What Is BRICS? Understanding the Economic Alliance Shaping the Global Order

BRICS—short for Brazil, Russia, India, China, and South Africa—is one of the most significant geopolitical and economic alliances of the 21st century. Formed to strengthen cooperation among emerging economies, the group has gained global influence, challenging the Western-dominated economic and political order. But what exactly is BRICS, how did it start, and what impact does it have on the world?

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What Is BRICS and How Did It Begin?

The term “BRIC” was first coined in 2001 by economist Jim O’Neill of Goldman Sachs in a report titled “Building Better Global Economic BRICs.” He identified Brazil, Russia, India, and China as fast-growing economies with the potential to become dominant global players in the coming decades.

By 2006, these four countries decided to formalize their cooperation and held their first ministerial meeting. In 2009, the first official BRIC summit took place in Yekaterinburg, Russia. The following year, South Africa joined, expanding the group to BRICS.

Who Are the BRICS Members?

BRICS consists of five countries:

1. Brazil – The largest economy in Latin America, known for its strong agricultural and natural resource sectors.
2. Russia – A global energy powerhouse with vast oil and natural gas reserves.
3. India – A leader in information technology and services, with a young and rapidly growing population.
4. China – The world’s second-largest economy, dominating global manufacturing and trade.
5. South Africa – The leading economy in Africa, rich in strategic mineral resources.

Together, these nations account for 42% of the world’s population, 24% of global GDP, and 16% of international trade.

What Is the Purpose of BRICS?

BRICS was established with several key objectives:

1. Strengthening Economic Cooperation – Encouraging trade and investment among member nations.
2. Reforming Global Financial Institutions – Advocating for greater representation in organizations like the IMF and World Bank.
3. Promoting Sustainable Development – Collaborating on energy, infrastructure, and technology projects.
4. Expanding Geopolitical Influence – Coordinating positions on global issues such as climate change and international security.

One of BRICS’ major achievements is the New Development Bank (NDB), launched in 2014 and headquartered in Shanghai, China. The NDB funds infrastructure and sustainable development projects in BRICS countries and other emerging economies.

How BRICS Impacts the Global Economy

BRICS is reshaping global economic dynamics by reducing reliance on the U.S. dollar and promoting local currencies in international trade. The alliance also plays a key role in advocating for the interests of developing nations, pushing for reforms in institutions like the United Nations (UN) and the International Monetary Fund (IMF).

Economic Growth Before and After BRICS

Before BRICS was established, its member countries were already experiencing rapid growth but faced challenges such as social inequality, weak infrastructure, and heavy reliance on commodity exports. After forming the alliance, economic cooperation and trade among the members increased. For example:

• China solidified its role as the “world’s factory,” with an average annual GDP growth of nearly 10% in the 2000s.
• India became a global hub for technology and services, with an expanding IT sector.
• Brazil and Russia benefited from the commodity boom of the 2000s but later faced economic downturns.
• South Africa increased its influence in Africa, attracting foreign investment.

However, BRICS nations have also faced challenges, including global economic slowdowns, internal political crises, and international sanctions (particularly against Russia).

Who Leads BRICS?

BRICS has no centralized leadership. Decisions are made by consensus, and the group’s presidency rotates annually among its members. Although China plays a significant role—symbolized by the NDB’s headquarters in Shanghai—all countries have equal voting rights in decision-making.

Where Does BRICS Operate?

BRICS engages in multiple areas:

1. International Forums – The group coordinates positions at the UN, G20, and World Trade Organization (WTO).
2. Infrastructure Projects – The NDB finances energy, transportation, and urban development initiatives.
3. Technology Collaboration – Members cooperate on artificial intelligence, renewable energy, and space exploration.
4. Political Dialogue – BRICS discusses global security, counterterrorism, and climate change policies.

The Future of BRICS

BRICS represents a shift toward a multipolar world, where emerging economies have a stronger voice in global affairs. While the alliance faces internal and external challenges, it remains a key player in shaping the future of international politics and economics.
In an increasingly interconnected world, BRICS is a force that cannot be ignored.

Did you like this content? Also read our article The BRICS: A Deep Dive into the Emerging Power Bloc Reshaping Global Order

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