16th BRICS Summit: Key Takeaways

The 16th BRICS summit in Kazan, Russia on 22-24 October, 2024 marks a watershed moment since the group’s evolution, as it was the first after induction of four new members, Egypt, Ethiopia, Iran and the UAE. The key highlights from the Kazan summit include, further expansion of the group through a new ‘partner’ category, end of Russia’s isolation, rising geopolitical concerns and plans for a BRICS’ cross border payment system.

The origin of BRICS can be traced back to a 2001 study by Goldman Sachs chief economist Jim O’ Neil. He coined the acronym, BRIC, representing the four emerging economies, Brazil, Russia, India and China. The first summit of the political grouping took place in Yekaterinburg, Russia in 2009. South Africa joined the group in 2011 and the acronym changed to BRICS. Over the years, the group’s significance has grown, it now accounts for 45 percent of the global population and 36 percent of the global Gross Domestic Product (GDP).^[1]

At Kazan, it was the first time that the BRICS leaders were meeting after the announcement of expansion to include six new members i.e., Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE at the Johannesburg Summit in 2023. However, Argentine President Javier Milei, has rejected the offer saying that BRICS membership is not “appropriate at this time.^[2] Saudi Arabia has also been dragging its feet on the membership issue. It has neither rejected nor formally accepted the invitation as yet. Though it did participate at the summit. The Saudi delegation was led by the Minister of Foreign Affairs, Prince Faisal bin Farhan bin Abdullah. The most significant outcome of the Kazan Summit is the agreement to expand the group further through a new category of “partner countries.” This category of membership has been reportedly offered to 13 countries largely from Africa, Asia and Latin America and Caribbean.^[3] They include Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Türkiye, Uganda, Uzbekistan and Vietnam.^[4] This reflects the desire and aspiration of the countries in the Global South to join this informal grouping. The main surprise was the addition of Turkiye, a member of NATO and part of West’s diplomatic and security network.

An important outcome of the Kazan summit was that it broke the myth of Russia’s isolation at the world stage due to its aggression in Ukraine. The BRICS summit at Kazan was one of the largest meetings hosted by Russia since the beginning of the Ukraine conflict. Along with leaders from nine BRICS countries (Saudi Arabia was represented by Foreign Minister) around 35 countries participated in the BRICS Outreach meeting, ^[5] There was also representation from six International Organisations, including the United Nations (UN) Secretary General Antonio Guterres.

At the Kazan summit the BRICS countries also reviewed the global peace and security situation, in particular the debilitating international conflicts in West Asia and Ukraine. The BRICS group expressed concern over worsening situation in Palestine, “We reiterate our grave concern at the deterioration of the situation and humanitarian crisis in the Occupied Palestinian Territory…escalation of violence in the Gaza Strip and in West Bank …stress the urgent need for an immediate, comprehensive and permanent ceasefire in the Gaza Strip”.^[6] The BRICS response to the Ukraine conflict was milder, the Kazan declaration recalled national positions concerning the situation in and around Ukraine and emphasized that all states should act consistently as per the UN Charter and called for peaceful resolution of the conflict.

There is a growing perception that the BRICS aims to create an alternate multilateral order. However, the Kazan declaration reiterates that BRICS vision is not for forging an alternate order but reforming the current multilateral system. It calls for “…promoting a more agile, effective, efficient, responsive, representative, legitimate, democratic and accountable international and multilateral system.” ^[7] It also underscores the support for reform of the United Nations Security Council and Bretton Woods institutions.

A key highlight of the summit was the agreement to strengthen trade and financial settlements in local currencies. The declaration welcomed the use of local currencies in BRICS financial transactions and supported the exploration of an independent cross border settlement infrastructure. The declaration states, “We recognise the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments …”^[8] It encourages settlements in local currencies in line with BRICS Cross-Border Payments Initiative (BCBPI) and proposes further discussions on the BRICS Payment Task Force. This move has heightened the concern in the United States (US) of BRICS pushing for a de-dollarisation agenda. The US President elect, Donald Trump has warned of imposing a100 percent tariff on BRICS countries exports to the US if they continue with this agenda.^[9] Russia has been urging the BRICS countries towards an alternative international payments system.^[10] This is mainly due to the fact that after the launch of Ukraine conflict in 2022, Russia was removed from the SWIFT international payment system and has been searching for alternate payments mechanisms. Trade in local currencies is one of the solutions to beat the economic sanctions against the country. During the 2023 Johannesburg BRICS summit, Brazil’s President Lula had called for a BRICS common currency “with the aim to increase payment options and reduce vulnerabilities.”^[11] However, as per the Kazan declaration, BRICS group has at present agreed to initiate discussions on feasibility of establishing an independent cross border settlement infrastructure. They are a long way from Lula’s dream of a common currency.

