BRICS - Brazil, Russia, India, China, and South Africa

The BRICS, composed of Brazil, Russia, India, China, and South Africa, represent a collective of international economies formed in 2010 when South Africa joined the existing BRIC group. This term "BRIC" or "the BRICs" was coined by Jim O'Neill, an economist at Goldman Sachs, in 2001 to refer to a group of rapidly growing economies expected to collectively wield significant influence over the global economy by 2050.

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Together, the BRICS nations account for 42% of the world's population and approximately 27% of the world's landmass. Among the world's largest nations in terms of population, territory, and GDP (PPP), Brazil, Russia, India, and China rank prominently. The latter three are considered contemporary superpowers or are still in the process of development. These five countries are also members of the G20, boasting a combined nominal GDP of US$28 trillion (approximately 27% of global GDP), a total GDP (PPP) of US$57 trillion (33% of global GDP PPP), and an estimated combined foreign reserve of US$4.5 trillion (as of 2018).

Initially, when identified, the BRICS were not a recognized intergovernmental organization; rather, they were used to highlight investment opportunities. However, since 2009, they have evolved into a more cohesive geopolitical bloc, meeting formally every year at summits to coordinate multilateral policies. The fundamental principles guiding their bilateral relationships are non-interference, equality, and mutual benefit.

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With initiatives like the New Development Bank, the BRICS Contingent Reserve Arrangement, the BRICS payment system, the BRICS Joint Statistical Publication, and the BRICS basket reserve currency, the BRICS nations are perceived as a geopolitical counterpart to the G7 group of advanced economies. The group has been actively working to expand its membership since 2022, with several developing nations expressing interest in joining. Opinions on the BRICS have been mixed, with both praise and criticism.

At the 15th BRICS Summit in August 2023, Cyril Ramaphosa, the President of South Africa, announced invitations to Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates to join the group. Full membership is set to become effective on January 1, 2024.

History

The term "BRIC" originally emerged within the context of foreign investment strategies and was introduced in 2001 by Jim O'Neill, who was then the chairman of Goldman Sachs Asset Management.

The foreign ministers of the initial four BRIC member states, which included Brazil, Russia, India, and China, convened in New York City in September 2006 during the General Debate of the UN Assembly. This marked the beginning of a series of high-level meetings. Subsequently, a full-scale diplomatic meeting took place in Yekaterinburg, Russia, on June 16, 2009.

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The first formal summit of the BRIC grouping also occurred in Yekaterinburg on June 16, 2009. It brought together the leaders of the four member states: Luiz Inácio Lula da Silva from Brazil, Dmitry Medvedev from Russia, Manmohan Singh from India, and Hu Jintao from China. The primary focus of this summit was to address global economic challenges, reform financial institutions, and explore avenues for enhanced cooperation among these nations. The discussions also revolved around the increased participation of developing countries, with three out of the four BRIC members falling into this category, in global affairs.

Following the 2009 Yekaterinburg summit, the BRIC nations jointly expressed the need for a new global reserve currency that should be characterized by being "diverse, stable, and predictable." While this statement did not directly criticize the perceived dominance of the US dollar, it did have the effect of causing a decline in the value of the dollar compared to other major currencies.

The BRICS: Entry of South Africa

In 2010, South Africa initiated efforts to become part of the BRIC grouping, and the formal admission process began in August of that year. South Africa's official membership in the BRIC group was confirmed on December 24, 2010, following a formal invitation extended by China and subsequent acceptance by the other BRIC countries. As a result of South Africa's inclusion, the group was renamed BRICS, with the "S" now representing South Africa, signifying the expansion of the group. In April 2011, Jacob Zuma, the President of South Africa, participated as a full member in the 2011 BRICS summit held in Sanya, China.

New Development Bank

In June 2012, the BRICS nations pledged a total of $75 billion to enhance the lending capacity of the International Monetary Fund (IMF). However, this commitment was contingent upon reforms in IMF voting procedures. During the fifth BRICS summit held in Durban in March 2013, the member countries reached an agreement to establish a global financial institution that would collaborate with the traditionally western-dominated IMF and World Bank. They aimed to establish this institution, known as the New Development Bank, by 2014. Nevertheless, disagreements related to the distribution of responsibilities and the location of the institution hindered the progress of these agreements.

