BRICS

About BRICS Group

The BRICS Countries are all significant players in their own fields and contributors to the
global economy. They account for more than 40% of the global population, over a quarter of
global income, and a significant portion of global natural resources.
About BRICS Group
Headquarter BRICS Tower, Shanghai, Peoples’s Republic of China
Countries Brazil, Russia, India, China, South Africa
First summit June 23, 2022
Established  It is an intergovernmental organisation established on 16
June 2009.
o BRICS is an acronym that stands for Brazil, Russia,
India, China, and South Africa.
o The acronym “BRICS” was formulated by economist
Jim O’Neill, of Goldman Sachs.
Members  Originally it was just BRIC i.e. Brazil, Russia, India,
China.
 South Africa joined the group in 2010.
 Additional members joined in 2023, including Egypt,
Iran, the United Arab Emirates (UAE), Saudi Arabia,
and Ethiopia.
Principles  BRICS partners’ relations are built on the basis of the
UN Charter. They follow the recognized principles as
well as international law’s norms.
 All the member countries agreed to the following
principles during their 2011 Summit. These principles
are:
o Solidarity
o Openness
o Pragmatism
o Neutrality (regarding third parties)
o Non-bloc nature

History of BRICS
BRICS originated from the 2001 Goldman Sachs report that highlighted the future global
influence of Brazil, Russia, India, and China. The first formal BRICS Summit took place in
2009 in Yekaterinburg, Russia. Since then, the annual summits have become significant
diplomatic events, where leaders discuss pressing global challenges, such as economic
recovery, sustainable development, and global governance reforms. Over time, BRICS has
evolved beyond an economic concept into a key political entity advocating for a multipolar
world.
BRICS Countries Objectives
 The BRICS Countries have established a variety of cooperative projects and
institutions, such as the BRICS Business Council and the New Development Bank, to
promote economic cooperation and development among themselves (formerly known
as the BRICS Development Bank).
 Additionally, they participate in annual conferences where they coordinate their
positions on critical international problems like trade, climate change, and
international security.
 Although the BRICS countries have many characteristics, such as large populations
and rapid economic growth, they also face unique challenges and have distinct
political and cultural histories.
 As a result, cooperation among the BRICS nations can be difficult, but their combined
power is visible, and their influence in both the political and economic realms is likely
to grow in the coming years.

BRICS Headquarters
1. New Development Bank (NDB): The NDB, formerly known as the BRICS
Development Bank, is headquartered in Shanghai, China.
2. Contingent Reserve Arrangement (CRA): The CRA is a financial safety net that
was established by the BRICS countries to provide short-term liquidity support to
each other. The CRA is headquartered in Moscow, Russia.
3. BRICS Business Council: The BRICS Business Council is a mechanism for
promoting trade and investment among the BRICS countries. The council’s
headquarters are located in Johannesburg, South Africa.
4. The BRICS Academic Forum: It is a network of universities and research
organizations dedicated to promoting academic cooperation among the BRICS
countries. The forum is presided over by a rotating president, with each member
country hosting the meeting during its tenure.

BRICS Countries
 Brazil, the largest country in South America, has a diverse economy that includes
manufacturing, agriculture, and natural resources such as oil and minerals.
 Russia is the world’s largest country by land area, with a highly developed economy
fueled mostly by its oil and petrol sector.
 India is the world’s second-most populated country, with a rapidly rising economy
that includes manufacturing, agriculture, and services such as information technology
and outsourcing.
 China is the world’s second-largest economy and the most populous country. It is
well-known for its exports, manufacturing industry, and technological advances.
 South Africa, Africa’s southernmost country, has a diverse economy that includes
industry, tourism, and mining.
BRICS Working Mechanism
BRICS operates through a rotating presidency, with each member country setting the summit
agenda annually. The group hosts numerous meetings, such as ministerial gatherings,
working groups, and people-to-people exchanges. Key areas of cooperation include:
 Economic and Financial Cooperation: The establishment of the New Development
Bank (NDB) and Contingent Reserve Arrangement (CRA) offers financial support for
member nations, promoting development and providing financial stability.
 Political and Security Cooperation: BRICS emphasizes global governance reform,
counter-terrorism measures, and cybersecurity.
 People-to-People Exchanges: These exchanges foster cultural, academic, and youth
partnerships across the nations.
 Health, Science, and Technology: Joint efforts in vaccine development, climate
resilience, and innovation reflect BRICS’ commitment to advancing mutual
technological and scientific growth.
Key BRICS Institutions
 New Development Bank (NDB): Established in 2014, the NDB aims to fund
infrastructure and sustainable development projects in BRICS and other developing
countries, providing an alternative to Western-dominated financial institutions like the
World Bank.
 Contingent Reserve Arrangement (CRA): This mechanism offers liquidity and
stabilization support during financial crises, helping BRICS nations manage currency
fluctuations.

