BRICS 2024 at Kazan: The Rise of a New Global Order?

The 16th BRICS Summit held in Kazan, Russia from October 22-24, 2024, was a pivotal moment for the bloc as it sought to expand its global influence, reinforce its commitment to multilateralism, and introduce new strategic goals. With the summit’s theme, "Strengthening Multilateralism for Just Global Development and Security" BRICS focused on addressing contemporary global challenges and fostering cooperation among its now expanded membership. Below is a detailed breakdown of the significant achievements, initiatives, and key discussions that took place during this critical summit, elaborated further to give you a complete picture.

Introduction to BRICS and Its Significance

BRICS is a coalition of five major emerging economies: Brazil, Russia, India, China, and South Africa. Formed in 2009, BRICS represents a significant portion of the world's population, resources, and economic growth. The group serves as a platform for these emerging economies to challenge the dominance of Western-led global financial institutions such as the International Monetary Fund (IMF) and the World Bank.

The importance of BRICS lies in its ambition to reshape the global economic and political order, emphasizing the role of developing nations in decision-making processes. By promoting a multipolar world and a fairer global governance system, BRICS aims to provide an alternative to the existing Western-dominated structure.

The 2024 Summit in Kazan was a defining moment for BRICS, especially given its expansion to 11 members, with the inclusion of Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE). This historic development created new opportunities for the bloc in terms of economic cooperation, political coordination, and energy security.

1. Expansion of BRICS: Strategic Gains and Implications

One of the most significant outcomes of the summit was the formal expansion of BRICS. The inclusion of Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE had been discussed for months, and the Kazan Summit marked the official entry of these nations into the BRICS family. This expansion is strategically critical for several reasons:

1. Geopolitical Influence: The expansion strengthens BRICS’ geopolitical weight. With members from Africa, the Middle East, and Asia, BRICS now represents a larger coalition of the Global South. This broader representation increases the group’s ability to advocate for reforms in global governance and multilateral institutions like the United Nations (UN), International Monetary Fund (IMF), and World Bank.

2. Economic Clout: BRICS’ economic footprint has grown significantly with this expansion. The new members contribute substantially to the bloc’s collective GDP, trade potential, and energy resources. Saudi Arabia, Iran, and the UAE, as key energy producers, give BRICS greater leverage in global energy markets, while Egypt and Ethiopia enhance the group’s position in African affairs.

3. Strengthened Energy Cooperation: The inclusion of Saudi Arabia and Iran, two of the world’s leading oil producers, sets the stage for more cohesive energy cooperation within BRICS. With the growing focus on clean energy transition, these nations’ inclusion allows BRICS to influence global energy policies more significantly, balancing between traditional energy resources and renewable energy investments.

4. Middle Eastern Engagement: The addition of UAE and Saudi Arabia also signals a deeper engagement in the Middle East, a region of strategic importance. This expansion allows BRICS to counterbalance Western powers' influence in the region, particularly in terms of economic alliances, security agreements, and infrastructure development.

2. BRICS Currency Discussions: Challenging Dollar Dominance

A key topic of the summit was the ongoing discussion about creating a BRICS currency. This initiative aims to reduce the reliance on the US dollar in international trade and finance, especially given the rising concerns about the impact of dollar volatility, global inflation, and Western sanctions. Although the BRICS currency is still in the planning stages, several important points emerged during the summit:

1. De-Dollarization Strategy: BRICS members have been increasingly vocal about the need for an alternative to the dollar, particularly in the face of economic sanctions imposed by Western countries. Russia and China have been leading efforts to settle trade in local currencies, and other BRICS members have shown interest in adopting similar measures.

2. Enhancing Financial Sovereignty: The BRICS currency initiative is seen as a way to increase financial independence for member nations. By reducing reliance on the dollar, BRICS countries could mitigate the risks posed by currency fluctuations and economic sanctions. This is particularly relevant for countries like Russia and Iran, which have faced extensive Western sanctions.

3. Impact on Global Trade: A BRICS currency could reshape the future of global trade, especially among developing economies. The Kazan Summit made it clear that BRICS is serious about creating a new global financial architecture. While the timeline for introducing a BRICS currency remains uncertain, progress is being made in establishing bilateral trade agreements using national currencies.

3. Strengthening the BRICS New Development Bank (NDB)

The New Development Bank (NDB), established in 2014, is one of BRICS’ major achievements, aimed at financing infrastructure projects in BRICS and other developing countries. The Kazan Summit emphasized the importance of expanding the bank’s role:

1. Increased Lending Capacity: With the addition of new members, the NDB’s potential for financing large-scale infrastructure and sustainable development projects has grown significantly. The expanded membership will enable the bank to take on more ambitious projects, particularly in renewable energy, infrastructure development, and poverty alleviation.

