BRICS Explained: History, Members, Aims, and the Future of Global Power Shift

 

What is BRICS?

BRICS is an acronym representing an association of five major emerging economies: Brazil, Russia, India, China, and South Africa. Since its inception, the group has aimed to enhance cooperation among these countries and boost their collective influence in global affairs, both politically and economically, as well as in multilateral institutions.

BRICS Summit

1. Origins & Founding

From BRIC to BRICS

• The concept began as BRIC in 2001, coined by economist Jim O’Neill to symbolise Brazil, Russia, India, and China as rising economic powers. Learn more

• These four met for the first time at the G8 Foreign Ministers’ meeting in Yekaterinburg in May 2008, followed by an official BRIC foreign ministers’ meeting on 16 June 2008

• Motivated by shared interests—economic growth, increased voice in global governance, and multilateralism—the first BRIC leaders' summit was convened in Yekaterinburg on 16 June 2009, during the global financial crisis.

• South Africa joined the next year (2010), expanding the group to BRICS, with the first five-member summit held in 2011 in Sanya, China.

2. Aims & Guiding Principles

BRICS was created to:

1. Facilitate dialogue and pragmatic cooperation among developing economies 

2. Amplify their voice in global decision-making, especially in the reform of the UN Security Council, the IMF, the World Bank, and other institutions 

3. Provide a collective counterweight to Western dominance in global economics and politics 

4. Promote the use of local currencies in intra-BRICS trade and develop alternative financial systems 

3. Major Milestones & Evolution

• 2009–2010 (Yekaterinburg/Brasília): Focused on global recession recovery, food security, trade, climate, and multilateralism 

• 2011 Sanya Summit: South Africa officially joined; deliberations on economic cooperation began 

• 2012 Delhi Summit: Strengthened multilateral cooperation; illustrative project launched – the BRICS Cable 

• 2014 Fortaleza Summit: Historic formation of the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) 

• 2023 Johannesburg Summit: Expansion invited six nations (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, UAE), launching BRICS+ 

• 2024 Kazan Summit: Formalised BRICS+, adding partner countries including Algeria, Belarus, Bolivia, Cuba, Indonesia, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam

• 2025 Rio de Janeiro Summit (17th): Marked inclusivity theme, welcomed Indonesia as a full member, and highlighted global governance reform, AI, climate action, financial mechanisms, and Sanctions response. Learn more.

4. Membership & Expansion

Core Members (since 2011):

• Brazil

• Russia

• India

• China

• South Africa

Recent Additions & Partners:

• Full members (joined Jan 2024/July 2025): Egypt, Ethiopia, Iran, UAE, Indonesia

• Pending invites: Saudi Arabia (invited), others declined (Argentina)

• Partner countries (BRICS+ status): Algeria, Belarus, Bolivia, Cuba, Indonesia (now full), Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, Vietnam

This expansion now encompasses around 45% of the global population and 35–40% of the global GDP, up to 47% of crude oil output

5. Key Institutions & Economic Instruments

1. New Development Bank (NDB)

• Established 2014; operative since 2015; equal share capital from founding members

• Funded over 120 projects (~$40 bn) in clean energy, infrastructure, and social sectors

2. Contingent Reserve Arrangement (CRA)

• Launched alongside NDB, allows swap lines for financial stability, though reliance on USD remains

3. BRICS Pay

• A SWIFT alternative or complementary payment messaging platform supporting local currencies

6. Has BRICS Shifted Its Direction?

From Economic Cooperation to Geopolitical Agenda

• While initially inward-focused on development and finance, BRICS has increasingly vocalised on global governance, trade barriers, currency dominance, military conflicts, AI ethics, and climate finance.

• The idea of a BRICS common currency surfaced in academic and policy discussions (e.g., modelling by Coquidé et al.), but practical progress remains limited.

• Intra-BRICS local currency trade has soared (~56% increase 2017–22), though achieving currency de-dollarisation is still a long-term project.

7. The 17th BRICS Summit (Rio, 6–7 July 2025) — Minutes & Highlights

Attendance & Leadership

• In-person: Brazil (Lula), India (Modi), South Africa (Ramaphosa), plus new full members like Indonesia.

• Absent: Xi Jinping (China) citing a scheduling conflict; Putin (Russia) participated via video due to ICC arrest warrant.

