BRICS, consisting of Brazil, Russia, India, China, and South Africa, is gaining international attention as it currently accounts for one-third of the world's GDP and represents 40% of the global population. The term BRIC was coined in 2002 by British economist Jim O'Neill. However, BRICS still lacks a well-organized organizational structure and political convergence. The New Development Bank, founded in 2014, aimed to compete with the IMF and the World Bank but has not achieved its goals. The BRICS countries can be divided into two groups based on their economic structures: Russia, Brazil, and South Africa rely heavily on raw material exports, while India and China exhibit industrializing tendencies. India and China were less affected by the 2009 crisis and have sustained GDP growth rates of around 4%. The BRICS alliance faces challenges due to divergent economic trajectories, territorial disputes, lack of political unity, and disparities in per capita income compared to Western nations. Despite its potential, many experts believe that the US dollar will remain the central currency for the foreseeable future.
A recent article from The Herald Journal discusses the importance of understanding BRICS and its implications. The article highlights that BRICS aims to create greater intra-economic and geopolitical cooperation to counterbalance the influence of the Western-dominated G-7 countries and monetary exchanges. The organization has established institutions such as the New International Development Bank (NDB) and the Contingency Reserve Agreement (CRA) to provide funding and loans to developing economies. BRICS threatens the world monetary system as it challenges the dominance of the US dollar. The article also mentions that BRICS is increasingly anti-West and seeks to expand its power by including new powerful nations. The future implications of BRICS and its philosophy of countering Western dominance have geopolitical, economic, and international consequences. Overall, the article emphasizes the significance of understanding BRICS and its potential impact on the global order.
Fabio Borges, a professor at the Federal University for Latin American Integration (UNILA) and curator of BRICS, shared his views on the current Russian BRICS presidency and the influence of the new members on the world stage. Russia sees its BRICS presidency as an opportunity to advocate for dialogue and peace. The priorities of Brazil and other member countries include promoting a peaceful, multilateral world and addressing economic development, social progress, and climate change. Cooperation is envisaged in various sectors, including the economy, clean energy, and culture. The inclusion of new members reflects the growing interest in BRICS and strengthens its economic and political influence globally. However, reaching consensus on issues related to culture and energy may be challenging due to the different profiles of member states. The heterogeneity of BRICS provides opportunities for mutual understanding and cooperation in creating a more just and democratic international system.
According to an analysis from IAR-GWU, the 15th annual BRICS summit took place on August 4th, 2023, in Johannesburg, South Africa. The group announced its plan to expand its membership for the second time, admitting six new countries: Saudi Arabia, Iran, Argentina, Egypt, Ethiopia, and the U.A.E. The expansion reflects the growing anti-Western posture of BRICS and aims to promote greater geopolitical and geoeconomic cooperation. The inclusion of major petroleum exporters like Saudi Arabia and Iran aligns them with major importers like India and China. Geoeconomic interests, particularly in the energy sector, were a prime consideration for the expansion. Additionally, the expansion aims to promote the de-dollarization of the global economy, with some members replacing the USD with their own currencies in bilateral trade. However, not all members fully support the anti-Western optics of BRICS, particularly India and Brazil. The success of the expansion and the achievement of its goals remain uncertain, as the diverse interests and visions of the member countries may lead to policy paralysis or political impasse.
China's ambitions in the developing world have also come under scrutiny. An article from Foreign Policy by Robert A. Manning discusses China's gaslighting of the developing world. China is building its own project, largely on the cachet of public goods, including now-precarious loans, with the aim of creating a post-American world order. China has utilized existing Sino-centric organizations such as the Shanghai Cooperation Organisation (SCO), the BRICS grouping, and the Conference on Interaction and Confidence Building Measures in Asia (CICA) to further its hegemonic ambitions. The article argues that China's vision of multilateralism is a camouflage for its own interests, rather than a sincere goal. The current US-led system is fracturing, with the G-7 GDP declining to about 30% of global GDP, slightly smaller than that of BRICS. China's growing influence in the developing world poses challenges to the existing global order.
According to a recent article from CEOWORLD magazine, the BRICS countries have a combined GDP of over 27.24 trillion US dollars in 2024. China has the largest economy among the BRICS countries, with a GDP of 18.56 trillion US dollars in 2024. The article also mentions that China is expected to surpass the United States as the largest economy in the world by the end of the 2020s. India is also expected to overtake the US around the mid-century mark. The BRICS countries have established the New Development Bank to invest in sustainable infrastructure and renewable energy worldwide. The BRICS nations surpassed the G7 nations in their share of the world's total GDP in 2020 and are predicted to move further up on the list of the world's largest economies in the coming decades.
The BRICS group of major emerging economies - Brazil, Russia, India, China, and South Africa - has launched a joint tourism roadmap during its first tourism forum in Moscow. The roadmap includes the development of digital tourism solutions, the BRICS green initiative for tourism, and the enhancement of business relations in the sector. The Indian Ministry of Tourism welcomed the roadmap and stated that it will lead to increased tourist exchanges and cooperation among BRICS nations. The BRICS group aims to represent the Global South and provide an alternative model to the Western-dominated G7.
The 15th BRICS Summit, hosted by South Africa in August 2023, discussed the issue of expanding the bloc. Six countries - Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE - were invited to join BRICS. China initiated the conversation about expanding the body to counter Western dominance and boost its economy. However, India has expressed concerns about its own influence diminishing and suggests that emerging economies and democracies like Argentina and Nigeria should be considered for membership instead of Saudi Arabia. India is also opposed to several countries with anti-Western positions joining BRICS, including Belarus and Cuba. Additionally, India is unlikely to support Pakistan's inclusion in BRICS due to its strained relationship with China and the Indo-Pak rivalry. India is sensitive to China's potential strategic influence in the developing world through BRICS and will not compromise on its national interests. [9aef1250]