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[🇧🇩] BRICS---Can Developing Countries Including Bangladesh Benefit From It?

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[🇧🇩] BRICS---Can Developing Countries Including Bangladesh Benefit From It?
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BRICS' potential for changing global economic order
Nilratan Halder
Published :
Jan 09, 2025 22:36
Updated :
Jan 09, 2025 22:36

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With Indonesia joining the BRICS, a platform looking for strengthening South-South Cooperation and setting into motion a new world order, it now accounts for 40 per cent of the world population and 35 per cent of the global gross domestic product (GDP). Indonesia becomes the 10th member of the intergovernmental organisation comprising six of the 10 most populous countries on the planet. India and China lead the table with more than 1.4 billion inhabitants each. If Thailand and Malaysia which have shown their interest in joining the bloc become full members, the population size of the BRICS will be 4.032 billion nearly half the world population. Their GDP will also inch towards the 40 per cent mark.

Now that the BRICS has grown in influence and financial status, it is a matter of time more emerging countries will clamour for membership. Given the monopoly of dollar in international trade and currency exchange, particularly the financial woes suffered by poor and developing nations like Bangladesh, there is every chance of such nations participating in the de-dollarising initiative and setting an alternative economic order. Costlier dollar in the post pandemic time followed by the disruptive period of international trade due to the Russia-Ukraine war has made them realise the bitter truth of relying on an apex single currency for exchange.

With the most populous countries also emerging as the leading financial powerhouses by 2050, the centre of gravity of the world economy is sure to shift. Therefore, an initiative to give a shape to the transition had to be taken in all seriousness. Thus comes the BRICS into being. China is still trailing US so far as their economic sizes are concerned but some of the variables are in favour of not only the Asian emerging giant but also India is poised to become the third largest economy behind the US and China by the middle of the century.

The potential of the BRICS in the process of expansion is great and if attained even 70-75 per cent of the promises, it could more than challenge the G7 bloc. The five founding members of the BRICS, according to the IMF data, had 33.76 per cent of the global GDP (in purchasing power parity terms) in October last. This share is against the 29.08 per cent GDP (PPP) of the G7 nations. The main contributor to the BRICS' higher GDP is China which has become the world's largest economy if measured by purchasing power parity. Its share in the global GDP is 19.1 per cent in PPP terms and around 18 per cent in nominal terms. The US, on the other hand, had 26 per cent of the global GDP in nominal terms but only 15.0 per cent in PPP terms in 2024.

Although India is the fifth largest economy in the world, in PPP terms it has long been ranked the third. More interestingly, apart from China and India, no other major economy has managed to expand their share for over a decade. For an example, in 2010, the USA's share in the global economy was 17.2 per cent but in 2024, it has declined to 15 per cent (PPP). India has raised its contribution from 6.0 per cent in 2014 to 8.2 per cent in 2024. Its contribution in PPP terms is two and a half times that of Germany, the third ranked economy in nominal terms. So the two most populous countries are still on what can be termed modest to robust growth trajectories.

That is likely to be the clinching factors for the BRICS when it comes to establishment of an alternative monetary and financial system if not a multi-dimensional economic order. Now what are the driving forces behind this economic performance by the world's two most populous countries? It is the manufacturing and productive capacities. BRICS members and its likely partners enjoy a lead in producing key commodities like cereals, fish and meat, oil seeds, crude oil, natural gas and minerals such as iron ore, copper and nickel. BRICS nations have a clear edge in producing the primary crops. Together Brazil, India and China produce two-thirds of the global sugarcane output. China and Brazil have 30 per cent share in the global maize production. Then China and India are the producers of half of the world's rice.

With Indonesia's entry into the bloc, the share of palm oil receives a boost. The country is the world's largest exporter of palm oil with 54 per cent share. If Malaysia and Thailand join the organisation, their production of this oil will be 90 per cent of the global total. In terms of production of another important crop potato, China and India have 40 per cent of the global share. In the production of fish, China and India have a lead. Similarly, in meat --- from beef to pork to chicken---production, Brazil, China and India have a share between 20-40 per cent of the global output. China and India are also leading producers of chicken eggs with China alone producing 34 per cent of the global total.

Thus the organisation has both raw materials and industrial capability along with agricultural support required for spurring economic growth. China has proved its technological muscle so has India in some of the select and advanced technology. With Russian advanced scientific and cutting-edge technological backup, the organisation can indeed establish a new global economic order.

