In 2001, economist Jim O’Neill coined the acronym BRIC (Brazil, Russia, India, China) to describe high-growth emerging economies. With South Africa joining in 2010, and further expansion in 2024 (Egypt, Iran, Ethiopia, Saudi Arabia, UAE) and 2025 (Indonesia), BRICS today represents over 40% of the global population and about 25% of global GDP, symbolising the voice of the Global South.
Emerging Role of BRICS in Shaping a New World Order:
Reforming Global Governance:
- Advocates UN Security Council reform, supporting India, Brazil, and African representation. For example, the 2023 Johannesburg Declaration reaffirmed the need for “a more democratic international system.”
- Promotes multipolarity and sovereign equality, countering unilateralism in global politics.
Building Alternative Financial Architecture:
- New Development Bank (NDB): $32.8 billion committed to 96 sustainable infrastructure projects across member states. For example, NDB funded India’s Madhya Pradesh Road Project and renewable energy projects in South Africa.
- Contingent Reserve Arrangement (CRA): $100 billion pool to stabilize economies against short-term liquidity shocks.
- Local Currency Initiatives: Encourages trade settlements in national currencies to reduce dollar dependence.
Promoting South–South Cooperation:
- Fosters collaboration in technology, trade, agriculture, and health, amplifying the collective voice of developing nations. For example, BRICS Vaccine Research Centre and cooperation with WHO during COVID-19 pandemic.
Shaping Global Norms:
- Advocates reforms in IMF and World Bank voting structures to enhance representation of developing countries and opposes trade protectionism within WTO.
Challenges Facing BRICS:
- Internal Geopolitical Divergences: India–China border tensions and Russia’s Ukraine war strain intra-group trust and consensus-building.
- Economic Asymmetry: China accounts for nearly 70% of BRICS GDP, raising fears of dominance among smaller members.
- Institutional Overlap: Duplication with other groupings such as G20, IBSA, and SCO etc dilutes focus and coordination.
- Fragmented Vision: Diverging views on BRICS common currency and de-dollarization and lack of macroeconomic convergence hinders progress.
- Divergent interests within BRICS+: Diverse interests of oil economies such as Saudi Arabia, UAE and developing nations such as Ethiopia, and Egypt complicate agenda-setting.
Way Forward:
- Strengthen Institutional Framework: Establish a BRICS Secretariat for policy continuity and coordination.
- Enhance Economic Complementarity: Expand intra-BRICS trade and investment through local currency mechanisms.
- Focus on Deliverables: Prioritize tangible outcomes in infrastructure, health, and climate resilience over grand talk.
Conclusion:
BRICS today is not a challenge to the Western-led order but a call for its democratization. By building parallel financial institutions and promoting multilateral reform, it seeks a more equitable, multipolar, and inclusive world system.
‘+1’ Value Addition:
- BRICS now includes 10 members, enhancing its geopolitical reach across Africa, the Middle East, and Asia.
- Combined GDP of BRICS stands at $28 trillion (2024, IMF) while the combined population stands at 3.6 billion.
- BRICS trade in local currencies grew 12% in 2023 (UNCTAD) in the context of the de-dollarisation push.
- NDB committed over $7 billion to renewable energy and transport infrastructure.
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