Indonesia Becomes Full Member of BRICS

Syllabus: GS2/ International Organisation

In News

  • Indonesia has officially joined BRICS as the 11th member effective from January 2025.
    • The inclusion of Indonesia marks another step in expanding BRICS’ influence among emerging economies.

About BRICS

  • Definition: BRICS is an intergovernmental informal grouping of emerging economies aimed at fostering cooperation and enhancing their global influence.
  • Members: Brazil, Russia, India, China (these are founding members); South Africa joined in 2010; Iran, UAE, Egypt, Ethiopia, Saudi Arabia joined in 2024.
    • Argentina was initially expected to join in 2024 but later opted out.
  • Background: The first BRIC Summit was held in Russia in 2009.

Significance of BRICS

  • Economic Influence: Represents a large share of the global economy:
    • Accounts for approximately 35% of global GDP.
    • Comprises 46% of the world’s population, providing a vast market and workforce.
    • Encourages trade and investment among emerging economies.
  • Counterbalance to Western Dominance: Provides a platform for emerging economies to challenge the G7 and other Western-led financial systems.
    • Promotes a multipolar global order, reducing reliance on dominant powers like the US and Europe.
    • Focus on Local Currencies and Non-Dollar Transactions: Aims to reduce dependence on the US dollar in international trade and finance.
    • Strengthens local currencies, reshaping global trade practices and reducing vulnerabilities to dollar-based systems.
  • Advocacy for Global Institutional Reforms: Pushes for greater equity and inclusivity in global institutions like the IMF and UN.
    • Addresses the need for a more balanced representation of developing nations in global decision-making.
  • Collaboration Among Emerging Economies: Encourages cooperation in areas like technology, sustainable development, and infrastructure.
    • Facilitates knowledge sharing and joint efforts to tackle global challenges like climate change and public health crises.
  • Energy and Resource Security: Many BRICS members are major producers or consumers of energy resources, allowing for strategic partnerships in energy security and sustainability.
  • Support for Multilateralism: Strengthens multilateral institutions by emphasizing collective problem-solving over unilateral approaches.

Challenges Faced by BRICS

  • Diverse Economic Interests: BRICS consists of countries with vastly different economies, ranging from advanced economies like China and India to resource-rich nations like Brazil and Russia.
    • These differences often lead to conflicting priorities on issues like trade policies, economic reforms, and foreign investments, which can complicate consensus-building within the group.
  • Political Differences: While the members of BRICS share common goals, their political ideologies and alliances vary widely.
    • Tensions between member states (e.g., China and India over border disputes, Russia’s geopolitical tensions with Western countries) can hinder the group’s ability to present a unified stance on global issues.
  • Geopolitical Rivalries: The geopolitical conflicts between China and India, and between Russia and Western nations, create challenges in BRICS working cohesively.
    • Competing alliances with countries outside BRICS, such as India’s ties with the US and Russia’s isolation from the West, may impact the group’s collective influence.
  • Economic Dependence on Global Markets: Many BRICS countries are still heavily dependent on global trade networks dominated by Western economies, which can limit their ability to shift entirely away from the US dollar or create an independent financial infrastructure.

Source: IE

 

Other News of the Day

Syllabus: GS1/Society/GS2/Governance Context As per the Data from Civil Registration System (CRS), sex ratio at birth in Haryana dropped to 910 in 2024, the lowest it has been since 2016 when the ratio was 900. About After peaking at 923 in 2019, the sex ratio at birth in Haryana dropped to 910 in 2024, an...
Read More

Syllabus: GS2/ Polity and Governance Context The Delhi police opposed the bail pleas of activists who are accused in the 2020 north-east Delhi riots case. What is Unlawful Activities Prevention Act (UAPA)? The UAPA gives powers to the government to probe and prosecute people for acts of terrorism, and to designate an organization as an...
Read More

Syllabus: GS2/ Indian Diaspora Context PM Modi inaugurated the 18th Pravasi Bharatiya Divas convention in Odisha. About The Pravasi Bharatiya Divas (PBD) Convention is the flagship event of the Government of India that provides an important platform to connect and engage with the Indian diaspora and enable them to interact with each other.  Theme: “Diaspora’s...
Read More

Syllabus: GS3/Science & Technology, Biotechnology Context Recently, the Prime Minister of India hailed the completion of the Genome India Project, calling it a ‘historic step in the world of research’ at Genome India Data Conclave, held at Vigyan Bhavan, New Delhi. About the Genome India Project It was launched in 2020 by the Department of...
Read More

Syllabus: GS3/Disaster Management Context Stampede in Tirupati caused the loss of life during the Vaikunthadwara Darshan. About Stampede Stampede is an impulsive mass movement of a crowd that often results in injuries and deaths. When panic spreads, people push forward, causing a domino effect where individuals fall and get trampled.  Although lakhs of devotees visit...
Read More

BHARATPOL Portal Syllabus: GS2/ Governance, GS3/ Security Context The Union Home Minister inaugurated the BHARATPOL portal developed by the Central Bureau of Investigation (CBI) in New Delhi. BHARATPOL Portal BHARATPOL, or Broadcast Hub for Assistance and Real-Time Action against Transnational Crimes, is a technological platform created to facilitate real-time coordination between central and state agencies...
Read More