2. Funding for Global South Projects: The NDB is positioning itself as an alternative to the World Bank and IMF, providing loans without Western conditions. This allows member states and other developing nations to borrow for critical projects without the same stringent political or economic reforms often demanded by Western institutions.

3. Climate Financing: The NDB also announced a renewed focus on financing projects that help mitigate climate change. This aligns with the broader BRICS commitment to sustainable development, particularly in the context of green infrastructure and clean energy initiatives.

4. Multilateralism and Global Security: A Call for Reforms

The Kazan Summit witnessed a reaffirmation of BRICS’ commitment to multilateralism and global security reforms. This is consistent with BRICS’ long-standing goal of advocating for a multipolar world order where power is not concentrated in the hands of a few Western nations. The key points from the summit’s security and political discussions include:

1. Reforming Global Institutions: BRICS reiterated its call for reforms in international institutions like the United Nations Security Council, the World Bank, and the IMF. The group stressed the need for these institutions to better represent the interests of developing countries and the Global South.

2. Conflict Resolution Without Interference: BRICS members, particularly Russia and China, advocated for resolving regional conflicts through diplomacy and non-interference. The summit discussions focused on peaceful conflict resolution, particularly in areas like the Middle East, Ukraine, and Africa, with BRICS positioning itself as a key player in facilitating dialogues and peace-building efforts.

3. Countering Western Hegemony: BRICS leaders also expressed concern over the growing influence of Western powers in global affairs. The group emphasized the need for South-South cooperation and the importance of sovereign decision-making without external interference, especially in relation to regional security matters.

5. Sustainable Development and Climate Change Initiatives

In line with the global push for climate action, the Kazan Summit placed significant emphasis on sustainable development. BRICS has long advocated for a balanced approach to economic development, one that prioritizes environmental sustainability while addressing the needs of developing countries. The key outcomes related to climate action include:

1. Commitment to the Paris Agreement: BRICS nations reaffirmed their commitment to the Paris Climate Agreement, with discussions focusing on the need for developed countries to meet their climate finance obligations. The group called on Western nations to fulfill their pledges to provide financial assistance to developing countries for mitigation and adaptation efforts.

2. Green Energy Transition: The expanded membership, especially with the inclusion of Saudi Arabia and Iran, opens up new avenues for cooperation on clean energy projects. These energy-rich nations, while traditionally reliant on fossil fuels, are investing heavily in renewable energy, and BRICS is expected to play a critical role in financing and developing these initiatives.

3. Technological Cooperation for Sustainability: BRICS nations also agreed to enhance cooperation in green technologies, with a focus on improving energy efficiency and reducing carbon emissions. The summit discussed the need for technology transfer and innovation sharing among member states to accelerate the transition to a low-carbon economy.

6. Agriculture and Food Security

With global food prices rising and concerns about food security mounting, the Kazan Summit placed a special focus on agricultural cooperation. Several initiatives were proposed to enhance food production and ensure food security for member states:

1. Collaborative Agricultural Practices: BRICS members, particularly India and Brazil, agreed to share best practices in agriculture, focusing on improving yields, combating pests, and enhancing food security across the bloc. This includes developing emergency food reserves and early warning systems for natural disasters that threaten food supplies.

2. Technology for Improved Agriculture: The summit also highlighted the role of technology in improving agricultural productivity. Member states discussed using artificial intelligence.

7. Trade and Investment Cooperation

At the Kazan Summit, BRICS nations emphasized trade and investment, aiming to strengthen intra-BRICS trade by reducing barriers and promoting smoother cross-border transactions. Key agreements included:

1. Enhancing Trade Relations: Members agreed on the importance of diversifying trade, especially in agriculture, pharmaceuticals, and technology sectors, promoting the use of local currencies for trade to reduce dependency on the US dollar.

2. Investment Opportunities: Nations focused on creating a more conducive environment for investments within member countries, promoting infrastructure, energy, and technology as priority areas. This was especially significant for new members like Saudi Arabia and UAE, whose wealth could catalyze substantial projects within the bloc.

3. BRICS Trade Network: The creation of a BRICS Trade Network was proposed, a platform to share knowledge, best practices, and opportunities for members and global partners to collaborate more effectively.

8. Technological and Digital Cooperation

With rapid technological advances, BRICS discussed at length the importance of cooperation in the digital economy, artificial intelligence (AI), and cybersecurity.

1. Digital Transformation: A key agreement was reached to promote digital cooperation, especially in developing digital infrastructure in member countries. This was seen as crucial for fostering economic growth and enhancing global competitiveness.

2. AI and Innovation: The summit recognized the need for collaboration in AI, with members agreeing to share AI research, development, and innovation to ensure the bloc remains at the forefront of global technological advancements.

3. Cybersecurity: Cybersecurity cooperation was another crucial point of discussion, with a focus on creating joint defense mechanisms against cyberattacks, and enhancing cooperation on data protection and information sharing.

