Founding of BRICS
The concept of BRIC emerged from discussions surrounding foreign investment strategies, initially highlighted in a 2001 paper titled "Building Better Global Economic BRICs." The analysis was presented by Jim O'Neill, who was then the chairman of Goldman Sachs Asset Management. This significant report highlighted the potential economic power of Brazil, Russia, India, and China, advocating for their increased involvement in the global economy. The acronym BRIC represented not just a grouping of nations, but an idea about the shifting dynamics of global economic power, suggesting that these four countries would become significant players in the years to come.
The initial steps towards formal collaboration began when the foreign ministers of the original BRIC states convened in New York City in September 2006. This meeting took place alongside the UN Assembly's General Debate and set the stage for a series of high-level diplomatic engagements. The subsequent full-scale diplomatic meeting in Yekaterinburg, Russia on June 16, 2009, marked a pivotal moment for BRIC as it transitioned from a theoretical concept to a formal alliance, culminating in the first BRIC summit. This historic summit brought together the leaders of the member states: Luiz Inácio Lula da Silva from Brazil, Dmitry Medvedev from Russia, Manmohan Singh from India, and Hu Jintao from China.
The agenda of the Yekaterinburg summit concentrated on addressing the pressing global economic situation and emphasized the need for reform in international financial institutions. Among the topics discussed was how the BRIC nations could work together to strengthen cooperation and ensure that developing countries are more actively engaged in global affairs. This collaboration was particularly important given the fact that a majority of BRIC member nations identify as developing countries. The summit signified a collective desire to reshape global governance structures in favor of a more multipolar world.
Following the summit, the BRIC nations articulated a collective need for a new global reserve currency characterized by diversity, stability, and predictability. Although the statement did not explicitly denounce the existing dominance of the US dollar, it hinted at a growing discontent with the dollar's overarching influence in global finance. This sentiment was notably echoed by Russian officials in the past, who have frequently criticized the reliance on a single currency for global reserves. The announcement following the summit initiated a notable decline in the dollar's value against other major currencies, showcasing the potential economic repercussions of the BRIC bloc's ambitions on the international stage. This moment exemplified the changing tides of global financial power and the rising influence of emerging economies.
2010 marked a significant turning point for the BRIC coalition, when South Africa initiated efforts to join this influential group of emerging economies. The journey toward membership began in August of that year, setting in motion a series of discussions between South Africa and the existing member nations: Brazil, Russia, India, and China. South Africa's inclusion was seen as an important step towards enhancing the representation of African nations within the global economic governance framework. The invitation from China, as one of the leading members of the BRIC group, was crucial, and after a consensus was reached among the current members, South Africa's formal admission to the group was completed on December 24, 2010.
With the entry of South Africa, the BRIC nations collectively adopted the acronym BRICS to signify the expanded membership, with the "S" symbolizing South Africa’s role in the coalition. This change represented not merely a geographical expansion but also an increased emphasis on addressing issues pertinent to the African continent. Following this expansion, the group sought to enhance economic collaboration and boost trade relations among the member countries, which comprise diverse economic backgrounds and resources.
In April 2011, South Africa's President Jacob Zuma participated in the BRICS summit held in Sanya, China, making history as the first South African leader to engage in discussions alongside the other BRICS heads of state. This summit served as a platform for member countries to deliberate on various global issues, including economic cooperation, sustainable development, and strategies for addressing security challenges. President Zuma’s participation underscored South Africa's commitment to contributing to the collective goals of the BRICS group and establishing itself as a key player in both regional and global economic dialogues.
Establishment of the New Development Bank
In June 2012, the BRICS nations—Brazil, Russia, India, China, and South Africa—took a significant step towards enhancing their influence in global finance by pledging $75 billion to the International Monetary Fund (IMF). However, this commitment was contingent upon the implementation of reforms in IMF voting structures that would provide greater representation to emerging economies. The fifth BRICS summit held in Durban in March 2013 marked a pivotal moment in this narrative, as the member countries collectively resolved to establish a dedicated global financial institution, with the aim of providing an alternative to the traditional, Western-dominated financial institutions such as the IMF and the World Bank. The establishment of the New Development Bank was envisioned to take place by 2014.
