16th BRICS Summit & India-China Border Agreement

A New Chapter in Multilateral Cooperation and Regional Stability

News Analysis

The recent 16th BRICS Summit, held in Kazan, Russia, showcased BRICS' growing influence and diversity with the inclusion of new members and the bloc’s focus on addressing global issues. Alongside the summit, India and China achieved a breakthrough in their border negotiations, marking a significant diplomatic milestone.

Key Highlights of the 16th BRICS Summit

1.     Expansion of BRICS:

o    The summit welcomed Egypt, Ethiopia, Iran, and the UAE as new BRICS members, broadening the bloc’s representation. This expansion reflects BRICS' increasing influence and its commitment to including diverse voices from the Global South.

o    Saudi Arabia has yet to formalize its membership but showed interest by sending its foreign minister, indicating the bloc’s growing appeal among non-Western countries.

2.     Focus on Multilateralism and Global Issues:

o    BRICS leaders discussed strengthening multilateralism, countering terrorism, fostering sustainable development, and supporting the Global South.

o    The Kazan Declaration addressed key geopolitical issues, including:

§  Ukraine: Called for peaceful resolution through diplomacy.

§  West Asia: Expressed concern over the humanitarian crisis in Gaza and the West Bank and condemned civilian casualties from Israeli strikes in Lebanon.

§  Sanctions: Criticized unilateral sanctions, noting their negative impact on the global economy and Sustainable Development Goals (SDGs).

3.     Financial Integration and Local Currencies:

o    The summit emphasized the need for financial integration among BRICS members, focusing on trade in local currencies and the possibility of a BRICS-led payment system as an alternative to SWIFT.

o    India’s UPI (Unified Payments Interface) was highlighted as a model, underscoring India's leadership in financial innovation within the bloc.

4.     BRICS Grain Exchange:

o    The leaders explored the establishment of a BRICS Grain Exchange, aimed at bolstering food security within the bloc. This exchange could eventually expand to cover other agricultural sectors, highlighting BRICS’ focus on economic resilience and self-reliance.

5.     Conservation Efforts:

o    BRICS members supported India's proposal for an International Big Cats Alliance to protect endangered species like tigers and leopards, promoting collaboration on conservation efforts among member states.

India-China Bilateral Meeting: A Step Toward Stability

1.     Background and Context:

o    The India-China border agreement marks the first bilateral engagement on border issues since the 2020 standoff, which had escalated tensions along the Line of Actual Control (LAC).

o    The meeting highlighted a commitment to resolve lingering border disputes, particularly in sensitive areas like the Depsang Plains and Charding Nullah.

2.     Significance of the Agreement:

o    The agreement allows both countries to resume patrols up to the old Patrolling Points (PPs) along the LAC in the Depsang Plains and Demchok. This move reflects China’s readiness to address areas previously avoided in negotiations.

o    By reducing friction in border areas, this agreement aims to restore bilateral trust and opens the door for further diplomatic engagement between the two Asian giants, impacting regional stability.

Significance of BRICS and Its Growing Influence

1.     Strengthening Non-Western Alliances:

o    The Kazan Summit showcased BRICS’ potential as an alternative to Western-dominated forums like the G7, reflecting a shift in global power dynamics. As BRICS grows, it provides non-Western countries, including Russia, with a platform for diplomatic engagement and economic collaboration.

2.     Economic Cohesion Amidst Diversity:

o    Despite differences in economic size and political alignments, BRICS has maintained cohesion through initiatives like the New Development Bank (NDB) and annual summits. The addition of new members poses challenges for consensus-building but also strengthens BRICS’ claim to represent the Global South.

3.     Call for Reform in Global Governance:

o    The Kazan Declaration emphasized BRICS’ desire for reform in global institutions like the UNSC, IMF, and World Bank, where emerging economies feel underrepresented. This demand aligns with the bloc’s ambition to enhance its influence on the global stage and challenge Western dominance in multilateral bodies.

4.     Challenges Facing BRICS:

o    Geopolitical Tensions: The diversity of BRICS, especially with new members like Iran and the UAE, brings geopolitical contradictions. Aligning the interests of members with conflicting alliances may challenge BRICS' unity.

o    Dependence on the Dollar: Despite efforts to promote local currencies, progress has been slow. The NDB’s lending capabilities are still limited compared to the World Bank, and transitioning away from the dollar-dominated financial system remains challenging.

Way Forward for BRICS and India-China Relations

1.     For BRICS:

o    Establishing Clear Objectives: BRICS should prioritize cooperation in trade, technology, and security to maintain cohesion amidst a growing membership.

o    Strengthening Food and Energy Security: Initiatives like the BRICS Grain Exchange can enhance food security, while collaboration in renewable energy can build resilience against global economic uncertainties.

