BRICS, a powerful international group, was formed in 2006, starting with Brazil, Russia, India, and China. In 2011, South Africa joined, expanding the group’s influence. Now, as of 2024, new members have been welcomed: Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia. Though Saudi Arabia hasn’t formalized its membership yet, it’s actively participating in BRICS meetings.
The group is currently holding its 16th BRICS Summit in the city of Kazan, Russia, with leaders from 36 countries, including 22 heads of state, gathering for three days. The event’s motto, “Strengthening Multilateralism for Just Global Development and Security,” shows that BRICS aims to create a fairer world where countries work together for development and security. But why is BRICS becoming so important?
How BRICS Stands Apart
Unlike traditional global organizations such as NATO or the EU, BRICS isn’t a formal alliance. It doesn’t have a central office, a budget, or even a binding agreement between the members. Instead, it operates more like a club of countries with shared goals and interests. BRICS doesn’t follow strict rules; its members are united by a common desire to reshape the world order, one that has long been dominated by Western powers like the U.S. and Europe.
In the early 2010s, BRICS began engaging with other countries through the “BRICS Plus” format, inviting third-party nations to participate in discussions. This open-door policy has attracted over 40 countries eager to cooperate with BRICS in various ways, making the organization a hub of global interest.
BRICS’ Impressive Growth
BRICS now represents a staggering 45% of the world’s population—about 3.6 billion people! Together, these nations have a combined economic output of $28.5 trillion, making them a force to be reckoned with. In fact, BRICS now accounts for 36% of the world’s GDP (when adjusted for purchasing power), surpassing the G7’s 29.3% and the European Union’s 14.5%. This is a significant shift in global economic power.
Even more impressive, BRICS is projected to grow by 4% in 2024, compared to the G7’s sluggish 1.7% growth. This faster growth highlights how BRICS is outpacing Western economies, which are facing slower recovery and development.
The Wealth and Resources BRICS Controls
BRICS isn’t just growing economically—it’s also amassing wealth and resources. The group holds an astounding $45 trillion in investable assets, according to the BRICS Wealth Report. These nations also account for 45% of the world’s crude oil production, making them major players in the global energy market.
When it comes to gold, BRICS countries are some of the largest holders of reserves, collectively owning over 20% of the world’s gold. Russia and China lead the way with massive gold reserves, which strengthens their economic security. With these resources, BRICS has more leverage on the global stage, especially as nations are looking to move away from reliance on the U.S. dollar.
Building a New Financial System
BRICS isn’t just content with economic growth—it’s actively working on building an alternative financial system that reduces its dependence on Western institutions. They’re developing innovative financial tools like a shared currency unit called the “BRICS Unit” and a blockchain-based payment system known as “BRICS Pay.”
They’re also creating systems for financial settlements between member countries, such as the BRICS Bridge, which allows them to trade using their own currencies instead of relying on the U.S. dollar. This is crucial because many BRICS countries, especially Russia, have faced Western sanctions, and trading in their own currencies provides them with greater freedom and stability. In fact, 65% of Russia’s trade with BRICS partners is now done in national currencies.
Achievements of BRICS
Since its formation, BRICS has made significant progress in reshaping the global economy. One of its biggest successes was the establishment of the New Development Bank (NDB) in 2014. The NDB was created to fund infrastructure projects and support sustainable development, not only in BRICS countries but also in other emerging markets. With a starting capital of $100 billion, the NDB has already invested in 138 projects across countries like China, India, Brazil, South Africa, and even Bangladesh and Egypt.
This financial independence from Western-controlled institutions like the International Monetary Fund (IMF) or the World Bank shows that BRICS is serious about creating a fairer, more balanced global financial system.
What’s Next for BRICS?
Looking ahead, BRICS has big plans. They aim to continue building an inclusive financial system that benefits all members. They’re working on an insurance system, an independent rating agency, and even more ways to settle financial transactions outside of Western frameworks.
As BRICS expands and grows stronger, it’s clear that the world is witnessing a shift in power. Developing nations are no longer just following the lead of Western powers—they’re creating their own path to a more just, multipolar world. Whether this shift will be peaceful or come with friction remains to be seen, but one thing is certain: BRICS is a key player in shaping the future of global development.
The question now is, will BRICS create the balance the world needs? Or will its rise spark new tensions in an already divided world?