At a subsequent meeting in St Petersburg in September 2013, member nations reaffirmed their commitment, with China contributing a substantial $41 billion to the bank, while Brazil, India, and Russia pledged $18 billion each, and South Africa committed $5 billion. Notably, China, possessing the largest foreign exchange reserves globally, sought a more prominent leadership position within the bank's structure and expressed an interest in hosting its headquarters. By October 2013, Russia's Finance Minister, Anton Siluanov, indicated a plan to create a $100 billion currency reserve fund aimed at stabilizing currency markets, with an anticipated kickoff in early 2014. However, progress was delayed, and by April 2014, both the currency reserve facility and the New Development Bank were still under development, pushing the timeline to 2015.
The sixth BRICS summit, held in Fortaleza in July 2014, culminated in the formal signing of agreements to establish the $100 billion New Development Bank, previously referred to as the "BRICS Development Bank," alongside an additional reserve currency pool valued over $100 billion. This summit was significant not only for laying the groundwork for these financial institutions but also for fostering agreements that promoted cooperation among BRICS export credit agencies and innovative initiatives. The Fortaleza summit further included discussions and engagements with the Union of South American Nations (UNASUR) presidents in Brasilia, highlighting the growing collaboration between BRICS nations and other emerging economies in Latin America. This collaborative spirit is integral as it reflects BRICS’ broader strategy to reshape global financial governance and provide equal footing for developing countries in international financial discussions.
Other initiatives within the BRICS framework have aimed to enhance collaboration among its member countries—Brazil, Russia, India, China, and South Africa. Since 2011, the National Institutes of Statistics from these nations have been producing an annual joint statistical publication. This initiative aims to provide a comprehensive perspective on statistical production while allowing for the comparison of methodologies and results across the member states. This yearly publication represents a unified data platform that serves the mutual interests of the participating nations, fostering a deeper understanding of their respective economies and facilitating informed policy-making.
In addition to statistical collaboration, the BRICS nations have recognized the importance of infrastructure in strengthening their communication systems. Since 2012, there have been plans to construct an optical fiber submarine communications cable system, aptly named the BRICS Cable. This initiative emerged partly as a response to the extensive surveillance carried out by the U.S. National Security Agency on telecommunications. Despite the strategic importance of this project, as of 2023, construction has yet to commence, highlighting potential challenges in logistics and funding that need to be addressed to realize this vision.
The realm of Information and Communication Technology (ICT) also saw significant developments when, in August 2019, the communications ministers of the BRICS countries signed a letter of intent focused on cooperative efforts in this sector. This agreement was finalized during the fifth edition of their meeting held in Brasília, Brazil, indicating a commitment to harnessing technology for mutual benefits, including knowledge sharing and infrastructure development amid rapidly evolving global ICT landscapes.
The economic landscape of the BRICS nations was severely impacted by the COVID-19 pandemic; in response, the New Development Bank announced plans to allocate $15 billion to assist member states in revitalizing their struggling economies. This financial support is part of a broader strategy aimed at restoring trade and economic activities akin to those prior to the pandemic. The 2020 BRICS summit, conducted virtually due to the ongoing global health crisis, focused on strategies to combat the pandemic and explore necessary reforms in the multilateral system. During the subsequent 13th BRICS summit in 2021, discussions included a push for a transparent investigation into the origins of COVID-19, showcasing the group's concern over the politicization of public health issues.
Most recently, in May 2023, South Africa's controversial decision to grant diplomatic immunity to Russian leader Vladimir Putin and other officials—allowing them to attend the 15th BRICS Summit despite an International Criminal Court arrest warrant—signified the complex geopolitical dynamics that the group navigates. Subsequently, in July 2023, Putin announced his intention to participate remotely in the summit scheduled for August 22-24 in Johannesburg, reflecting both a commitment to the BRICS agenda and the tactical adjustments necessary under prevailing international circumstances. His virtual attendance will encompass various sessions, including the Business Forum, thereby maintaining his nation's active involvement in the collaborative efforts of the group despite physical absence.
