Which one of the following statements about BRIC is not correct ?

1. Multipolarity and South-South Cooperation (basic)

To understand modern international relations, we must first look at how power is distributed across the globe. For much of the 20th century, the world was bipolar (dominated by the US and the USSR). After the Soviet Union collapsed, we entered a briefly unipolar phase led by the US. However, today we are moving toward Multipolarity—a world where power is not concentrated in one or two hands, but is shared among several global centers like India, China, Russia, and the European Union.

Multipolarity is more than just a headcount of powerful countries; it is a vision for a world order based on collective security, sovereign equality, and negotiated settlements of disputes. For instance, India and Russia have long shared a vision of a multipolar world where no single power can dictate terms to others Contemporary World Politics, The End of Bipolarity, p.11. This shift allows for South-South Cooperation, where developing nations (the "Global South") work together to solve common problems—such as poverty or trade barriers—rather than relying solely on the developed "North."

One of the most significant manifestations of this shift was the emergence of the BRICS grouping. Originally termed "BRIC" by economist Jim O'Neill of Goldman Sachs in the early 2000s, it highlighted the economic potential of Brazil, Russia, India, and China to become dominant players by 2050. The grouping became a formal reality with its first summit in 2009. It was only in 2010 that South Africa joined, turning BRIC into BRICS and expanding its reach into the African continent.

Concept	Core Meaning	Goal
Multipolarity	Multiple centers of power (India, China, EU, etc.)	To prevent global hegemony and promote diverse interests.
South-South Cooperation	Developing nations collaborating with each other.	To reduce dependency on developed nations and gain bargaining power.

Closer to home, regional efforts like the South Asian Association for Regional Cooperation (SAARC), established in 1985, represent attempts at this cooperation Contemporary World Politics, Contemporary South Asia, p.42. Though initiatives like the South Asian Free Trade Area (SAFTA) were signed to boost trade, political differences between members have often limited their success Contemporary World Politics, Contemporary South Asia, p.44.

Sources: Contemporary World Politics, NCERT 2025, The End of Bipolarity, p.11; Contemporary World Politics, NCERT 2025, Contemporary South Asia, p.42-44

2. Classification of International Groupings (basic)

To understand the complex web of global politics, we first need to categorize how nations come together. At its simplest, an International Organization is not a 'super-state' that rules over countries; rather, it is a tool created by sovereign states to resolve conflicts and achieve shared goals that they cannot accomplish alone Contemporary World Politics, NCERT Class XII, International Organisations, p.47. These groupings are generally classified based on who can join and what they aim to do.

The first major lens is Membership Scope. Groupings can be Universal (open to all recognized states, like the United Nations) or Regional (limited to a specific geography, like the European Union or ASEAN). However, we also see Inter-continental groupings like BRICS, which bring together powerful emerging economies from different corners of the globe—Brazil, Russia, India, China, and South Africa—to challenge the traditional global order.

The second lens is Functional Purpose. This helps us distinguish between organizations based on their core mission:

Type	Primary Focus	Examples
Political/General	Broad cooperation, peace, and security.	UN, G20
Economic/Trade	Financial stability, trade rules, and development.	WTO, IMF, BRICS
Technical/Scientific	Specific sectors like health, weather, or environment.	WHO, Ramsar Convention

It is also important to note the nature of the actors involved. Most groupings we study for UPSC are Intergovernmental Organizations (IGOs), where member states are the primary actors. However, some treaties officially recognize International Organization Partners (IOPs), which are often global non-governmental organizations (NGOs) that provide expertize and help implement international conventions Shankar IAS Academy, International Organisation and Conventions, p.397.

Sources: Contemporary World Politics, NCERT Class XII, International Organisations, p.47; Shankar IAS Academy, International Organisation and Conventions, p.397

3. The Rise of Emerging Market Economies (EMEs) (intermediate)

For decades, the global economic order was dominated by the G7 (a group of advanced economies). However, the turn of the 21st century witnessed a tectonic shift with the rise of Emerging Market Economies (EMEs). This shift was famously captured by Jim O'Neill of Goldman Sachs in 2001, who coined the term BRIC (Brazil, Russia, India, and China). He predicted that these nations would become the dominant global players by 2050. What began as an investment thesis soon evolved into a powerful political and economic bloc, formalizing with its first summit in Yekaterinburg, Russia, in 2009. With the inclusion of South Africa in 2010, the grouping became BRICS, representing a collective voice for the "Global South."