Last but not least, Bangladesh, unfortunately, was not considered for membership although it was invited as an observer. It was surprising given the publicity of the Hasina government. Although six countries on the last day of the Johannesburg summit were invited to join the group, Bangladesh was not.​
 

BRICS' potential for changing global economic order
Nilratan Halder
Published :
Jan 09, 2025 22:36
Updated :
Jan 09, 2025 22:36

View attachment 12842

With Indonesia joining the BRICS, a platform looking for strengthening South-South Cooperation and setting into motion a new world order, it now accounts for 40 per cent of the world population and 35 per cent of the global gross domestic product (GDP). Indonesia becomes the 10th member of the intergovernmental organisation comprising six of the 10 most populous countries on the planet. India and China lead the table with more than 1.4 billion inhabitants each. If Thailand and Malaysia which have shown their interest in joining the bloc become full members, the population size of the BRICS will be 4.032 billion nearly half the world population. Their GDP will also inch towards the 40 per cent mark.

Now that the BRICS has grown in influence and financial status, it is a matter of time more emerging countries will clamour for membership. Given the monopoly of dollar in international trade and currency exchange, particularly the financial woes suffered by poor and developing nations like Bangladesh, there is every chance of such nations participating in the de-dollarising initiative and setting an alternative economic order. Costlier dollar in the post pandemic time followed by the disruptive period of international trade due to the Russia-Ukraine war has made them realise the bitter truth of relying on an apex single currency for exchange.

With the most populous countries also emerging as the leading financial powerhouses by 2050, the centre of gravity of the world economy is sure to shift. Therefore, an initiative to give a shape to the transition had to be taken in all seriousness. Thus comes the BRICS into being. China is still trailing US so far as their economic sizes are concerned but some of the variables are in favour of not only the Asian emerging giant but also India is poised to become the third largest economy behind the US and China by the middle of the century.

The potential of the BRICS in the process of expansion is great and if attained even 70-75 per cent of the promises, it could more than challenge the G7 bloc. The five founding members of the BRICS, according to the IMF data, had 33.76 per cent of the global GDP (in purchasing power parity terms) in October last. This share is against the 29.08 per cent GDP (PPP) of the G7 nations. The main contributor to the BRICS' higher GDP is China which has become the world's largest economy if measured by purchasing power parity. Its share in the global GDP is 19.1 per cent in PPP terms and around 18 per cent in nominal terms. The US, on the other hand, had 26 per cent of the global GDP in nominal terms but only 15.0 per cent in PPP terms in 2024.

Although India is the fifth largest economy in the world, in PPP terms it has long been ranked the third. More interestingly, apart from China and India, no other major economy has managed to expand their share for over a decade. For an example, in 2010, the USA's share in the global economy was 17.2 per cent but in 2024, it has declined to 15 per cent (PPP). India has raised its contribution from 6.0 per cent in 2014 to 8.2 per cent in 2024. Its contribution in PPP terms is two and a half times that of Germany, the third ranked economy in nominal terms. So the two most populous countries are still on what can be termed modest to robust growth trajectories.

That is likely to be the clinching factors for the BRICS when it comes to establishment of an alternative monetary and financial system if not a multi-dimensional economic order. Now what are the driving forces behind this economic performance by the world's two most populous countries? It is the manufacturing and productive capacities. BRICS members and its likely partners enjoy a lead in producing key commodities like cereals, fish and meat, oil seeds, crude oil, natural gas and minerals such as iron ore, copper and nickel. BRICS nations have a clear edge in producing the primary crops. Together Brazil, India and China produce two-thirds of the global sugarcane output. China and Brazil have 30 per cent share in the global maize production. Then China and India are the producers of half of the world's rice.

With Indonesia's entry into the bloc, the share of palm oil receives a boost. The country is the world's largest exporter of palm oil with 54 per cent share. If Malaysia and Thailand join the organisation, their production of this oil will be 90 per cent of the global total. In terms of production of another important crop potato, China and India have 40 per cent of the global share. In the production of fish, China and India have a lead. Similarly, in meat --- from beef to pork to chicken---production, Brazil, China and India have a share between 20-40 per cent of the global output. China and India are also leading producers of chicken eggs with China alone producing 34 per cent of the global total.

Thus the organisation has both raw materials and industrial capability along with agricultural support required for spurring economic growth. China has proved its technological muscle so has India in some of the select and advanced technology. With Russian advanced scientific and cutting-edge technological backup, the organisation can indeed establish a new global economic order.