At the BRICS leaders meeting in St. Petersburg in September 2013, China pledged $41 billion, Brazil, India, and Russia each committed $18 billion, and South Africa contributed $5 billion to the pool of funds. Given China's substantial foreign exchange reserves and its significant financial contribution, it sought a more prominent role in managing the institution and also advocated for the bank's headquarters to be located in China. In October 2013, Russia's Finance Minister Anton Siluanov stated that the creation of a $100 billion fund aimed at stabilizing currency markets would be pursued in early 2014. Brazil's Finance Minister, Guido Mantega, confirmed the intention to establish this fund by March 2014. However, by April 2014, the establishment of both the currency reserve pool and the development bank had not been realized, and the target date was pushed back to 2015. One driving factor behind the creation of the BRICS development bank was the belief that existing international institutions primarily favored non-BRICS corporations. Additionally, the political significance of the bank lay in its ability to enable BRICS member states to advance their interests globally, shedding light on the growing influence of countries whose perspectives were often overlooked by their developed American and European counterparts.

In July 2014, during the sixth BRICS summit in Fortaleza, the BRICS nations officially signed agreements to establish the New Development Bank, initially known as the "BRICS Development Bank," with a capital of $100 billion, as well as a reserve currency pool exceeding another $100 billion. Additionally, documents outlining cooperation between BRICS export credit agencies and agreements on innovation cooperation were also signed. The Fortaleza summit was followed by a meeting between BRICS and the Union of South American Nations presidents in Brasilia, further solidifying BRICS' diplomatic and economic engagement.

Other initiatives

Since 2011, the National Institutes of Statistics of the BRICS member countries, which include IBGE, Rosstat, the National Bureau of Statistics of China, the Central Statistics Office (India), and Statistics South Africa, have been collaboratively producing an annual joint statistical publication. This publication serves the purpose of contextualizing statistical production, comparing methodologies, and sharing statistical results among the participating nations. It acts as a unified data platform for the mutual benefit of all BRICS countries.

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Starting from 2012, the BRICS countries have been planning the implementation of an optical fiber submarine communications cable system known as the BRICS Cable. This system aims to facilitate telecommunications between BRICS nations. One of the driving factors behind this project was concerns related to the U.S. National Security Agency's surveillance of telecommunications flowing in and out of the United States. However, as of 2023, the construction of this proposed cable network has not yet commenced.

Following the 2015 summit, the communication ministers of the BRICS countries, under a Russian proposal, convened their first summit for their respective ministries in Moscow in October. During this meeting, Russian Minister Nikolai Nikiforov proposed an initiative to strengthen their information technology sectors and challenge the dominance of the United States in this sector. In August 2019, communication ministers from BRICS countries signed a letter of intent to cooperate in the Information and Communication Technology sector. This agreement was formalized during the fifth meeting of communication ministers from BRICS member countries, held in Brasília, Brazil.

The New Development Bank has plans to provide $15 billion in support to member nations to help their economies recover from the challenges posed by the COVID-19 pandemic. Member countries are hopeful for a smooth economic recovery and a return to pre-COVID-19 levels of trade. The 2020 BRICS summit was held virtually in St. Petersburg, Russia, and focused on discussions regarding the handling of the pandemic and reforms to the multilateral system.

During the 13th BRICS summit in 2021, Indian Prime Minister Narendra Modi called for a transparent investigation into the origins of COVID-19 under the World Health Organization, with the full cooperation of all countries. Chinese leader Xi Jinping subsequently emphasized the need for BRICS countries to oppose the politicization of this investigation process.

In May 2023, South Africa announced that it would grant diplomatic immunity to Vladimir Putin and other Russian officials, allowing them to attend the 15th BRICS Summit despite an ICC arrest warrant for Putin. However, in July 2023, the Russian president announced that he would not personally attend the BRICS summit in Johannesburg, opting for remote participation in all BRICS leaders' sessions, including the Business Forum, and delivering his remarks virtually.

2024 expansion

In August 2023, during the 15th BRICS Summit, South African President Cyril Ramaphosa made a significant announcement. He revealed that invitations had been extended to six emerging market countries—Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates—to join the BRICS bloc. The transition to full membership is set to become effective on January 1, 2024.

This expansion represents a strategic move towards establishing a "multipolar" world order, one that aims to elevate the voices of previously marginalized nations from the Global South. The goal is to bring these nations into the forefront of the global agenda, fostering greater diversity and inclusivity in international discussions and decision-making processes.