BRICS Expansion Overview
In August 2023, during the 15th BRICS Summit held in South Africa, significant developments took place regarding the expansion of the bloc. South African President Cyril Ramaphosa announced the invitation extended to six emerging market countries: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, with full membership set to commence on January 1, 2024. This came as part of a broader strategy to enhance the representation of emerging economies and to advocate for a multipolar world order where the voices from the Global South are more prominently acknowledged.
However, the political landscape in Argentina shifted dramatically following the general elections in November 2023. Javier Milei, the newly elected president, made it clear that he intended to withdraw Argentina's membership application to BRICS. This decision was corroborated by the incoming Foreign Minister Diana Mondino on November 30, 2023, leading to an official letter sent to all BRICS leaders by the Argentine government on December 29, 2023, confirming their withdrawal from the application process. This unexpected turn of events underscored the volatility within international relations, where domestic political changes can significantly affect global affiliations.
The situation regarding Saudi Arabia's membership remains ambiguous as of the start of 2024. Although initially expected to join BRICS at the beginning of the year, the Saudi government declared in mid-January that it was still weighing its options regarding full membership. This ongoing deliberation indicates that while interest in BRICS may be strong among several nations, external factors and national interests play a crucial role in shaping their decisions.
Looking ahead to April 2024, discussions surrounding BRICS expansion continue to be a focal point. Proponents of this expansion emphasize its potential to reshape the geopolitical landscape, making room for a more diverse array of voices from developing nations. Chinese state media, such as China Daily, have suggested a growing interest within developing countries to align with BRICS, hinting at a potential influx of new members in the future. This expansion reflects a broader ambition within BRICS to foster inclusivity and represent a wider spectrum of perspectives in global governance discussions.
Annual Summits
The BRICS grouping, comprised of Brazil, Russia, India, China, and South Africa, has been conducting annual summits since 2009, marking significant milestones in international cooperation among emerging economies. Each member nation has the opportunity to host the summit, allowing for a varied exchange of ideas and cultural interactions. Prior to South Africa's inclusion in the group, two summits were convened under the BRIC banner in 2009 and 2010, focusing primarily on enhancing economic ties and discussing geopolitical concerns that impact member countries.
The transition to BRICS was solidified with the first five-member summit taking place in 2011, illustrating the group's commitment to expanding its influence and fostering solidarity among diverse economies. Over the years, these summits have become crucial platforms for dialogue on global issues such as sustainable development, climate change, trade relations, and security cooperation. The integration of South Africa as a member not only enlarged the geographical representation of the group but also brought in new perspectives from the African continent, enriching discussions on economic growth and social development.
The most recent summit was held virtually on June 23, 2022, hosted by China. This virtual format was a response to ongoing global challenges like the COVID-19 pandemic, which has necessitated innovative approaches to maintain international dialogue. Notably, during the BRICS 2021 summit in New Delhi, the gatherings were marked by heightened tensions between India and China. Nevertheless, Chinese President Xi Jinping's support for India's chairmanship showcased a willingness to cooperate despite bilateral strains. This unexpected backing underscored the collective objective of BRICS to prioritize collaborative engagement over conflict, reaffirming the group's relevance in addressing contemporary global challenges.
The continuous evolution of BRICS summits is reflective of the shifting dynamics in global politics, where emerging economies seek to carve out a stronger position in international decision-making. As BRICS forges ahead, the future summits are anticipated to tackle pressing issues impacting not only its member states but also the broader international community, making their outcomes significant on the global stage.
Current Membership Dynamics
The BRICS coalition, composed of Brazil, Russia, India, China, and South Africa, has increasingly garnered interest from various nations seeking membership. The pathway to joining BRICS, however, is governed by a unanimous approval process among its current members, posing a considerable challenge for aspiring states. Despite the absence of a structured application protocol, discussions about expanding the group's membership gained traction in the early 2020s. This shift marked a significant turning point, as member nations began to openly contemplate the strategic benefits of welcoming new partners into the fold.