Last but not least, Bangladesh, unfortunately, was not considered for membership although it was invited as an observer. It was surprising given the publicity of the Hasina government. Although six countries on the last day of the Johannesburg summit were invited to join the group, Bangladesh was not.​

UN is racist. It has not allowed any new member to get entry into P5. There is no possibility that the voice of any small nation may be heard. All those countries of P5 and their puppet west is losing their importance very fast. There is an urgent need for a new platform which is inclusive, fair and representative. Global south is emerging. Downfall of west and rise of global south under the leadership of India is inevitable. BRICS has the country like Russia, India, China who has a great potential to offer so many things which caters the need of emerging nations unlike west who wants to impose the things what they have on these emerging nations. More and more participation in BRICS is the need of hour to challenge the hegemony and exploitation of west.
 
Mostly zabardasti countries ki groupings, the UN is dysfunctional AF

What good will a much smaller grouping of not-the-richest countries ka gang do ? Internal conflict bhi hai with 2 of the biggest here, India and China.

China and Rus have problems with the west, with whom there will need to be at least a degree of inter operability.

SAARC type fuss sa lag raha scene :LOL:
 

Bangladesh yet to benefit from BRICS bank
FHM Humayan Kabir
Published :
Jan 18, 2025 23:57
Updated :
Jan 18, 2025 23:57

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Bangladesh has so far failed to reap any benefits of the BRICS-led New Development Bank (NDB) despite its entry into the new multilateral lender more than three years ago in 2021.

The NDB has still to approve any loan for Bangladesh other than that for five founding members-Brazil, Russia, India, China and South Africa (BRICS), insiders said on Saturday.

In September 2021, the board of the Shanghai-based lender welcomed Bangladesh as its sixth member.

Insiders said Bangladesh has taken a cautious approach to acquire loans from the NDB, formerly BRICS Development Bank, as those are costly compared to other typical lenders of the country.

Following its accession, Bangladesh sought loans from the NDB to finance building some infrastructure and facilitate socio-economic development.

In the meantime, a high-level delegation from the NDB also visited Bangladesh in January 2024. Dhaka requested it to expedite the loan approval process.

But the lender has taken a delaying tactic to approve the loan for Bangladesh, said government officials involved in communications with the NDB.

However, the NDB's Corporate Communications Division told the FE that they are on track to help Bangladesh.

"NDB is fully committed to working closely with Bangladesh, supporting infrastructure and sustainable development projects in alignment with its national development objectives and commitments under SDGs," said the NDB through an email communication last Friday.

During last year's meeting with NDB vice-president and COO Vladimir Kazbekov, the lender informed Dhaka that it was looking to lend money equivalent to $1.0 billion per year for large-scale projects in Bangladesh and about $3.5-$5.0 billion during the 2022-2026 work plan period.

Earlier, Bangladesh sought financial assistance for different projects, including five bridges, at an estimated cost of $8.87 billion.

The NDB has so far approved concept papers of four projects-three for the public sector and one for a private commercial bank-at least a year ago.

It endorsed a $320-million loan for a Dhaka Wasa project in August 2023, $100 million for a DNCC project in December 2023 and $442 million for Titas Gas Transmission and Distribution Company in February 2024.

Besides, the NDB approved another $25-million loan for the private commercial bank-City Bank PLC-in April 2024.

"We're waiting for approval of at least two quick loans from the NDB board. We're also ready to sign the loan deals," said a senior official of the Economic Relations Division (ERD).

A DWASA official said they were waiting for the approval of the NDB loan with an eye to improving Dhaka's water supply system with the proposed project.

Following its birth, the NDB agreed to finance infrastructure projects in member countries worth a cumulatively loan of $35 billion for about 100 projects, NDB president Dilma Rousseff told a programme last year.

A couple of finance ministry officials said the government was going slowly with the proposed NDB loans as those are comparatively costly.

The FE analysis has found that the NDB's maturity is a maximum of 19 years along with five years' grace period.

The lender charges six-month LIBOR/SOFR plus spread ranging from 1.03 per cent to 1.35 per cent for borrowing its loans.

Besides, it charges 0.25-per cent front-end fee for approved loans while 0.25-per cent commitment fee for an undisbursed amount of the credit after approval.

The Bangladesh government also borrows costly loans from the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB), which covers a market-based (SOFR) one.

According to the Federal Reserve Bank of New Your, the SOFR rate was 4.92974 per cent on Saturday.

In a query, the NDB replied that it was mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries.

In line with NDB's commitment to transparency and information disclosure, the bank is publishing information about proposed projects on its official website, added the Corporate Communications Division of the NDB.

"For example, NDB is considering advancing a loan of USD 25 million to City Bank Plc, one of the largest commercial banks in Bangladesh. The funds will be on-lent to private sector for investments in sustainable infrastructure projects in clean energy and energy efficiency, transport and digital infrastructure."

