The 16th BRICS Summit, held in Kazan, Russia, from October 22 to 24, 2024, has brought significant developments, particularly concerning financial collaboration and sustainable development among member countries. This year’s summit is themed “Strengthening Multilateralism for Just Global Development and Security” and features expanded participation from nations in the Global South, reflecting BRICS’ growing role in global governance.
One of the key highlights of the summit was Russian President Vladimir Putin’s proposal to establish a new BRICS investment platform. The initiative aims to provide financial resources for countries in the Global South and further develop low-emission economic models. Currently, BRICS has two major financial mechanisms: the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB, headquartered in Shanghai, funds infrastructure and sustainable development projects in emerging economies, while the CRA provides short-term liquidity support through currency swaps to stabilize members facing balance of payment crises. The proposed investment platform would complement these institutions by boosting investments specifically geared toward sustainable growth.
President Putin also suggested creating a BRICS grain exchange, which could eventually expand to other commodities like precious metals and diamonds. This development aligns with BRICS’ broader goal of fostering greater economic cooperation and boosting the collective bargaining power of member states in global markets.
At the summit, Egyptian President Abdel Fattah El-Sisi emphasized the importance of creating innovative mechanisms for financing development, particularly for debt-laden developing countries. He highlighted that many countries face escalating debt issues, which are compounded by the rising costs of financing and borrowing. Sisi called for sustainable debt management mechanisms and stressed that the international financial system must become more equitable to address global disparities effectively.
Sisi also advocated for leveraging local currencies within BRICS financial transactions, which could reduce dependency on major global currencies like the U.S. dollar. He further stressed the need for joint economic projects, particularly in agriculture, digital transformation, and renewable energy. Egypt, having officially joined BRICS in January 2024, is keen to enhance cooperation with member states to achieve sustainable development goals and boost foreign investments.
Chinese President Xi Jinping reiterated BRICS’ role as a major force for global governance reform, particularly in giving a stronger voice to the Global South. He praised the summit’s decision to invite new partner countries and emphasized the need for BRICS to act as a vanguard for reforming the international financial system. Xi also called for the bloc to champion peaceful coexistence and spearhead high-quality development initiatives, particularly in green industries, clean energy, and innovation.
In line with this vision, China announced its intention to establish 10 overseas learning centers in BRICS countries over the next five years. These centers aim to offer training opportunities for education administrators, teachers, and students, thereby enhancing the educational capacity of member states. Additionally, Xi emphasized the need for BRICS members to advance efforts to de-escalate global conflicts, including the ongoing Ukraine crisis, and to promote global peace and security.
For Egypt, this summit marked its first participation as an official BRICS member, alongside other new members such as Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. Egypt’s inclusion in the bloc reflects BRICS’ growing efforts to diversify its membership and enhance multilateral cooperation. President Sisi underscored the importance of BRICS in addressing global challenges such as climate change, poverty, and hunger, while also promoting sustainable economic growth. He called for closer coordination among BRICS countries to ensure access to concessional financing, particularly for developing nations facing food security challenges.
The 2024 BRICS Summit also reinforced the bloc’s commitment to strengthening multilateralism. As part of the summit’s agenda, leaders discussed ways to enhance collaboration among BRICS members to ensure equitable development and security. BRICS has long positioned itself as a champion of the Global South, and the expansion of its membership reflects a broader ambition to shift the global economic and political balance away from traditional Western-led institutions.
President Putin’s proposals, including the new investment platform and grain exchange, indicate a clear focus on expanding BRICS’ economic influence. The establishment of these platforms could provide member states with more tools to manage their economies independently of Western financial systems, furthering BRICS’ goal of creating a more just and equitable global order.
As the summit draws to a close, it is clear that BRICS is at a critical juncture in its development. The inclusion of new members, the establishment of new financial platforms, and the focus on sustainable development and local currencies reflect the bloc’s evolving agenda. With continued emphasis on multilateralism and global governance reform, BRICS aims to reshape the global order in favor of developing economies. The outcomes of this summit indicate a concerted effort to bolster cooperation among member states and to tackle common challenges, particularly in the face of global economic uncertainties.
