GS2 (Global groupings)
Discuss the strategic, political and economic implications of India’s membership of the BRICS.
Best answer
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BRICS has emerged as an important force in a multipolar world order.The forum went much beyond being a mere catchy acronym when the New Development Bank was established to signal discontent with hierarchical global governance structures and era of non western financial institutions.
Positive Implications.
Political
-Despite the 2016 IMF quota reforms the vote share of BRICS is about 14% and falls short of 15% required for the body to exercise collective veto.This is when their share in world GDP is 22%(nominal) and US dominance at IMF persists.
-BRICS has two members of UNSC and two members of G-4(Brazil and India).Ideal mix of ‘outsiders’ and ‘insiders’ to rally for reforms.Each BRICS nation enjoys rising economic profile and considerable regional influence which can be harnessed to build consensus.
-Push for not diluting WTO’s Doha development round
-For a for mutual learning for ex China s experience in infrastructure export and Brazil’s in clean fuel generation
Economic
– To enhance trade between countries not part of the Trans pacific partnership
– Recently operationalised contingency reserve arrangement to provide support through additional liquidity support.
– NDB to avoid IMF-WB ‘s conditionality and neoliberal paradigm in lending and include new concerns like environment
– Voice views on developing world specific experiences like the Fortaleza declaration(2014) praised role of state run enterprises.
Strategic
-BRICS with 46% of world’s population has enormous demographic and geographic influence which can be used to highlight west’s dual standards on areas like human rights violations(Israel) and terrorism etc
-for India it can be key to enhancing engagement with central Asia and Latin America,two areas we have limited presence currently.
Some concerns.
Internal dissensions within BRICS is going to a major challenged.Apart from India-China’s border issues etc Brazil was said to oppose India’s NSG bid recently. Secondly major political and economic trouble in Brazil and economic slowdown of Russia and China can be a drag.
BRICS potential is critically dependent on the ability to build consensus and identify maximum areas of convergence.