Recent Expansion and Future Potential
A pivotal moment for BRICS occurred during the 15th Summit in August 2023, held in South Africa. President Cyril Ramaphosa announced the inclusion of six new countries: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, with the accession set for 1 January 2024. This decision underscores a growing recognition of BRICS as a platform for fostering economic cooperation and political dialogue among emerging economies. The expansion aims to enhance the bloc’s global influence and address shared challenges, ranging from economic disparities to geopolitical tensions.
Shift in Membership Intentions
However, the evolving political landscape can affect membership commitments. Notably, on 30 December 2023, the new Argentinian government chose to decline the offer to join BRICS, a proposal initially pursued by its predecessor under President Alberto Fernández back in 2022. This decision reflects the complexities of international relations and how domestic political shifts can influence foreign policy priorities. It also highlights the necessity for BRICS to be adaptable, as member states' foreign policy agendas can fluctuate with changing administrations, potentially impacting the group’s unity and goals.
Impact of New Members
As of 1 January 2024, the accession of Egypt, Ethiopia, Iran, and the UAE to BRICS represents a strategic expansion that could reshape the dynamics of the group. These countries bring diverse economic and geopolitical perspectives, together emphasizing the bloc's commitment to fostering collaboration among developing nations. The increased membership not only dilutes traditional power structures but also enriches the group with new ideas and approaches to collective challenges. The inclusion of Middle Eastern countries like Saudi Arabia and the UAE, along with key African players like Egypt and Ethiopia, can enhance cooperation in areas such as trade, energy security, and sustainable development.
As BRICS continues to grow and adapt, its evolving membership landscape signifies its potential for greater relevance on the world stage, underscoring the importance of collective representation for emerging economies amidst the complexities of global governance.
Potential Candidates for Future Membership
The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, has seen a significant increase in interest from various nations looking to join its ranks. In recent years, the geopolitical landscape has shifted, prompting many countries to align themselves with BRICS, whether through official applications for membership or invitations to join.
Several nations have formally applied for membership, indicating their desire to be part of this influential economic bloc. These applicants often seek to benefit from BRICS' collective strength, which includes a combined population of over 3 billion people and substantial economic clout on the global stage. By joining BRICS, these countries hope to enhance their influence in international affairs, access new markets, and foster economic collaboration with other member states. The applications suggest a growing recognition of BRICS as a counterbalance to traditional Western-dominated organizations.
In addition to these applications, other countries have received official invitations to join BRICS but have not yet made a formal decision regarding their membership. This presents a unique opportunity for the group to expand its membership and diversify its representation, potentially integrating economies from different regions and enhancing its global influence. The deliberations of these invited nations are closely watched, as their memberships could lead to more robust economic partnerships and increased political cohesion among emerging markets.
As BRICS continues to evolve, its potential expansion may play a crucial role in shaping the future of international relations. The inclusion of new members could not only alter economic dynamics but also provide a platform for countries to collectively address issues such as climate change, trade inequality, and sustainable development. Thus, the ongoing discussions surrounding membership expansion reflect a broader trend of nations seeking to cooperate beyond traditional geopolitical alliances.
Financial Architecture of BRICS
The financial architecture of BRICS, which includes the major emerging economies of Brazil, Russia, India, China, and South Africa, is primarily composed of two crucial components: the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). Established to enhance financial cooperation among member states and support sustainable development initiatives, these institutions were formalized through a treaty signed in 2014 and became operational in 2015.
The New Development Bank serves as a significant funding source for projects in infrastructure and sustainable development within BRICS nations and other emerging economies. By providing loans, guarantees, and other financial products, the NDB aims to fill the financing gap that often arises due to limited access to international financial markets. The Bank has authorized a wide array of projects across various sectors, including renewable energy, transportation, and urban development, aiming to promote economic growth and poverty alleviation.
The Contingent Reserve Arrangement plays a vital role in providing mutual financial support among BRICS countries facing balance of payments difficulties. This financial safety net allows member countries to access funds and stabilize their economies during times of turbulence in the global financial markets. By pooling their resources, the BRICS nations can enhance their economic resilience and reduce dependency on traditional international financial institutions, ultimately fostering a more balanced global financial system.
