The ascendency of BRICS, an acronym for the emerging economies of Brazil, Russia, India, China, and South Africa, has captured global attention. A concept once borne out of an investment bank’s observation has grown into a formidable alliance, leading a new direction for the world economy.
This development has attracted interest from various nations, marking a significant shift in the global financial and political landscape.
The growth trajectory
The original concept of BRICS was forged by economist Jim O’Neill of Goldman Sachs Group Inc. in 2001, who identified Brazil, Russia, India, and China as countries exhibiting impressive economic growth rates.
Despite the widespread skepticism, these nations capitalized on the concept, leveraging their common growth trajectories and shared challenges to amplify their voice in the international arena.
The incorporation of South Africa in 2010 added another layer of diversity to this emerging alliance. Initially, critics dismissed BRICS as an overhyped, diverse group of countries with little common ground.
Yet, over the years, these nations have transformed this perceived weakness into a strength, leveraging their distinct characteristics to build a platform for intergovernmental cooperation that parallels the G7.
The establishment of the New Development Bank in 2014 was a significant milestone, providing a potent alternative to the World Bank and International Monetary Fund (IMF).
Why BRICS is attracting more countries
With their dynamic economic performance, BRICS nations have positioned themselves as representatives of the Global South, offering a counterpoint to the G7.
The New Development Bank, backed by significant seed funding, and the creation of the Contingent Reserve Arrangement to aid struggling members, have been particularly appealing to developing and emerging economies.
Countries that have previously experienced the stringent conditions of IMF’s structural adjustment programs are finding the BRICS model enticing.
In 2021, Egypt, United Arab Emirates, Uruguay, and Bangladesh became shareholders in the BRICS bank, albeit with a lower investment than the founding members.
According to South Africa’s Foreign Minister Naledi Pandor, the interest in joining the alliance is widespread, with countries like Saudi Arabia, Algeria, Argentina, Mexico, and Nigeria expressing interest.
BRICS’ evolving role in global dynamics
Despite initial presumptions, the recent economic trajectories of the BRICS nations have diverged significantly from their founding principles.
While China has experienced sustained growth, the economies of Brazil, South Africa, and Russia have stagnated, and India’s growth, although significant, has been overshadowed by China’s meteoric rise.
The geopolitical implications of BRICS’ rise have also been noteworthy. The current conflict in Ukraine has underlined the division between BRICS nations and the West, with members of the former refraining from participating in sanctions against Russia.
Critics argue that this shift may see the club’s transition from an economic group focused on growth and development to a political alliance shaped by their nationalist tendencies.
Nevertheless, the BRICS alliance is viewed as a platform for increased sovereign and autonomous thought. South Africa, India, and Brazil are seeking better terms in a bipolar world. China, meanwhile, is capitalizing on this platform to enhance its global political ambitions.
