Approach:

Introduction: Briefly mention about BRICS and its relevance.

Body: Highlight BRICS's role in promoting a multipolar world order. Also, mention the current challenges faced by it.

Conclusion: Suggest a way forward.

Answer:

BRICS brings together 5 major emerging economies i.e. Brazil, Russia, India, China and South Africa. It represents 42% of the world's population, 30% of the world’s territory, 23% of global GDP, and around 18% of world trade. It has a critical role in the global process of building a new world order through the consolidation of international efforts.

Role of BRICS in promoting a multipolar world order:

1. Voices of Global South:  In the past, India and other Asian and African countries have criticized the dominance of European and Western countries at international forums and institutions, such as the United Nations. Interest from 40 countries in joining an expanded BRICS reflects the discontent of global South countries regarding their global standing.
2. Bridge b/w North & South: BRICS acts as a bridge between developing countries and the developed world and takes up issues that are very relevant to the developing countries. For example, in the WTO, the BRICS countries are trying to promote a fairer order regarding agricultural policies and are advocating reform of the UN Security Council.
3. Reforms in multilateral institutions: It has acted as a pressure group on the question of reform of multilateralism and also on the question of reform of global governance institutions. The group pledged a corpus of $75 billion to the IMF as a precondition of voting rights reform in June 2012 which is not only the end of US hegemony in institutions but also the start of a more democratic world order.
4. New Economic Order: Since its inception, the group has taken various initiatives that have changed the world economic order. Example: Creation of the New Development Bank in 2015 which is today considered a rival of the World Bank rather than to save members from immediate economic shocks. The group has also agreed to the Contingent Reserve Agreement, which is considered a rival of the International Monetary Fund.
5. New front to balance Western dominance: The cumulative economy of the group members aggregates to around 17 trillion in nominal terms which is 22% of the world economy in the current context. The group has India and China which are today the fastest growing economies and are also considered as the future superpower of the world.

Challenges faced by BRICS:

1. Lack of a binding ideology: Both China and Russia are now viewing the West with a lot more suspicion than before. This is due to the Russia-Ukraine War and frequent roadblocks in US-China ties. But meanwhile, India has been deepening its relations in spheres of economy and technology with the US, of late. This makes having a common policy and cooperation within the grouping difficult.
2. Bilateral differences between member countries: especially b/w India and China, such as China's aggression in eastern Ladakh last year brought India-China relations to their lowest point in several decades. Also, China’s territorial claims in the South China Sea have been a source of tension with other BRICS countries that have competing claims in the region.
3. Institutional Constraints: The New Development Bank (NDB), which intends to provide development financing, has faced challenges in disbursing loans and identifying viable projects. The Contingent Reserve Arrangement (CRA), a pool of foreign exchange reserves, has not been tested yet.
4.  China Centric nature of the group: All the countries in the BRICS grouping trade with China more than each other, therefore it is blamed as a platform to promote China’s interests. Balancing the trade deficit with China is a huge challenge for other partner nations.
5. New global model of governance: Amidst, global slowdown, trade war and protectionism, the critical challenge for the BRICS consists in the development of a new global model of governance which should not be unipolar but inclusive and constructive. The goal should be to avoid a negative scenario of unfolding globalization and to start a complicated merging of the global growing economies without distorting or breaking the single financial and economic continuum of the world.

Way Forward:

1. Explore BRICS Plus: The BRICS needs to explore the ‘BRICS plus’ cooperation to increase its relevance in the global order. This would increase BRICS countries’ representation and influence and make greater contributions to world peace and development.
2. Peaceful and politico-diplomatic settlement of crisis: BRICS nations should strive for peaceful and politico-diplomatic settlement of crisis and conflict in various regions of the world. Also, it is equally important that members maintain communication and coordination on major international and regional issues and accommodate each other’s core interests and major concerns.
3. Economic interests: In the light of the rising tide of de-globalisation and the increase of unilateral sanctions, BRICS member countries should enhance cooperation in supply chains, energy, food and financial resilience. Also, it should develop an institutional research wing, along the lines of the OECD, which would offer solutions that are better suited to these developing economies.
4. Democratization of international issues: Agreements on global agendas like Ukraine, climate change, debt financing and others should be reached with the widest and equal participation of all stakeholders and be based on universally recognized legal norms.
5. Expand its agenda: The BRICS needs to expand its agenda to increase its relevance in the global order. For Example - Climate finance, digital economy and enhancing connectivity among the member countries etc.

In these changing times, BRICS can contribute significantly to maintaining international stability and ensuring global economic growth, by emphasizing extensive consultation and joint contributions to enhance cooperation among emerging markets. Also, it can become a united centre of the multipolar world by increasing the voice of the global south in global governance.