"The project is at an advanced stage of preparation, with approval targeted within the first half of 2025," it said.

When Bangladesh formally acceded to NDB, it actually joined with a larger subscription of $942 million (1.84 per cent of the total) and received 1.88 per cent of exercisable votes on the two boards of the bank.​
 
BD definitely should pursue BRICS membership along with ASEAN.

BD needs to be present in as many forum as possible to increase our global exposure.

I have to be honest it is unlikely BRICS will introduce its own currency… the countries are very different and have do not really think in short term there is much benefit in it.

BD is part of BRICS Bank, we should explore cheap loans from it if feasible.

Your points are well taken, but getting too involved in BRICS activity - especially concerning de-dollarization, will prove to be very detrimental to Bangladesh Exports to the USA, which is one of our primary apparel markets.

Trump has threatened "friend" Modi that any further pursual of de-dollarization by India will invite an imposition of 100% tariffs on Indian exports to the US. Bangladesh certainly does not want to be in that boat.

All other points made are reasonable and those avenues can be explored.
 
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BRICS summit planned for July in Rio: Brazil

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Photo: Collected

Leaders of the countries known as BRICS will hold a summit in Rio de Janeiro in July, the current chair Brazil announced yesterday.

Other members of the trading bloc include Russia, India, China South Africa and others.

Brazilian Foreign Minister Mauro Vieira said on the social media platform X that the summit will be held July 6-7 and feature leaders of 20 countries with full or associate status in the bloc.

At this meeting "we will make very important decisions for the development of all these countries, for cooperation and for improving the living conditions of all their inhabitants," Vieira said.

US President Donald Trump has threatened to impose 100 percent tariffs on the BRICS countries if they undercut the US dollar.

At a BRICS summit in October in Russia, the member countries discussed boosting non-dollar transactions and strengthening local currencies.

The government of President Luiz Inacio Lula da Silva has said that under the Brazilian presidency the BRICS bloc will focus on strengthening cooperation with developing nations of the so-called Global South and on reforming multilateral institutions.

He said Brazil's priorities for the bloc include "developing means of payment" to encourage trade and investment among member states.

Last month, Brazil's chief negotiator for the BRICS group, Eduardo Saboia, told AFP there is no concrete plan to replace the dollar but rather talks on using local currencies in transactions.

The BRICS group has expanded significantly since its inception in 2009, and now includes countries such as Iran, Egypt and the United Arab Emirates.

Altogether the BRICS coalition accounts for a significant minority of the world's economic output.​
 

Brazil hosts first BRICS Sherpas meeting
FE ONLINE DESK
Published :
Feb 26, 2025 11:27
Updated :
Feb 26, 2025 11:27

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Brazilian Foreign Affairs Minister Mauro Vieira has opened the first meeting of BRICS Sherpas, or chief negotiators, with Brazil holding the rotating presidency of the bloc, the Foreign Ministry confirmed.

In his opening speech on Tuesday, Vieira affirmed the response to the crisis of multilateralism "is more multilateralism, stronger and more inclusive in all spheres."

The top diplomat of Brazil noted the international order is undergoing profound changes and existing institutions are struggling to adapt, while at the same time, emerging economies are demanding greater participation in global decisions, reports Xinhua.

"In this evolving scenario, BRICS plays a fundamental role in promoting a more just, inclusive and sustainable world order. A multipolar world is not only an emerging reality, but a shared objective," he said.

"A rebalanced global system must have stronger foundations of equity and representation, and no such foundation can be built without the voice of BRICS. This group embodies the aspirations of the Global South and our role in shaping the future has never been more significant," he added.

The meeting taking place at the Itamaraty Palace, Brazil's Foreign Ministry headquarters in the capital Brasilia, comprises two days of debates around issues related to promoting a fairer, multipolar world order, in keeping with the priorities of the bloc's Brazilian presidency.

This is the first meeting of negotiators since the BRICS bloc of emerging economies was expanded last year to include Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, Iran and Indonesia, from the former members of Brazil, Russia, India, China and South Africa.

In addition, there are associated countries such as Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda and Uzbekistan.

The discussions seek to redefine global governance to reflect the realities of the 21st century, Vieira stressed in his speech, ensuring that developing countries are protagonists, not mere spectators.

In the area of economics, he said the protectionism in vogue threatens to deepen inequalities.

BRICS should "advocate" for an "open, fair and balanced" multilateral trade system that addresses the needs of the Global South and promotes a truly multipolar economic order, Vieira said.

