BRICS on the Rise: The Coalition Redefining Global Influence
India’s fiery samosas, Brazil’s comforting pão
de queijo, China’s delicate dumplings, Russia’s hearty potato pancakes, and
South Africa’s sweet, braided koeksisters—imagine a cook-off where BRICS
arrives with this lineup, captivating everyone with a diverse, bold array of
flavors.
This is how BRICS steps onto the world stage.
Just as each dish reflects its nation, Brazil, Russia, India, China, and South
Africa bring their unique perspectives, challenging the usual order. Dive into
the story of BRICS—a coalition that’s reshaping global power dynamics, one
vibrant idea at a time.
What is BRICS?
In a world where power dynamics are constantly
evolving, BRICS stands out as a formidable coalition of emerging economies:
Brazil, Russia, India, China, and South Africa. Established with the vision of
fostering mutual economic development and enhancing political influence, BRICS
is more than an economic grouping, it symbolizes the potential for a shift in
global power away from traditional Western dominance.
History and Formation
of BRICS
The concept of BRICS first emerged in 2001,
coined by economist Jim O’Neill as “BRIC” to describe four rapidly growing
economies: Brazil, Russia, India, and China. These countries shared certain
commonalities, including large populations, significant economic growth
potential, and regional influence. This informal grouping transformed into a
formal coalition in 2009 when the first BRIC summit was held in Russia. The
member countries discussed strategies for joint development and voiced their
desire for more significant representation in global institutions like the
United Nations and the International Monetary Fund (IMF).
In 2010, South Africa joined the group, adding
a new dimension to the coalition’s outreach and influence, making it BRICS.
This marked an important milestone, showcasing the alliance’s willingness to
include a key player from the African continent and emphasizing its global
inclusivity.
Key Objectives and
Vision
BRICS was founded on shared aspirations:
accelerating economic growth, promoting development cooperation, and
influencing global governance. The alliance envisions a multipolar world where
emerging economies have a greater say in decision-making processes that affect
the global landscape. BRICS members aim to challenge the status quo and push
for reforms in institutions like the IMF and the World Bank to reflect modern
economic realities more accurately. The three pillars of Cooperation are:
1. Political and Security
2. Economic and Financial
3. Cultural and People to People
Influence and
Challenges
BRICS represents about 42% of the world’s
population and contributes to approximately 25% of the global GDP, making it a
significant force in the international economic sphere. The combined market
size and natural resources of these countries enhance their strategic
importance. China and India, in particular, are recognized for their rapid
economic growth and technological advancements, while Russia holds significant
influence through its energy resources. Brazil, with its vast agricultural
exports, and South Africa, as the gateway to the African continent, round out
the coalition’s economic and strategic capabilities.
At the 15th BRICS Summit, held in August 2023
in Johannesburg, South Africa, BRICS announced its first expansion since the
inclusion of South Africa in 2010. Six new countries were invited to join,
expanding the group’s reach and influence. The new countries set to join BRICS
are:
1. Argentina
2. Egypt
3. Ethiopia
4. Iran
5. Saudi Arabia
6. United Arab Emirates (UAE)
These countries are expected to formally become
members in 2024, significantly broadening BRICS’ global economic and
geopolitical footprint. However, despite these strengths, BRICS faces notable
challenges. Each member has its distinct political and economic landscape,
which sometimes leads to conflicting interests. For instance, border tensions
between India and China have posed difficulties for cooperation. The economic
disparity between the members—China’s GDP is vastly larger than the others—can
also lead to imbalances in influence within the group.
Formation of New
Development Bank
Over the years, BRICS has made significant
strides in areas like finance, technology, and trade. One of the most notable
achievements is the creation of the New Development Bank (NDB), headquartered
in Shanghai. Established in 2014, the NDB aims to mobilize resources for
infrastructure and sustainable development projects in BRICS countries and
other developing economies. By 2023, the bank had approved funding for numerous
projects, ranging from renewable energy initiatives in Brazil to transportation
and urban development in India.
BRICS summits, held annually, have been
platforms for discussing global challenges and forming cooperative strategies.
