Kazan Summit: BRICS Expands Horizons for Emerging Economies

Ritesh Kumar

The leaders of BRICS countries convened in Kazan, Russia, from October 22 to 24, 2024, for the 16th BRICS Summit, held under the theme, "Strengthening Multilateralism for Just Global Development and Security." With the addition of Saudi Arabia, Egypt, Ethiopia, Iran, and the UAE, BRICS now represents over 35% of the world's GDP and nearly half of its population, marking a pivotal moment in the group's trajectory.

As the BRICS leaders reaffirmed their commitment to solidarity and cooperation across political, economic, and cultural spheres, they positioned the group as a key platform for nations seeking an equitable international order, especially amid global fragmentation and shifting power dynamics.

The emphasis on multilateralism and BRICS' expanded partnership reflects a deliberate pivot toward inclusivity, with Russia hosting the "BRICS Plus" dialogue that engaged Emerging Markets and Developing Countries (EMDCs) from diverse regions. This outreach signals an intent not only to address the needs of current BRICS members but also to forge an alliance that incorporates a broader coalition of Global South nations. For many of these countries, BRICS provides a counterbalance to the influence of Western-led organisations like the G7, which have traditionally held sway over global economic and security policies.

Furthermore, the introduction of a new "BRICS Partner Country" category demonstrates greater flexibility in partnerships without diluting BRICS' core structure. This approach enables interested countries to align with BRICS goals, fostering shared economic and political interests. By enhancing its network, BRICS is also reinforcing its stance on strategic autonomy, a principle shared by member nations such as India, which values BRICS as a platform for supporting multipolarity in global affairs.

The summit's declaration on "sovereign equality" and "inclusive growth" signals a push for reforms in multilateral institutions, like the United Nations and World Bank, to be more representative of developing nations' interests. As the BRICS countries pursue a reinvigorated multilateral system, they are challenging the current world order, advocating for structural changes to better reflect the realities of a multipolar world. In the long term, this ambition will require both internal cohesion and external partnerships, which the Kazan summit has strategically laid the groundwork for through its inclusive initiatives and outreach efforts.

For India, BRICS offers a powerful platform for advancing its interests on the world stage, aligning with New Delhi's vision of a multipolar world where emerging economies play an increasingly influential role.

Amid a global environment marked by heightened protectionism, sanctions, and geo-economic fragmentation, the appeal of BRICS has grown among countries seeking balanced alternatives to Western-led platforms. Russia, which currently holds BRICS' presidency, confirmed that

34 additional countries have expressed interest in joining BRICS in some capacity. The group's structure offers flexibility and inclusivity, which have become significant draws as BRICS does not impose stringent conditions on potential members. For India, this openness resonates with its commitment to strategic autonomy and multipolarity, allowing it to shape foreign policy beyond traditional alliances and avoid dependence on any single bloc.

At the Kazan summit, India, along with Brazil and South Africa, played a vital role in shaping the BRICS agenda toward issues critical to the Global South, including climate action, social equity, and inclusive economic growth. India's influence was particularly evident in the 134-point Kazan Declaration, which underscored global governance reforms and called for an accountable multilateral system where the Global South has a stronger voice. India's leadership in BRICS initiatives was also highlighted, with special mentions of projects like the BRICS R&D Vaccine Centre, the BRICS Start-up Forum, and the BRICS Counter-Terrorism Action Plan.

Meanwhile, bilateral meetings at the summit further underscored BRICS' strategic significance. For instance, Prime Minister Shri Narendra Modi's discussions with Russian President Mr. Vladimir Putin focussed on deepening cooperation in various sectors, including nuclear energy, coal and fertilizer supply chains, and financial collaboration. The two leaders also reaffirmed their commitment to a peaceful resolution in Ukraine. India's commitment to strong bilateral ties within BRICS was further evident in PM Modi's discussions with Iranian President Mr. Masoud Pezeshkian, which centered on enhancing connectivity through the Chabahar port, a crucial link in India's regional strategy.

Another significant development was Prime Minister Shri Narendra Modi's meeting with Chinese President Mr. Xi Jinping, marking the first face-to-face discussion between the two leaders in five years. With both nations agreeing to a new protocol for managing the contested Line of Actual Control (LAC), there is hope that Sino-Indian relations might return to the pre-Galwan status quo. Prime Minster Modi took the opportunity to further emphasise that peace and stability along the border are critical for mutual trust, a statement that reflects India's nuanced approach to China-advocating for cooperation while affirming the importance of sovereignty and territorial integrity.

The expanded BRICS lineup has also brought new allies that share India's perspective on global issues. Nations like Egypt, Ethiopia, Saudi Arabia, and the UAE, while open to financial diversification, have not endorsed the aggressive de-dollarisation pushed by Russia and China. Like India, these countries seek a balanced approach to strengthening their currencies on the global stage without discarding the dollar entirely, reflecting a more measured and pragmatic stance within the BRICS coalition.

Ultimately, BRICS offers India an influential avenue for advancing its foreign policy agenda and engaging with both new and established partners.

The Kazan Declaration: Key Takeaways

The Kazan Declaration by BRICS outlines a range of initiatives and agreements with implications that extend well beyond the group's immediate interests, signaling a more cohesive and coordinated stance on global governance, economic resilience, and regional stability.