Countries should continue to make progress in "alternative" financial mechanisms such as the New BRICS Development Bank, which plays a "vital" role in financing infrastructure and sustainable projects in emerging economies, he said.

Brazil, as BRICS president, will prioritize cooperation with the Global South and an agenda of social, economic and environmental development, with emphasis on six key areas: health, trade, climate change, artificial intelligence, reform of the multilateral security system and institutional strengthening of the bloc.

The second day of the BRICS Sherpas meeting on Wednesday includes a special session with the participation of Brazil's President Luiz Inacio Lula da Silva, and in the afternoon, a summary of the discussions will be released.​
 

BRICS-backed bank to lend $1b this yr to Bangladesh

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A picture illustration shows U.S. 100 dollar bank notes taken in Tokyo August 2, 2011. Photo: Reuters

The New Development Bank established by the BRICS has planned to raise its lending to Bangladesh development projects to $1 billion this year, a senior official of the Shanghai-based multilateral lender said yesterday.

Vladimir Kazbekov, a vice president of the NDB, said the bank has approved $320 million for the implementation of the Expanded Dhaka City Water Supply Resilient project, but this year it wants to more than triple the funding in view of Bangladesh's development needs.

The NDB official made the comments when he called on the Chief Adviser Professor Muhammad Yunus, at the State Guest House Jamuna in Dhaka.

The NDB is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) in 2015.

The chief adviser appreciated the role of the new multilateral lender, saying it can make a significant contribution in upgrading its development infrastructure.

Kazbekov said the lender was also committed to making major support for the infrastructure development of the gas sector in Bangladesh.

The NDB was also interested in lending substantially to the country's private sector in an effort to strengthen their capacity, the NDB vice president said.

Prof Yunus stressed NDB lending in social infrastructure such as housing facilities for thousands of workers in the country's booming economic zones.

Kazbekov said the bank has introduced multi-currency lending, which will benefit Bangladesh.

Shahriar Kader Siddiqi, the secretary of the Economic Relations Division, said the NDB should focus on introducing country strategy programmes on Bangladesh in an effort to align its funding with the development priorities of Bangladesh.

Bangladesh Investment Development Authority Executive Chairman Chowdhury Ashik Mahmud Bin Harun, SDG Coordinator Lamiya Morshed and ERD Secretary Shahriar Kader Siddiqi were also present in the meeting.

Meanwhile, leading US investors in Bangladesh, represented by the US-Bangladesh Business Council, met Yunus. They expressed their commitment to champion a growing Bangladesh-US economic partnership and to help catalyse and support mutually beneficial commercial relations between the two nations.

The delegation was led by Peter Haas, former US ambassador to Bangladesh, and strategic adviser at Excelerate Energy, and included representatives from Meta, Visa, Chevron, Uber, MetLife, Mastercard, Boeing and the US Soybean Export Council. Excelerate Energy chairs the board of directors of the US Chamber of Commerce's US-Bangladesh Business Council.

The meeting focused on strengthening trade and investment ties between the two countries.

"US companies have a long-term commitment to the growth story of Bangladesh, one that is anchored in resilience, entrepreneurship and long-term prosperity," said Haas.​
 

The evolving geo-political dimensions of BRICS in a multipolar world

Muhammad Zamir
Published :
Jun 11, 2025 00:42
Updated :
Jun 11, 2025 00:42

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Questions have been surfacing over the last few months about the United Nations (UN) and the exercise of veto power by the Permanent Members of the Security Council. This is being perceived as a stumbling block for resolving problems globally.

Such a scenario has led many countries in the world to hope that a unified, broad presence of BRICS might help resolve problematic issues.

There are queries about how to find the least common denominators in finding solutions to emerging serious dimensions pertaining to finding solution to the effects of climate change and climate vulnerability-- in the form of adaptation, mitigation and climate finance. In addition, there is also an effort towards finding investors in renewable energy. There are also other volatile issues that have emerged due to the conflicts in Gaza, Lebanon and Ukraine. Many countries are also taking note of the possibility of repatriation of refugees to their homelands after being forced to seek sanctuary in neighbouring countries-- as has happened in the case of the Rohingyas who fled and were also forced out of their homes in the Rakhine state of Myanmar.

Originally constituted to assist in the identification and highlighting of investment opportunities, the BRICS grouping has eventually evolved into an actual geopolitical bloc, with their governments meeting annually aimed at coordinating multilateral policies through formal Summits since 2009.

Currently, bilateral relations among BRICS are conducted mainly based on non-interference, equality, and mutual benefit.