BRICS Countries Purpose and Significance

Brazil, Russia, India, China, and South Africa (BRICS) are significant in a variety of ways,
particularly in international relations, economics, and global governance. Here are a few
examples of how the BRICS is important:
Economic Importance
The BRICS countries are among the world’s fastest-growing economies and account for a
sizable part of global GDP. They have large and growing consumer markets, as well as
abundant raw materials, energy, and other resources. The BRICS have created a number of
cooperative projects and organizations to promote economic cooperation and development
among themselves.
Geopolitical Importance
The BRICS nations have become more significant in international affairs and are major
powers in their home regions. Although the political systems, customs, and viewpoints of the
BRICS countries are extremely diverse, they all share a desire to advance multipolarity and
change the global governance system.
 Strategic Importance
The BRICS nations have advantageous geographic locations and formidable military and
diplomatic capacities. They have established numerous significant partnerships and alliances
in industries like defense, energy, and space exploration.
Developmental Significance
The BRICS countries house a sizable proportion of the world’s population and have made
great progress in human development indicators such as education, health, and poverty
reduction. They have established a number of initiatives and organisations to support long-
term growth and social advancement.
Foundational IdeasAndOperational Pillars Of BRICS
 BRICS operates on the principles of non-interference, equality, and mutual benefit.
 The alliance focuses on economic collaboration, territorial integrity, and the resolution
of political disputes.
 Three Operational Pillars:
o Political and security cooperation.
o Economic and financial collaboration.
o Cultural interactions and people-to-people exchanges.
 BRICS has developed cooperative initiatives across various sectors, including energy,
health, education, science and technology, innovation, trade promotion, and
combating transnational crime.

Functions of BRICS
Annual Summits: Since 2009, BRICS countries have held annual summits to discuss and
coordinate their efforts, starting with the first summit in Yekaterinburg.
 Significant Initiatives:
 During the 2014 Fortaleza Summit, the New Development Bank (NDB) was
established, and the Contingent Reserve Arrangement (CRA) was set up to support
financial stability.
o The NDB has sanctioned approximately $8 billion for renewable energy and
infrastructure projects within the BRICS nations.
o Contingent Reserve Arrangement (CRA): The BRICS nations also
established the Contingent Reserve Arrangement (CRA), a liquidity
mechanism designed to support member countries facing payment difficulties.
o BRICS Interbank Cooperation Mechanism: The BRICS grouping has also
created the BRICS Interbank Cooperation Mechanism that provides an
Extending Credit Facility in Local Currency and the BRICS Exchanges
Alliance.
o BRICS countries in 2018 agreed upon a non-binding and voluntary Working
Mechanism for identifying, preventing and eliminating technical barriers to
trade with a view to facilitating trade and increasing mutual trade flows.
 Cooperation Mechanisms:
o Track I: Formal diplomatic engagements between national governments.
o Track II: Interactions through government-affiliated institutions.
o Track III: Civil society and people-to-people engagements.

Impact of BRICS
 Institutional Reforms: BRICS has been a key player in pushing for reforms within
the International Monetary Fund (IMF).
 Reducing Western Dominance: The alliance has worked towards reducing Western
economic hegemony, reflecting changes in the global economic landscape.
 Financial Stability: Successfully provided short-term liquidity solutions, such as
currency swaps, to address immediate financial needs.
 Global Governance: Strengthened principles of respect for sovereign equality and
pluralism in global governance, advocating for a more inclusive international system.

Significance
Four out of five members in BRICS are the largest developing countries of the world,
representing 41% of the global population, 24% of the global GDP and 16% of the global
trade.
 Goldman Sachs claimed that the four BRIC economies will dominate the global
economy by 2050.
 For years, China, India, Brazil, Russia, and South Africa were ranked among the
world’s fastest-growing and emerging market economies.
 The comparative advantage of this group is their low labour costs, favourable
demographics, and abundant natural resources at the time of the global commodities
boom.
 BRICS countries have been the main engines of global economic growth over the
years.