By Mariel Ferragamo
As BRICS grows in both membership and global sway, its expansion comes with divisions among its members old and new on how to set the stage for a revised world order.
- The BRICS group has become a major political force in the last two decades, building on its desire to create a counterweight to Western influence in global institutions.
- The group’s expansion in 2023 exemplifies its growing heft, but also brings new disagreements on issues such as Russia’s invasion of Ukraine.
- Russia’s 2024 leadership could intensify the bloc’s anti-West focus, including attempts to edge out the U.S. dollar—but that will be an uphill battle, experts say.
The countries that comprise BRICS—which stands for Brazil, Russia, India, China, and South Africa, and now five new members—are an informal grouping of emerging economies hoping to increase their sway in the global order. Established in 2009, BRICS was founded on the premise that international institutions were overly dominated by Western powers and had ceased to serve developing countries. The bloc has sought to coordinate its members’ economic and diplomatic policies, found new financial institutions, and reduce dependence on the U.S. dollar.
However, BRICS has struggled with internal divisions on a range of issues, including relations with the United States and Russia’s invasion of Ukraine. Meanwhile, its growing membership is both expanding its clout and introducing new tensions. Although some analysts warn that the bloc could undermine the Western-led international order, skeptics say its ambitions to create its own currency and develop a workable alternative to existing institutions face potentially insurmountable challenges.
Why does BRICS matter?
The coalition is not a formal organization, but rather a loose bloc of non-Western economies that coordinate economic and diplomatic efforts around a shared goal. BRICS countries seek to build an alternative to what they see as the dominance of the Western viewpoint in major multilateral groupings, such as the World Bank, the Group of Seven (G7), and the UN Security Council.
The group’s 2024 expansion comes with a range of geopolitical implications. It represents growing economic and demographic heft: the ten BRICS countries now comprise more than a quarter of the global economy and almost half of the world’s population. The group is poised to exert influence over the wars in the Gaza Strip and Ukraine, the shape of the global economic system, the competition between China and the West, and efforts to transition to clean energy.
Growing membership also brings new challenges, however, including increasing pushback from Western counties and divisions within the bloc. Experts say that how BRICS members navigate those tensions will determine whether the group can become a more unified voice on the global stage.
What are its origins?
The term was originally coined by Goldman Sachs economist Jim O’Neill in a 2001 research paper in which he argued that the growth of what was then the “BRIC” countries (Brazil, Russia, India, and China) was poised to challenge the dominant G7 wealthy economies.
Russia was the first to call a convening of the four countries, a decision analysts say was driven by Russian President Vladimir Putin’s growing desire to create a counterweight to the West. Russia hosted the first official BRIC summit in 2009, and South Africa joined a year later by invitation from China, forming the five-country grouping that would persist for more than a decade.
The next wave of expansion came at the 2023 BRICS summit, with invitations extended to six newcomers: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE). All accepted except Argentina, after its newly elected President Javier Milei pledged to turn the country in a pro-West direction, saying that it would not “ally with communists.” Saudi Arabia has reportedly accepted the membership, but has delayed officially joining without giving detailed further explanation.
What does BRICS do?
The BRICS heads of state convene annually, with each country taking a one-year chairmanship to set priorities and host a summit. The bloc relies on consensus-based decision-making and is largely informal: it has no defining charter, secretariat, or common funds.
A few thematic areas underscore its priorities:
Advocate for greater representation in global organizations. BRICS seeks to establish a united front of emerging economy perspectives in multilateral institutions. The group aims both to push for reform of existing institutions, such as expanding the UN Security Council, and to form negotiating blocs within those institutions. For instance, many BRICS countries opposed the UN condemnation of Russia’s war in Ukraine and have sought common positions on the Iran nuclear program and conflicts in Afghanistan, Gaza, Libya, and Syria.
Coordinate economic policy. The 2008 global recession hit the BRICS countries hard, leading the group to emphasize economic coordination on issues such as tariff policy, export restrictions of critical resources, and investment. The bloc’s annual foreign direct investment (FDI) inflows more than quadrupled from 2001 to 2021, though they have slowed in recent years.
Reduce reliance on the U.S. dollar. Increasingly disgruntled over the domination of the dollar in global transactions, which exposes them to Western sanctions, BRICS leaders have long advocated for de-dollarization in favor of increased trade in local currencies or even a potential common BRICS currency.
Create an alternative finance system. The group’s New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) are meant to mimic the World Bank and International Monetary Fund (IMF), respectively. BRICS members hope that alternative lending institutions can invigorate South-South cooperation and reduce dependence on traditional funding sources.
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