It may also be noted that the initial four BRICs -- Brazil, Russia, India, and China -- met in New York City in September 2006 at the margin of the UN General Assembly, but held its first full-scale meeting in Yekaterinburg, Russia, on June 16, 2009.

South Africa joining the bloc a year later. Iran, Egypt, Ethiopia, and the United Arab Emirates joined on January 1, 2024. Saudi Arabia has not joined officially as yet, but participates in the organisation's activities as an invited nation.

Analysts, consequently clearly identify BRICS as an intergovernmental economic-political organisation comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates.

One needs to understand the importance of this Group through some statistics. Combined, the BRICS members encompass about 30 per cent of the world's land surface and 45 per cent of the global population. South Africa has the largest economy in Africa whereas Brazil, Russia, India, and China are among the world's ten largest countries by population, area, and Gross Domestic Product (GDP), and also in terms of purchasing power parity (PPP).

All five initial member states are also Members of the G20, with a combined nominal GDP of US Dollar 28 trillion which amounts to about 27 per cent of the Gross World Product, and a total GDP (PPP) of around US Dollar 57 trillion (33 per cent of global GDP PPP), and an estimated US Dollar 4.5 trillion in combined foreign reserves (as of 2018).

BRICS has expanded significantly since its 2009 inception as a group of four powers -- Brazil, Russia, India and China -- seeking an alternative platform to Western-led international organisations such as the G7. It now makes up nearly half of the world's population, 39 per cent of global GDP and weighs in on issues from Ukraine to Gaza to global trade.

The BRICS countries are considered as the foremost geopolitical rival to the G7 bloc comprising the leading advanced economies, implementing competing initiatives such as the New Development Bank, the BRICS Contingent Reserve Arrangement. These data have originated from the BRICS Joint Statistical Publication. All these details have led to BRICS receiving both praise and criticism from numerous commentators.

Significantly, during its BRICS Presidency this year, Russia has tried to focus on "promoting the entire range of partnership and cooperation within the framework of the association on three key tracks - politics and security, economy and finance, and cultural and humanitarian ties. All of these have particular connotations. In an interview with Sky News Arabia on September 20, Russian Foreign Minister Sergey Lavrov expressed scepticism but was straight to the point about the strategic expansion of BRICS, of which Russia has been President since January 2024.​

Tracking down the history, operations and achievements, Lavrov acknowledged in his interview that the BRICS association is consolidating its positions and cooperating with several countries.

At the same time, this Group is facing certain challenges. It is necessary to promote collaboration based on a balance of interests, and most importantly, ensure that BRICS functions based on consensus in the future.

Geo-strategists, however, believe that the consensus principle will primarily aim to find agreements that reflect the mutual accord of all participants. That, in the current scenario, will not be easy. The more the Partners, the harder it will be to reach an accord. In this context, we should not forget that it takes more time to finalise any consensus-based agreement than a vote-based solution.

BRICS expansion had sparked debates and discussions for the last few years. This difference of opinion continued till Ethiopia, Egypt, Iran, Saudi Arabia and the United Arab Emirates were finally accepted on the condition of "consensus" by BRICS members during the South African summit in August 2023.

Lavrov has already indicated and repeatedly explained the "suspension" of membership into BRICS+. Instead of membership, Lavrov has also observed that potential countries can only be accepted as a "partner group" with simple consideration to support and interact with the BRICS association.

According to information monitored, more than 30 countries, with growing discontent against Western hegemony, have confidentially expressed their readiness to join BRICS. Lavrov has also confirmed this figure in his interview with Sky News Arabia, and even earlier explained that "the modalities of ascension have to be collectively discussed" at subsequent Summits in future.

At South Africa's 15th Summit held under President Cyril Ramaphosa, several countries had expressed interest in ascending the BRICS association, but only five finally joined. The official documents, as stipulated by the guidelines, set no concrete criteria or rules for admission except using the flexible term "consensus" - a general agreement at the Summit which was utilized in the selection process. Foreign Minister Sergey Lavrov and Russian President Vladimir Putin have now described this designated circle of BRICS+ friends as "partner members" which has frankly been reflected in official documents.

As per the agreements reached at the BRICS Summit in Johannesburg in 2023, the Ministers reviewed the efforts to coordinate the modalities of the new category-- BRICS Partner Countries. Within the stipulated guidelines, Russia took over the BRICS one-year-long Presidency on January 1, 2024. What is likely to happen in 2025 after Donald Trump took over as President is a matter that analysts are monitoring carefully.

