BRICS is an acronym representing Brazil, Russia, India, China, and South Africa. Originally termed BRIC by a Goldman Sachs economist in 2001, South Africa was added in 2010, forming BRICS as we know it today. The premise was that these economies would dominate global growth by 2050.
The BRICS nations collaborate to enhance economic, political, and social cooperation among members, amplifying their influence globally. The organization’s scope was emphasized by the invitation of new members like Saudi Arabia, Iran, Ethiopia, the UAE, Egypt, and Argentina in 2023.
Key Highlights
- BRICS Origins: Brazil, Russia, India, China initially devised by economist Jim O’Neill; South Africa joined in 2010.
- Primary Objective: Economic and political elevation of member countries, counterbalancing Western influence.
- Future Members: Invitations to Saudi Arabia, Iran, Ethiopia, UAE, Egypt, and Argentina point to future expansions.
Insights into BRICS
BRICS nations stand among the fastest-growing emerging markets, thanks to favorable demographics, low labor costs, and vast natural resources. Collective priorities include regional problem-solving, financial reforms, and economic cooperation through the BRICS Interbank Cooperation Mechanism.
While not a formal trade union like the EU, BRICS has shown to foster strong political and economic ties, which influence about 31.5% of global GDP as of 2023, rivaling the G7’s 30.7%.
Historical Context
BRICS emerged against the backdrop of challenging the Western-dominated global order. However, internal disagreements on issues like transparency can affect group cohesion. Meetings are annual, focusing on enhancing economic collaboration, with rotating leadership among the member states.
Recent Developments
- The New Development Bank, created in 2015, aims to fund infrastructure and sustainable growth in emerging economies.
- The BRICS Parliamentary Forum enhances inter-parliamentary cooperation among its member states.
Despite skepticism over their projections, Goldman Sachs’ thesis about the economic potential of BRICS countries positioned them as future global powers. Reports over the years outlined the potential expansion and impact of BRICS economies on the world stage.
Economic Projections and Challenges
Post the 2007-2008 financial crisis and subsequent slowdowns had affected the enthusiasm around BRICS’s investment potential, leading to the dismantling of specialized BRICS funds, such as by Goldman Sachs. Despite this, the grouping’s influential goals in economics and politics remain prominent.
Country Members
- Current Members: Brazil, Russia, India, China, South Africa.
- Invited in 2023: Argentina, Ethiopia, Iran, Saudi Arabia, Egypt, UAE.
Purpose of BRICS
BRICS seeks greater economic and political engagement among members to enhance global presence and influence. Cooperation, development financing, socio-cultural exchanges, innovation, and peaceful coexistence are its core missions.
Conclusion
BRICS exemplifies how emerging market nations can collaborate to counterweight traditional Western influence. Their goals are anchored in economic collaboration and global influence expansion, embodying a significant shift in the global balance of power.
Related Terms: G7, Emerging Markets, International Monetary Fund (IMF), World Bank.
References
- International Monetary Fund. “Is the Emerging World Still Emerging?”
- BRICS. “History of BRICS”.
- Almendron. “Goldman Sachs: Building Better Global Economic BRICs”, Page S.03.
- BRICS. “Why 40+ Countries Want to Join BRICS”.
- Library of Congress. “BRICS: Sources of Information”.
- BRICS. “Brics to Admit Six New Countries to Bloc Including Iran and Saudi Arabia”.
- New Development Bank. “About NDB”.
- BRICS. “South Africa: Brics Urged to Work Collectively in Global Food, Fuel Crisis”.
- Bloomberg. “Goldman’s BRIC Era Ends as Fund Folds After Years of Losses”.
- European Territorial Framework Virtual Library. “Goldman Sachs: Dreaming with BRICs: The Path to 2050”.
- YUMPU. “Goldman Sachs: BRICs and Beyond”.
- Old Mutual Investment Group. “Quarterly Economic Brief Q1’ 2016”, Page 1.
- U.S. Securities and Exchange Commission. “Goldman Sachs Trust”, Pages ii, iv, 12.
