{"id":4037,"date":"2026-09-10T04:53:56","date_gmt":"2026-09-10T04:53:56","guid":{"rendered":"https:\/\/kingmakersiasacademy.com\/current-affairs\/?p=4037"},"modified":"2026-09-11T04:59:22","modified_gmt":"2026-09-11T04:59:22","slug":"brics","status":"publish","type":"post","link":"https:\/\/kingmakersiasacademy.com\/current-affairs\/brics\/","title":{"rendered":"BRICS"},"content":{"rendered":"<h2><\/h2>\n<table>\n<tbody>\n<tr>\n<td>\n<blockquote><p><b>SYLLABUS: International Relations<\/b><\/p>\n<p><b>General Studies \u2013 : II <\/b><span style=\"font-weight: 400;\">Important International institutions, agencies and fora &#8211; their structure, mandate.<\/span><\/p><\/blockquote>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>IN NEWS:<\/b><span style=\"font-weight: 400;\"> Turning economic cooperation into shared prosperity<\/span><\/p>\n<p><b>QUESTION: <\/b><span style=\"font-weight: 400;\">In an era of trade restrictions, geopolitical tensions and supply-chain disruptions, BRICS can contribute to building a more resilient and inclusive global economic order. Examine.<\/span><\/p>\n<p><b>ANSWER: <\/b><span style=\"font-weight: 400;\">The current global economic landscape is marked by trade protectionism, geopolitical fragmentation, weaponized supply chains, and rising economic nationalism. These disruptions have severely impacted developing and emerging economies by causing energy shocks, debt crises, and supply bottlenecks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this context, the expanding BRICS grouping (comprising major emerging market economies like Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, UAE, and others) offers a structural counterweight. Representing nearly 40% of global GDP (PPP) and a significant portion of global energy and food production, BRICS can foster a resilient and inclusive global economic order through several key mechanisms.<\/span><\/p>\n<p><b>Countering Trade Restrictions and Promoting Inclusivity<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rebalancing Global Governance:<\/b><span style=\"font-weight: 400;\"> BRICS acts as an institutional voice for the Global South, advocating for structural reforms in the Bretton Woods institutions (IMF and World Bank) and the World Trade Organization (WTO) to better reflect contemporary economic realities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pluralistic Multilateralism:<\/b><span style=\"font-weight: 400;\"> Rather than aiming to dismantle existing frameworks, BRICS offers alternative avenues for trade, technology transfer, and infrastructure funding, preventing developing countries from being forced into single-bloc dependencies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Democratizing Global Trade Rules:<\/b><span style=\"font-weight: 400;\"> The bloc pushes for non-discriminatory, rules-based international trade frameworks, mitigating the impact of unilateral tariffs, unilateral sanctions, and arbitrary non-tariff barriers imposed by advanced economies.<\/span><\/li>\n<\/ul>\n<p><b>Building Resilient and Diversified Supply Chains<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Resource and Manufacturing Synergy:<\/b><span style=\"font-weight: 400;\"> BRICS unites major global commodity exporters (energy from UAE, Iran, Russia; agriculture from Brazil) with manufacturing powerhouses (China, India). This complementary structure enables shorter, integrated South-South supply chains.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Logistics and Infrastructure Cooperation:<\/b><span style=\"font-weight: 400;\"> Initiatives such as the BRICS Logistics Supply-Chain Cooperation Framework and investments in trans-continental transport corridors reduce reliance on vulnerable maritime choke points.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Diversification and De-risking:<\/b><span style=\"font-weight: 400;\"> By expanding trade among member states, countries reduce single-source vulnerabilities in critical sectors like pharmaceuticals, energy, fertilizers, and technology.<\/span><\/li>\n<\/ul>\n<p><b>Financial Cushioning and Alternative De-risking<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>New Development Bank (NDB):<\/b><span style=\"font-weight: 400;\"> The NDB offers non-conditional development finance for infrastructure and sustainable projects, serving as a reliable alternative to traditional lenders without imposing stringent political austerity terms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Local Currency Trade and Settlement:<\/b><span style=\"font-weight: 400;\"> Promoting transactions in local currencies cushions member nations against foreign exchange volatility, dollar liquidity crunches, and external financial sanctions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contingent Reserve Arrangement (CRA):<\/b><span style=\"font-weight: 400;\"> Provides a financial safety net for member countries experiencing short-term balance-of-payments pressures, preventing sudden macroeconomic instability.<\/span><\/li>\n<\/ul>\n<p><b>Challenges and Limitations<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Internal Geopolitical Divergences:<\/b><span style=\"font-weight: 400;\"> Divergent foreign policy priorities, bilateral friction (e.g., India-China border and strategic dynamics), and varying political systems impede deep economic integration.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dominance Risk:<\/b><span style=\"font-weight: 400;\"> Concerns persist regarding China&#8217;s economic weight within the bloc, raising fears that intra-BRICS trade could lean toward Chinese market dominance rather than balanced multi-lateral trade.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Institutional Heterogeneity:<\/b><span style=\"font-weight: 400;\"> Low institutional integration and lack of standardized trade agreements make executing smooth trade flows across geographically dispersed members difficult.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">BRICS holds significant structural potential to build a resilient and multipolar global economy by de-risking supply chains, broadening financial access, and reforming global governance. However, transforming its economic scale into a genuinely inclusive economic order will require overcoming internal political divergences and ensuring equitable trade structures among its members.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<blockquote><p><b>PYQ REFERENCE UPSC 2019<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Q. &#8220;The grouping which was initialised as a strategy to build a strong economic bloc has transformed itself into a platform for global governance.&#8221; Comment on the changing role of BRICS. (15 Marks, 250 Words)<\/span><\/p><\/blockquote>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>SOURCE: <a href=\"https:\/\/epaper.thehindu.com\/ccidist-ws\/th\/th_international\/issues\/203601\/OPS\/GENGFPJMA.1+GI5GGT24U.1.html\" target=\"_blank\" rel=\"noopener\">The Hindu e-paper &#8211; Turning economic cooperation into shared prosperity<\/a><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SYLLABUS: International Relations General Studies \u2013 : II Important International institutions, agencies and fora &#8211; their structure, mandate. IN NEWS: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4038,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[73,68,39,25,10],"tags":[],"class_list":["post-4037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brics","category-daily-current-affairs","category-daws","category-gs-2","category-international-relations"],"_links":{"self":[{"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=4037"}],"version-history":[{"count":1,"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4037\/revisions"}],"predecessor-version":[{"id":4039,"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/posts\/4037\/revisions\/4039"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/media\/4038"}],"wp:attachment":[{"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=4037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=4037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kingmakersiasacademy.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=4037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}