brics countries

Reviewed by Vishnava | Updated on Apr 02, 2024

What does BRICS mean?

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.
Originally it was just BRIC i.e. Brazil, Russia, India, China.

Four out of five members in BRICS are some of the largest countries by population and also by area, save South Africa.
The 5 countries in BRICS contribute a quarter to the GDP of the world.
These countries are experiencing high growth due to low labour production, increased FDI inflows and booming opportunities.
It comprises 41% of the world population and has 16% of the share in world trade.

It works on the principles of non-interference, equality, and mutual benefit.
The alliance is economic, territorial and resolves political disputes.
Three pillars of BRICS are – political and security, economic and financial and cultural and people to people exchanges.
It has developed sectorial co-operations in different areas, such as energy, health, education, science and technology, innovation, trade promotion, and fight against transnational crime.

Since 2009, the BRICS countries have started meeting annually at formal summits. The first meeting was held in Yekaterinburg.
The latest summit was held in 2020 virtually. It was hosted by Russia.
At the 2014 Fortaleza Summit, the New Development Bank was created and the Contingent Reserve Arrangement was constituted. Till date, the NDB has been able to sanction nearly 8 billion dollars’ worth of renewable energy and infrastructure projects in the BRICS nations. The CRA acts as a financial stability mechanism to countries adversely affected by the Balance of Payment crisis.
Cooperation among members is achieved through:
Track I: Formal diplomatic engagement between the national governments.
Track II: Engagement through government-affiliated institutions.
Track III: Civil society and people to people engagement.

Leading efforts for institutional reforms in the International Monetary Fund.
Reduced western economic hegemony.
It is reflective of the structural changes in the world economy.
It has been successful in providing short term liquidity through currency swaps and the like.
It has strengthened foundational principles of respect for sovereign equality and pluralism in global governance.