In addition to these financial components, BRICS has been actively pursuing collaboration in other areas, including trade, investment, and technology. The establishment of the BRICS Business Council and the New Development Bank reflects the commitment of these nations to deepen economic ties and promote development initiatives that can benefit all member countries. This multi-dimensional approach not only strengthens the financial architecture but also enhances the collective bargaining power of BRICS on the global stage.
Overview of the New Development Bank
The New Development Bank (NDB), also known as the BRICS Development Bank, was established by the five member states of BRICS: Brazil, Russia, India, China, and South Africa. This multilateral development bank is dedicated primarily to financing infrastructure and sustainable development projects across its member nations and other emerging economies. Unlike traditional international financial institutions, the NDB aims to provide an alternative financing option to bridge the significant infrastructural gap in developing countries, with an annual lending capacity of up to $34 billion.
Capital and Initial Contributions
The NDB began its operations with an initial authorized capital of $50 billion, a figure that has the potential to grow to $100 billion as the bank's influence and project financing needs expand. Each of the founding BRICS members contributed $10 billion to reach this initial capital, emphasizing their commitment to fostering economic development and cooperation among emerging markets. The financial foundation laid by these contributions is pivotal for the NDB's mission to fund a variety of projects aimed at improving infrastructure, enhancing connectivity, and promoting sustainable development.
Project Portfolio and Growth
Since its inception, the NDB has rapidly developed a diverse portfolio of projects. By 2020, the bank was involved in 53 active projects with an estimated total value of around $15 billion. This includes projects across sectors such as renewable energy, transportation, urban development, and water management. These initiatives not only aim to foster economic growth but also to address pressing social and environmental challenges faced by the member countries.
Expansion and Inclusion of New Members
In a significant move towards broadening its influence and reach, the NDB welcomed new member countries in 2021. Bangladesh, Egypt, the United Arab Emirates, and Uruguay became part of the bank, reflecting a strategy to enhance connectivity and collaboration among developing economies worldwide. This expansion signifies the NDB's commitment to fostering a more inclusive and multipolar global financial architecture, catering to the diverse developmental needs of its expanding membership base.
Overall, the New Development Bank is positioned as a key player in the global financial landscape, particularly for emerging economies. By focusing on infrastructure development and sustainable projects, the NDB aims to contribute to the long-term economic stability and growth of its member countries and beyond.
Overview of BRICS Contingent Reserve Arrangement
The BRICS Contingent Reserve Arrangement (CRA) serves as a crucial framework aimed at fostering stability among its member countries in the face of global liquidity challenges. Designed to mitigate risks arising from currency fluctuations and financial instability, the CRA provides a safety net for member states who may find their national currencies vulnerable to external pressures. As emerging economies often experience heightened economic volatility due to rapid liberalization, the CRA plays a key role in promoting economic stability by offering collective support during times of crisis.
Competition with International Institutions
The establishment of CRA can be seen as a strategic move to create alternatives to traditional financial institutions, most notably the International Monetary Fund (IMF). While the IMF has been synonymous with global financial assistance for decades, the CRA represents an increasing preference for tailored cooperation among emerging economies. By focusing on the unique challenges faced by its member states, the CRA exemplifies the shift toward a more multipolar financial world where nations of the Global South can collaborate and support each other without relying solely on Western-centric institutions.
Legal Foundation and Historical Context
The legal framework for the CRA was established through the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement, which was signed during the 6th BRICS summit in Fortaleza in July 2014. Following this, the inaugural meetings of the CRA’s Governing Council and Standing Committee took place on September 4, 2015, in Ankara, Turkey. Officially entering into force after ratification by all BRICS states, the CRA was formally announced at the 7th BRICS summit in July 2015. This legislative foundation underscores the commitment of BRICS nations to enhance cooperation and foster resilience against economic fluctuations, thereby positioning themselves as not only participants but as key players in the global financial landscape.
South-South Cooperation and the New Development Bank
The CRA is part of a broader initiative that enhances South-South cooperation among BRICS nations. It complements the establishment of the New Development Bank (NDB), which aims to finance infrastructure and sustainable development projects in member countries and other emerging economies. Together, these initiatives mark a significant effort by BRICS members to assert greater economic autonomy and provide alternative financing mechanisms that prioritize the needs and development goals of emerging economies. This alignment reflects a growing recognition of the importance of collaborative approaches to address shared challenges in the global economy.
