BRICS Overview
Formation Year: 2009 (BRIC); 2010 (with South Africa)
Member Countries:
o Brazil
o Russia
o India
o China
o South Africa
Purpose:
o Economic cooperation
o Political coordination
o Multilateralism
o Development support
Main Objectives
Economic Growth
o Promote inclusive development
o Increase trade among member nations
Global Influence
o Shift from Western-centric institutions (e.g., World Bank, IMF)
o Create alternative global governance models
South-South Cooperation
o Strengthen ties between developing nations
o Build collective influence in global issues
Key Initiatives
New Development Bank (NDB)
o Alternative to IMF & World Bank
o Infrastructure financing in developing countries
o Headquarters in Shanghai
Contingent Reserve Arrangement (CRA)
o Financial support for countries in need
o Stabilization mechanism for global financial crises
Political Cooperation
Diplomacy and Peace Initiatives
o Joint statements on global crises (climate change, terrorism)
o Regular BRICS summits
Strengthening Multilateralism
o Reforming UN institutions
o Supporting multipolarity in global governance
Challenges
Geopolitical Tensions
o India-China border issues
o Russia's relations with the West
Economic Disparities
o Differing economic structures and growth rates
Internal and External Conflicts
o Domestic politics impacting cooperation
BRICS+
After 13 years without expansion, at its 15th summit held in Johannesburg on
22-24 August 2023, BRICS welcomed four new members into its ranks – Egypt,
Ethiopia, Iran and the United Arab Emirates – and is now informally called
BRICS+.
1 The four countries' membership kicked in on 1 January 2024
Expansion Talks
o Engaging other emerging markets
o Potential new members like Indonesia, Egypt, Argentina
SUMMARY
On 1 January 2024, BRICS – the intergovernmental organization
comprising Brazil, Russia, India, China and South Africa – admitted four
new members: Egypt, Ethiopia, Iran and the United Arab Emirates.
The group's decision to open the door to new members was taken at
its Johannesburg summit in August 2023, sparking a debate about its
growing international influence.
According to estimates, BRICS+, as the organization has been
informally called since its expansion, now accounts for 37.3% of world
GDP, or more than half as much as the EU (14.5 %).
However, besides an increase in economic power the new members
could bring potential conflicts (Saudi Arabia/Iran or Egypt/Ethiopia) into
the group, making the reaching of consensus on common political
positions more difficult.
Since the new members would only contribute roughly 4% to the
group's cumulative GDP, the significance of the expansion should be
seen beyond the purely economic effect, in the form of greater
influence for the group and for developing countries as a whole within
international organisations such as the United Nations, the World Trade
Organization and the Bretton Woods institutions. The EU engages with
BRICS+ countries individually. For instance, it has strategic
partnerships with Brazil, India and South Africa, and is negotiating a
free trade agreement with India. On the other hand, current conflicts in
Ukraine and Gaza show the divergent approaches to security taken by
the EU and BRICS+.
The European Parliament has stressed that further political dialogue
with the BRICS countries is needed, including on an individual basis. In
an exchange of views with European Commission representatives in
October 2023, Members of the Parliament's Committee on
International Trade (INTA) underlined the need to keep an eye on the
group's expansion, especially considering the effect of a potential
BRICS+ currency and the consequences for EU trade policy.
The 16th BRICS summit will be held in Kazan, Russia
from October 22– 24, 2024. Russia took over the BRICS
chairmanship from South Africa on January 1, 2024.
Russia's priorities for the 2024 BRICS summit include:
Promoting cooperation in science, technology, healthcare, and the
environment
Promoting cooperation in culture, sports, youth exchanges, and civil
society
Holding over 200 events in various Russian cities
The BRICS summit is an annual event attended by the heads of
government of the member countries. The presidency rotates
annually, with each country taking turns hosting the summit
and setting the agenda.