For example, in recent years, BRICS members have discussed issues such as
climate change, trade policies, and digital transformation. These discussions
have resulted in agreements on joint ventures, policy alignments, and the
sharing of technological advancements.
Symbolic BRICS
Currency Note
During the 2024 BRICS Summit in Kazan, Russia, President Vladimir Putin was presented with a symbolic BRICS currency note. This gesture featured the flags and cultural symbols of the core BRICS members (Brazil, Russia, India, China, and South Africa) as well as new members like Egypt, Iran, and the UAE. Although this sparked widespread interest and fueled speculation about a potential unified currency, it was clarified that the note was only a symbolic gift and not an official currency.
Why the Idea of a
BRICS Currency?
The concept of a unified BRICS currency has
been part of ongoing discussions as the bloc looks to increase economic
independence and challenge the dominance of the U.S. dollar in international
trade. The primary reasons for exploring such a currency include:
1. Reducing Dollar
Dependency: A
shared currency would allow BRICS members to conduct trade without the
volatility of exchange rates tied to the dollar, enhancing financial stability
within the bloc.
2. Economic
Sovereignty:
Promoting a currency independent of Western influence aligns with BRICS’
broader goals of creating a multipolar global financial system.
3. Strengthening Trade
and Investment:
Using a common currency could streamline cross-border trade and investments,
making financial transactions more efficient among BRICS members.
BRICS vs. Other
International Alliances
BRICS is often compared to Western-led
alliances like the G7 and G20. While the G7 comprises some of the world’s most
developed nations, BRICS emphasizes emerging markets with a focus on collective
growth. Unlike the G7, where policy cohesion is stronger due to shared economic
systems, BRICS stands out for its diversity, encompassing democratic states
like India and Brazil, an autocratic regime in China, and a semi-authoritarian
state in Russia.
This diversity is both a strength and a
challenge. On one hand, it provides a broader perspective and more
comprehensive representation of global development concerns. On the other hand,
differing political systems and priorities can make consensus difficult to
achieve.
Future Prospects and
Potential Expansions
Looking ahead, BRICS aims to expand its role on
the global stage. Discussions about potential new members, such as countries in
the Middle East and Southeast Asia, have been floated, which could strengthen
the coalition’s global reach and strategic partnerships. If realized, such
expansions would amplify BRICS’ voice in global economic and political arenas.
Moreover, the group is increasingly focusing on
sustainable development, technology partnerships, and health initiatives. The
COVID-19 pandemic showcased both the strengths and the gaps in global health
infrastructure. BRICS countries worked together to share resources and best
practices, demonstrating the potential of the alliance in addressing
international crises.
Why BRICS Stands Out
What makes BRICS unique is its ability to
represent the interests of both the developing and the developed world. The
diversity of its members enables the group to tackle global challenges from
multiple angles—be it Russia’s energy diplomacy, China’s technological prowess,
India’s IT services, Brazil’s agricultural exports, or South Africa’s strategic
position in Africa.
The New Development Bank has positioned itself
as a significant alternative to Western-dominated financial institutions.
Furthermore, BRICS’ support for a multipolar world order appeals to many
countries that seek to diversify their alliances beyond Western powers. In an
era where alliances shape the global order, BRICS symbolizes the collective
strength of emerging economies and their desire for a more balanced, inclusive
world.
“BRICS stands as a powerful coalition of
Brazil, Russia, India, China, and South Africa, reshaping the global economic
landscape. From its formation in the early 2000s to its role today, BRICS
showcases how emerging economies can unite to challenge traditional Western
dominance. This blog dives into the history, achievements, and future of this
influential alliance, exploring what makes it unique and critical in today’s
world.”
Until then…Don’t forget to share this story on
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Blog Written by Gurkamal singh and Karishma Giri
References
https://en.m.wikipedia.org/wiki/New_Development_Bank
https://stratheia.com/the-new-brics-currency-and-payment-systems/
https://www.investopedia.com/terms/b/brics.asp
https://www.cfr.org/expert-brief/how-brics-got
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