Counterbalancing China or Exploiting BRICS

Counterbalancing China or Exploiting BRICS COUNTERBALANCING CHINA OR EXPLOITING BRICS: OPTIONS FOR INDIA INTRODUCTION 1.BRICS, a unique group of countries with shared opportunities common challenges, came into being in New York in Sep 2006. However, it was during the third Summit at Sanya, in China, in Apr 2011 that South Africa joined this group thereby completing the acronym. BRICS symbolises the amalgamation of the most powerful emerging economies of the world into a group whose composite economic strength will wrest the global economic power away from the developedG7economies. 2.BRICS economies account for a quarter of the world’s Gross Domestic Product (GDP) has been consistently displaying sustained high annual growth rates. The economic potential of the BRICS nations cannot be overlooked however, it is yet to be seen whether BRICS would only limit itself to being an economic group or will it also assert itself on the world matters in global forums that have been dominated by the G7 nations. The possibilities of using its economic potential are endless. In its quest to realise the stated goals, it is imperative that these nations work jointly cohesively. 3. The Sixth BRICS Summit held in Brazil on 16th 17th Jul was an important milestone for the member nations as well as huge economic opportunities for them as well as the member nations with the announcement of making BRICS Bank operational to be headquartered at Shanghai. China and India being the two of the largest and most influential members share an uneasy relationship both economically and politically. BRICS is the key to their relationship and path to mutual growth. Statement of the Problem 4.Can India leverage BRICS platform to offset its economic and border issues with China? Hypothesis 5.India can resolve its economic and border issues with China by leveraging BRICS platform. Method of Data Collection 6.The information for this paper shall be gathered through the study of various books, journals papers in print as well as the Internet. Views of various guest speakers would also be incorporated. An attempt would be made to refer the sources from various agencies. Scope 7.The scope of the Dissertation is:- (a)Background/Historical perspective of BRICS. (b)Economic potential of BRICS. (c)Significance of BRICS in global politics/ international governance. (d)Challenges faced way ahead. (e) Sino-Indian Disputes. (e)Sino-Indian Relations in Foreseeable Future. (f) How India can leverage BRICS. CHAPTERS Chapter I : Background/Historical Perspective Of BRICS 8.This section will attempt to throw light on the origin the journey of BRICS from its inception to the present day. It will also broadly cover important aspects of the Goldman Sachs report by Jim O’ Neil that brought about the acronym of BRICS. Chapter II : Economic Potential of BRICS 9.Developing to Emerging Economies. This section of the paper will bring out the geo economic geo political journey of individual nations, leading to their present status. It will also give out the steps initiated by the member nations of BRICS to emerge as a cohesive stable economic platform. It will also highlight the key economic reforms resorted to by the BRICS nations the latent potential existing with these members. 10.Present Scenario. This section will deal with the current economic potential of the BRICS nations, both individually collectively. The present potential of BRICS has been listed as progressive however certain critical aspects that boost the economic potential are not symmetric across the members of BRICS. 12.Future Potential. The future potential as predicted for the BRICS will be discussed in this section. This section will also analyse the barriers that BRICS can implement to immune itself from the present global economic slowdown thereby maintaining its economic growth. It will aim to bring out that as economic powerhouses regional hubs, intra-BRICS market integration can insulate these nations from worldwide economic downturn. Chapter III : Significance Of BRICS in Global Politics / International Governance 13. Economics Finance. The interaction of BRICS members in order to reform international financial system is likely to remain a key priority in the midterm perhaps also in the long term. 14. Global Politics. BRICS as a group has already accumulated valuable experience in coordinating actions with regard to several major global political problems. BRICSs deeper engagement with the UN will aim to preserve strengthen the central role of the Security Council in maintaining international peace security. 15.Security. The format of the BRICS does not provide for deliberating military, political issues developing mechanisms for military cooperation. However, there are regular meetings of the high representatives of the members on security issues, including strategic stability, international regional security, non-proliferation of weapons of mass destruction the settlement of regional conflicts. This section will aim to bring out the underlying security implications for the BRICS nations in current geo – political environment. Chapter IV : Challenges Faced Way Ahead 16.The BRICS is still in its nascent stage owing to which it is likely to face a number of challenges ahead. The member nations need to overcome the internal contradictions to develop the group into a cohesive entity. This section will analyse some of these challenges like:- (a)Growth Disparity between member nations. (b)Trade Imbalance Mutual Distrust. (c)Public Private Participation. (d)Policy reforms for BRICS members to make their growth processes more durable development oriented. (e)Bring out the need to reform the structure functioning of IMF. (f)Launching of a joint development bank. 17.The Way Ahead. Under way ahead, recommendations for BRICS nations to sustain their economic growth mutual development will be deliberated. The important aspects such as mutual cooperation, handling of economic situation, establishment of BRICS bank and other miscellaneous issues will be discussed. Chapter V : Sino-Indian Disputes. 18. This chapter will be covering the disputes between both the nations as under:- Border issues. Geopolitical threat. Economic imbalance. Tibet issues. Nexus with Pakistan. Potential arms race. Indian Ocean Region. Brahmaputra water projects dispute. (j) Race for minerals/hydrocarbons in Africa and CAR. Chapter V : Sino-Indian Relations in Foreseeable Future. 19. This Chapter will be dealing with the mutual relations:- (a) Political relations. (b) Economic relations. (c) Potential cooperation areas. Chapter V : How Can India Leverage BRICS? 20.Key Thrust Areas for India. There are a few key thrust areas that India must seek in order to enhance its influence in the world forums. These thrust areas such as strengthening economic infrastructure reforms, building strategic alliances with members of BRICS, maintenance of steady pace of economic growth; increasing service industry’s influence energy security will also be discussed in this section. 21.Leveraging BRICS. (a)Geo-Political Leverage. This sub section will bring out how India stands to gain Geo-Political mileage by being part of BRICS. It will cover the aspects that will bear major advantages for India in the Geo-Political sphere. (b) Economic Leverage. This sub section will dwell upon India’s likely economic gains from BRICS that will further boost its economic growth add greater value to its economic potential. (c) Geo-Strategic Leverage. BRICS offers India ample opportunities to enhance its global reach overcome certain strategic impediments. This sub section will view all these opportunities against the backdrop of the Geo-Strategic implications that they may bring forth. (d) Defence Cooperation. This sub section will analyse the opportunities that India will have in realms of security while being the member of this group especially as Russia China, two of major military powers also part of the group. CONCLUSION 19. It is well evident that BRICS has emerged as an entity that has the potential to challenge the influence of G7 in the world forums. This potential evolves from a sustained economic growth the diversity exhibited by its member nations. The economic potential of BRICS is the sole reason why it is being viewed as the initiation of a Multi Polar World Order that is set to overcome the unipolar hegemony of the US. However, BRICS, in order to maintain its economic potential will need to eradicate multiple challenges that it faces due to the Geo-strategic locations divergent national interests of its member nations. BRICS will be a success in true self only if India and China can resolve their mutual issues and steer it towards the path of development and prosperity.