About BRICS

• BRICS brings together five major emerging economies- China, Brazil, Russia, India and South Africa. These 5 countries host 41% of the world population, contributing 31% of the world GDP and over 16% share in world trade.
• The grouping was formalised during the first meeting of BRIC (Brazil, Russia, India and China) Foreign Ministers on the margins of the UNGA meet in New York in September 2006.
• South Africa was added to the grouping in 2011 creating “BRICS”.
• BRICS cooperation is aimed at complementing and strengthening existing bilateral and multilateral relations among member countries.
• The Chairship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S.
• Cooperation among members is predicated on three levels or “tracks” of interaction, namely:
  • Track I: Formal diplomatic engagement between the national governments
  • Track II: Engagement through government-affiliated institutions, e.g. state-owned enterprises and business councils
  • Track III: Civil society and “people-to-people” engagement.

Significant developments of BRICS

New Development Bank

• The New Development Bank (NDB) was established by the BRICS countries. It formally came into existence at the Ufa Summit (Russia) in 2015.
• It was established with the objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the efforts of multilateral and regional financial institutions toward global growth and development.
• In 2018, the NDB received observer status in the UN General Assembly.
• The Bank’s membership is open to members of the United Nations. 

Contingency Reserve 

• The BRICS Contingent Reserve Arrangement (CRA) is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.

Why in News?

• The upcoming BRICS summit in Russia this October is set to undergo a significant transformation as it expands its membership to include five new nations alongside the original founding five – Brazil, Russia, India, China, and South Africa. 
• This expansion, featuring Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, signifies a notable shift in the global landscape, characterized by increasing multipolarity and assertive middle powers challenging the established Western-led order.
• Notably, Argentina, under its new President Javier Milei, has decided to withdraw from its planned entry into the expanding BRICS club of nations. 
• The last expansion of the BRICS took place in 2010 when South Africa joined, adding an “S” to the acronym a year after the bloc’s inception.
• This move is seen as a strategic effort to reshape the global order into a multipolar world, with voices from the Global South taking a more prominent role on the international stage. 
• The inclusion of Saudi Arabia and the UAE further emphasizes the changing dynamics of international relations, highlighting a trend towards a more multipolar world and the growing assertiveness of middle powers challenging the established Western-led order. 
• However, it also underscores the inherent challenges of achieving unified goals within a diverse “global south.”

https://newsonair.gov.in/News?title=BRICS-Welcomes-Five-New-Members%2c-Signaling-Global-Shift&id=474360