The primary driver behind this grouping was a shared dissatisfaction with the Bretton Woods institutions (the IMF and World Bank). These EMEs argued that the global financial architecture remained skewed toward Western interests. For instance, BRICS nations collectively account for nearly half of the world's population, yet they held less than 15 per cent of the voting rights in the IMF Indian Economy, Nitin Singhania, International Economic Institutions, p.528. This democratic deficit led them to seek reforms, such as merit-based selection of IMF chiefs and a shift away from U.S. domination in global finance Indian Economy, Nitin Singhania, International Economic Institutions, p.521.

To turn these grievances into action, the BRICS nations established their own financial pillars. In 2015, they launched the New Development Bank (NDB) to fund infrastructure and the Contingent Reserve Arrangement (CRA). The CRA provides short-term liquidity support to member countries facing Balance of Payments (BoP) crises, acting as a safety net alongside the IMF Indian Economy, Nitin Singhania, International Economic Institutions, p.530. Beyond finance, these EMEs have been vocal advocates for a fairer global trade regime, specifically pushing for the conclusion of the WTO Doha Round to reduce agricultural subsidies in developed nations that disadvantage farmers in emerging markets.

Today, India stands as a leader among these EMEs. While global trade growth has fluctuated, India's domestic reforms—focusing on the ease of doing business and a capex-led growth strategy—have positioned it to maintain a positive growth-interest rate differential, ensuring sustainable debt levels even as it grows at its potential Indian Economy, Vivek Singh, Budget and Economic Survey, p.449.

Sources: Indian Economy, Nitin Singhania, International Economic Institutions, p.521, 528, 530; Indian Economy, Vivek Singh, Budget and Economic Survey, p.449

4. WTO Doha Round and Agricultural Trade (intermediate)

The Doha Round, officially known as the Doha Development Agenda (DDA), was launched in 2001 with a revolutionary premise: to place the needs and interests of developing countries at the heart of the global trade system. Unlike previous rounds that primarily benefitted industrialized nations, Doha sought to lower trade barriers in areas where developing nations have a comparative advantage—most notably Agriculture Indian Economy, Vivek Singh (7th ed. 2023-24), International Organizations, p.391. However, these negotiations have faced decades of deadlock because agriculture is not just about trade; it is about food security and the livelihoods of billions of farmers in the global south.

At the center of this conflict is the Agreement on Agriculture (AoA) and its system of classifying subsidies into "Boxes" based on how much they distort international trade. Developing nations like India, alongside groupings like BRICS, have consistently pushed for developed countries to reduce their massive farm subsidies, which allow Western farmers to export crops at artificially low prices, hurting farmers in poorer nations Indian Economy, Nitin Singhania (ed 2nd 2021-22), International Economic Institutions, p.546. To understand the deadlock, we must look at how these subsidies are categorized:

Box Type	Nature of Subsidy	WTO Status
Green Box	Minimal or no trade distortion (e.g., research, pest control, environment).	Permitted without any limits Indian Economy, Nitin Singhania (ed 2nd 2021-22), International Economic Institutions, p.541.
Blue Box	Subsidies linked to programs that limit production (to prevent oversupply).	Permitted; currently no spending limits Indian Economy, Nitin Singhania (ed 2nd 2021-22), International Economic Institutions, p.541.
Amber Box	Highly trade-distorting (e.g., Minimum Support Price (MSP), fertilizer/power subsidies).	Restricted; subject to "de minimis" limits (10% for developing, 5% for developed countries).

The impasse persists because while developing nations demand the reduction of Amber Box subsidies in the West, developed nations demand Non-Agricultural Market Access (NAMA), seeking lower tariffs on industrial goods and services in emerging economies like India and China Indian Economy, Nitin Singhania (ed 2nd 2021-22), International Economic Institutions, p.542. In India, agricultural support is provided on both the input side (fertilizers, seeds, electricity) and the output side (MSP), which often puts India in a defensive position regarding Amber Box limits Indian Economy, Vivek Singh (7th ed. 2023-24), Agriculture - Part I, p.307.

Sources: Indian Economy, Vivek Singh (7th ed. 2023-24), International Organizations, p.391; Indian Economy, Nitin Singhania (ed 2nd 2021-22), International Economic Institutions, p.546; Indian Economy, Nitin Singhania (ed 2nd 2021-22), International Economic Institutions, p.541; Indian Economy, Nitin Singhania (ed 2nd 2021-22), International Economic Institutions, p.542; Indian Economy, Vivek Singh (7th ed. 2023-24), Agriculture - Part I, p.307

5. Adjacent Grouping: The G20 and Global Governance (intermediate)

The G20 (Group of Twenty) is arguably the most influential platform for global economic governance today. Established in 1999, its birth was a direct response to the Asian Financial Crisis of the late 1990s. The world realized that the older, Western-centric models (like the G7) were no longer sufficient to maintain global financial stability. To truly manage the global economy, systematically important developing and industrialized nations needed to sit at the same table Indian Economy, Nitin Singhania, International Economic Institutions, p.547.

