The Brics countries must recognise that numerical strength alone does not create an effective institution. They have different political systems, strategic priorities and relationships with the United States and Europe
Setting the tone for the two-day Brics summit in New Delhi, Russian President Vladimir Putin said the economic grouping is “not against anyone” but exists to advance its members’ interests. He was also vocal about Brics’ emergence as the real economic leader, noting its 40 per cent share of global output compared with the 29 per cent share of the US-led Group of Seven.
The grouping was formed in 2009, eight years after British economist Jim O’Neill and his employer, Goldman Sachs, used the term Bric to refer to the four leading emerging markets of the time — Brazil, Russia, India and China. South Africa was admitted to the group in 2010 to represent the entire world.
Ever since, Brics has attracted interest from several countries as a counterweight to the Western bloc. The group, which now counts Egypt, Ethiopia, Iran, the UAE, Saudi Arabia and Indonesia among its members, has also emerged as one of the most detested entities for US President Donald Trump.
However, the Brics countries must recognise that numerical strength alone does not create an effective institution. They have different political systems, strategic priorities and relationships with the United States and Europe.
India’s trade with the United States, for instance, is greater than its trade with its long-standing strategic partner, Russia. The US buys more from India than China does. Brazil’s trade relationship with India — despite the two being major economies — is weaker than its trade relationship with the UAE. This is the missing link that the Brics members must address.
India and Russia, meanwhile, appear to have taken the initiative to correct this anomaly during the bilateral meeting between Prime Minister Narendra Modi and Mr Putin. They have decided to increase bilateral trade to $100 billion by 2030.
During their talks, which lasted over 45 minutes, Mr Modi and Mr Putin also agreed to step up cooperation in defence, critical minerals, civil nuclear energy, fertiliser supplies and people-to-people exchanges. However, the two countries should also address the trade imbalance, which has always favoured Russia, as it has never imported from India in equal measure.
On the Russia-Ukraine conflict, Mr Modi conveyed to Mr Putin India’s belief that dialogue and diplomacy were the way forward in resolving conflicts and that India stood ready to assist in peace efforts. He also raised the safety of Indian seafarers and emphasised the importance of freedom of navigation and secure supply routes.
On Saturday, Chinese President Xi Jinping will arrive in New Delhi for the summit, his first visit in seven years. He will hold talks with Mr Modi, marking a major diplomatic breakthrough following the clash between their soldiers in the Galwan Valley in 2020. India-China relations are plagued by skewed trade, strategic mistrust and border disputes.
India, China and Russia account for nearly 60 per cent of Asia’s landmass, economy and population. Unless they resolve their differences and seamlessly connect their economies, Brics cannot realise its full potential. Until Asia resolves its legacy issues, it cannot democratise the world order, which is currently dominated by the firmly entrenched but teetering Western grouping.
