BRICS Expansion (2024–26): Emerging Economies, Global South & Multipolar World

1. Why in News?

During 2024–26:

• BRICS expanded membership.

• Debate intensified on:

  • De-dollarisation

  • Alternative financial systems

  • Greater voice for Global South

• Discussions on reform of global institutions continued.

BRICS evolved from economic forum to geopolitical platform.

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2. What is BRICS?

Originally:

Brazil
Russia
India
China
South Africa

Now expanded to include additional countries (post-2023 expansion phase).

UPSC may test updated membership.

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3. Objectives of BRICS

• Promote multipolar world order

• Reform global financial institutions

• Enhance South-South cooperation

• Strengthen development financing

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4. Key Institutions Under BRICS

New Development Bank (NDB)

• Headquarters: Shanghai

• Provides infrastructure & sustainable development loans.

Contingent Reserve Arrangement (CRA)

• Financial safety net for members.

UPSC loves asking NDB details.

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5. Global South Concept

Refers to:

Developing countries seeking greater voice in global governance.

Not strictly geographical.

India positions itself as voice of Global South.

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6. De-Dollarisation Debate

Discussion around:

• Reducing dependence on US dollar in trade

• Local currency settlements

• Alternative payment mechanisms

Important for global finance structure.

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7. Static Linkage

Difference between:

• IMF

• World Bank

• NDB

BRICS is not a military alliance.

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8. Prelims Angle

Likely traps:

• NDB headquarters location?

• Which countries are BRICS members?

• What is CRA?

• Is BRICS a formal treaty-based organisation?

Statement-based question highly probable.

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9. Mains Angle

• Can BRICS challenge Western dominance?

• India’s balancing between US & BRICS

• Reform of global institutions

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10. RBI Grade B Angle

• Currency settlement mechanisms

• International financial architecture