BRICS Countries, Objectives, Functions, Pillars, Impact

BRICS is an important grouping of 5 countries i.e., Brazil, Russia, India, China and South Africa. Read all about BRICS Countries, Objectives, Functions, Pillars and Impact.

Table of Contents

Context: India welcomed Egypt, Iran, UAE, Saudi Arabia and Ethiopia joining the BRICS as their representatives attended for the first time a key meeting of the grouping hosted by Russia.

BRICS Full Form

BRICS stands for Brazil, Russia, India, China, and South Africa, and it refers to a group of five key emerging economies. The acronym BRIC was coined by economist Jim O’Neill in 2001 to designate the four rapidly growing economies of Brazil, Russia, India, and China. In 2010, South Africa joined the organisation, and the acronym was modified to BRICS.

Since this is a prominent topic in the Indian Politics and International Relations of General Studies Paper 2 and Economics of General Studies Paper 3 of the UPSC Syllabus this article is crucial for students preparing for the IAS exam.

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
Headquarters	BRICS Tower, Shanghai, People’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. BRICS is an acronym that stands for Brazil, Russia, India, China, and South Africa. 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: Solidarity Openness Pragmatism Neutrality (regarding third parties) Non-bloc nature

Check here for complete details about the BRICS Summit.

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

The headquarters of the BRICS institutions are located in different member countries, as follows:

New Development Bank (NDB): The NDB, formerly known as the BRICS Development Bank, is headquartered in Shanghai, China.
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.
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.
The BRICS Academic Forum: It is a network of universities and research organisations 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

The BRICS are a group of five large emerging economies that have been designated as some of the world’s fastest-growing economies. The BRICS Countries are as follows:

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 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 organisations 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 defence, 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 Ideas And Operational 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:
- Political and security cooperation.
- Economic and financial collaboration.
- 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.
  - The NDB has sanctioned approximately $8 billion for renewable energy and infrastructure projects within the BRICS nations.
  - 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.
- 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.
- 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:
- Track I: Formal diplomatic engagements between national governments.
- Track II: Interactions through government-affiliated institutions.
- 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.

BRICS Countries UPSC

It is critical for the BRICS countries to increase their cooperation within the frameworks of the G20, the World Trade Organization (WTO), the World Bank, and the International Monetary Fund ( IMF). The BRICS countries should improve macroeconomic policy coordination and multilateral collaboration. BRICS countries should make full use of instruments for cultural and people-to-people interactions and collaboration, including the internet.

The BRICS are an important topic in the UPSC Syllabus sections on international relations and economics. UPSC aspirants are expected to have a basic understanding of the BRICS countries, their economies, and their relationship with India. Students can go to the official StudyIQ UPSC Online Coaching website for additional information about the UPSC Exam. By completing UPSC Mock Test on a weekly basis, aspirants can enhance their question-solving abilities. Simulated exams support high exam performance. To strengthen their preparations for their upcoming exams, students can take a UPSC Mock Test.

Other Important Articles
G7 Countries	NATO Countries
International Monetary Fund	BIMSTEC Countries

BRICS Countries FAQs

What is BRICS and its purpose?

The acronym BRICS refers to the powerful grouping of the world's leading emerging market economies, which include Brazil, Russia, India, China, and South Africa. The BRICS mechanism was established to promote peace, security, development, and collaboration.

Where is the headquarter of BRICS?

The BRICS bank's headquarters are in Shanghai, China.

Who invented BRICS?

BRICS is an acronym for Brazil, China, India, and Russia that was coined in 2001 by Jim O'Neill (a Goldman Sachs economist). Later that year, South Africa was admitted to the BRICS group. According to Goldman Sachs, the four BRIC economies would control the world economy by 2050.

What is the role of India in BRICS?

India actively participates in BRICS summits and other group meetings, contributing significantly to the BRICS agenda, which seeks to promote economic growth, sustainable development, and international collaboration.