Critically examine the relevance of BRICS as an alternative platform for global governance. How can it be made effective? (15M, 250 Words)

BRICS, originally coined by Jim O’Neill in 2001 as an economic construct, has evolved into a significant political and economic forum representing emerging economies. With India set to host the BRICS 2026 Summit under the theme “Building for Resilience, Innovation, Cooperation, and Sustainability”, the grouping seeks to position itself as a credible alternative platform for global governance.

Relevance of BRICS in Global Governance:

1. Economic and Demographic Significance: BRICS represents about 42% of the world’s population, 23% of global GDP, and 18% of global trade. The inclusion of energy-rich countries such as Saudi Arabia, UAE, and Iran means BRICS now accounts for nearly 44% of global crude oil production, enhancing its strategic leverage.
2. Voice of the Global South: BRICS addresses the under-representation of developing countries in institutions like the IMF, World Bank, and UNSC. It consistently advocates reform of Bretton Woods institutions and a more democratic multilateral order.
3. Institutional Alternatives: New Development Bank (NDB): Since 2015, it has committed $32.8 billion to infrastructure and sustainable development projects, offering finance without political conditionalities. Contingent Reserve Arrangement (CRA): A $100 billion safety net to address short-term balance-of-payments pressures.
4. Geopolitical Relevance: Post-Ukraine conflict, BRICS has gained prominence as a non-Western coordination platform, reinforcing the idea of multipolarity and strategic autonomy.

Challenges Faced by BRICS:

1. Weak Institutional Structure: The absence of a permanent secretariat limits continuity, coordination, and implementation of decisions.
2. Internal Asymmetries: China’s overwhelming share of BRICS GDP creates influence asymmetries, leading to trust deficits among members.
3. Divergent Interests: Differences on issues like de-dollarization, BRICS currency, and regional conflicts constrain consensus-building.
4. Low Economic Integration: Despite its global trade share, intra-BRICS trade remains limited, reflecting shallow economic integration.
5. Perception as a ‘Talk Shop’: Frequent declarations without proportionate outcomes weaken credibility.

Strengthening BRICS:

1. Institutional Strengthening: Establish a permanent BRICS secretariat to improve coordination, monitoring, and implementation of summit decisions.
2. Deepening Economic Cooperation: Enhance intra-BRICS trade, investment flows, and supply-chain integration, including greater use of local currencies.
3. Empowering BRICS Institutions: Expand the capital base and lending capacity of the NDB, especially for climate finance and sustainable infrastructure.
4. Cooperation in Emerging areas: Focus on digital public infrastructure, clean energy, health cooperation, and climate action, aligning with shared development goals.
5. Balanced Leadership by India: India should act as a bridge-builder, ensuring BRICS remains inclusive and multipolar rather than China-centric.

Conclusion:

India’s chairmanship in 2026 is therefore pivotal for steering BRICS towards consensus-based leadership, development-oriented cooperation, and rule-reforming multilateralism. BRICS can evolve from a symbol of Global South aspiration into a functional instrument for equitable and resilient global governance.

‘+1’ Value Addition:

• All BRICS members are part of the G20, making BRICS a unique bridge between emerging economies and global economic governance.
• During the COVID-19 pandemic, BRICS coordinated on vaccine research, supply-chain resilience, and NDB emergency lending.
• The NDB has issued local-currency bonds, including in Indian rupees, reducing exchange-rate risks and dollar dependence.
• BRICS has been described as a “pillar of the new world order” by leaders at the 15th BRICS Summit, 2023.

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