The Eighth BRICS Summit was held in Goa, India under the theme ‘Building Responsive, Inclusive and Collective Solutions’ where the key topics that were discussed are as follows:
1. Terrorism: The most important topic of this BRICS summit that was of biggest significance revolved around terrorism. To be more specific, the cross-border terrorism, a catchphrase usually used for Pakistan-sponsored terrorism was at the centre stage. The intensified Indian sentiments after the attack of terrorists at the Uri army base and India’s punitive action on Pakistan supported terrorist centres through surgical strikes, it was quite obvious and natural that the issue of terrorism would draw great importance and attention in India. Though the declaration of the summit called for action against all terrorist organisations designated by the UN, it put forth the name of only the Islamic State and the Al-Nusra which were primarily responsible for causing threat to Chinese and Russian interests in the regions of Afghanistan and Syria. But the summit declaration did not mention the names of Pakistan-based terrorist organisations like Lashkar-e-Taiba and Jaish-e-Mohammad. There was only indirect reference to cross-border terrorism that came in the form of leaders agreeing on the ‘responsibility of all states to prevent terrorist actions from their territories’. On completion of the summit, many seemed to suggest that India needs to work more on strengthening its grouping, especially China, so that India could be in a position to compel China to mention Pakistan-based groups like the JEM, which has been declared as a terrorist organisation by the UN.
2. NSG Bids: The declaration at BRICS Summit agreed that nuclear energy is an important component of India’s attempts in the fight against climate change, and that with a stable government in New Delhi, it will be in a better position to guide nuclear trade judiciously. These two arguments were put forth by India to get the support of countries to get entry into the NSG, an elite club of countries that is well recognised to control trade in nuclear technology and fissile materials. This is really a significant development but what is most important here is how India approaches and persuades China in order to get its support in this regard as NSG works through consensus.
3. Growth of Trade and Economy: BRICS countries contribute to a total trade of only 5 percent of whole grouping’s global trade. It took BRICS eight summits to come to a customs agreement with an aim to promote trade among member countries. However, talks are yet in progress to come to an agreement of free trade pact. Though BRICS countries have dissimilar political situation, shouldn’t become a hurdle for speeding up the economic cooperation among the countries.
4. Idea of Russia to Set Up an Energy Cooperation Agency: Russia was compelled to think in terms of setting up an energy cooperation agency because of the fact that there was a constant fall in global oil prices and production of oil and gas by Iran, Iraq and African countries increased and at the same time, the production of US shale gas also increased. All these developments made Russia consider searching for stronger energy partnerships. With similar energy needs, India and China too will need more energy resources in order to boost their growth. Though this idea might be of Putin, it is worth following because it offers a win-win situation for both sellers and buyers.
5. Environment: The members of BRICS accepted environment to be an important issue. The bloc not just welcomed the Paris Agreement but also advised countries to abide by the agreement and provide monetary assistance, technology and capacity building aid to developing countries. The leaders at the summit also underlined the comprehensive, balanced and ambitious nature of the Paris Agreement and described it to proclaim the principles of the UN Framework Convention on Climate Change. It not only contained the principle of equity but also common but distinguished responsibilities along with respective capabilities.
6. 2030 Agenda: The members at the summit gave support to adopt landmark 2030 Agenda to abide by Sustainable Development and its Sustainable Development Goals during the UN Summit on Sustainable Development that took place on 25 September 2015. They also provided support to the adoption of Addis Ababa Action Agenda at the Third International Conference on Financing for Development. The BRICS leaders hailed the people-centered and holistic approach to sustainable development that was enshrined in the 2030 Agenda that emphasised on equality, equity along with quality-life to all. The leaders at the summit extended support for the reaffirmation of the guiding principles of the implementation of the 2030 Agenda, along with the principle of Common but Differentiated Responsibilities (CBDR).
7. Empowerment of Women: The leaders not only hailed the deliberations of the BRICS Women Parliamentarians’ Forum in Jaipur on 20–21 August, 2016 but also commended the acceptance of Jaipur Declaration, centered on Sustainable development goals. The emphasis was to strengthen parliamentary strategic partnerships on all the three dimensions of sustainable development, promoting gender equality and empowerment of women.
Credit Rating Agency (BRICS): Moving Aw ay from Issuer-Pays Model to Investor-pays Model
In 2016 BRICS Goa summit, member countries decided to set up a credit rating agency which would be based on market associated principles. The five biggest rising economies Brazil, Russia, India, China and South African at BRICS gathering wants to challenge the current credit rating framework and change it to another credit rating agency in which case the forthcoming financial specialist will make the payment for the rating of an issuer of a debt instrument.
In the present estimating model of rating organisations, which is known as Issuerpays Model, the organisation or foundation that issues securities pays the rating agency to be appraised while in new BRICS rating agency, the speculator desires to put resources into the organisation that will make the payment for the rating of the organisation an investor-pays display.
An argument was put forth that it would lead to further consolidation of the global governance architecture. This is a change which is much required to happen. This will help the experts explore the possibility of setting up an independent BRICS Credit Rating Agency that is entirely based on market-oriented principles, so that the worldwide economic governance is further strengthened.
Future Challenges of BRICS
There are a number of difficulties that come in the way of BRICS. Since each of the developing economies have dissimilar development ways with varying needs, they therefore lack a single agenda
Since all the five nations of the group hold significant weight in worldwide financial and political aspects, their proceeding with engagement would certainly serve well for the stable development prospects in the regions of these countries. This is why these countries should come out of their individual agenda, which is very essential to realise the benefits of feasible developmental works and the proposed BRICS credit rating agency which were once supported by year-old New Development Bank.
In that sense, it should be the all-out effort of the BRICS members to follow an all-around financial development for their regions so that their relevance is not ignored at global level. Despite such an order be actually restricted, looking purely to advance speculations and business joint effort, they would likewise be in a position to perpetually reflect the dynamism of these five intense economies.