Not Strategic Ties, But Economic Interests Behind Creation Of Multilateral Groupings?

The acronym "Brics" was initially coined by Goldman Sachs' economist Jim O'Neill in 2001, foreseeing that the economic weights of these countries could eclipse the world's biggest economies in the decades that followed. In 2010, South Africa joined the group, formalising it as Brics, making the alliance with the members Brazil, Russia, India, China, and South Africa. No additions were made after that, until last year when six countries were invited to join: Saudi Arabia, Ethiopia, Iran, Egypt, the UAE, and Argentina, the latter formally announcing that it will not join the group.

Brics was never a formal organisation or alliance with a legally binding contract, but rather a group of countries. With its potential expansion, it is now projected to contain 46 percent of the world's population and 25 percent of global exports, surpassing the gross domestic product (GDP) of the G-7.

The bloc aims for a united stand of emerging and developing countries, yet there is a large divergence between its member countries. Can it forge consensus among its diverse members, and to what extent can it contribute to reshaping the global geopolitical and economic landscape? These are some of the questions that were answered during the panel discussion 'Brics in Expansion.'

Highlighting the pivotal role that India plays in the group, Smriti Irani, Minister of Women and Child Development and Minister of Minority Affairs Government Of India, said, “If the agenda is growth, if the agenda is inclusion, if the agenda is servicing global aspirations, then India is well-positioned to act as a bridge, no matter the conversation or geography.”

Adding to the financial success and stability in India despite the pandemic, Irani said, “Today in India, we've had three years of growth of 7 percent plus, and this is in the shadow of the pandemic. In India now, our governor of the RBI, which is our central bank, projects a 7 percent growth in the next financial year as well. The International Monetary Fund (IMF) has said that India will contribute 16 percent to global growth. We have also managed in the past nine years to lift 214 million Indians out of multidimensional poverty. Our inflation rates today are, in fact, lower than they were a decade ago. So when it comes to practices, where we share not only the agenda of fiscal discipline, we can also say that, irrespective of the pandemic, we serviced the needs of our people during the pandemic.”

Irani further highlighted that this economic stability and growth have attracted investors worldwide. Irani pointed out, “Today, our stock exchange has overtaken some very established old giants. But at the same time, we have used this time to remove 63,000 compliances that were hindering businesses in India and our foreign partners, and we have done away with over 1,000 obsolete laws. So India has made a case not only for fiscal prudence and fiscal growth but also made a case for reform.”

Irani emphasised how India is using technology, creating trust and reliability over India across the country. She cited, “As the chair for the Global Alliance on Artificial Intelligence (AI), we are now promoting responsible behaviour with regards to AI, insisting on convergence or a consensus on watermarking AI products so that nations at large have a balanced approach towards emerging technologies. But at the same time, we have digitally delivered close to 400 million loans for businesses without collateral. We have served 800 million people in our country with free food for the past two years and have delivered 200 billion vaccine doses physically. So there are many such examples of inclusion of digital progress, fiscal prudence, and reform that India brings to the table irrespective of which region we are conversing with.”

Irani highlighted all these aspects of economic and political stability along with financial inclusion and the leverage of technology should not be seen in isolation, as they strengthen India’s position in both North-South and South-South cooperation.

“So instead of looking at an expanded Brics in coalition with the West, I think we can use these opportunities and learn from each other. Because irrespective of how fractured or fragmented the world seems today, I proudly say as an Indian that we can help become the democratic glue that brings everybody together,” Irani added.

Abdulla Bin Touq Al Marri, Minister of Economy, United Arab Emirates (UAE), agreed with the points made by Irani and further added the relevance of Brics and, in a broader sense, South-South cooperation from an economic perspective. Marri said, “His Highness Sheikh Mohammed bin Zayed, the president of the UAE, has said that by joining the BRICS platform, we're not just committed to the BRICS, we're committed to humanity and the people of the world. We are living in a fragmented world. Last year, we spoke about entering a fragmented world; today we are in a fragmented world. Now we need to go to these engagements and aspects where we really need to discuss. And the South-south is the most important aspect for us. We are in the UAE, in the middle of the world, with a lot of businesses, a lot of trade, a lot of ways that come through the UAE, and as well down to the south. And I think looking at the BRICS and being part of it will bring a lot of value not from the geopolitical level but from a geo-economic level.”