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7 Facts You Need To Know About BRICS

(Osaka - Japão, 28/06/2019) Presidente da República, Jair Bolsonaro, durante foto de família dos Líderes dos BRICS. Foto: Alan Santos / PR

The BRICS, a grouping of major rising economies including Brazil, Russia, India, China, and South Africa, will hold its 15th heads of state and government meeting in Johannesburg from August 22nd to August 24th.

This alliance, which includes people from various economic and geopolitical backgrounds, acts as a forum for collaborative efforts on global concerns. Each member country has various characteristics that contribute distinct viewpoints and capabilities to this powerful club.

Here are some key facts about BRICS and its constituent nations.

1. How BRICS was created

The abbreviation BRICS was coined in 2001 by Jim O’Neill, then the head economist at Goldman Sachs, to highlight the economic potential of Brazil, Russia, India, and China (at the time excluding South Africa). Russia initiated the formation of this informal group in 2009, with the goal of undermining the dominance of the US-led global order.

Unlike official institutions such as the United Nations or the World Bank, BRICS is not an organized multinational entity. Annually, heads of state from member countries gather, with each country taking on a one-year rotating chairmanship to develop collaborative leadership.

 

2. BRICS founding nations

The name BRICS refers to the founding nations of Brazil, Russia, India, and China, with South Africa joining in 2010. This enlargement helped South Africa, which has the smallest economic and population footprint.

These countries account for more than 40% of the global population and a quarter of the global economy. Aside from geopolitics, its agenda includes economic cooperation, increased multilateral commerce, and developmental endeavors. The group’s members also contribute to the G20, a grouping of major global economies, so increasing their impact on international issues.

 

3. Countries aspiring to join BRICS

According to South Africa, the 2023 Summit Chair, over 40 countries, including Iran, Saudi Arabia, and the United Arab Emirates, have shown an interest in joining BRICS. These countries regard BRICS as an alternative to Western-dominated global structures, and they desire benefits including as development finance, expanded trade, and investment.

The backdrop of unhappiness among underdeveloped countries, exacerbated by wealthy countries’ COVID-19 vaccine hoarding, has fueled this interest. Iran, which controls a substantial percentage of the Middle East’s oil reserves, wants quick decisions on new membership protocols, indicating the growing interest in this dynamic alliance.

 

4. Saudi Arabia gains support from Russia and Brazil

Saudi Arabia, a major oil player, participated in “Friends of BRICS” discussions in Cape Town with other countries. Notably, it received backing for its BRICS membership bid from Russia and Brazil.

Argentina received China’s support for their bid in July 2022. In June, Ethiopia, a rising African economy, expressed interest and stressed partnership with organizations that protect its interests. These exchanges highlight the BRICS’ growing appeal, as governments want to unite with a group that provides mutual benefits and counterbalances traditional global power dynamics.

 

5. Bolivia to participate in the summit

Bolivian President Luis Arce’s interest in BRICS membership is expected to be evident during his attendance at the meeting. Bolivia pivots toward the Chinese yuan in order to reduce reliance on the US dollar, coinciding with the BRICS goal of minimizing reliance on the US currency.

Similarly, Algeria’s application for BRICS membership and New Development Bank participation highlights the country’s resource wealth and desire to diversify its economy. These measures are consistent with the BRICS narrative of strengthening ties, encouraging economic diversification, and reducing reliance on established global financial systems.

 

6. Multilateral development initiatives

In 2014, BRICS founded the New Development Bank (NDB), also known as the BRICS Bank. The National Development Bank focuses on infrastructure and sustainable development initiatives in emerging economies. It provides member countries with an alternate source of money, lessening their reliance on established global financial institutions.

 

7. Cooperation in science and innovation

BRICS member countries work together on science, technology, and innovation in addition to economics. Joint research initiatives, academic exchanges, and innovation forums enable member countries to share information and develop cutting-edge innovations. This demonstrates their commitment to broad-based partnership that extends beyond the economic and political realms.

Written by PH

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