Summit Declaration – Key Points (Rio Declaration, 126 points)

1. Reform of global governance:

• Calls to modernise the UN Secretary-General. Council, IMF, WB, and WHO for Global South representation

2. Financial innovations:

• Strengthen BRICS Pay, expand interbank cooperation mechanisms, promote local currencies in trade

3. Sustainable development & climate:

• Support Brazil’s “Tropical Forests Forever Facility,” emphasising climate finance from wealthier countries rather than from developing countries

4. AI governance:

• Adoption of a Global Governance of Artificial Intelligence statement to promote safe, inclusive AI

5. Peace & security:

• Condemnations of terrorism (referencing the April 2025 Pahalgam attack), calls for a UN convention; denounced Middle Eastern violence, Gaza, and military aggression.

6. Trade & globalisation:

• Condemned rising unilateral tariffs, including US threats, carbon taxes perceived as protectionist

7. New member welcomes:

• Indonesia formally upgraded to full membership; new partner countries added

Side Developments

• Brazil to propose climate finance fund ahead of COP30.

• Discomfort over the absence of key leaders noted; the summit steered toward less controversial themes

8. Way Forward: Strategy & Challenges

Priorities Ahead

1. Financial system deepening:

   • Operationalise BRICS Pay, increase local currency settlements, strengthen NDB project pipeline, and operationalise CRA 

2. Global governance reform:

   • Pursue harder diplomatic coalitions to secure UN Security Council and IMF reforms.

3. Climate action:

   • Mobilise climate finance and finalise Brazil’s forest fund proposal.

4. AI regulation:

   • Develop and monitor frameworks for ethical AI deployment.

5. Trade defense:

   • Resist protectionism and tariffs; improve local currency pairs for trade resilience.

Obstacles

• Internal divergences:

  • Democracy vs authoritarianism, strategic rivalries (e.g., India–China), uneven commitments 

• Leadership absences:

• Symbolic gaps due to Xi and Putin’s non-attendance raise doubts about cohesion

• External pressure:

  • US threat of unilateral tariffs aimed to dissuade nations from aligning too closely.

• Operational complexity:

• Expanding membership increases coordination challenges and slows decision-making.

9. Expert Commentary

From The Guardian: 

“The 2025 BRICS summit ... overshadowed by internal discord and absentee leaders, highlighting the challenges facing the bloc as it expands.

From Reuters: BRICS positions itself as a haven for multilateral diplomacy:

“With forums such as the G7 and G20 ... BRICS is presenting itself as a haven for multilateral diplomacy amid violent conflicts and trade wars.”

 10. Opinion — Outlook & Reflection

BRICS has undeniably matured from a loose alliance to a substantial global actor. It now commands nearly half of humanity and a substantial chunk of global trade and resources. The addition of diverse countries—from Indonesia to Iran—underscores its ambition as a true Global South coalition.

However, coherence remains elusive. Divergent political systems, shifting national interests, and individual members’ foreign policies (e.g., India’s Western engagement) threaten internal unity. Leadership gaps, as seen in Rio, further accentuate these vulnerabilities.

On the policy front, BRICS is gaining momentum in several key areas:

• Its NDB is a genuine competitor to Western MDBs, offering an alternative approach to infrastructure finance.

• BRICS Pay and local currency trademark real, though incremental, steps toward financial de-dollarisation.

• Their joint declarations — on AI, governance, climate, and peace — reveal growing ambition to shape global norms.

Yet much of this vision faces practical limits. A BRICS-backed currency remains improbable in the short‑to‑medium term, as logistical, political, and economic heterogeneities persist.

Also, many member states continue bilateral cooperation with the West, fading the sharp edge of anti-Western alignment

In summary, BRICS today is a significant soft power force, advocating global reform, pushing financial innovation, and fostering South–South cooperation. Its future influence will hinge on its ability to deliver operational unity, uphold commitments, and convert declarations into real-world policies. If it prioritises substance over symbolism, BRICS could slowly transform the global order. But without cohesion and follow-through, it risks becoming rhetorically potent yet practically ineffective — influential in numbers but limited in action.

Final Thoughts

BRICS has evolved from a four-nation economic discussion platform into a robust 11-member coalition shaping 45% of the world's population. With landmark institutions like the NDB, strides toward currency diversification, and a clear voice on AI, climate, and trade, BRICS is positioning itself as a counterweight to Western-led global order.

The Rio Declaration expanded its membership and policy scope, but exposed cracks across leadership presence, internal alignment, and external pressure. The success of its next phase under India’s 2026 rotating presidency will determine whether BRICS is a lasting multipolar axis or simply a grand alliance of voices without action.