BRICS, NDB & Shanghai Cooperation Organisation

The rise of non-Western powers is reshaping global politics. BRICS and the Shanghai Cooperation Organisation (SCO) represent a shift in global power: the idea that the Global South (developing nations) should have its own institutions, not just rely on Western-dominated bodies like the World Bank or NATO. These organisations are less about rules and enforcement and more about building alternative power centres. For India, both represent crucial partnerships with rising powers and rivals simultaneously.

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BRICS — Brazil, Russia, India, China, South Africa (Founded 2009)

What is BRICS?

BRICS is informal (unlike the UN or WTO). It's not a formal international organisation with binding treaties—it's a political and economic partnership among five large emerging economies. Yet BRICS has real impact: BRICS nations represent 30% of global GDP and 43% of global population.

BRICS Founding: Why These Five Nations?

Founding: The term "BRIC" was coined by Goldman Sachs economist Jim O'Neill in 2001 to describe four emerging economies that would shape the 21st century. In 2009, the first BRIC summit was held in Russia (Yekaterinburg). In 2011, South Africa joined, making it BRICS.

Why These Nations?

1. Brazil: South America's largest economy; agricultural and natural resource power
2. Russia: Nuclear power; vast natural resources; former superpower seeking relevance
3. India: Emerging giant; 1.4+ billion population; tech and manufacturing hub
4. China: Rising superpower; world's manufacturing centre; soon world's largest economy
5. South Africa: Africa's largest economy; bridge between Global North and South

Common Threads:

• All are large, emerging economies
• All challenge Western dominance in different ways
• All have nuclear weapons (except Brazil)
• All are developing nations with unique interests distinct from the Global North

[Memory Hook] BRICS = "Brazil-Russia-India-China-South Africa." Remember the order: B-R-I-C-S (alphabetical except South Africa is last, added later).

BRICS: Non-Binding Cooperation

Unlike the UN or IMF, BRICS has no enforcement mechanism. Decisions are non-binding "consensus" statements issued annually at summit meetings. BRICS works on:

1. Economic cooperation: Trade facilitation, currency swaps (reducing dependence on US dollar)
2. Political coordination: Joint statements on global issues (climate change, development)
3. Development: The New Development Bank (NDB), discussed below, is BRICS's major institutional contribution
4. Regional stability: Dialogue on security issues (though often BRICS members' interests conflict)

BRICS Summits & Format

• Annual Summits: One member nation hosts each year (rotating); leaders meet to discuss cooperation
• Rotating Presidency: The hosting nation holds the BRICS presidency for that year
• Working Groups: Various committees on finance, trade, politics, etc.

Recent Summits:

• 2022: China (Beijing)
• 2023: South Africa (Johannesburg) — major expansion summit
• 2024: Russia (Moscow/Virtual)
• 2025: India (scheduled)

India in BRICS

India's Entry: India was part of the original BRIC summit (2009) as a founding member.

India's Role: India is the bloc's bridge between different interests:

• With Russia, India has deep security ties (defence purchases, energy)
• With China, India has a complex rivalry (border disputes, economic competition)
• With Brazil and South Africa, India partners on developing-nation issues

India's Presidency: India held BRICS presidency in 2016 (New Delhi summit) and will hold it again in 2025.

[Memory Hook] India + BRICS = "India uses BRICS to gain voice in global affairs without Western interference." For India, BRICS is also a way to strengthen ties with Russia (against Western isolation) and counterbalance China's influence in Asia.

BRICS Expansion (2023-2024): The Game-Changer

The most significant recent development in BRICS is its expansion in 2023-2024. For years, BRICS was a closed club of five. In 2023, South Africa's presidency announced major expansion:

New Members Invited (2023):

• Saudi Arabia (Middle East's largest economy; major oil producer)
• UAE (financial hub; major trader)
• Argentina (South America; economic weight)
• Egypt (Africa's largest economy; Suez Canal control)
• Iran (Middle East; anti-Western alignment)

Current Membership (as of 2026): BRICS now has 10 members (original 5 + 5 new), though some sources note that Argentina's participation is uncertain (Argentina's new president is Western-aligned).

Why Expand?

