BRICS: Rise and Evolution of an Organization
- Headquarters: Shanghai, China
- Founding Place: Yekaterinburg, Russia (1st BRIC Summit)
- Founding States: Brazil, Russia, India, & China
- Member States: UAE, South Africa, Russia, Iran, India, Ethiopia, Egypt, China, Brazil
- Website: www.brics.org
Overview
In the shifting landscape of global politics and economics, alliances and partnerships among nations play a pivotal role. One such alliance that has gained significant prominence in recent years is BRICS. BRICS, an acronym for Brazil, Russia, India, China, and South Africa, represents a coalition of major emerging economies with the shared goal of fostering mutual cooperation and development. Since its inception in 2006, BRICS has evolved into a significant player on the global stage, influencing international relations, trade dynamics, and geopolitical strategies. This article by Academic Block aims to dive into the origins, evolution, challenges, and future prospects of BRICS, providing a comprehensive analysis of this influential bloc.
Origins of BRICS
The origins of BRICS can be traced back to discussions among economists and policymakers regarding the changing dynamics of the global economy in the early 2000s. As the world witnessed the rapid rise of emerging economies, particularly Brazil, Russia, India, China, and later South Africa, there emerged a recognition of the potential collective power these nations could wield on the international stage.
The term "BRIC" was first coined by economist Jim O'Neill in a 2001 paper titled "Building Better Global Economic BRICs." O'Neill highlighted the economic potential of Brazil, Russia, India, and China, identifying them as key players in shaping the future of the global economy. The addition of South Africa to the group in 2010 expanded the alliance's geographical and strategic reach, transforming BRIC into BRICS.
History and Formation of BRICS
Key Objectives of BRICS
BRICS was established with the core mission of fostering economic growth, cooperation, and political stability among its member countries. The group’s objectives aim to address global challenges and promote development in emerging economies.
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Economic Cooperation : BRICS seeks to enhance trade and investment between its members. By reducing trade barriers and promoting economic integration, the group aims to create a more balanced global economy that benefits its diverse economies.
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Financial Stability : One of BRICS' key goals is to reform global financial systems, particularly institutions like the IMF and World Bank. The group advocates for greater representation of emerging economies in these bodies to ensure a more equitable global financial framework.
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Political Cooperation : Strengthening diplomatic ties between BRICS members enables better coordination on global political issues, including peacekeeping, conflict resolution, and global governance.
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Technological and Cultural Exchange : BRICS promotes collaboration in science, technology, and culture. Sharing knowledge helps boost innovation and mutual growth.
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Sustainable Development : The group supports green energy initiatives, climate action, and inclusive growth to ensure sustainable development for future generations. By focusing on environmental sustainability, BRICS aims to lead the way in global ecological efforts.
BRICS Summits and Achievements
(i) Key BRICS Summits and Their Impact
(ii)Major Achievements of BRICS
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New Development Bank (NDB) :
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Established in 2014, the BRICS Bank funds infrastructure and sustainable development projects.
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Headquarters : Shanghai, China
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BRICS Contingent Reserve Arrangement (CRA) : A financial safety net worth $100 billion to help BRICS nations during economic crises.
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Expanding BRICS Membership : At the 2023 BRICS Summit, new countries were invited to join, including Saudi Arabia, UAE, Iran, and Egypt.
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Growing Trade Relations :
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BRICS members are major trading partners.
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China is the largest trading partner within BRICS, followed by India and Russia.
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Alternative to Western-Dominated Institutions : BRICS challenges organizations like the IMF, World Bank, and G7, demanding reforms for a fairer global economy.
BRICS and Global Geopolitics: A New Era of Cooperation
BRICS (Brazil, Russia, India, China, and South Africa) is reshaping global geopolitics by challenging Western dominance and advocating for reforms in international institutions.
(i) Reforming Global Governance
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BRICS aims to reform the United Nations Security Council and International Monetary Fund (IMF) to amplify the voice of developing nations.
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The group seeks greater representation for emerging economies in the UN and increased decision-making power in the IMF.
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This push reduces Western dominance and promotes a more inclusive global governance system.
(ii) Strengthening Multilateral Relations
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BRICS fosters stronger multilateral cooperation with other emerging markets.
