BRICS 101

Introduction to BRICS

 The BRICS group is made up of five countries: Brazil, Russia, India, China, and South Africa. These countries are important because they are growing quickly and can have a big impact on the world’s economy and politics. The idea of BRICS started in 2001 when an economist named Jim O’Neill thought that these countries would become very important for the world’s economy. At first, it was just BRIC without South Africa, but in 2010, South Africa joined, and it became BRICS.

BRICS was officially formed in 2009, and its main goals are:

• Strengthening mutual cooperation and understanding among member countries.
• Advocating for a more multipolar world order and reforming global governance institutions, including the United Nations and international financial systems, to better represent developing countries’ interests.
• Enhancing economic cooperation and integration among member states, including trade, investment, and financial transactions.
• Promoting development and addressing global challenges such as climate change, terrorism, and health issues through collective efforts.

BRICS countries together represent a significant portion of the world’s population, area, and GDP, making their collective voice influential in global economic and political discussions. The significance of BRICS in the global arena includes:

• Economic Power: The BRICS countries make up a big part of the world’s economy. Together, in the year established, they produced more than 23% of the world’s total money (GDP), and this ratio had increased to 30% by 2023.
• Political Power: As a bloc, BRICS aims to act as a counterbalance to Western economic and political dominance.
• Developmental Model: BRICS countries offer alternative models of development that can serve as examples for other emerging economies, showcasing diverse paths to economic growth and social development.
• Cooperation Beyond Economics: Beyond economic cooperation, BRICS also focuses on cultural exchanges, security collaborations, and technological partnerships, aiming to enhance the welfare and stability of its members and other developing nations.

The BRICS group has set up a special bank called the New Development Bank (NDB) to help pay for big projects that can make life better in their countries and other developing countries. This bank started in 2015 and is a way for these countries to help each other grow.

The headquarters of the New Development Bank is in Shanghai, China. It also has regional offices in Johannesburg, South Africa, and plans for more offices in other member countries to help with its work around the world.

So, BRICS’s actions and policies continue to shape global economic policies, development strategies, and diplomatic relations, reinforcing its role as a pivotal force in international affairs.