• Reflect actual global power distribution (Saudi Arabia, UAE, Egypt are significant)
• Increase geographic diversity (original BRICS lacked Middle East, undersold Africa)
• Enhance economic clout (BRICS+5 represents 50%+ of global GDP)
• Strengthen anti-Western coalition (Iran, Saudi Arabia, UAE all oppose Western unilateralism)

Implications for India:

• Expands India's platform for voice (now negotiating with more nations)
• Increases complexity (more members = harder consensus)
• New competition from Saudi Arabia and UAE in energy/finance sectors
• Opportunity to lead developing-nation coalition on climate and development

[Exam Trap] "BRICS has how many members?" As of 2026, it's 10 (original 5 + 5 new members), though this may change if Argentina formally withdraws. Always check the latest source, but for 2026 exams, expect "10" or "5 original + 5 new."

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New Development Bank (NDB) — BRICS's Financial Institution (Founded 2015)

Why BRICS Created the NDB

BRICS members felt the World Bank and IMF were controlled by Western nations. The World Bank's president was always American; the IMF's managing director was always European. BRICS nations wanted their own development bank—by them, for them, funding Global South priorities.

Founding: The NDB was established by the BRICS nations at the 2014 BRICS summit in Brazil. It came into operation in 2015.

Purpose: Fund infrastructure and development projects in developing nations, with priorities reflecting BRICS values:

• Climate change and renewable energy
• Sustainable infrastructure
• Poverty reduction

Headquarters: Shanghai, China (reflecting China's dominance in BRICS)

Leadership: The NDB's first president was Kundapur Vaidya (Indian), serving 2015-2020. Subsequent presidents have rotated among member nations (current president as of 2026: various announcements, but leadership is shared rotating basis).

How NDB Differs from World Bank

Aspect	World Bank	NDB
Founding	1944 (Western-led)	2015 (BRICS-led)
Leadership	Historically American president	Rotating among BRICS members
Headquarters	Washington D.C.	Shanghai
Membership	189 nations	Originally 5 BRICS + some non-member states can join
Lending	Conditional (policy requirements)	Less conditional; more flexible
Environmental Standards	Strict (often prevents projects)	Flexible (allows more projects)
Governance	Weighted voting (large economies dominant)	Equal voting for BRICS founders

[Memory Hook] NDB = "BRICS's answer to World Bank." Think: BRICS wanted to develop their own institutions rather than rely on Western-dominated bodies. NDB is how they did it.

NDB Lending (as of 2026)

• Total Approvals: Over $50 billion in loans (since 2015)
• Focus areas: Renewable energy (50%+ of lending), water/sanitation, transport
• Key Projects: Solar projects in India, water management in Brazil, etc.

India & NDB:

• India has received significant NDB funding for renewable energy and infrastructure
• Indian economists and officials participate in NDB governance
• India views NDB as a symbol of BRICS's commitment to development (India's priority)

Expansion of NDB Membership

In 2024, NDB accepted new members beyond BRICS:

• Bangladesh
• Egypt
• UAE
• Several others announced

This transforms NDB from a BRICS bank to a broader developing-nation development bank (similar to Asian Development Bank). This is strategic: it increases NDB's capital base and global reach, but also dilutes BRICS's exclusive control.

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Shanghai Cooperation Organisation (SCO) — Post-Soviet Security (Founded 2001)

Founding & Purpose

Founding Date: June 15, 2001 (Shanghai, China)

Founding Context: After the USSR's collapse in 1991, Russia and China faced security challenges in Central Asia—instability, terrorism, religious extremism. They created the Shanghai Five in 1996 (Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan) to coordinate security. In 2001, this became the Shanghai Cooperation Organisation when Uzbekistan joined.

Original Membership (2001):

1. China
2. Russia
3. Kazakhstan
4. Kyrgyzstan
5. Tajikistan
6. Uzbekistan

Headquarters: Beijing, China

Secretary-General: Various, rotating among member nations

SCO's Core Focus

Unlike BRICS (economic) or ASEAN (diplomatic), SCO is primarily a security organisation. It focuses on:

1. Counter-terrorism: Fight against Islamic extremist groups (particularly in Central Asia and Xinjiang)
2. Border security: Manage borders between Central Asian nations
3. Military coordination: Joint exercises, intelligence sharing
4. Regional stability: Prevent instability in Central Asia from spreading

India Joins SCO (2015)

India's Entry: India became an SCO member state in 2015 (at the Ufa summit in Russia). This was significant because:

1. India-Pakistan rivalry: Pakistan is also an SCO member (joined 2017), yet they rarely speak positively. The SCO manages this tension.

