BRICS: Rise and Evolution of an Organisation
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.
Principles of BRICS
At its core, BRICS is founded on the principles of equality, mutual benefit, and cooperation. The member nations share a common aspiration to reform the existing global governance structures to better reflect the evolving geopolitical realities. One of the primary objectives of BRICS is to promote inclusive growth and sustainable development, both within member countries and across the broader global community.
Economic cooperation forms the cornerstone of BRICS' agenda. The member nations seek to enhance trade and investment ties, facilitate technology transfer, and promote innovation and entrepreneurship. Moreover, BRICS aims to foster greater financial cooperation, including initiatives such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), which provide alternative sources of financing and contribute to the stability of the global financial system.
In addition to economic cooperation, BRICS also engages in dialogue and collaboration on political and security issues of mutual concern. This includes discussions on counterterrorism, peacekeeping, cybersecurity, and climate change. By leveraging their collective influence, BRICS members aim to contribute to global peace, stability, and sustainable development.
Evolution of BRICS
Since its inception, BRICS has evolved from a forum for dialogue and cooperation among emerging economies to a multifaceted platform with significant geopolitical implications. The alliance has witnessed several milestones and achievements, as well as challenges and areas of contention.
One of the key milestones in the evolution of BRICS was the establishment of the New Development Bank (NDB) in 2014. 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. By providing an alternative source of financing to traditional multilateral institutions, the NDB enhances the autonomy and agency of developing nations in shaping their economic futures.
Another significant development was the creation of the Contingent Reserve Arrangement (CRA) in 2015. 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. By pooling together their financial resources, BRICS members strengthen their collective resilience to external economic shocks and enhance the stability of the global financial system.
However, the evolution of BRICS has not been without challenges. One of the primary criticisms leveled against the alliance is the perceived lack of institutionalization and concrete outcomes. Critics argue that BRICS has yet to translate its rhetoric into tangible results, particularly in terms of economic cooperation and coordination. Moreover, divergent national interests and priorities among member countries have sometimes hindered consensus-building and collective action within the alliance.
Challenges and Controversies
Despite its aspirations for unity and cooperation, BRICS faces several challenges and controversies that have the potential to impact its cohesion and effectiveness. One such challenge is the divergent political systems and ideologies among member countries. While China and Russia lean towards authoritarian governance models, Brazil, India, and South Africa adhere to democratic principles. These ideological differences can sometimes lead to friction and discord within the alliance, particularly on issues related to human rights, democracy, and political freedoms.
Another challenge confronting BRICS is the unequal distribution of power and influence among member countries. China's economic dominance and assertive foreign policy stance have raised concerns among other BRICS nations about the imbalance of power within the alliance. Similarly, Russia's annexation of Crimea in 2014 and its involvement in conflicts in Ukraine and Syria have strained its relations with Western countries and raised questions about its commitment to international law and norms.
Furthermore, economic disparities and developmental challenges within BRICS countries pose obstacles to deeper integration and cooperation. While China has emerged as a global economic powerhouse, other BRICS nations such as Brazil and South Africa continue to grapple with poverty, inequality, and structural barriers to growth. Addressing these disparities and promoting inclusive development remains a formidable task for the alliance.
Future Prospects and Outlook
Despite the challenges and controversies it faces, BRICS remains a significant player in shaping the future of global politics and economics. The alliance has demonstrated resilience and adaptability in the face of changing geopolitical dynamics and emerging challenges. Looking ahead, BRICS is poised to play an increasingly influential role in driving economic growth, promoting multilateralism, and addressing global challenges.
One area of potential growth for BRICS is enhanced economic cooperation and integration. By leveraging their complementary strengths and resources, member countries can deepen trade ties, expand investment opportunities, and promote technological innovation and industrial cooperation. Initiatives such as the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RCEP) offer avenues for greater connectivity and collaboration among BRICS nations and beyond.
Moreover, BRICS can play a crucial role in shaping the global governance agenda and advocating for reforms of existing institutions. 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 climate change, pandemics, and other transnational threats.
Final Words
In conclusion, BRICS represents a dynamic and evolving alliance of major emerging economies with the potential to reshape the global order. Despite facing challenges and controversies, BRICS members share a common commitment to promoting inclusive development, fostering cooperation, and advancing their collective interests on the international stage. As the world continues to undergo rapid transformation, BRICS is poised to play a central role in shaping the future trajectory of global politics and economics. 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:
The main aim of BRICS (Brazil, Russia, India, China, South Africa) is to promote peace, security, and economic development among member countries, enhancing cooperation in various fields, including finance, trade, technology, and sustainable development.
BRICS was formally established in 2009 during the first BRIC Summit in Yekaterinburg, Russia. South Africa joined the group in 2010, turning BRIC into BRICS.
BRICS does not have a permanent headquarters. The chairmanship and hosting of the BRICS summit rotate annually among the member countries.
The main principle of BRICS is mutual respect for sovereignty, equality, and the shared desire to enhance global economic governance and address common challenges through multilateral cooperation and dialogue.
BRICS objectives include fostering economic growth, promoting sustainable development, enhancing cooperation in science and technology, supporting multilateralism, and reforming international financial institutions to better represent emerging economies.
The New Development Bank (NDB), established by BRICS, finances infrastructure and sustainable development projects in member countries and other emerging economies. It aims to complement existing global financial institutions, fostering greater financial stability and development.
The BRICS Summit is significant as it provides a platform for member countries to discuss and coordinate policies on global economic governance, political issues, and development strategies. It enhances cooperation and strengthens the collective influence of BRICS on global affairs.
Key agreements among BRICS countries include the establishment of the New Development Bank (NDB), the Contingent Reserve Arrangement (CRA) for financial stability, and various memoranda of understanding (MoUs) on trade, investment, innovation, and technology cooperation.
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
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.