What makes the G20 a "heavyweight" in global governance is its sheer economic footprint. It is not just a talking shop; its members collectively represent:

• Approximately 90% of the global GDP
• Around 80% of world trade
• Roughly two-thirds of the world's population Indian Economy, Nitin Singhania, International Economic Institutions, p.547

Initially, the G20 functioned as a meeting for Finance Ministers and Central Bank Governors. However, following the 2008 Global Financial Crisis, it was elevated to a Leaders' Summit, becoming the premier forum for international economic cooperation. Unlike the United Nations or the World Bank, the G20 does not have a permanent secretariat or staff. Instead, it operates on a Troika system, where the chair rotates annually among members, and the current, previous, and incoming presidencies work together to ensure continuity.

In the broader landscape of global governance, the G20 serves as a bridge between established powers and emerging ones. While institutions like the IMF and World Bank have been criticized for being too "Western-leaning" due to lopsided voting rights, the G20 provides a space where blocs like BRICS can advocate for a fairer global trade regime and more representative financial reforms Indian Economy, Nitin Singhania, International Economic Institutions, p.528.

Sources: Indian Economy, Nitin Singhania, International Economic Institutions, p.547; Indian Economy, Nitin Singhania, International Economic Institutions, p.528

6. BRICS: Evolution, Membership, and Summits (exam-level)

The story of BRICS — an acronym representing Brazil, Russia, India, China, and South Africa — is one of the most significant shifts in the global balance of power since the end of the Cold War. Unlike many international organizations, BRICS did not start with a treaty; it began as an economic concept. The term was coined by Jim O'Neill of Goldman Sachs in a 2003 report, where he predicted that these emerging economies would become dominant global players by 2050. This prediction was rooted in the idea that the 21st century would see a change in the balance of power in the world order, moving away from a Western-centric system Contemporary World Politics, NCERT, The End of Bipolarity, p.13. Beyond just meeting for summits, the group has focused on reforming the Global Financial Architecture. A major driver for this cooperation is the perception that the IMF and World Bank are too inclined toward developed Western nations, leaving BRICS nations with disproportionately low voting rights despite their massive populations Indian Economy, Nitin Singhania, International Economic Institutions, p.528. To address this, the grouping established the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) in 2015. The CRA provides short-term liquidity support to help member nations overcome Balance of Payment (BOP) problems, serving as a prime example of South-South cooperation Indian Economy, Nitin Singhania, International Economic Institutions, p.530. Politically, the BRICS nations have historically advocated for a fairer global trade regime. This includes pushing for the acceleration of the WTO Doha Round, specifically demanding that developed nations reduce agricultural subsidies. By doing so, they aim to ensure that developing economies can compete on a level playing field in global markets.

Sources: Contemporary World Politics, NCERT, The End of Bipolarity, p.13; Indian Economy, Nitin Singhania, International Economic Institutions, p.528; Indian Economy, Nitin Singhania, International Economic Institutions, p.530

7. Solving the Original PYQ (exam-level)

Now that you have mastered the evolution of global groupings, this question tests your ability to distinguish between a theoretical investment thesis and a formal geopolitical alliance. You learned that the term BRIC originated from a 2003 Goldman Sachs report, which predicted that these emerging markets would dominate the global economy by 2050. The transition from a financial category to a political reality culminated in the 1st BRIC Summit in Yekaterinburg (2009), where leaders began coordinating on issues like the WTO Doha Round and the reduction of agricultural subsidies to challenge the economic hegemony of developed nations. Understanding this timeline is crucial because UPSC often tests the intersection of economic theory and diplomatic history.

When approaching this question, the coaching tip is to look for obvious factual pivots hidden within complex-sounding options. While options (A), (B), and (C) require high-level knowledge of summitry and trade negotiations, option (D) tests basic member identification. In the context of global emerging markets, the 'C' has always represented China, not Canada. Therefore, (D) Brazil, Russia, India and Canada are the members of BRIC is the incorrect statement. Canada is part of the G7 (the established advanced economies), making its inclusion in a group of "emerging" powers a fundamental contradiction that should immediately stand out during your elimination process.

UPSC frequently uses the 'Same Initial' Trap, as seen here with Canada and China, or sometimes swapping South Africa with Switzerland in later contexts. While distractors like the Doha Round subsidies (Option C) are designed to make you second-guess yourself with technical jargon, the correct path is often found by verifying the most basic building blocks of the concept. Always remember that South Africa only joined in 2010 to turn the acronym into BRICS, but the core 'C' remained China throughout its entire evolution as cited in Wikipedia: 1st BRIC Summit and BRICS 2022 Official Records.