On October 30, 2024, the Chennai Centre for China Studies (C3S), in collaboration with Maharaja’s College, University of Mysore, hosted an online discussion titled "BRICS+ and Changing World Order: Analysis and Discussion on BRICS Summit 2024." The event brought together experts to analyze the BRICS Summit 2024 outcomes and the evolving role of BRICS+ in global affairs, with contributions from Mr. Rahul Karan Reddy of ORCA.
The session was opened by Dr. Bharati Hiremath from Maharaja’s College, followed by inaugural remarks from Prof. Devaraje Gowda. Commodore R S Vasan moderated the event. Speakers included Prof. A K Pasha, who discussed BRICS’s influence in a multipolar world, Dr. Marina Borovskaya on humanitarian cooperation, Dr. Priyadarshi Dash on sustainable development, Anton Afanasyev on BRICS's contributions to innovation, and Dr. Krishna Prasad N on health sector collaboration for sustainable development.
Mr. Rahul Karan Reddy, Senior Research Analyst at the Organization of Research on China and Asia (ORCA), delivered an in-depth analysis of BRICS' financial mechanisms, with a focus on the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). He began by acknowledging the growing economic influence of developing countries and the Global South, which BRICS seeks to represent in international financial institutions. The main goal of the BRICS grouping, he stated, is to reform global financial institutions like the IMF and World Bank to better reflect the shifting economic landscape.
Mr. Reddy outlined the key financial institutions that make up BRICS' architecture, beginning with the NDB, created almost a decade ago to provide an alternative to traditional development finance. The NDB has approved $32 billion for 96 projects across the globe. However, he pointed out the challenges the NDB faces in scaling up operations and competing with larger players like the World Bank, which committed $99 billion in 2021 alone. He also addressed the Contingent Reserve Arrangement (CRA), a mechanism established to provide liquidity and support to countries facing balance of payments crises. While the CRA has made some progress, it has yet to perform fully in terms of carrying out operations. Reddy suggested expanding the size of resources available to the CRA and increasing flexibility to ensure its success. Another important point of discussion was the dollarization efforts within BRICS+ countries, which have been increasingly focused on regional trade amongst member countries. The shift away from the US dollar in cross-border bank claims and international debt securities is evident, with the BRICS+ countries accelerating their economic influence.
In closing, Mr. Reddy stressed that the BRICS financial architecture—with its multilateral approach to development finance—is a valuable asset to the Global South, providing greater opportunities for countries looking to break free from the conditionalities of Western-influenced financial institutions.
The event concluded with a vote of thanks by Sapna Elsa Abraham, Senior Research Officer at the Chennai Centre for China Studies.
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