BRICS’ FM meet
During the discussion of BRICS nations’ Foreign Ministers (FM) at Cape Town, South Africa, a geopolitical consolidation of the grouping has been proposed to expand the membership of BRICS, and a common currency.
- The BRICS countries comprise Brazil, Russia, India, China, and South Africa, and represent the largest developing economies.
- Founded in: 2006
- It is pertinent to note that the countries together represent 41% of the world’s population, around 25% of global GDP and around 20% of world trade.
- Subsidiary: New Development Bank
- Aim: The BRICS mechanism aims to promote peace, security, development and cooperation.
- The five nation powerful grouping has been discussing and deliberating on issues of common concern for all developing countries.
- BRICS countries have regularly called for reform of the multilateral system in order to make it more representative and inclusive.
Highlights of the meet:
- The foreign ministers’ meeting will finalise the agenda for the 15th BRICS summit scheduled to be held in South Africa in August, 2023.
- Two items on the agenda are attracting notice;
- A plan to expand the membership of BRICS, and a common currency.
- South Africa is going to conduct the BRICS summit for the year 2023 and also hosting a Friends of BRICS meeting, with 15 foreign ministers from Africa and the Global South.
The theme of upcoming BRICS summit 2023 is: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism”.
Significance of the meet:
- Talks on a Common Currency:
- The idea of a common currency was proposed by Russia’s President Vladimir Putin at the Beijing BRICS summit 2022.
- A committee will be formed to study the viability of the idea.
- The last year of Russia-Ukraine war has seen economies around the world feel the impact of the sanctions, the resultant spike in energy prices, combined with the rising value of the dollar.
- Thus, the idea of common currency can boost the trade relations between the member countries also in a situation of conflict.
- The complications in implementing a common currency can be such as the setting up of a common central bank of member countries that have different economic and political systems and are located on different continents.
- Most among the BRICS nations are developing countries in nature and thus they are facing a growth crisis which can become a challenge to economies bring a common ground of exchange.
Future aspirations of the BRICS grouping:
- Looking for Multi-polarity:
- As many as 19 countries are said to be in the queue to join BRICS.
- Strengthening a Global South:
- To break the hegemony of Dollar and make the other currency competitive, the step of common currency is seen as progressive.
- However, the nation’s comprising Global south has made a clear indication for West, as they also are keeping the pace to become one amongst them.