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Through initiatives like the BRICS Business Council and BRICS Agricultural Cooperation, the group extends partnerships in Southeast Asia, the Middle East, and Latin America.
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This collaborative approach enhances BRICS' global influence and supports the creation of a more equitable global order.
This strategy reflects BRICS’ efforts to shift the global balance of power.
Challenges and Criticisms of BRICS
- Different ideologies make decision-making complex.
- Russia faces sanctions from Western countries.
- Critics argue that BRICS lacks a clear unified agenda.
- Some claim BRICS is too dependent on China’s economic strength.
The Future of BRICS: A Global Powerhouse?
Despite challenges, BRICS is expected to play a key role in shaping the 21st-century global economy.
Possible Future Developments of BRICS
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BRICS Expansion : More countries may join BRICS, increasing its global influence.
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New BRICS Currency? : There are discussions about a BRICS common currency to reduce dependence on the U.S. dollar.
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Greater Role in Global Politics : BRICS aims to become a counterweight to Western alliances like NATO and the G7.
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Increasing Trade and Investment : BRICS economies continue to grow, attracting investments and partnerships worldwide.
Final Words: Is BRICS the Future of Global Economy?
BRICS is more than just an economic group—it is a powerful alliance that challenges the traditional global order. With initiatives like the New Development Bank, expanding trade agreements, and a push for financial independence from Western institutions, BRICS is poised to become a major global force. However, internal challenges, geopolitical conflicts, and economic disparities could slow down its progress. Hope you liked this article by Academic Block, please provide your thoughts in comment section to make this article better. Thanks for Reading!
This Article will answer your questions like:
BRICS is an acronym for a group of five major emerging economies: Brazil, Russia, India, China, and South Africa. Its purpose is to promote economic cooperation and development, provide a platform for dialogue among its members, and address issues that impact the global south. BRICS strives to challenge the dominance of Western powers in international institutions and offer an alternative approach to global governance.
The main objectives of BRICS are to promote economic growth, enhance cooperation in trade, finance, and development, and work towards reforming global governance institutions like the IMF and World Bank. BRICS also focuses on fostering cultural exchange, technological advancement, and addressing global challenges such as climate change, poverty, and security, particularly in developing nations.
BRICS does not have a single leader but operates through a collective approach. The presidency rotates annually among member countries. The current presidency and related summit are led by the country holding the chairmanship for that year. Each member nation contributes equally to the discussions and decision-making processes, ensuring a balanced representation of their collective interests.
Yes, BRICS remains an active organization. It continues to hold annual summits and engages in multilateral cooperation through various initiatives aimed at addressing global economic challenges. The group's significance has grown, with its members advocating for reforms in global financial systems and promoting alternative trade agreements to counterbalance Western-dominated frameworks.
BRICS has established several initiatives including the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), aimed at providing financial support to its members and other developing countries. BRICS also advocates for greater influence in global institutions, such as the United Nations and the World Bank, and focuses on sustainable development and enhancing economic trade among its members.
BRICS is not a single country, but a group of five countries: Brazil, Russia, India, China, and South Africa. These nations, which are all emerging economies, work together to promote economic cooperation, enhance their global influence, and advocate for reforms in international financial institutions. Each member has a unique economic structure, yet they share common goals of development and greater political clout.
BRICS was originally formed in 2006 as BRIC (Brazil, Russia, India, China), with South Africa joining in 2010. The purpose of the organization was to create a platform for cooperation among emerging economies to address the imbalances in global governance and promote a new world order focused on development and sustainable growth. BRICS aims to counterbalance the influence of Western powers in global institutions.
BRICS' membership has remained relatively consistent since South Africa joined in 2010. However, the organization is actively discussing the expansion of its membership, with countries such as Argentina, Iran, Saudi Arabia, and others expressing interest in joining. BRICS' expansion aims to strengthen the influence of the Global South in global economic and political affairs.
The main aim of BRICS is to enhance the economic and political cooperation between its members, representing the interests of emerging economies. It seeks to challenge the existing global economic order, reform global institutions like the IMF and World Bank, and promote sustainable development, trade, and investment among its members and the broader Global South.