India views BRICS as an inclusive organisation that works in the interest of humanity and considers it as a non-Western and not an anti- West group.^[12] Moreover, the group provides a platform for India to advocate Global South solidarity, multi-polarity and reformed multilateralism. During the Kazan Summit Prime Minister of India, Narendra Modi, welcomed efforts for greater financial integration among BRICS countries including trade in local currencies. It is to be noted that while India has promoted use of local currency with several trade partners including Russia, it has never targeted the US dollar. India’s External Affairs Minister Dr S Jaishankar has made it clear that this is not the country's policy and that it has no “malicious intent towards the dollar.” ^[13] India is also clear that BRICS objective is not to replace but to reform the current multilateral order. PM Modi cautioned at the Kazan Summit, “We must be careful to ensure that this organization does not acquire the image of one that is trying to replace global institutions.” ^[14] Whether India’s efforts will be able to prevent the group from morphing into an overtly anti- Western structure remains to be seen.

References

^[1] “BRICS group accounts for 45% of world population, 35% of its economy: Vladimir Putin”, Business Today 22 October 2024 at https://www.businesstoday.in/world/story/brics-group-accounts-for-45-of-world-population-35-of-its-economy-vladimir-putin-450973-2024-10-22 [3] (Accessed 29 November 2024)
^[2] “Argentina formally rejects BRICS membership” The Hindu, 10 December 2024 at https://www.thehindu.com/news/international/argentina-formally-rejects-brics-membership/article67688014.ece [4] (Accessed 30 November 2024)
^[3] Ben Norton, “BRICS keeps growing in a multipolar world” 31 October 2024 at https://mronline.org/2024/10/31/brics-grows-adding-13-new-partner-countries-at-historic-summit-in-kazan-russia/(Accessed 30 November 2024)
^[4] Ibid
^[5] “News conference following 16th BRICS Summit” 24 October 2024 at http://en.kremlin.ru/events/president/news/75385 [5] (Accessed 30 November 2024)
^[6] “Kazan Declaration: 'Strengthening Multilateralism for Just Global Development and Security'', Ministry of External Affairs, Government of India, October 23, 2024 https://www.mea.gov.in/bilateral-documents.htm?dtl/38450/Kazan+Declaration [6](Accessed 30 November 2024)
^[7] Ibid
^[8] Kazan Declaration, n.5
^[9] Graeme Wearden, “Trump threat of 100% tariffs against Brics nations raises trade war fears 1 December 2024”at https://www.theguardian.com/business/2024/dec/01/trump-threat-100-per-cent-tariffs-brics-nations-dollar [7] (Accessed 1 December 2024)
^[10] Patrick Wintour, “Putin calls for alternative international payment system at Brics summit” 23 October 2024 at https://www.theguardian.com/world/2024/oct/23/putin-world-economy-bloc-brics-summit [8] (Accessed 30 October 2024)
^[11] Rachel Savage, What is a BRICS currency and is the U.S. dollar in trouble? Reuters 24 August 2023 at https://www.reuters.com/markets/currencies/what-is-brics-currency-could-one-be-adopted-2023-08-23/ [9] (Accessed 30 November 2024)
^[12] “Putin Borrows PM Modi’s words to describe BRICS “Times of India 18, October 2024 at https://timesofindia.indiatimes.com/world/europe/not-anti-western-but-putin-borrows-pm-modis-words-to-describe-brics/articleshow/114356100.cms [10] (Accessed 1 December 2024)
^[13] “India never actively targeted US dollar: EAM Jaishankar” Deccan Herald 2 October 2024 at https://www.deccanherald.com/india/india-never-actively-targeted-us-dollar-eam-jaishankar-3215842 [11] ( (Accessed 30 November 2024)
^[14] English Translation of Prime Minister's Remarks at the Closed Plenary of the 16th BRICS Summit, Ministry of External Affairs, Government of India. 23 November 2024 at ttps://www.mea.gov.in/Speeches-Statements.htm?dtl/38451/ [12]( Accessed 30 November 2024)

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