- The bank will have starting capital of $50 billion, with capital increased to $100 billion over time.
- Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion.
BRICS CRA: BRICS Contingent Reserve Arrangement
- Framework for providing protection against global liquidity pressures.
- This includes currency issues where members’ national currencies are being adversely affected by global financial pressures.
- The CRA is generally seen as a competitor to the International Monetary Fund (IMF) and along with the New Development Bank is viewed as an example of increasing South-South cooperation.
Connecting the Dots:
- India finds itself as one of the emerging economies in the BRICS grouping and beyond. Justify
- Do a comparative analysis of the genesis and objectives of BRICS, RIC and IBSA.
- BRICS represent the aspirations of developing countries. Comment.