Building resilience: on the 17th Summit of BRICS emerging economies

The 17th Summit of BRICS emerging economies, which ended on Monday, came at a time when the organisation was in the global spotlight. This was the first such meeting that included all the newly inducted members (Egypt, Ethiopia, the UAE, Iran and Indonesia; Saudi Arabia has not joined so far). It also followed the U.S.-Israel attacks on Iran’s nuclear programme, and the escalation in Israel’s bombardment of Gaza. This was the first summit since the four-day India-Pakistan conflict in May. and also after the G-7 summit in Canada. The BRICS grouping, seen as the next challenger to the global financial order, is in U.S. President Donald Trump’s cross-hairs, as he sees it mounting an alternative to the dollar in international trade. In addition, the group has several internal rivalries that have brought its sustainability into question. In April, the BRICS Foreign Ministers’ meeting ended without a joint statement, as the African members held up the wording on the expansion of the UN Security Council. Meanwhile, despite India’s clarification in March that it is not considering de-dollarisation of trade in any form, and that there is no “unified BRICS position” on the issue, Brazil’s President Lula da Silva doubled down on rhetoric against the U.S., saying that BRICS proves the world “doesn’t need an emperor”. Mr. Trump has since repeated threats that BRICS countries would face an extra 10% tariffs due to the grouping’s “anti-American stance” — an awkward moment for New Delhi as it attempts to conclude a trade agreement with Washington.

Despite all the challenges, the Rio declaration underlined the basic cohesion and consensus within BRICS members on a range of issues. In the joint statement, there was strong language against the attacks on Gaza and condemnation of the strikes on Iran, given the risks to nuclear safety. India was able to ensure a paragraph with tough language condemning the Pahalgam terror attack and references to terror financing and “cross-border movement of terrorists”. India and Brazil won endorsements of the whole grouping on playing a larger role at the UN, “including the Security Council”. The absence of the Chinese and Russian Presidents allowed more space for the non-P5 countries to promote a common vision for the Global South, adding several important resolutions on energy security, climate change and re-ordering the WTO. The Rio declaration also took a stern view of the U.S.’s moves on tariffs. As India prepares for its leadership of the BRICS grouping next year, that now represents about half the global population, around 40% of the global GDP and a quarter of global trade, it can move forward with this consensus, fulfilling the vision for the grouping’s acronym that Mr. Modi recast as “Building Resilience and Innovation for Cooperation and Sustainability”.