Context
Recently, India assumed the BRICS Presidency for 2026, positioning itself to host the 18th BRICS Summit later this year. India is currently facilitating high-level diplomatic negotiations through the “Sherpa channel” to forge a consensus among members regarding the ongoing volatility in West Asia. This presidency follows the historic expansion of the bloc and comes at a time when the grouping, now often referred to as BRICS+, represents over 40% of the world’s population and approximately 30% of the global GDP.
Key Pillars and Institutional Framework
- The Three Pillars of Cooperation: BRICS operations are structured around three main areas:
- Political and Security: Aimed at reforming the global governance architecture, including the UN Security Council and the WTO.
- Economic and Financial: Focused on intra-BRICS trade, de-dollarization (using national currencies), and infrastructure funding.
- Cultural and People-to-People Exchanges: Enhancing ties through forums, youth summits, and academic cooperation.
- New Development Bank (NDB): Headquartered in Shanghai, it was established in 2014 to mobilize resources for infrastructure and sustainable development. Unlike the World Bank, the NDB provides equal voting rights to its founding members, and its membership is open to any member of the United Nations (e.g., Bangladesh and Uruguay have joined).
- Contingent Reserve Arrangement (CRA): Created to provide a liquidity cushion for member countries during short-term balance of payments pressures, acting as a regional alternative to the IMF.
Membership Evolution: From BRICS to BRICS+
The grouping has evolved through several distinct phases of expansion:
- 2006–2011: Formation of BRIC (Brazil, Russia, India, China) and the subsequent inclusion of South Africa.
- 2024 Expansion: Full membership was granted to Egypt, Ethiopia, Iran, and the United Arab Emirates. Saudi Arabia has also been invited and participates in activities, though its formalization status is often monitored.
- 2025 Addition: Indonesia was officially admitted as the 10th full member in early 2025, further strengthening the group’s presence in Southeast Asia.
- Partner Country Category: A new “Partner Country” tier was established at the Kazan Summit (2024), including nations like Malaysia, Thailand, Vietnam, and Nigeria, to allow for cooperation without full membership obligations.
Q. With reference to the BRICS grouping and its financial institutions, consider the following statements:
1. In the New Development Bank (NDB), no single founding member holds a veto power, and each has an equal share of voting rights.
2. The "Kazan Declaration" (2024) officially introduced a new "Partner Country" category to accommodate interested nations without granting full membership.
3. Following the latest expansions in 2024 and 2025, Indonesia and Argentina are currently full members of the BRICS+ bloc.
How many of the statements given above are correct?
A) Only one
B) Only two
C) All three
D) None
Solution: B
• STATEMENT 1 IS CORRECT: The NDB is unique because the five founding members (Brazil, Russia, India, China, and South Africa) each contributed equally to the initial capital and hold equal voting power, with no veto rights.
• STATEMENT 2 IS CORRECT: The 16th BRICS Summit in Kazan, Russia, formalized the "Partner Country" model to maintain a balance between expansion and institutional efficiency.
• STATEMENT 3 IS INCORRECT: While Indonesia joined in 2025, Argentina (under President Javier Milei) officially declined the invitation to join BRICS in late 2023/early 2024.
