The power of an acronym

Source: The post is based on the article “The power of an acronym” published in “Business standard” on 19th August 2023.

Syllabus: GS2- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

News: In this article author discusses the evolution and relevance of the BRICS group, highlighting its inconsistencies and China’s increasing influence, and questions India’s position given its differing interests and relationships compared to other BRICS nations.

About evolution of  BRICS.

Origin: Coined by Goldman Sachs, representing Brazil, Russia, India, and China as future dominant economies.

Performance: China and India thrived, entering top five economies. Russia and Brazil lagged; Russia isn’t in the top 10 anymore.

Addition of South Africa: Diluted the initial economic focus, as its economy is much smaller.

Initiatives by BRICS:

BRICS nations hold regular summits to discuss collaboration.

One significant achievement is the “BRICS bank”, established to support development projects, though its impact has been limited.

Proposals were made for a dedicated data cable to ensure secure communication, but progress has been slow.

New currency arrangements were discussed to challenge the dominance of the dollar, but haven’t been implemented.

What is the relevance of BRICS in today’s world?

Economic Clout: China and India are now among the top five economies, highlighting BRICS’ economic significance.

Alternative Voice: BRICS is seen as a potential counter to Western-dominated global structures.

Developmental Initiatives: The establishment of the “BRICS bank” aims to support developmental projects.

Diplomatic Platform: Over 40 developing countries have shown interest in joining, suggesting its growing diplomatic importance.

How is China influencing BRICS?

Push for Expansion: China is advocating for an increase in BRICS membership. They’re keen to have more countries join, extending the group’s reach.

Diplomatic Strategy: With limited regional allies like North Korea, Cambodia, and Myanmar, China sees BRICS as a way to gain broader diplomatic support.

Countering Western Influence:  China aims to use BRICS as a platform to challenge and break Western dominance in global affairs.

Engagement with Other Groups: BRICS has initiated talks with the Shanghai Cooperation Organisation, a China-dominated group, furthering China’s influence within BRICS.

Potential Data Control: China’s involvement in the proposed BRICS data cable raises concerns about its ability to access and control communication, given its technological prowess.

Where does India stand?

Economic Performance: India has prospered, now ranking among the top five global economies.

Relationship with China: India has an adversarial relationship with China, blocking imports, investments, and market access for Chinese technologies.

Diplomatic Challenges: Many countries seeking BRICS membership, like Indonesia, Saudi Arabia, and UAE, pose diplomatic issues for India. Blocking them could strain relations.

Membership Criteria: India advocates for clear criteria for new BRICS members, highlighting the existing inconsistencies within the group.

Alignment with Western Nations: India is increasingly aligned with Europe and the US in defense, technology, and people movement, contrasting with China and Russia’s stances.

Political System: India’s political system is more open than China’s or Russia’s, potentially leading to differences in governance perspectives within BRICS.