BRICS has experienced two phases of expansion. In 2011, South Africa joined the association, which included Brazil, Russia, India, and China. On January 1, 2024, five new members also officially entered the BRICS association - Ethiopia, Egypt, Iran, Saudi Arabia and the United Arab Emirates.

On October 24, 2024, an additional 13 countries namely Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan and Vietnam were invited to participate as "partner countries". The partner status would allow these countries to engage with and benefit from BRICS initiatives. It is however not clear whether the countries in this tier have received official membership invitations.

Nevertheless, there has been a movement forward towards further expansion. On January 6, 2025, Indonesia joined BRICS officially as a full member, making it the first Southeast Asian nation to join the bloc, as well as the 10th member of BRICS.

Brazil, which now chairs the 11-nation BRICS grouping that also includes Russia and China, has called for closer cooperation as the world deals with conflicts in Ukraine and Gaza and trade wars under US President Donald Trump. "We advocate diplomacy instead of confrontation, and cooperation instead of unilateralism," Brazil's Foreign Minister Mauro Vieira has told the BRICS Foreign Ministers in Rio. "The conflict in Ukraine continues to have a severe humanitarian impact, highlighting the urgent need for a diplomatic solution," he added. Vieira has also called for a "complete withdrawal" of Israeli forces from Gaza. "The resumption of Israeli bombings and the continuous obstruction of humanitarian aid are unacceptable," he said.



Muhammad Zamir, a former Ambassador, is an analyst specialised in foreign affairs, right to information and good governance.
 

BRICS to launch guarantee fund to boost investment in member nations, sources say

REUTERS
Published :
Jul 04, 2025 11:06
Updated :
Jul 04, 2025 11:06

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The BRICS group of developing nations is set to announce a new guarantee fund backed by the New Development Bank (NDB) to lower financing costs and boost investment, two people familiar with the matter told Reuters.

The initiative, modelled on the World Bank's Multilateral Investment Guarantee Agency (MIGA), aims to address global investment shifts amid uncertainty surrounding US economic policy, the sources said on condition of anonymity.

Brazilian officials view the fund as the centrepiece of the BRICS financial agenda during the country's rotating presidency. The fund is expected to be mentioned in the joint statement at the BRICS summit in Rio de Janeiro next week, said the sources.

Originally formed by Brazil, Russia, India and China, the BRICS group later added South Africa and recently expanded to include other developing nations to increase its influence in global governance.

The proposed BRICS Multilateral Guarantee (BMG) mechanism, incubated within the NDB, has received technical approval from member states and awaits final sign-off from BRICS finance ministers, considered a formality, one of the sources said.

Brazil's Finance Ministry declined to comment on the matter.

The initiative will not require additional capital from member countries at this stage. Instead, it aims to channel existing NDB resources to projects in developing nations.

No initial funding value has been disclosed, but officials involved in the talks expect each dollar in guarantees provided by the NDB to mobilise between five and ten dollars in private capital for pre-approved projects.

"This is a politically significant guarantee instrument. It sends a message that BRICS is alive, working on solutions, strengthening the NDB and responding to today's global needs," one source said.

Technical preparations for setting up the fund are expected to conclude by the end of this year, paving the way for pilot projects to receive guarantees in 2026.

BRICS countries face challenges common to developing nations in attracting large-scale private investment in infrastructure, climate adaptation and sustainable development.

Officials argue that guarantees issued by the NDB, whose credit rating is higher than that of most member countries, could help mitigate perceived risks for institutional investors and commercial banks.​
 

BRICS leaders meet in Rio to defend multilateralism ‘under attack’

REUTERS
Published :
Jul 06, 2025 22:00
Updated :
Jul 06, 2025 22:00

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Brazil's President Luiz Inacio Lula da Silva and China's Premier Li Qiang attend a bilateral meeting, ahead of the BRICS summit, in Rio de Janeiro, Brazil July 5, 2025. Photo : REUTERS/Pilar Olivares

Leaders of the growing BRICS group of developing nations met in Brazil on Sunday, calling for reform of traditional Western institutions while presenting the bloc as a defender of multilateral diplomacy in an increasingly fractured world.

With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive “America First” approach of U.S. President Donald Trump, expansion of the BRICS has opened new space for diplomatic coordination.

In his opening remarks at the meeting in Rio de Janeiro, Brazilian President Luiz Inacio Lula da Silva drew a parallel with the Cold War’s Non-Aligned Movement, a group of developing nations that resisted formally joining either side of a polarized global order.

“BRICS is the heir to the Non-Aligned Movement,” Lula told leaders. “With multilateralism under attack, our autonomy is in check once again.”

