What is BRICS?
BRICS, an intergovernmental organization comprising nine countries—Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates—is more than just a group of nations. It’s a geopolitical bloc that has evolved significantly since its inception in 2009.
The Genesis of BRICS
In March 2013, during the fifth BRICS summit in Durban, member countries agreed to create a global financial institution to cooperate with the western-dominated IMF and World Bank. This decision marked a significant step towards establishing the New Development Bank (NDB), which was formally launched at the sixth BRICS summit in Fortaleza in July 2014.
Key Players and Contributions
China, with its substantial economic weight, has about 70% of the organization’s total GDP. At the St Petersburg summit in September 2013, China committed $41 billion towards the pool; Brazil, India, and Russia each contributed $18 billion, while South Africa pledged $5 billion.
Financial Architecture
The financial architecture of BRICS includes the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA). The NDB has a starting capital of $50 billion and 53 projects underway worth around $15 billion. The CRA was established in 2015 to protect against global liquidity pressures.
Communication and Technology
The BRICS group has been planning an optical fiber submarine communications cable system, known as the BRICS Cable, to carry telecommunications between member countries since 2012. In August 2019, the communications ministers of the BRICS countries signed a letter of intent to cooperate in the Information and Communication Technology sector.
Expansion and Future Prospects
In July 2023, South Africa announced that they would be giving diplomatic immunity to Vladimir Putin and other Russian officials so that they could attend the 15th BRICS Summit despite the ICC arrest warrant for Putin. In August 2023, at the 15th BRICS Summit, South African President Cyril Ramaphosa announced that six emerging market group countries (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates) had been invited to join the bloc.
Membership Dynamics
Full membership of Argentina was set to take effect on January 1, 2024, but it was withdrawn in November 2023 due to a change in government. Saudi Arabia did not join as planned and its status is still under consideration as of April 2024. Additional countries, including Algeria and Belarus, were invited to participate as partner countries in October 2024.
Reception and Challenges
The United States is concerned about the BRICS countries’ lack of consensus due to drastically different political systems and economies. The group’s de-dollarization efforts pose a significant challenge to US interests, as it could diminish American influence and impact existing trade agreements.
As the BRICS bloc continues to evolve, it faces both opportunities and challenges. The group’s potential common currency and BRICS Bridge were studied at the 2023 summit in South Africa, highlighting its ongoing efforts to strengthen cooperation on science, technology, innovation, digital economy, and combating transnational crime.
Will BRICS continue to grow and become a significant player in global politics? The answer lies in how well it can navigate these challenges and maintain unity among its diverse members. Only time will tell, but one thing is certain: the future of this geopolitical bloc is far from predictable.
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This page is based on the article BRICS published in Wikipedia (retrieved on November 30, 2024) and was automatically summarized using artificial intelligence.