Critics of BRICS argue that the organization lacks a clear direction due to the varying political and economic interests of its members. There are concerns about the unequal economic power within the group, especially with China’s dominant role. Additionally, BRICS has been criticized for its slow progress on key reforms and for not effectively addressing internal challenges, such as poverty and inequality among member countries.
BRICS was officially established in 2006 as BRIC, with the founding members being Brazil, Russia, India, and China. South Africa joined the group in 2010, making it BRICS. The group's formation was aimed at addressing the disparities in global economic governance and providing a platform for the rising powers of the Global South to discuss economic and political issues that were previously dominated by Western nations.
Several countries have shown interest in joining BRICS, including Egypt, Ethopia, Iran, and Saudi Arabia. BRICS has discussed the possibility of expanding its membership, with a focus on countries from the Global South that share common economic and political goals. Expansion would enhance the group’s influence on global governance, particularly in reforming international financial institutions and increasing the voice of developing nations.
The official website of BRICS can be accessed by visiting the website www.brics2025.org. The website provides information on the latest BRICS summits, member countries' initiatives, news, and resources on the organization's activities. It serves as a central hub for BRICS-related updates and documents.
As of 2024, Argentina refused to join BRICS. The expansion of BRICS is an ongoing discussion, with some countries still deciding whether to pursue membership.
The BRICS nations aim to promote economic cooperation, development, and reform in international institutions like the UN and IMF. The group also focuses on enhancing trade, financial stability, and mutual support in global challenges. BRICS seeks to empower the Global South by offering an alternative to Western-dominated global systems and promoting sustainable development practices.
BRICS differs from the G7 and G20 primarily in its focus on representing emerging economies, whereas the G7 is composed of advanced Western economies and the G20 includes a broader mix of developed and developing nations. BRICS aims to challenge Western dominance, promote the interests of the Global South, and advocate for reforms in global governance structures, whereas the G7 and G20 are often seen as platforms for developed economies to coordinate policy.
BRICS has launched several initiatives to enhance cooperation, including the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB finances infrastructure and sustainable development projects, while the CRA provides emergency financial support to member nations facing balance-of-payments crises. These initiatives are part of BRICS’ broader efforts to reduce dependency on Western-dominated financial institutions and promote regional development.
History of the BRICS
Formation of BRIC (2001): The concept of BRIC emerged as a result of O’Neill’s analysis of the economic potential and growth prospects of these four emerging economies. He highlighted their significant contributions to global GDP growth and their increasing influence on international trade and investment flows. The BRIC countries shared common characteristics such as large populations, abundant natural resources, and rapidly expanding middle classes, which positioned them as drivers of global economic transformation.
First BRIC Summit (2009): The leaders of Brazil, Russia, India, and China held their first official summit on the sidelines of the G20 Summit in Yekaterinburg, Russia, in 2009. The summit marked the formal establishment of BRIC as a political grouping representing major emerging economies. During the summit, the leaders discussed issues of mutual interest, including economic cooperation, trade, and global governance reform. They also expressed their commitment to enhancing cooperation and coordination on international issues.
Inclusion of South Africa (2010): In 2010, South Africa was invited to join the BRIC grouping, expanding it from BRIC to BRICS. The inclusion of South Africa was seen as a recognition of its growing economic significance and strategic importance on the African continent. South Africa’s membership added a new dimension to the alliance, broadening its geographical reach and strengthening its representation of emerging economies from different regions of the world.
Formalization of BRICS (2011): The BRICS countries held their first official summit in Sanya, China, in 2011, marking the formalization of the BRICS grouping. The summit laid the foundation for cooperation in various areas, including finance, trade, investment, and technology. The leaders adopted the Sanya Declaration, which outlined their shared objectives and principles and reaffirmed their commitment to strengthening cooperation and coordination on global issues.
Institutionalization of BRICS (2014): In 2014, the BRICS countries took significant steps towards institutionalizing their cooperation by establishing the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB, often referred to as the BRICS Bank, aims to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies. The CRA is a financial safety net that provides member countries with access to emergency funds to address balance of payments crises and currency volatility.
