BRICS: Shaping the Global Future

 BRICS: Shaping the Global Future 

What is BRICS? 
  ·        BRICS is an intergovernmental organization of 10 major emerging economies working to enhance cooperation in trade, investment, technology, and global governance. 
  
·        Originally termed BRIC (Brazil, Russia, India, China) by Goldman Sachs economist Jim O’Neill in 2001, it became BRICS with South Africa’s inclusion in 2010. 
  
·        In 2024, Egypt, Ethiopia, Iran, and the UAE joined, followed by Indonesia in 2025. BRICS represents the Global South, aiming to balance Western influence in institutions like the G7 and World Bank.
Member Nations 
Original Members (2006-2010):
Brazil 🇧🇷
Russia 🇷🇺
India 🇮🇳
China 🇨🇳
South Africa 🇿🇦 (joined 2010)
 
New Members (2024-2025):
Egypt 🇪🇬
Ethiopia 🇪🇹
Iran 🇮🇷
UAE 🇦🇪
Indonesia 🇮🇩 (joined Jan 2025)
Total: 10 full members
Partner States: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, Vietnam (as of 2025).
BRICS now accounts for 46% of the world’s population and 35.6% of global GDP (PPP).
  
 Why Was BRICS Formed? 
BRICS emerged to amplify the voice of emerging economies in global governance, especially during the 2008 financial crisis. Inspired by Yevgeny Primakov’s 1998 vision for a multipolar world, it built on forums like RIC (Russia, India, China) and IBSA (India, Brazil, South Africa). 
The group seeks to:
Counter Western dominance in global institutions.
Promote South-South cooperation.
Reform multilateral systems like the UN and WTO.

Key Initiatives 
  
BRICS has launched several impactful projects:
1.     New Development Bank (NDB): 
o    Established in 2014 with $50 billion capital (target: $100 billion).
o    Approved 96 projects by 2024, lending $32 billion for infrastructure.

2.     BRICS Contingent Reserve Arrangement (CRA):  
o    Set up in 2015 to support members during financial crises.
  
3.     BRICS PAY: 
o    Facilitates trade in local currencies, reducing US dollar reliance.
  
4.     Satellite Constellation: 
o    6 satellites for space collaboration.
  
5.     Digital Ecosystem Cooperation Network: 
o    Boosts digital economy ties.
 
6.     BRICS Deep-Sea Resources Center: 
o    For marine research.
  
7.     BRICS Joint Statistical Publication: 
o    Shares economic data.

Progress So Far 
Economic Impact: Intra-BRICS trade hit $614.8 billion in 2022.
Global Reach: Represents 46% of world population, 35.6% of global GDP (PPP), and 25% of landmass.
Growth: Achieved 356.27% economic growth from 1990-2019.
Institutions: Established 60 intra-group institutions covering 30+ subjects.
COVID-19 Response: Allocated $15 billion for recovery in 2020.
Expansion: Grew from 5 to 10 members, enhancing global influence.

India’s Role 🇮🇳  
India is a pivotal member of BRICS, actively shaping its agenda:
Hosted summits in 2012, 2016, and 2021.
PM Narendra Modi emphasized a non-Western stance and called for a transparent COVID-19 investigation in 2021.
Supports BRICS expansion and participates      in digital and space initiatives.
Advocates for global institutional reforms but clarifies BRICS complements, not replaces, existing systems.
Engages in trade and tech cooperation, balancing ties with China and Russia.

Opportunities   
South-South Cooperation: Strengthens ties among developing nations.
Alternative Finance: NDB and CRA reduce reliance on Western institutions.
Global Influence: Represents nearly half the world’s population and a third of GDP.
Common Currency Potential: Proposed “R5” currency (symbolic banknote      unveiled in 2024).
Trade Growth: Enhances economic ties, especially in agriculture, tech, and energy.

Challenges   
Geopolitical Tensions: India-China border disputes and Russia’s Ukraine      conflict strain unity.
Economic Disparities: Varying economic stability among members (e.g.,      Ethiopia’s debt).
Diverse Systems: Differing political ideologies complicate consensus.
UN Reform Disagreements: No unified stance on Security Council changes.
US Tariff Threats: Potential 100-150% tariffs on BRICS currency initiatives.
Coordination Issues: Intra-BRICS rivalries and Western ties vary among members.

Way Forward   
Further Expansion: Integrate partner states like Nigeria (joined 2025).
Common Currency Study: Explore feasibility of “R5” to boost trade.
Multipolar Focus: Promote a non-confrontational global order.
Global Issues: Address conflicts like Ukraine peace process (2025).
Tech and Trade: Deepen digital, space, and economic cooperation.

Fun Facts 
1.     BRICS nations have 4 of the world’s top 10 largest militaries
2.     BRICS outpaced G7 in GDP (PPP) share in 2022 for the first time
3. BRICS represents both democracies (India, Brazil, South Africa) and authoritarian regimes (Russia, China)

Quizzes  
Test your BRICS knowledge!
1.     When was the first BRICS summit held?
A) 2006
B) 2009  
C) 2010
D) 2011
Answer: B
  
2.     Which country joined BRICS in 2010?
A) Egypt
B) South Africa
C) Indonesia
D) Iran
Answer: B
 
UPSC Mains PYQ  
2021, GS Paper 2 (International Relations):
Question: BRICS grouping succeeded up to a point but it now confronts multiple challenges due to changes in the geopolitical order. Comment. (250 words) 
Join the Discussion! 
 What do you think about BRICS’ role in the global economy? Share your thoughts below!