2.     For India-China Relations:

o    Gradual Trust-Building: The recent agreement should be seen as a starting point. Continued diplomatic engagement, with a focus on mutual respect for sovereignty, is essential to stabilize relations.

o    Enhanced Border Management: Both countries must work on implementing effective border management strategies to prevent future skirmishes and establish long-term peace in sensitive areas along the LAC.

Conclusion

The 16th BRICS Summit and the India-China border agreement mark significant developments in international relations, reflecting a shift toward multipolarity and regional stability. BRICS’ expansion and India-China rapprochement underscore the importance of multilateral platforms in addressing global challenges and promoting peaceful coexistence. As BRICS continues to evolve, its ability to maintain unity amidst diversity will determine its effectiveness in reshaping the global order.

Mains Question

"Discuss the significance of the recent BRICS Summit in strengthening multilateral cooperation among emerging economies and analyze the impact of the India-China border agreement on regional stability and international relations."

Model Answer

Introduction

The recent 16th BRICS Summit in Kazan, Russia, marks a pivotal moment for multilateral cooperation among emerging economies. With new members joining the bloc and key geopolitical issues discussed, BRICS is positioning itself as a counterweight to Western-dominated alliances. On the sidelines of the summit, India and China achieved a breakthrough in border negotiations, highlighting diplomatic efforts to stabilize relations after the 2020 standoff. Both developments underscore BRICS' evolving role in international relations and its potential to reshape regional and global dynamics.

Significance of the 16th BRICS Summit

1.     Expansion of BRICS Membership:

o    Inclusion of New Members: The addition of Egypt, Ethiopia, Iran, and the UAE reflects BRICS’ growing appeal among non-Western nations and its commitment to diversifying representation. Saudi Arabia, though not yet formalized, also attended, indicating interest from other influential players.

o    Strengthening the Global South: With these new members, BRICS amplifies the voice of the Global South, providing a platform for emerging economies to collaborate on development and policy challenges.

2.     Promotion of Multilateralism and Economic Independence:

o    Financial Integration: BRICS leaders emphasized the importance of trading in local currencies and discussed the possibility of a BRICS-led payment system to reduce reliance on SWIFT, which is dollar-dominated. India’s UPI (Unified Payments Interface) was showcased as a model, underscoring India’s technological leadership in financial inclusion.

o    Food Security Initiatives: The proposal for a BRICS Grain Exchange aims to enhance food security within the bloc. This initiative aligns with the goal of economic resilience, allowing BRICS countries to better manage supply chains for essential resources.

3.     Geopolitical Stance and Kazan Declaration:

o    Addressing Global Conflicts: The Kazan Declaration expressed BRICS’ stance on major geopolitical issues, including calls for peaceful resolutions in Ukraine and West Asia. It condemned unilateral sanctions imposed by the West, citing their adverse effects on global trade and Sustainable Development Goals (SDGs).

o    Push for Reforms in Global Institutions: The declaration reaffirmed BRICS’ call for reforming global governance institutions, including the United Nations Security Council (UNSC), the International Monetary Fund (IMF), and the World Bank, to increase representation for developing countries.

Impact of the India-China Border Agreement

1.     Significance of the Agreement:

o    Resolution of 2020 Border Tensions: The agreement between India and China to disengage from disputed areas along the Line of Actual Control (LAC) marks the first significant diplomatic achievement since the 2020 standoff. It allows troops to resume patrolling up to the old Patrolling Points (PPs) in the Depsang Plains and Demchok, restoring normalcy in these sensitive areas.

o    China’s Concession on Key Areas: China’s willingness to negotiate on the Depsang Plains and Charding Nullah, previously off-limits for discussions, signals its intent to improve bilateral relations. This breakthrough is a step toward stabilizing the complex and historically contentious India-China relationship.

2.     Regional Stability and Implications for International Relations:

o    Reduced Military Tensions: The agreement may prevent further military confrontations along the LAC, contributing to stability in South Asia. This is significant as any escalation between two nuclear powers poses a threat to regional peace and security.

o    Revival of Diplomatic Channels: The agreement reflects renewed diplomatic engagement, allowing both countries to focus on other areas of cooperation within BRICS and other multilateral platforms. Improved India-China relations can enhance cooperation on global issues like climate change and economic growth, where both nations share common interests.

3.     Impact on BRICS and Multilateral Cooperation:

o    Strengthening BRICS Unity: The India-China border agreement can enhance cohesion within BRICS by reducing bilateral tensions that could otherwise hinder the bloc’s functioning. This unity is essential as BRICS expands and seeks to address economic and political issues on the global stage.

o    Challenges in Consensus-Building: Despite the positive step, India and China continue to have strategic differences in areas like infrastructure projects in South Asia. Balancing national interests with the collective goals of BRICS will remain a challenge as the bloc pursues a multipolar global order.