Evolution and Expansion: Since its formation, BRICS has evolved from a forum for dialogue and cooperation among emerging economies to a multifaceted platform with significant geopolitical implications. The alliance has expanded its agenda to include discussions on political and security issues, as well as economic cooperation. BRICS summits are held annually, providing leaders with an opportunity to review progress, discuss challenges, and explore new areas of cooperation. Despite facing various challenges, BRICS continues to play a significant role in shaping the global economic and political landscape.
Objectives of the BRICS
Economic Cooperation and Development: BRICS aims to promote economic cooperation and development among its member countries. This includes enhancing trade and investment flows, facilitating technology transfer and innovation, and fostering entrepreneurship and industrial cooperation. By leveraging their collective strengths and resources, BRICS countries seek to achieve higher levels of economic growth, job creation, and prosperity.
Reform of Global Governance Institutions: BRICS advocates for the reform of existing global governance institutions to better reflect the evolving realities of the international system. This includes efforts to democratize the United Nations Security Council, reform the International Monetary Fund (IMF) and World Bank, and strengthen multilateral mechanisms for addressing global challenges such as climate change, pandemics, and terrorism. BRICS countries seek to increase their representation and voice in global decision-making processes and promote a more equitable and inclusive international order.
Promotion of Multilateralism and International Law: BRICS upholds the principles of multilateralism, sovereignty, and non-interference in the internal affairs of other countries. The alliance advocates for the peaceful resolution of conflicts, respect for international law, and the primacy of diplomacy in addressing global challenges. BRICS countries oppose unilateralism, protectionism, and the use of force or coercion in international relations, emphasizing the importance of dialogue, cooperation, and mutual respect among nations.
Inclusive Development and Poverty Alleviation: BRICS is committed to promoting inclusive development and poverty alleviation within member countries and across the broader global community. This includes efforts to reduce income inequality, improve access to education, healthcare, and social services, and empower marginalized and vulnerable populations. BRICS countries recognize the importance of sustainable development and environmental conservation in achieving long-term prosperity and well-being for present and future generations.
South-South Cooperation and Solidarity: BRICS emphasizes the importance of South-South cooperation and solidarity in addressing common development challenges and promoting economic growth and social progress. The alliance seeks to strengthen ties among emerging economies and develop strategic partnerships with other developing countries and regions. By sharing experiences, expertise, and best practices, BRICS countries aim to accelerate progress towards the achievement of the United Nations Sustainable Development Goals (SDGs) and the broader development agenda.
Impact of BRICS on global trade and economics
Economic Growth and Market Potential: BRICS countries are among the fastest-growing economies in the world, with robust rates of economic growth and expanding consumer markets. Their growing middle classes and increasing purchasing power contribute to rising demand for goods and services, both domestically and internationally. As a result, BRICS countries play a crucial role in driving global economic growth and shaping consumption patterns worldwide.
Trade and Investment Flows: BRICS countries are major players in international trade and investment. They account for a significant share of global trade volumes and foreign direct investment (FDI) flows. The intra-BRICS trade has also been increasing steadily, driven by efforts to enhance economic cooperation and reduce trade barriers among member countries. BRICS nations engage in bilateral and multilateral trade agreements, promote investment in key sectors, and facilitate cross-border trade and investment through initiatives such as the BRICS Business Council.
New Development Bank (NDB) and Infrastructure Investment: The establishment of the New Development Bank (NDB) by BRICS countries has had a significant impact on global infrastructure investment. The NDB provides financing for infrastructure and sustainable development projects in BRICS countries and other emerging economies, addressing critical infrastructure gaps and promoting economic development. By mobilizing resources for infrastructure investment, the NDB contributes to global economic growth, job creation, and poverty reduction.
Financial Cooperation and Stability: BRICS countries collaborate on financial issues to enhance stability and resilience in the global financial system. Initiatives such as the Contingent Reserve Arrangement (CRA) provide member countries with access to emergency funds to address balance of payments crises and currency volatility. BRICS also advocates for reform of existing global financial institutions to better reflect the interests and priorities of emerging economies, promoting a more equitable and inclusive international financial architecture.