In summary, the BRICS Contingent Reserve Arrangement is a vital component of economic stability strategies for its member states. By offering a collective safety net and standing as a credible alternative to traditional financial institutions, the CRA reinforces the importance of South-South cooperation in a rapidly changing global economic environment.
BRICS Payment System
In 2015, during the BRICS summit held in Russia, finance ministers from the member countries—Brazil, Russia, India, China, and South Africa—initiated a significant dialogue regarding the establishment of a payment system intended to serve as an alternative to the long-standing SWIFT network. This initiative was driven by a collective recognition of the vulnerabilities associated with relying on a single payment infrastructure, particularly in light of geopolitical tensions and sanctions. The primary focus of this new system was to facilitate financial settlements in national currencies among BRICS nations, thereby enhancing economic sovereignty and reducing dependency on Western-led financial systems.
The Central Bank of Russia has been a prominent advocate for the development of this alternative payment network, emphasizing the need for a backup mechanism that would ensure continuity of financial transactions even in scenarios where the SWIFT system might be disrupted. Such disruptions could arise from sanctions or cyber threats, making a robust alternative essential for safeguarding the economic interests of BRICS countries. The proposed system aligns with broader goals of increasing trade cooperation and fostering stronger financial ties among the member states.
In parallel to the BRICS initiative, individual member countries have also developed their own alternatives to the SWIFT network. China has rolled out the Cross-Border Interbank Payment System (CIPS), which allows financial institutions across the globe to efficiently send and receive transaction details. This platform is designed not only to streamline international transactions but also to bolster the use of the Chinese yuan in global trade. India, for its part, has introduced the Structured Financial Messaging System (SFMS), which provides a secure and efficient messaging platform for financial institutions. Russia has established the System for Transfer of Financial Messages (SPFS), while Brazil has developed its own system called Pix, all of which aim to enhance financial autonomy and operational capabilities.
These developments reflect a growing trend among BRICS nations to seek alternatives to traditional Western financial mechanisms. As these countries increasingly engage in bilateral and multilateral trade, the implementation of a BRICS payment system could lead to a more integrated economy within the bloc and potentially influence global financial architecture. By promoting the use of national currencies for trade settlements and creating robust alternatives to SWIFT, BRICS member states are positioning themselves to mitigate the risks associated with global financial fluctuations and sanctions, thus fostering economic resilience.
Potential Common Currency
At the 2023 BRICS summit held in South Africa, the member countries expressed a significant interest in exploring the feasibility of a new common currency or a similar financial instrument. This initiative highlights an increasing recognition among Brazil, Russia, India, China, and South Africa of the potential benefits a unified currency could bring to their economic relationships. By potentially establishing a common currency, these nations aim to facilitate fairer and simpler international trade, which would be aimed at bolstering the economic ties that bind them.
One of the primary motivations for pursuing a common currency is the substantial reduction in transaction costs associated with cross-border trade. Currently, fluctuations in exchange rates and the fees incurred through currency conversion can impose significant financial burdens on businesses engaging in international commerce. By using a shared currency, member nations could minimize these costs, thereby making trade more accessible and economical for all parties involved. Additionally, a common currency could help stabilize economies by reducing volatility related to exchange rates.
Beyond the immediate economic benefits, such a currency could also enhance the geopolitical influence of BRICS countries on the global stage. In a world increasingly dominated by major currencies like the US dollar and the euro, having a collective currency could challenge this dominance, allowing BRICS nations to operate in an environment of greater financial sovereignty. The move could encourage other emerging economies to consider partnerships or affiliations with BRICS, potentially leading to a broader multilateral financial landscape.
The potential common currency initiative would require extensive studies and discussions regarding its structure, implementation, and governance. Key considerations will include the economic conditions of each member state, monetary policy alignment, and the financial infrastructure needed to support the currency. The BRICS nations will need to navigate these complexities to ensure that the resulting currency serves the diverse economic environments and needs of its member countries effectively.
