What is BRICS? The BRICS group of major emerging economies – Brazil, Russia, India, China and South Africa – will hold its 15th heads of state and government summit in Johannesburg between Aug. 22 and Aug. 24.
What is BRICS?
In a 2001 research study that highlighted the economic potential of Brazil, Russia, India, and China, then-Goldman Sachs head economist Jim O’Neill introduced the abbreviation BRIC, which at first did not include South Africa.
In order to give its members a platform to contest a global system controlled by the United States and its Western allies, the bloc was established as an unofficial club in 2009.
Russia was the one to start it.
Like the United Nations, World Bank, or Agency of the Petroleum Exporting Countries (OPEC), the group is not a formal multilateral agency.
Each country takes on a rotational one-year presidency of the group during the annual meeting of the heads of state and government of the member countries.
The original founding members are China, Brazil, Russia, and India.
Also read: BRICS currency vs Dollar’s dominance: A detail analysis
South Africa, the group’s smallest member in terms of both economic weight and population, benefited first from the bloc’s growth in 2010 when it was renamed the BRICS.
Together, the nations make up almost 40% of the world’s population and 25% of the world’s economy.
The group’s main areas of interest, besides geopolitics, are economic cooperation, international trade expansion, and development.
The group makes decisions together. All of the BRICS nations are a part of the G20, an association of leading economies.
Why does it matter?
According to South Africa, which will host the 2023 summit, more than 40 nations, including Iran, Saudi Arabia, the United Arab Emirates, Argentina, Algeria, Bolivia, Ecuador, Egypt, Ethiopia, Cuba, the Democratic Republic of the Congo, Comoros, Gabon, and Kazakhstan, have expressed interest in joining the forum.
They see BRICS as an alternative to international organizations that they see to be dominated by conventional Western powers and believe that joining the group will open doors to benefits such as increased trade and investment as well as development money.
The COVID-19 epidemic, when life-saving vaccines were hoarded by wealthy nations, increased discontent with the global system in developing countries.
Iran, which is home to over 25% of the oil reserves in the Middle East, expressed the desire for the process for new membership to be decided “at the earliest.”
Saudi Arabia, a major producer of oil, was one of more than a dozen nations present at “Friends of BRICS” talks in Cape Town in June. Brazil and Russia have supported its decision to join the BRICS.
Argentina declared in July 2022 that China has officially endorsed its application to join the organization.
One of Africa’s fastest-growing economies, Ethiopia, said in June that it has submitted an application to join the group. A spokesman for the foreign ministry said the nation would continue to cooperate with organizations that may advance its interests internationally.
President Luis Arce of Bolivia, who has indicated an interest in joining the BRICS, is anticipated to attend the conference. In keeping with the stated goal of the BRICS leaders to lessen reliance on the U.S. currency, its government declared in July that it was resolved to reduce reliance on the U.S. dollar for international trade and would instead turn to the Chinese yuan.
Algeria declared in July that it has submitted an application to join the BRICS and to become a stakeholder in the New Development Bank, or BRICS Bank. The oil and gas-rich nation of North Africa is working to diversify its economy and build relations with China and other nations.