2. India's Central Asia Strategy: India wanted a voice in Central Asia, where Russia and China dominate. Joining SCO gave India access.

3. Security concerns: India faces terrorism; SCO's counter-terrorism focus appeals to India.

Why SCO Accepted India?

• Russia supported India (historical ally)
• China accepted (though cautiously, given India-China rivalry)
• India is large enough to matter in regional security

[Memory Hook] India in SCO = "Latest entrant (2015); counterbalance to China; security-focused partnership with Russia."

SCO Members (as of 2026)

Full Members:

1. China
2. Russia
3. Kazakhstan
4. Kyrgyzstan
5. Tajikistan
6. Uzbekistan
7. India (since 2015)
8. Pakistan (since 2017)

Total: 8 full members

Observer States: Mongolia, Afghanistan, Iran, Belarus (can participate in discussions but not vote)

Dialogue Partners: Several other nations

India-Pakistan in SCO: The Challenge

SCO's biggest challenge is managing India-Pakistan rivalry. Both are members, yet they:

• Don't recognise each other's legitimacy on various issues
• Compete for influence in Central Asia
• Use SCO more for leverage against the other than cooperation

Practical Impact:

• SCO summits rarely produce binding decisions (consensus impossible between India and Pakistan)
• Both nations participate in counter-terrorism efforts (genuine common interest)
• Regional security cooperation is limited by bilateral tensions

[Memory Hook] India + Pakistan in SCO = "Like divorced co-parents managing a child's upbringing." They cooperate on narrow issues (counter-terrorism) but disagree on most broader matters.

SCO Security Concerns

SCO focuses on threats across Central Asia and China's Xinjiang region:

1. Islamic State (IS): Terrorist group active in Afghanistan, threatening Central Asia
2. Uighur separatism: China's concern; Xinjiang's separatist movements; some Uighur groups outside China
3. Afghan instability: Taliban takeover in 2021 complicated SCO strategy (Taliban is observer state; not clear if SCO will work with Taliban)

India's Role: India participates in counter-terrorism cooperation, though India's terrorism concerns (Kashmir) are different from Central Asian concerns. India sees SCO as a platform to combat cross-border terrorism affecting India.

SCO Summits & Meetings

• Annual Summits: Heads of state meet
• Council of Ministers: Foreign ministers meet
• Military exercises: SCO conducts joint military exercises (counter-terrorism drills)

Recent Summits:

• 2022: Samarkand, Uzbekistan
• 2023: New Delhi, India (India's first SCO presidency) — historic
• 2024: Astana, Kazakhstan

India's SCO Presidency (2023): India held the rotating SCO presidency in 2023, hosting the Goa summit. This was a major honour and opportunity for India to shape the SCO agenda. India focused on counter-terrorism cooperation and development in Central Asia.

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Relationship Between BRICS, NDB, and SCO

These three organisations overlap but serve different purposes:

Organisation	Focus	Members	India's Role
BRICS	Economic coordination, development	10 (original 5 + 5 new)	Founding member; 2025 presidency
NDB	Development financing	BRICS + others	Beneficiary of financing; participated in early governance
SCO	Security & counter-terrorism	8 members (Central Asia + India/Pakistan)	Newer member (2015); focus on counter-terrorism

Complementary Roles:

• BRICS provides political voice and development financing (NDB)
• SCO provides security cooperation and Central Asia access
• Together, they represent alternatives to Western-dominated institutions

India's Strategy: Through BRICS and SCO, India balances relationships with China and Russia, gains voice in development and security, and deepens ties with non-Western nations.

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BRICS's Internal Contradictions & Challenges

Despite BRICS's growth and de-dollarisation rhetoric, the bloc faces serious internal tensions:

China-India Rivalry

BRICS's two largest economies (by population, China and India; by GDP, China surpasses) have competed militarily, economically, and diplomatically. The 2020 Galwan Valley clash (India-China border conflict killing 20 Indian soldiers) exposed fractures in BRICS solidarity. How can India and China lead a unified bloc when they're militarily tense?