Challenges Facing BRICS Amidst Expansion

1.     Geopolitical Contradictions:

o    The inclusion of diverse members, such as Iran and the UAE, introduces potential conflicts of interest. For example, the UAE has strong ties with the United States, while Iran is a known adversary of the US. This diversity may complicate consensus-building on political matters.

2.     Dependence on the Dollar and Financial Integration:

o    Despite efforts to promote non-dollar transactions, BRICS countries face challenges in establishing a viable alternative to the dollar in global trade. The New Development Bank (NDB), created as an alternative to the World Bank, has made limited progress in this area due to financial and structural constraints.

Way Forward for BRICS and India-China Relations

1.     Defining Common Goals for BRICS:

o    BRICS must establish clear, shared objectives to avoid conflicts of interest among its expanded membership. Focus areas like trade, energy security, and technology cooperation can provide common ground for collaboration.

2.     Continuous Diplomatic Engagement Between India and China:

o    The India-China border agreement should serve as a foundation for ongoing dialogue. Both countries must work toward confidence-building measures and avoid actions that could reignite tensions along the LAC.

3.     Focus on Global South Leadership:

o    As BRICS expands, it should continue to champion the interests of the Global South, advocating for reforms in international institutions and supporting economic initiatives that benefit developing countries.

Conclusion

The 16th BRICS Summit and the India-China border agreement highlight the potential of multilateral platforms to address complex geopolitical challenges and promote cooperation among emerging economies. BRICS, with its expanded membership, reflects a growing desire for a multipolar world where non-Western voices have a greater role in shaping global policies. Meanwhile, the India-China border agreement signifies a positive step toward stabilizing a critical regional relationship, fostering an environment conducive to peace and development in South Asia. As BRICS continues to evolve, its success will depend on maintaining unity and navigating diverse interests to create a more equitable and balanced global order.

MCQs for Practice

Q1. With reference to BRICS, consider the following statements:

1.     The first BRICS Summit was held in Yekaterinburg, Russia.

2.     South Africa was the last country to join BRICS.

Which of the statements given above is/are correct?

• (a) 1 only
• (b) 2 only
• (c) Both 1 and 2
• (d) Neither 1 nor 2

Answer: (c) Both 1 and 2
Explanation: The first BRICS Summit was indeed held in Yekaterinburg, Russia, in 2009, and South Africa was the last to join, turning BRIC into BRICS in 2010.

Q2. The Kazan Declaration, recently in the news, is associated with which of the following international groupings?

• (a) ASEAN
• (b) G20
• (c) BRICS
• (d) European Union

Answer: (c) BRICS
Explanation: The Kazan Declaration was issued at the recent 16th BRICS Summit held in Kazan, Russia.

Q3. Which of the following countries are new members of BRICS as of the 16th BRICS Summit in 2024?

1.     Egypt

2.     Ethiopia

3.     Saudi Arabia

4.     UAE

Select the correct answer using the code given below:

• (a) 1 and 2 only
• (b) 1, 2, and 4 only
• (c) 1, 2, and 3 only
• (d) 1, 2, 3, and 4

Answer: (b) 1, 2, and 4 only
Explanation: Egypt, Ethiopia, and the UAE were added as new BRICS members in January 2024. Saudi Arabia's membership has not been formalized, although its foreign minister attended the summit.

Q4. Consider the following statements regarding the New Development Bank (NDB):

1.     It was established as an alternative to the World Bank.

2.     Its headquarters is located in Johannesburg, South Africa.

3.     It aims to finance infrastructure and sustainable development projects in BRICS and other emerging economies.

Which of the statements given above is/are correct?

• (a) 1 and 3 only
• (b) 2 and 3 only
• (c) 1, 2, and 3
• (d) 1 only

Answer: (a) 1 and 3 only
Explanation: The New Development Bank’s headquarters is in Shanghai, China, not Johannesburg.

Q5. Which of the following are areas of focus discussed at the recent BRICS Summit?

1.     Establishing a BRICS Grain Exchange.

2.     Promoting trade in local currencies.

3.     Creating an international alliance for big cats’ conservation.

4.     Developing a BRICS-led alternative to the SWIFT payment system.

Select the correct answer using the code given below:

• (a) 1, 2, and 3 only
• (b) 1, 2, and 4 only
• (c) 2, 3, and 4 only
• (d) 1, 2, 3, and 4

Answer: (d) 1, 2, 3, and 4
Explanation: All of the listed areas—BRICS Grain Exchange, trade in local currencies, big cats’ conservation alliance, and a BRICS-led payment system—were discussed as key focus areas during the 16th BRICS Summit.