BRICS, an acronym denoting Brazil, Russia, India, China, and South Africa, represents a powerful alliance of five emerging economies. Their journey began in 2009 when they united to confront shared global challenges and seize collective opportunities. Together, they constitute a formidable bloc, comprising 41.5% of the world's population, 32.5% of the global GDP (PPP), and 16.5% of international trade.
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| Image by kirill_makes_pics from Pixabay |
The seeds of BRICS were sown in 2001 when a Goldman Sachs economist coined "BRIC" to describe these rapidly growing economies destined to dominate the world economy by 2050. In 2009, these nations formalized their cooperation with a summit in Yekaterinburg, Russia, and, in 2010, extended an invitation to South Africa, birthing BRICS.
BRICS has since evolved from an economic concept to a formidable political and strategic partnership. Its leaders hold regular summits, engage in ministerial meetings, and initiate sectoral dialogues. In these gatherings, they have crafted declarations and action plans that bolster collaboration across various domains, including trade, finance, health, education, science, technology, energy, environment, security, and culture.
One standout achievement is the establishment of the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) in 2014. These institutions aim to provide alternative financing sources and liquidity for infrastructure and development projects, not only within BRICS but also in other developing nations. Since its inception, the NDB has approved over $30 billion in loans for 80+ projects in 23 countries. The CRA, with a total size of $100 billion, acts as a financial safety net for BRICS members in times of balance of payments difficulties.
Another milestone is the creation of the BRICS payment system (BPS) in 2020. Designed to facilitate cross-border payments and settlements among BRICS nations, it reduces reliance on the US dollar and other major currencies. Built upon distributed ledger technology, the BPS employs a basket of five currencies as its unit of account. Its implementation is poised to cut transaction costs, boost efficiency, and promote financial inclusion in BRICS markets.
BRICS's inclusive approach extends beyond financial matters. It has established numerous platforms, including the BRICS Business Council, BRICS Think Tank Council, BRICS Academic Forum, BRICS Civil Forum, BRICS Women's Forum, BRICS Media Forum, and BRICS Youth Forum. These forums foster dialogue, networking, and collaboration among diverse stakeholders, such as the private sector, academia, civil society, media, and youth from BRICS nations.
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| BRICS leaders from Left to Right (Sergey Lavrov is representing Vladimir Putin). |
Furthermore, BRICS has widened its influence by engaging with other developing countries and regions. Initiatives like BRICS Plus invite non-member countries to participate in select activities. The BRICS-Africa Dialogue Forum enhances collaboration between BRICS and African nations, while the BRICS-UNASUR Dialogue Forum facilitates interactions with South American countries.
In a historic development announced at the 15th BRICS Summit in Johannesburg in August 2023, six new countries—Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates—were invited to join the bloc. This expansion, effective from January 1, 2024, promises to diversify BRICS's influence and representation in global affairs.
BRICS, an influential consortium, unites some of the world's most dynamic economies. Its track record of cooperation on pressing global issues and its advocacy for the global south in international arenas underscore its significance. As it broadens its membership and extends the scope of its collaborations, BRICS aims to wield even greater influence in shaping the future of global governance.
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