One major theme in the declaration is the call for a peaceful resolution to the Ukraine conflict and the adherence to UN Charter principles. This reinforces BRICS' commitment to multilateralism and diplomacy while subtly positioning itself as an alternative mediator in global conflicts, contrasting with the more interventionist approaches seen from the West. This stance, along with the condemnation of unilateral sanctions, signals BRICS' opposition to coercive measures that often reflect Western geopolitical interests. The focus on reducing reliance on Western sanctions by fostering intra-BRICS trade, especially with initiatives like the BRICS Grain Exchange and cross-border payment systems in local currencies, represents a significant shift toward economic self-sufficiency and the construction of alternative trade routes. Such steps not only buffer BRICS economies from external shocks but also reduce dependency on the U.S. dollar, thereby challenging the currency's dominance in global trade.

The call for reforms to the international financial system, particularly the IMF, also reflects BRICS' view that the current global economic governance model is outdated and insufficiently representative. By advocating for a system that is more inclusive and equitable, BRICS is championing the interests of emerging economies, indicating its intent to reshape global financial structures. The proposal for a BRICS-based depositary and reinsurance capacity hints at the desire to reduce financial vulnerabilities and dependencies, an especially relevant move as BRICS nations continue to develop robust domestic markets.

In terms of environmental and humanitarian initiatives, the Kazan Declaration's support for big cat conservation and pandemic prevention through an early warning system showcases BRICS' broader commitment to addressing transnational challenges. These initiatives emphasise a unified approach to sustainability and public health, both vital for long-term stability across member nations. The creation of an International Big Cats Alliance led by India, for example, reinforces BRICS' environmental stewardship and strengthens India's role within the group. The commitment to preventing future pandemics through the BRICS R&D Vaccine Center and early warning systems reflects an understanding of global interdependence in health security, preparing member countries to collaboratively address future crises.

BRICS NDB Recalibrates Financial Strategies to Meet Needs of the Global South

During the BRICS Summit in Kazan, Mr. Dilma Rousseff, President of the BRICS New Development Bank (NDB), highlighted a pivotal shift in financial strategies aimed at the Global South's development needs. The NDB's commitment to funding projects in local currencies marks a departure from conventional Western financial systems, which often impose misaligned conditions. By utilising national currencies, BRICS nations can reduce risks linked to currency fluctuations and foreign debt, fostering greater economic resilience.

Russian President Mr. Vladimir Putin echoed this sentiment by advocating for increased local currency transactions, emphasising economic independence and protection against external pressures that could destabilise member states. This strategy not only aims to lower debt servicing costs but also reflects a broader vision of economic integration within BRICS, positioning it as a counterbalance to Western influence.

Furthermore, Mr. Rousseff's call for BRICS expansion to include more Global South countries indicates a proactive approach to enhancing collective bargaining power. By integrating a diverse range of nations, BRICS can more effectively champion the interests of the Global South, advocating for equitable financing solutions and promoting sustainable development tailored to their unique challenges.

The NDB's track record of financing 100 projects totaling $33 billion since 2018 exemplifies its growing role as a pivotal financial institution in supporting infrastructure and development initiatives across member states. However, expanding the bank's capabilities to meet the pressing needs of the Global South would be a challenge but a crucial step toward fulfilling the promise of BRICS as a vehicle for transformative change.

Recent BRICS Initiatives and Partnerships: Significance and Impact

BRICS R&D Vaccine Centre:  Launched in 2022 during India's chairmanship, the BRICS R&D Vaccine Centre represents a critical advancement in collaborative public health efforts. This initiative aims to enhance vaccine research and development (R&D) among member nations, facilitating a collective response to infectious diseases and public health emergencies. By promoting openness and inviting participation from additional partners, the Centre marks a substantial commitment to global health security. The implications are profound: it not only positions BRICS countries to tackle health crises more effectively but also underscores the bloc's role in advancing vaccine equity and accessibility, particularly in developing nations.

BRICS Start-up Forum: The BRICS Start-up Forum, also launched under India's leadership, is designed to spur innovation, technology transfer, and knowledge sharing among member states. By fostering the establishment of incubation and start-up centers, the Forum aims to bolster the micro, small, and medium enterprises (MSMEs) sector, which is vital for economic growth and job creation. Recognised in the 14th BRICS Summit Beijing Declaration, this initiative has the potential to significantly enhance the economic agenda of the bloc by promoting entrepreneurship and innovation. The implications are twofold: not only does it create opportunities for young entrepreneurs within BRICS nations, but it also contributes to the overall economic resilience of the member states in a rapidly changing global landscape.

BRICS Counter-Terrorism Action Plan: In the realm of security, the BRICS Counter-Terrorism Action Plan addresses the pressing challenge of terrorism and extremism. The Kazan Declaration emphasises the need for cooperation against cross-border terrorism and the listing of UN-designated terrorists. By formalising this Action Plan, BRICS countries reaffirm their commitment to collaborative security measures and the expeditious finalisation of the Comprehensive Convention on International Terrorism. This initiative is crucial not only for enhancing intra-BRICS cooperation but also for fostering a unified stance against global security threats, thereby contributing to regional and international stability.

Partnership on New Industrial Revolution (PartNIR): Another notable initiative is the BRICS Partnership on New Industrial Revolution (PartNIR), which aims to facilitate cooperation in the realms of technology, industrial innovation, and sustainable development. Launched to leverage the collective strengths of the BRICS nations, PartNIR focuses on promoting advanced manufacturing, digitalisation, and green technologies. By fostering collaborative projects and sharing best practices, this initiative has the potential to drive economic transformation within member states while addressing global challenges such as climate change and resource scarcity. The implications of PartNIR extend beyond economic growth; they signify a commitment to creating a more equitable and sustainable industrial framework that aligns with the United Nations Sustainable Development Goals.

(The author is correspondent of an international multi-media platform. Feedback on this article can be sent to feedback.employmentnews@gmail.com) Views expressed are personal.