Econ Addicts

Brazil, Russia, India, China, and South Africa… BRICS. The term was originally coined by Goldman Sachs economist Jim O’Neill and refers to the formerly mentioned, who are viewed as rising powers on the global stage. The BRICS countries are known for their significant influence in regional and global affairs, particularly in terms of economics, politics, and development. 

The role and contribution of the BRICS is significant to the world economy in terms of population (40%), GDP (25% nominal and US$ 16.039 trillion), land coverage (30%), world trade (18%), and global forex (US$ 4 trillion). The main objectives of the BRICS grouping include promoting cooperation among member countries on goals such as economic growth, development, trade, investment, and political dialogue.

BRICS leaders hold annual summits to discuss issues of mutual interest, cooperation, and strategy. Over time, the agenda of these summits has expanded to include discussions on global financial redirection, climate change, cybersecurity, and other major international issues. BRICS held their most recent Summit from August 22nd through 24th in Johannesburg, South Africa to discuss the “de-dollarization” of the collective countries among other topics. Although there have been suggestions of creating a new currency, it is more likely that they’ll continue to trade using their own local currencies and provide financing through the New Development Bank.

What does this do for the global economic order?

For starters, it highlights differences between the West and the BRICS countries. The BRICS Summit attempts to work towards a system that is adjacent to the West’s and is open to new members who strive for representation on the global stage. The further development of BRICS initiatives additionally aim to influence the restructuring of the global economic and political order that the West has primarily held the reins on since the end of World War II.