Influence on International Trade Rules and Norms: BRICS countries have an increasing influence on shaping international trade rules and norms. They advocate for a more open, inclusive, and rules-based global trading system, emphasizing the importance of multilateralism and the role of the World Trade Organization (WTO) in facilitating trade relations. BRICS countries engage in discussions on trade policy coordination, tariff reduction, and trade facilitation, promoting fair and balanced trade practices that benefit all parties involved.
New Development Bank and its role in BRICS
Definition: The New Development Bank (NDB), also known as the BRICS Bank, is a multilateral development bank established by the BRICS countries – Brazil, Russia, India, China, and South Africa. It was officially launched at the sixth BRICS Summit held in Fortaleza, Brazil, in July 2014. The NDB represents a significant milestone in the cooperation among emerging economies and aims to address the infrastructure and development needs of its member countries and other emerging economies.
Its role in BRICS
Financing Infrastructure Projects: One of the primary roles of the NDB is to provide financial support for infrastructure and sustainable development projects in BRICS countries and other emerging economies. These projects may include transportation networks, energy infrastructure, telecommunications, and urban development initiatives. By funding critical infrastructure projects, the NDB contributes to economic growth, job creation, and poverty reduction in member countries.
Complementing Existing Institutions: The NDB complements existing multilateral development banks such as the World Bank and the Asian Development Bank (ADB). It offers an alternative source of financing for infrastructure projects, particularly in regions where traditional lenders may have limited presence or capacity. By diversifying sources of funding, the NDB enhances the resilience and stability of the global financial architecture.
Promoting Sustainable Development: The NDB prioritizes investments that promote sustainable development and environmental conservation. It supports projects that adhere to principles of environmental sustainability, climate resilience, and social inclusion. By integrating environmental and social considerations into its financing decisions, the NDB contributes to the achievement of the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement on climate change.
Facilitating South-South Cooperation: The establishment of the NDB reflects the growing importance of South-South cooperation in international development finance. By pooling together their financial resources, BRICS countries demonstrate their commitment to addressing common development challenges and promoting economic cooperation among emerging economies. The NDB serves as a platform for sharing knowledge, expertise, and best practices in infrastructure development and finance.
Enhancing Financial Stability: In addition to providing project financing, the NDB also contributes to enhancing the financial stability of its member countries. It offers technical assistance and capacity-building support to strengthen financial institutions, improve regulatory frameworks, and promote good governance practices. By fostering a conducive environment for investment and economic growth, the NDB helps to mitigate risks and vulnerabilities in the global financial system.
BRICS Summit and its significance
Definition: The BRICS Summit is an annual gathering of leaders from Brazil, Russia, India, China, and South Africa, representing major emerging economies. It serves as a platform for discussions on political, economic, and strategic issues of mutual interest. The summit aims to enhance cooperation, promote economic growth, and address global challenges such as development, governance, and security. Through dialogue and collaboration, the BRICS Summit fosters solidarity among member countries and contributes to shaping the future trajectory of international relations and global governance.
Significance of the BRICS Summit
High-Level Diplomatic Engagement: The BRICS Summit brings together the heads of state or government from five major emerging economies, representing a significant portion of the world’s population, territory, and economic output. It provides a rare opportunity for these leaders to engage in face-to-face discussions and exchange views on a wide range of bilateral, regional, and global issues. The summit facilitates dialogue and cooperation on political, economic, security, and social issues, helping to build trust and understanding among member countries.
Economic Cooperation and Coordination: Economic cooperation is a central focus of the BRICS Summit. Leaders discuss ways to enhance trade and investment ties, promote financial cooperation, and facilitate technology transfer and innovation. The summit provides a platform for member countries to explore new opportunities for economic collaboration, identify common challenges, and coordinate their policies and strategies. Initiatives such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) are often discussed and advanced during BRICS summits, contributing to the development of alternative sources of financing and enhancing the resilience of the global financial system.
Global Governance and Reform: The BRICS Summit serves as a forum for member countries to advocate for the reform of existing global governance institutions and mechanisms. Leaders discuss ways to increase the representation and voice of emerging economies in international decision-making processes, promote the principles of multilateralism and international law, and address issues such as climate change, pandemics, terrorism, and peace and security. By collectively articulating their positions and priorities, BRICS countries seek to influence the global agenda and shape the future of international relations.