As discussions on this topic progress, the global community will be watching closely to see if a common currency among BRICS countries can become a reality and what implications it might have for international trade, financial markets, and global economic dynamics.
Reception of BRICS and Global Perspectives
In 2012, Hu Jintao, the former General Secretary of the Chinese Communist Party and President of China, articulated a vision for BRICS as a coalition of countries committed to defending and promoting the interests of the developing world, while also serving as a stabilizing force for global peace. Since then, BRICS has garnered attention and scrutiny from Western analysts, who often highlight potential fissures within the coalition. Concerns have been raised regarding significant economic instabilities among member states, divergent views on reforming the United Nations Security Council, and ongoing territorial disputes, particularly between India and China.
In 2013, Isobel Coleman, the director of the Civil Society, Markets, and Democracy Program at the Council on Foreign Relations, assessed the internal dynamics of BRICS and noted a marked lack of consensus among its members. The disparity in political systems—from Brazil's vibrant democracy to the entrenched oligarchies of Russia—coupled with their economically varied profiles, where China dominates with over 41% of the economic contributions, highlights the complexity of collective action within BRICS. This economic discrepancy naturally translates into a significant political influence for China, further complicating the formation of a unified front.
Critics of the BRICS coalition also include Indian Marxist intellectual Vijay Prashad, who pointed out the limitations of the group in becoming an effective political and economic "locomotive of the South." He suggested that member countries pursue neoliberal policies, lacking the establishment of counter-balancing institutions or ideological alternatives that could effectively challenge Western hegemony, particularly that of the United States and its NATO allies. This observation raises critical questions about the group's capacity for real change on the global stage.
A study by Tufts University published in July 2023 offered a counter-narrative to the common perception of BRICS as solely a China-dominated alliance with anti-U.S. inclinations. It posited that BRICS membership is fundamentally centered around shared developmental interests and a collective aspiration for a multipolar world order, where no single entity assumes overwhelming dominance. The study contended that this desire for consolidation has led BRICS to become a formidable negotiating force capable of challenging American geopolitical and economic strategies.
Following the BRICS Summit in August 2023, Con Coughlin, a defense and foreign affairs editor at The Daily Telegraph, expressed skepticism regarding the alliance's potential to disrupt the existing global order, alluding to China's tendency to leverage BRICS for its expansionist ambitions. He underscored internal contradictions, such as the lingering border tensions between India and China, which may hinder cohesive action within the group. Coughlin further advocated for enhanced Western engagement with India, suggesting that traditional alliances may need reevaluation in the face of evolving international dynamics.
Meanwhile, Thomas Hill from the Atlantic Council noted in December 2023 that BRICS's initiatives aimed at de-dollarization—particularly in North Africa—pose considerable challenges to U.S. interests. The incorporation of countries like Egypt and the growing enthusiasm from Algeria and Tunisia regarding BRICS's de-dollarization agenda indicate a shifting landscape where traditional U.S. dominance may be tested. If successful, a coordinated de-dollarization effort could undermine U.S. influence and threaten existing trade agreements, especially as BRICS seeks to introduce alternative currencies and systems, such as the R5 consortium or central bank digital currencies (CBDCs).
Lastly, a global perspective on BRICS's reception was underscored by a Gallup International poll conducted between October and December 2023, revealing that almost one-third of respondents worldwide were unaware of the alliance. However, attitudes towards BRICS varied significantly, with Western nations displaying considerable skepticism, especially in Sweden, Spain, and the United States. Conversely, more favorable perceptions were recorded in countries like Russia, Nigeria, and Iran, indicating a complex and regionally diverse view of BRICS that may influence future geopolitical alignments. In India, public sentiment reflected a similar divide, with a notable percentage expressing both positive and negative views, showcasing the multifaceted nature of BRICS's influence and image.
BRICS Pro Tempore Presidency
Every BRICS summit sees a rotation of the Pro Tempore Presidency among its member states, whereby one of the heads of state from the participating countries is elected to take on this role. This system ensures that each country has an opportunity to guide the group's agenda and foster cooperation among member nations. In 2019, this leadership role was held by Brazil's president, which marked a significant moment for the country as it steered discussions focused on collaborative growth and innovation.