BRICS nations now represent more than half the world’s population and 40% of its economic output, Lula noted in remarks on Saturday to business leaders warning of rising protectionism.

The BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates as members. This is the first summit of leaders to include Indonesia.

“The vacuum left by others ends up being filled almost instantly by the BRICS,” said a Brazilian diplomat who asked not to be named. Although the G7 still concentrates vast power, the diplomat added, “it doesn’t have the predominance it once did.”

However, there are questions about the shared goals of an increasingly heterogeneous BRICS group, which has grown to include regional rivals along with major emerging economies.

Stealing some thunder from this year’s summit, Chinese President Xi Jinping chose to send his prime minister in his place. Russian President Vladimir Putin is attending online due to an arrest warrant from the International Criminal Court.

Still, several heads of state gathered for discussions at Rio’s Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa.

More than 30 nations have expressed interest in participating in the BRICS, either as full members or partners.

GROWING CLOUT, COMPLEXITY

Expansion of the BRICS has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the United Nations Security Council and the International Monetary Fund.

“If international governance does not reflect the new multipolar reality of the 21st century, it is up to BRICS to help bring it up to date,” Lula said in his opening remarks.

Lula defended the integrity of Iran’s borders, two weeks after the country was bombed by the United States, and highlighted the failure of U.S.-led wars in the Middle East.

The BRICS nations will also continue their thinly veiled criticism of Trump’s U.S. tariff policy, according to diplomats drafting a joint statement. In April, the bloc’s foreign ministers voiced concern about “unjustified unilateral protectionist measures, including the indiscriminate increase of reciprocal tariffs.”

Brazil, which also hosts the United Nations climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on U.S. climate initiatives.

China and the UAE signaled in meetings with Brazilian Finance Minister Fernando Haddad in Rio that they plan to invest in a proposed Tropical Forests Forever Facility, according to two sources with knowledge of the discussions about funding conservation of endangered forests around the world.

The growth of the bloc has also increased the challenges to reaching consensus on contentious geopolitical issues.

Ahead of the summit, negotiators struggled to find shared language for a joint statement about the bombardment of Gaza, the Israel-Iran conflict and a proposed reform of the Security Council, two sources said, speaking on condition of anonymity.

To overcome differences among African nations regarding the representation on a reformed Security Council, the group agreed to endorse seats for Brazil and India while leaving open which country should represent Africa’s interests, a person familiar with the talks told Reuters.​
 

BRICS finance ministers make unified proposal for IMF reforms

REUTERS
Published :
Jul 06, 2025 10:09
Updated :
Jul 06, 2025 10:09

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Ricardo Alban, President of the National Confederation of Industry (CNI), delivers a speech as Malaysia's Prime Minister Anwar Ibrahim, Brazil's President Luiz Inacio Lula da Silva and Brazil's Vice President Geraldo Alckmin participate at the opening of the BRICS Business Forum, ahead of the BRICS Presidential Summit, in Rio de Janeiro, Brazil on July 5, 2025 — Reuters photo

Finance ministers from the BRICS group of developing nations called on Saturday for reform of the International Monetary Fund, including a new distribution of voting rights and an end to the tradition of European management at the helm.

The joint statement by the group's finance ministers marks the first time the BRICS countries have agreed on a unified position on the proposed reforms. They agreed to back the shared proposal at an IMF review meeting coming up in December, which will discuss changes to a quota system that defines contributions and voting rights

"Quota realignment should reflect members' relative positions in the global economy, while protecting the quota shares of the poorest members," the ministers wrote in their statement after meetings in Rio de Janeiro, adding that the new formula should increase quotas for developing countries.

The BRICS ministers called for a new formula weighted by economic output and purchasing power, considering the relative value of currencies, which should better represent low-income countries, said a Brazilian official who followed negotiations.

The ministerial meetings came ahead of a leaders summit in Rio for the bloc that expanded last year beyond Brazil, Russia, India, China and South Africa to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates.

That has added diplomatic clout to the group, which aims to speak for developing nations in the Global South, urging reforms of institutions long dominated by traditional Western powers.

"With full respect to a merit-based selection process, regional representation must be enhanced for the IMF management, overcoming the anachronistic post-World War II gentlemen's agreement that is unfit for the current world order," the finance ministers wrote.

Their statement also confirmed discussions to set up a new guarantee mechanism backed by the NDB, a multilateral bank funded by the BRICS, which aims to lower financing costs and boost investment in developing economies, as Reuters first reported on Thursday.​
 

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