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BRICS is a political and economic grouping of major emerging economies that has gained renewed global attention as countries seek alternatives to Western-led financial and diplomatic systems. Understanding what BRICS is helps explain shifting power dynamics in global trade, development, and geopolitics.
Defining
BRICS
BRICS
refers to Brazil, Russia, India, China and South Africa. It was established to
foster collaboration among powerful developing nations that are on the rise
regionally and globally. Although it does not form part of any legally binding
agreement or organization, this group acts as a united front for economic
cooperation, growth, and political discourse.
The idea
came about at the beginning of the 21st century when certain economists
predicted that these countries would experience high economic growth rates and
have an impact on global markets. In 2010, South Africa joined the group
thereby extending its reach across Africa.
What BRICS
Does
BRICS
conducts its business through annual summits, ministerial meetings, as well as
working groups that deal with trade, finance, technology, health, energy etc.
The member states align themselves to address global economic concerns and call
for changes in international bodies.
Among
other things, one of the tangible projects of the association is establishment
of the New Development Bank meant to offer financial support for infrastructure
projects within member states as well as other emerging markets. This
institution was created with the intention of supplementing the roles played by
existing global lenders but at the same time providing options for development
financing.
Why BRICS
Matters Now
BRICS has
become more visible amidst increasing geopolitical tensions and countries
reconsidering their dependence on traditional global institutions. Together
these countries make up over 40% of the world’s population and approximately a
quarter of global GDP in terms of purchasing power parity.
Many
nations have shown interest in closer relations or expanding membership as part
wider attempts towards creating multipolar economic ties. There have also been
increased talks about trading using local currencies, financial collaborations
as well as cross border payment systems.
These are
seen as efforts to decrease reliance on dollar for some transactions but there
are still differences in how this is being done among members.
Economic
and Political Influence
Each
country in BRICS has unique advantages. China and India are engines for growth
and manufacturing industry. Russia and Brazil give input on energy and
commodities while South Africa opens up access to African markets.
Although
their interests may not always be similar, the group provides a forum for
cooperation outside Western-dominated platforms. This has been particularly
important given that emerging economies wish to enhance their say in global
decision-making.
Where
BRICS Fits Today
BRICS is
an indication of the increasing attempts made by developing economies to
influence global economic governance. It is not meant to take over from the
current institutions but shows a move towards a world order where power is
shared rather than being concentrated in few hands only.