Promotion of South-South Cooperation: The BRICS Summit highlights the importance of South-South cooperation and solidarity in addressing common development challenges and promoting economic growth and social progress. Member countries share experiences, expertise, and best practices in areas such as poverty alleviation, sustainable development, infrastructure development, and technology transfer. The summit provides a platform for BRICS countries to strengthen ties among themselves and with other developing countries and regions, fostering a sense of solidarity and mutual support.
Symbol of Multipolarity and Emerging Powers: The BRICS Summit symbolizes the rise of multipolarity in the international system and the growing influence of emerging powers on the global stage. It demonstrates the ability of non-Western countries to come together and assert their collective interests and aspirations. The summit challenges the traditional dominance of Western powers in shaping the global agenda and reflects the shifting balance of power in the world. As such, the BRICS Summit serves as a symbol of a more diverse, inclusive, and equitable world order.
Agreements or Treaties signed by BRICS countries
Fortaleza Declaration (2014): Adopted at the sixth BRICS Summit in Fortaleza, Brazil, the Fortaleza Declaration outlined the strategic priorities and objectives of the BRICS alliance. It emphasized economic cooperation, political dialogue, and mutual support among member countries.
Agreement on the New Development Bank (2014): Signed during the sixth BRICS Summit, this agreement established the New Development Bank (NDB), also known as the BRICS Bank. The NDB aims to mobilize resources for infrastructure and sustainable development projects in BRICS countries and other emerging economies.
Contingent Reserve Arrangement (CRA) (2014): Also established at the sixth BRICS Summit, the CRA is a financial safety net that provides member countries with access to emergency funds to address balance of payments crises and currency volatility.
Ufa Declaration (2015): Issued at the seventh BRICS Summit in Ufa, Russia, the Ufa Declaration reaffirmed the commitment of BRICS countries to strengthening cooperation in various areas, including trade, investment, finance, and security.
Memorandum of Understanding on Cooperation in Science, Technology, and Innovation (2015): Signed at the seventh BRICS Summit, this memorandum aimed to enhance collaboration among BRICS countries in science, technology, and innovation through joint research projects, technology transfer, and capacity-building initiatives.
Goa Declaration (2016): Adopted at the eighth BRICS Summit in Goa, India, the Goa Declaration highlighted the importance of promoting inclusive growth, sustainable development, and global governance reform. It also addressed issues such as terrorism, climate change, and cybersecurity.
Xiamen Declaration (2017): Issued at the ninth BRICS Summit in Xiamen, China, the Xiamen Declaration emphasized the need for BRICS countries to deepen cooperation in areas such as trade, investment, infrastructure, and people-to-people exchanges. It also reaffirmed the commitment of BRICS countries to upholding multilateralism and promoting a fair and equitable international order.
Academic References on the BRICS
- O’Neill, J. (2001). Building Better Global Economic BRICs. Goldman Sachs Global Economics Paper, 66.
- Subramanian, A. (2011). Eclipse: Living in the Shadow of China’s Economic Dominance. Peterson Institute for International Economics.
- Zeng, K., & Gallagher, K. P. (Eds.). (2016). The BRICS-Led Development Bank: Will It Reshape Global Economic Governance? Edward Elgar Publishing.
- Dos Santos, T. (2013). The BRICS and the Washington Consensus: Challenges of a New Global Order. Springer.
- Aggarwal, V. K., & Bräutigam, D. (Eds.). (2019). The BRICS and Collective Financial Statecraft. Oxford University Press.
- Carvalho, B. D. (Ed.). (2016). BRICS: An Anti-Capitalist Critique. Haymarket Books.
- Dabrowski, M. (Ed.). (2015). The BRICS and Beyond: The International Political Economy of the Emergence of a New World Order. Ashgate Publishing.
- Lima, M. (Ed.). (2014). BRICS: An Introduction to Brazil, Russia, India, China and South Africa. Routledge.
- Chandy, L., & Linn, J. (2011). The rise of the South: Implications for the BRICS and other developing countries. Brookings Institution, 1-49.
- Hurrell, A. (2012). BRICS: A Study in Structural Change. International Affairs, 88(2), 389-404.