The BRICS alliance comprises Brazil, Russia, India, China, and South Africa, and the informal alliance was formed to foster collaboration and communication among its member nations. The goals of BRICS are economic cooperation, development financing, political coordination, social and cultural exchanges, technology and innovation, sustainable development, peace and security, and South-South cooperation.
BRICS represents a significant portion of the world’s population, landmass, and economic output, and the key aspects of BRICS include economic powerhouses, cooperation and dialogue, economic cooperation, development finance, political influence, and global governance reform.
However, despite the potential benefits and common interests, challenges and differing priorities exist among member countries. Additionally, the investment prospects in these markets have been re-assessed due to the economic challenges faced by the BRICS countries after the global financial crisis.
Nonetheless, the upcoming BRICS summit in 2023 is poised to be significant as the BRICS nations are planning to unveil a gold-backed digital currency that aims to reduce reliance on existing monetary systems, particularly the US Dollar. This could have far-reaching consequences for the global economy, including diminishing the dominance of the US Dollar and euro in international trade and finance and providing emerging economies with an alternative avenue for conducting transactions. It could also strengthen economic ties within the BRICS bloc, fostering investment and growth, and potentially promoting increased trade and cooperation with potential benefits for the global economy.
History of BRICS
The BRICS alliance was coined by Jim O’Neill, an economist at Goldman Sachs, in 2001 to emphasize the combined potential of these countries in the global economy. The first formal BRIC summit took place in 2009, leading to the establishment of a platform for regular dialogue. South Africa joined the group in 2011, expanding it to the BRICS and adding diversity. BRICS holds annual summits to discuss various issues, including trade, finance, development, energy and technology. BRICS has established mechanisms such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) for economic development and financial stability.
Objectives of BRICS
The objectives of BRICS include economic cooperation, development financing, political coordination, social and cultural exchanges, technology and innovation, sustainable development, peace and security, and South-South cooperation. BRICS aims to improve access to markets, fund infrastructure projects, advance a multipolar world order, promote knowledge exchange, achieve sustainable development goals, and address shared security issues and risks.
Key aspects of BRICS
The key aspects of BRICS include economic powerhouses, cooperation and dialogue, economic cooperation, development finance, political influence, and global governance reform. The BRICS countries account for a considerable share of the global population, landmass, and gross domestic product. The group offers a platform for decision-makers to have conversations, share ideas and collaborate on projects. Initiatives such as the BRICS Business Council are used to attract investment, lower trade barriers, and develop economic ties. The BRICS have formed financial institutions, including the CRA and the NDB, which fund infrastructure projects, finance international development, and maintain the financial systems of their member nations. The BRICS countries aim to have a political impact on the world arena, working together on global concerns, pushing for reform in institutions of global governance, and ensuring that rising economies are more represented.