How did the idea of Brics take shape?

The idea of Brics gained prominence in the early noughties when Goldman Sachs economist Jim O’Neill coined the term to refer to major developing economies that he said would grow to dominate the global economy. The leaders of Brazil, Russia, India, and China met as part of the new grouping in 2009. South Africa was added in 2010. The grouping is mainly known for backing the reform of multilateral institutions to allow greater representation among major developing countries. Brics was seen as a grouping of major, non-Western powers coming together to articulate their interests.

Is Brics still relevant?

The initial promise of Brics was that its economies would grow rapidly and dominate global growth by 2050. But that hasn’t happened, particularly when it comes to Russia and South Africa. And high commodity prices that fuelled Brazil’s growth in the 2000s disappeared. Only China and India have grown steadily, if not quickly, over the last decade. The members of the grouping are also at loggerheads. India and China are now in the fourth year of a border standoff. Larger objectives like the reform of multilateral institutions have also not seen much progress. This has led many to question the bloc’s relevance.

Who are expected to turn up at the summit?

India’s Modi, China’s Xi Jinping, South Africa’s Cyril Ramaphosa, and Brazil’s Lula da Silva will attend. Russia’s Vladimir Putin will not, as the International Criminal Court has issued a warrant for his arrest. More than 30 heads of state and government from across Africa are expected to attend, as is UN Secretary-General Antonio Guterres.

What is on the agenda for this summit?

The expansion of Brics tops the list. According to South Africa’s President, more than 20 countries have applied to join. Interested nations include Saudi Arabia, the UAE, Cuba, the Comoros and Iran. However, there is little clarity on the exact list of candidates. Talk of a common Brics currency to challenge the dollar has also surfaced. O’Neill, the economist cited above, termed the latter idea “embarrassing”. External affairs minister S. Jaishankar has clarified that no such plan is currently in the works.

What’s the likelihood of tensions?

There is likely to be significant backroom diplomacy on expansion. India may fear China is pushing to expand Brics to induct members who share its West-sceptic world view. India has welcomed talk of expansion but wants to lay down rules and procedures on the process. India has little interest in seeing Brics turn into an anti-Western body, given its close ties to the US and Europe. Besides, bilateral problems between India and China over their border dispute may create tensions.

Updated: 21 Aug 2023, 11:41 PM IST