BRICS: Economic Powerhouse in New Era

Table of Contents

1-Introduction of BRICS

2-History of BRICS

3-Member countries of BRICS

4-Headquarter

5-Important Summits of BRICS

6-Achievements of BRICS

7- challenges of BRICS

8-BRICS As a Counterbalance to Western Hegemony

9-The Dawn of a New Era

10-BRICS: The Vanguard of Change

                     Introduction of BRICS

BRICS, an acronym for Brazil, Russia, India, China, and South Africa, is an influential group of five major emerging economies that have come together to foster economic, political, and cultural cooperation on the international stage. Established in 2006, this collective has evolved from an initial meeting of foreign ministers into a strategic alliance that has the potential to reshape the global order. The establishment of BRICS marked a pivotal moment in international relations as it aimed to bring together nations from different continents with diverse cultures, histories, and economic systems.

                     History of BRICS

The concept of BRICS was first coined by Goldman Sachs economist Jim O’Neill in a 2001 report titled “Building Better Global Economic BRICs.” The term represented the four countries at the time, Brazil, Russia, India, and China, which were expected to become dominant economies by the year 2050.

 BRICS was officially christened on June 16, 2009, amidst the towering mountains of Yekaterinburg, Russia. In 2011, South Africa joined the association, expanding it to BRICS.

                    Member countries of BRICS

Brazil: A land of rhythm and resilience, harnessing the energy of the Amazon and the pulse of its people.

Russia: A colossus of the East, draped in historical intrigue and armed with a vast treasury of resources.

India: A subcontinental powerhouse, conjuring tales of ancient wisdom and technological marvels.

China: An economic juggernaut, orchestrating the symphony of global commerce with unparalleled precision.

South Africa: A land of diversity and resilience, a beacon of progress amid a continent’s challenges.

                     Headquarter

           The headquarters of BRICS is located in Shanghai, China.

             Important Summits of BRICS

Sanya, 2011: BRICS’ journey began to gain traction in Sanya, China. Leaders gathered to discuss ways to enhance cooperation and economic ties among member nations.

Durban, 2013: Durban, South Africa, hosted discussions on economic growth, sustainable development, and the creation of a BRICS-led development bank.

Fortaleza, 2014: This summit marked a significant milestone with the establishment of the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), solidifying BRICS’ economic cooperation.

Ufa, 2015: Russia’s Ufa Summit delved into strategic partnerships, innovation, and counter-terrorism efforts, showcasing BRICS’ commitment to global stability.

Goa, 2016: The Indian coastal city of Goa witnessed discussions on boosting trade, strengthening cybersecurity, and enhancing people-to-people contacts, emphasizing BRICS’ multifaceted collaboration.

Xiamen, 2017: China’s Xiamen Summit focused on practical cooperation, innovation, and regional security. BRICS’ emphasis on inclusivity and shared prosperity echoed through discussions.

Johannesburg, 2018: The Johannesburg Summit prioritized sustainable development, industrialization, and advancing Africa’s interests within the BRICS framework.

Brasília, 2019: Discussions in Brazil’s capital centered on technology, innovation, and multilateralism, underlining BRICS’ intent to be at the forefront of global progress.

Virtual Summit, 2020: The pandemic prompted a virtual gathering where BRICS leaders exchanged ideas on pandemic response, economic recovery, and solidarity in times of crisis.

Virtual Summit, 2021: Continuing the virtual trend, the 2021 Summit discussed post-pandemic recovery, global governance, and technology cooperation.

Virtual Summit, 2022: held in Beijing, China-major achievement was creation of basket type reserve currency. The currency is combination of BRICS currencies and backed by precious metals.

Johannesburg, 2023: Summit is expected to decide the criteria for BRICS expansion.

For detailed analysis read this-The Expansion Challenge For BRICS | ORF (orfonline.org).

                 Achievements of BRICS

New Development Bank (NDB)

Born in 2014, the NDB transformed the lending landscape. It provides funding for infrastructure projects in BRICS nations and beyond, reducing reliance on traditional lenders.

   Contingent Reserve Arrangement (CRA)

Crafted in 2015, the CRA established a financial safety net for member nations during currency crises, bolstering their economic resilience.

       Trade Initiatives

BRICS launched initiatives to foster trade among its members, aiming to streamline customs procedures and reduce trade barriers for smoother economic interactions.

  Digital Collaboration

Embracing the digital era, BRICS explored avenues for cooperation in emerging technologies like 5G, artificial intelligence, and cybersecurity.

Cultural Exchange

Beyond economics, BRICS championed cultural ties, promoting mutual understanding through film festivals, art exhibitions, and people-to-people exchanges.

Global Governance Advocacy

BRICS collectively advocated for reforms in international institutions, pushing for a more balanced representation in organizations like the United Nations and the International Monetary Fund.

COVID-19 Response

BRICS nations collaborated during the pandemic, sharing experiences, information, and resources to mitigate the impact of the global health crisis.

                         Green Initiative

Recognizing the urgency of climate change, BRICS committed to sustainable development, renewable energy projects, and eco-friendly technologies.

                               Economic Integration

By facilitating intra-BRICS investments and trade, the alliance aimed to stimulate economic growth within its member nations, promoting self-reliance and cooperation.

                                 Humanitarian Aid

BRICS extended support during natural disasters and humanitarian crises, showcasing solidarity among member nations.

BRICS’ achievements underscore the power of collaborative efforts among diverse nations, striving for progress, stability, and inclusivity on the global stage.

                              Challenges of BRICS

Diverse Priorities:

Member countries have differing economic systems, political priorities, and levels of development, which can lead to differing approaches and interests.

Geopolitical Tensions:

Existing geopolitical rivalries and disputes among BRICS members can undermine the alliance’s unity and effectiveness.

Economic Slowdown:

Slower growth rates in some member countries and external economic pressures can impact the alliance’s collective economic strength.

                            Opportunities for BRICS

1. Innovation and Technology: Collaboration in areas like artificial intelligence, renewable energy, and biotechnology can create new avenues for economic growth and development.
2. Human Capital Development: Sharing best practices in education, healthcare, and skill development can enhance human capital and productivity in member countries.
3. Global Governance Reform: BRICS can collectively advocate for reforms in international institutions like the United Nations and the World Trade Organization to reflect the evolving global balance of power.

               BRICS As a Counterbalance to Western Hegemony

BRICS serves as a counterbalance to the Western-dominated international order. By challenging Western hegemony, BRICS aims to reshape the global narrative and promote a more multipolar world. Through initiatives like the NDB and CRA, BRICS offers an alternative to traditional Western-dominated financial institutions, giving emerging economies more agency and control over their economic destinies.

                       The Dawn of a New Era

Embrace the horizon, for BRICS thrives on the cusp of opportunity. It pioneers technological innovation, fuels cross-border learning, and clamors for equitable representation on the global stage. A beacon of multilateralism, BRICS envisions a world order where all voices matter, where diversity is celebrated, and where collective progress is paramount.

                  BRICS: The Vanguard of Change

In a world where supremacy has been the hallmark of the West, BRICS emerges as the avant-garde of transformation. It’s a symphony of nations that harmonizes economic prowess with cultural resonance, a force that challenges the status quo and pioneers an era of equitable influence.

In conclusion, BRICS stands not just as an alliance, but as an embodiment of audacity, unity, and vision. It’s a symposium of strength, a narrative disruptor, and a torchbearer of equitable global dynamics. As the world watches, BRICS continues its odyssey of power, purpose, and paradigm shift.