International Relations: BRICS Summit Outcomes
- Venue and Dates: Johannesburg, South Africa (August 2023).
- Major Decision: Formal invitation extended to six new nations to join the bloc.
- Effective Date: Membership set to take effect starting January 1, 2024.
- New Members Invited:
- Saudi Arabia
- Iran
- Egypt
- Argentina
- Ethiopia
- UAE
- Significance of Expansion: The enlarged group accounts for approximately 46% of the global population and over 36% of the global GDP (based on purchasing power parity).
- Key Policy Focus: Discussion included mechanisms to increase trade settlements in local currencies and efforts toward deepening the role of the New Development Bank (NDB).
Global Economic and Trade Indicators (Q4 Review)
| Economic Metric | Status/Trend | Key Driver | Implication |
|---|---|---|---|
| Global Inflation | Slowing (7.2% average) | Easing energy prices and sustained restrictive monetary policies. | Central banks expected to pivot to rate pauses, but not immediate cuts. |
| International Trade Growth | Projected 0.8% (2023) | Weakening global demand and geopolitical fragmentation affecting supply chains. | Significant revision downwards from previous 1.7% forecast. |
| US Federal Reserve | Maintained benchmark interest rate (5.25% - 5.50%) | Focus shifted to duration of high rates rather than further hikes. | Signals emphasis on bringing core inflation down to target (2%). |
| Sovereign Debt | Rising in developing nations (D-8) | High servicing costs due to elevated global interest rates and depreciating local currencies. | Increased risk of localized fiscal distress. |
Environmental Policy: Global Climate Finance
- Loss and Damage Fund (COP28): Operationalization agreed upon, with initial capital pledges exceeding $700 million.
- Fund Structure: Hosted temporarily by the World Bank for the first four years.
- Eligible Recipients: Developing nations particularly vulnerable to the adverse effects of climate change.
- Renewable Energy Targets: A coalition of 130 nations committed to tripling global renewable energy capacity by 2030.
- Fossil Fuel Transition: For the first time, a final COP text explicitly called for "transitioning away" from fossil fuels in energy systems.
Technological Governance
- AI Safety Summit (Bletchley Park Declaration): Twenty-eight nations and the EU signed a declaration focused on managing the risks associated with frontier Artificial Intelligence (AI) development.
- Primary Concern: Risks related to misuse, loss of control, and system vulnerability were identified as immediate priorities.
- Action Plan: Agreed to establish an international network of scientific research focused on understanding and mitigating AI-related threats.