Solution: BRICS diplomacy avoids direct criticism; members agree to disagree on bilateral issues. Yet this limits BRICS's effectiveness on global security matters.

India-Russia Dynamics

India has historically imported weapons from Russia and maintains close defence ties. However, Russia's invasion of Ukraine (2022) complicated India's position: India abstained on UN votes condemning Russia (maintaining non-alignment), yet India's Western partnerships grew. Within BRICS, India balances Russian interests against its own strategic autonomy.

Brazil's Geopolitical Shifts

Brazil's politics shift between leftist (favours BRICS) and rightist (favours USA) leadership. When Brazil elected Jair Bolsonaro (2019-2022, rightist), Brazil-US relations warmed; when Luiz Inácio Lula da Silva returned (2023-, leftist), Brazil re-emphasised BRICS. This instability weakens BRICS.

South Africa's Decline

South Africa, the smallest BRICS economy, provides BRICS a foothold in Africa. Yet South Africa faces internal political instability and economic challenges (electricity crisis, corruption). South Africa's influence in BRICS is declining.

Conclusion on BRICS Challenges

BRICS is less unified than its public statements suggest. It's a coalition of diverse interests held together by anti-Western sentiment and desire for voice in global affairs, not by deep ideological alignment or shared interests. This makes BRICS formidable as a political platform but weaker as an economic bloc.

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De-Dollarisation & BRICS Currency Experiments

One of BRICS's most discussed initiatives (2023-2026) is de-dollarisation—reducing dependence on the US dollar for international transactions.

Why De-Dollarise?

• US Financial Dominance: The US dollar dominates global trade (roughly 90% of forex transactions, 60% of central bank reserves). This gives the USA leverage (US can sanction nations, freeze dollar-denominated accounts).
• Russia's Experience: Western sanctions after Ukraine invasion froze Russia's dollar assets, highlighting dollar vulnerability for Russia.
• Developing Nation Perspective: BRICS nations feel the dollar system favours the USA and constrains their autonomy.

BRICS De-Dollarisation Experiments

1. Local Currency Trading: BRICS nations are conducting more trade in local currencies (Indian rupee, Chinese yuan, Brazilian real) rather than dollars.

2. New BRICS Currency Proposal: At 2023 summit, discussions began on a new BRICS common currency or reserve asset, though concrete progress has been limited. Creating a currency requires deep monetary coordination; BRICS isn't yet ready.

3. Yuan Internationalisation: China has pushed to make the yuan (renminbi) a global reserve currency, rivalling the dollar. BRICS members have supported this, though adoption is slow.

Likelihood of Success

De-dollarisation faces hurdles:

• No BRICS currency exists; proposals remain theoretical
• Dollar remains unmatched in stability and liquidity
• Western financial markets are deep; BRICS markets less so
• USA's network of allies (G7, EU) reinforces dollar dominance

[Memory Hook] De-dollarisation = "BRICS dream, but difficult reality." It's a goal but not imminent. For exams, understand BRICS wants to reduce US dollar reliance but hasn't succeeded yet.

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Recent Developments (2023-2026)

BRICS:

• 2023 expansion to 10 members (major geopolitical shift)
• 2024 focus on de-dollarisation (reducing dependence on US dollar; BRICS nations experiment with local currency trading)
• India's 2025 presidency focusing on development and climate
• Internal contradictions (China-India rivalry, Brazil's politics) limit effective coordination
• Collectively, BRICS represents 30% of global GDP and 43% of global population

NDB:

• Expansion to include non-BRICS nations (Bangladesh, Egypt, UAE, etc.)
• Increased lending focus on climate and renewable energy (renewable energy projects account for 50%+ of NDB lending)
• Challenges: capital constraints (NDB has ~$30-50 billion in lending capacity; World Bank has $400+ billion)
• Recently expanded membership strengthens NDB's financial base but dilutes BRICS control

SCO:

• 2024 focus on counter-terrorism despite Afghanistan's Taliban takeover (Taliban's status as observer state remains contentious)
• India-Pakistan tensions managed but unresolved (both nations occasionally miss SCO meetings due to bilateral disputes)
• Growing observer-state interest (Iran, Bahrain, Egypt, others seeking to join)
• Expansion discussions ongoing; adding new members would strengthen SCO's geographic reach but complicate consensus-based decision-making

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MCQs — Chapter 7: BRICS, NDB & SCO

1. The term "BRIC" was first coined by which investment bank's economist in 2001?

• A) Morgan Stanley
• B) Goldman Sachs
• C) JP Morgan
• D) Bank of America

2. In which year was the first BRIC summit held?

• A) 2001
• B) 2005
• C) 2009
• D) 2011

3. South Africa joined BRIC to form BRICS in which year?

• A) 2009
• B) 2010
• C) 2011
• D) 2013

4. How many member states does BRICS have as of 2026 (after 2023-2024 expansion)?

• A) 5
• B) 7
• C) 10
• D) 15

5. Which of the following nations joined BRICS in the 2023-2024 expansion?

• A) Vietnam
• B) Indonesia
• C) Saudi Arabia
• D) Japan

6. India held the BRICS presidency in which year?

• A) 2016
• B) 2019
• C) 2022
• D) 2025 (scheduled)

7. The New Development Bank (NDB) was established in which year?

• A) 2009
• B) 2011
• C) 2014
• D) 2015

8. The headquarters of the NDB is located in which city?

• A) New Delhi
• B) Shanghai
• C) Moscow
• D) Beijing

9. Which nation was the first president of the New Development Bank?

• A) Chinese
• B) Russian
• C) Indian (Kundapur Vaidya)
• D) Brazilian

10. Which international organisation did BRICS create to provide an alternative to Western-dominated development institutions?

• A) ASEAN Development Bank
• B) New Development Bank
• C) BRICS Central Bank
• D) Global Development Fund

11. The Shanghai Cooperation Organisation was founded in which year?

• A) 1996
• B) 2001
• C) 2005
• D) 2010

12. The Shanghai Cooperation Organisation primarily focuses on:

• A) Economic trade and development
• B) Military alliances and warfare
• C) Counter-terrorism and security cooperation
• D) Cultural exchange and education

13. In which year did India join the Shanghai Cooperation Organisation?

• A) 2010
• B) 2012
• C) 2015
• D) 2017

14. Which nation is the headquarters of the Shanghai Cooperation Organisation?

• A) Russia
• B) China
• C) Kazakhstan
• D) Uzbekistan

15. How many full member states does the Shanghai Cooperation Organisation have?

• A) 6
• B) 8
• C) 10
• D) 12

16. Pakistan joined the Shanghai Cooperation Organisation in which year?

• A) 2015
• B) 2016
• C) 2017
• D) 2018

17. The Shanghai Five was established in which year, serving as the predecessor to SCO?

• A) 1991
• B) 1996
• C) 1998
• D) 2001

18. India held the Shanghai Cooperation Organisation presidency in which year?

• A) 2020
• B) 2021
• C) 2022
• D) 2023

19. What was the primary reason BRICS nations created the New Development Bank?

• A) To complement the World Bank and IMF
• B) To provide an alternative to Western-dominated development institutions
• C) To invest only in BRICS nations
• D) To rival the Asian Development Bank

20. Which of the following is an observer state of the Shanghai Cooperation Organisation?

• A) India
• B) Pakistan
• C) Iran
• D) Kazakhstan

21. BRICS expansion in 2023-2024 added how many new members?

• A) 3
• B) 5
• C) 7
• D) 10

22. What percentage of global GDP do BRICS nations represent?

• A) 15%
• B) 25%
• C) 30%+
• D) 50%+

23. Which of the following challenges does the SCO face in maintaining cohesion?

• A) The India-Pakistan rivalry preventing consensus
• B) Central Asian instability
• C) Terrorism in the region
• D) All of the above

Answer Key: 1-B, 2-C, 3-C, 4-C, 5-C, 6-D, 7-D, 8-B, 9-C, 10-B, 11-B, 12-C, 13-C, 14-B, 15-B, 16-C, 17-B, 18-D, 19-B, 20-C, 21-B, 22-C, 23-D