The theme for the 11th BRICS summit in 2019 was "BRICS: Economic Growth for an Innovative Future," encapsulating the intent to promote development through shared insights in areas such as science, technology, and innovation. Under Brazil's Pro Tempore Presidency, the priorities included a multidimensional approach to enhancing cooperation amongst member states. Key focuses were on bolstering scientific and technological collaboration, advancing the digital economy, and intensifying efforts against transnational crime, particularly in organized crime, money laundering, and drug trafficking. Furthermore, Brazil sought to deepen the integration between the New Development Bank (NDB) and the BRICS Business Council, understanding the importance of financial and business collaboration in facilitating global economic stability.
As of now, the mantle has passed to the Russian presidency, which is envisioning a strategic agenda aimed at collective economic empowerment across BRICS nations. The current initiatives focus on attracting investment within member countries, aiming to strengthen their economies and promote sustainable growth. Russia's presidency emphasizes cooperation in the energy sector, integrating environmental considerations into the developmental framework. Additionally, there is a strong commitment to addressing social issues, particularly by supporting initiatives for children and advocating for effective resolutions related to migration and peacekeeping efforts. This holistic approach reflects BRICS's broader goals of unity, development, and stability in a rapidly changing global landscape.
Current Leaders of BRICS and Their Summits
The BRICS bloc, which originally included Brazil, Russia, India, and China, expanded to welcome South Africa and newly invited countries such as Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. The first BRICS summit occurred in Yekaterinburg, Russia, in June 2009, under the leadership of Dmitry Medvedev. This initial gathering was focused on addressing the global recession, enhancing cooperation among member states, and discussing critical issues such as trade, food security, and climate change. Notably, South Africa had not yet been included in the group at this point, but the summit paved the way for a more robust representation of emerging markets.
Subsequent summits continued to build on the foundation laid in Yekaterinburg. The second summit, held in Brasília in April 2010 under Luiz Inácio Lula da Silva, further analyzed global recession recovery strategies, examining the role of the International Monetary Fund (IMF) and climate initiatives. The inclusion of South Africa during the third summit in Sanya, China, in April 2011 marked a significant milestone, transitioning BRIC into BRICS and expanding discussions to encompass both internal economies and global dynamics.
As the years progressed, the summits introduced key infrastructural and financial initiatives. The fourth summit in New Delhi in March 2012 saw the announcement of the BRICS Cable, aimed at improving telecommunications among member nations. By Durban in March 2013, during the fifth summit, BRICS proposed the establishment of a New Development Bank and a Contingent Reserve Agreement to bolster their economic frameworks. The 2014 Fortaleza summit further ratified these plans, establishing a roadmap for political coordination and economic growth.
By the time of the tenth summit in Johannesburg in July 2018, BRICS leaders were deeply engaged in discussions around their rising industries, signaling ambitions to augment their share of global markets. The shift towards digital advancements became central during the eleventh summit in November 2019, with a focus on integrating technology and curbing issues such as drug trafficking. The virtual formats necessitated by the COVID-19 pandemic in 2020 and 2021 facilitated continued dialogue among member nations, emphasizing socio-economic improvements and cultural exchange.
A significant highlight from the most recent summit in August 2023 was the announcement of new members, notably Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, set to join officially by January 2024. The evolving dynamics of BRICS aim to challenge established global financial systems, with discussions on creating a new reserve currency that combines member nations' currencies and is backed by precious metals, indicating a strategic shift towards greater economic independence.
Current leadership reflects the diverse contexts of BRICS countries, with heads of state such as Luiz Inácio Lula da Silva in Brazil, Vladimir Putin in Russia, Narendra Modi in India, Xi Jinping in China, Cyril Ramaphosa in South Africa, and new leaders including Abdel Fattah el-Sisi from Egypt, Abiy Ahmed from Ethiopia, Masoud Pezeshkian from Iran, and Mohamed bin Zayed Al Nahyan from the UAE, indicating a notable array of political perspectives within this international coalition. As BRICS continues to navigate complex global issues, the collaboration among these leaders will be pivotal in shaping their collective future and enhancing their influence on the world stage.