9. BRICS and Africa: Strengthening Partnerships

The inclusion of African nations like Ethiopia and Egypt reflected BRICS' commitment to strengthening ties with Africa. The Kazan Summit focused heavily on development partnerships with the African continent:

1. Infrastructure Development: African members emphasized the need for BRICS investments in infrastructure, with commitments to road and rail networks, digital infrastructure, and renewable energy projects across the continent.

2. Food Security Initiatives: BRICS committed to addressing food security in Africa, enhancing agricultural productivity through technology transfer, sustainable farming practices, and capacity-building initiatives.

3. Healthcare Collaboration: The bloc agreed to boost cooperation in the healthcare sector by sharing expertise and technologies related to public health, particularly post-COVID-19 recovery strategies.

10. Energy Security and Climate Commitments

Energy cooperation was a top priority, given the expanded membership of energy-rich nations like Saudi Arabia and Iran. The summit tackled how BRICS could enhance energy security while simultaneously addressing the pressing challenge of climate change.

1. Energy Transition and Cooperation: While new members contribute substantially to global oil markets, BRICS recognized the need for balancing fossil fuels with a green energy transition. Saudi Arabia and UAE presented green energy initiatives, with BRICS encouraging investment in renewable energy projects across member states.

2. Climate Financing: Discussions revolved around the importance of climate financing, especially from developed to developing countries. BRICS committed to exploring how the New Development Bank (NDB) could expand its portfolio to support climate-resilient infrastructure.

3. Sustainable Growth: The summit emphasized sustainable economic growth that balances development goals with environmental stewardship. Key focus areas included investing in energy-efficient infrastructure, promoting circular economies, and expanding BRICS' role in global climate action forums.

11. BRICS Engagement with Global Institutions

BRICS’ efforts to reshape the global governance landscape were evident in discussions about multilateral institutions:

1. UN Security Council Reforms: BRICS leaders reiterated the urgent need for reforming the UN Security Council, advocating for more equitable representation, particularly for developing nations.

2. IMF and World Bank: The group criticized the IMF and World Bank for failing to address the needs of the Global South. BRICS pressed for more democratic decision-making processes, emphasizing the importance of these institutions supporting inclusive development.

3. Global Financial Governance: Leaders highlighted the necessity of a reformed global financial system that reflects the realities of the 21st century, where emerging economies play a larger role in shaping global economic policies.

12. Key Political and Diplomatic Achievements

The BRICS Kazan Summit 2024 also achieved notable diplomatic successes, enhancing the group’s political coordination on global issues:

1. Support for Russia and China: The bloc collectively supported Russia and China’s positions on international disputes, especially in the context of Ukraine and Taiwan, with BRICS standing against unilateral sanctions and interference in domestic affairs.

2. Diplomatic Coordination: BRICS members agreed to improve political coordination to address emerging global crises, particularly in the areas of conflict resolution and peacekeeping efforts in conflict-ridden regions.

3. Multilateral Diplomacy: BRICS reaffirmed its commitment to promoting a multipolar world order, where no single nation or bloc can dominate the global stage.

13. Cultural and Social Cooperation

Cultural ties were another key area of focus, as BRICS aimed to foster people-to-people connections and strengthen cultural exchanges:

1. Cultural Diplomacy: The summit emphasized the importance of promoting BRICS cultural exchanges, particularly in the fields of art, music, and education. These initiatives were seen as vital to building greater understanding and cooperation among member nations.

2. Educational Cooperation: The group discussed plans to expand cooperation in higher education by establishing joint research programs and student exchange initiatives. These programs aim to build a global talent pool that can contribute to BRICS’ growing influence on the world stage.

3. Health and Social Welfare: BRICS also discussed social welfare programs, focusing on healthcare, poverty alleviation, and gender equality. The expanded membership offers new opportunities to share best practices in these areas, fostering a more inclusive society across member states.

Conclusion: A Historic Moment for BRICS

The 16th BRICS Summit in Kazan, Russia, was a defining moment in the bloc’s history. The official expansion of BRICS to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE marked a significant shift in the group’s global influence. With new members bringing economic power, energy resources, and geopolitical weight, BRICS is poised to play a larger role in global governance.

Through enhanced cooperation in areas like trade, investment, technology, climate action, and energy, BRICS aims to create a more inclusive global system that reflects the needs and aspirations of the Global South. The Kazan Summit also solidified BRICS' commitment to multilateralism, as it seeks to reshape the global order and promote a multipolar world where developing countries have a stronger voice in international decision-making.

As BRICS continues to grow, the outcomes of this summit will have long-lasting impacts on global politics, economics, and diplomacy. With its expanded membership, the bloc is in a stronger position to challenge Western dominance and advocate for a more equitable, just, and sustainable world.