Background

Officially founded in 2009, BRICS is an informal, multilateral economic alliance between Brazil, Russia, China, India, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. The acronym “BRIC” (later adapted to include South Africa) was originally coined by Goldman Sachs economist Jim O’Neill in a 2001 paper wherein he highlighted the potential for Brazil, Russia, India, and China to eventually rival the G7 (U.S., Canada, France, U.K., Germany, Japan, and Italy) economically. Today, the alliance is sometimes referred to as BRICS+. The overarching goal of BRICS is to create a system of transnational governance wherein countries of the Global South share equal representation in economic and political institutions historically controlled by Western nations. This involves establishing an international financial network that rivals the current dollar-based system, and promoting development in the Global South. 

Structure

Presently, BRICS is not a formal institution such as the UN or OPEC. The group meets annually, with the chairmanship rotating between member states, and all policy decisions made by consensus. It is currently chaired by Russia, where the annual summit will be held in October 2024. According to the summit’s official website, the group plans to discuss the potential inclusion of 30 new countries in some capacity, as well as strategies for the development of a more coordinated foreign policy platform.

Successes and Potential

• Creation of Banks and Funds: The most ambitious programs enacted by the BRICS alliance thus far have been the creation of the New Development Bank and the Contingency Reserve Agreement. Founded in 2015 with an initial capital base of $50 billion, the New Development Bank (NDB) will fund infrastructure and development projects in BRICS countries and other nations in the Global South. The Contingency Reserve Agreement (CRA) is a $100 billion fund established to provide liquidity for BRICS during economic crises. Both of these institutions were created to combat the influence of US-led economic institutions such as the International Monetary Fund and the World Bank. 
• Addressing Development in the Global South: BRICS has successfully implemented policies pertaining to one of their slated goals: development in the Global South. Examples include: Improving access to clean water in Guwahati, India, river restoration and ecological protection projects in China, and establishing the BRICS Agriculture and Rural Development Forum, which aims to address poverty and food insecurity. 
• Attracting New Member States: Membership in BRICS has proven attractive to developing nations worldwide, including several Asian countries. Thailand, Malaysia, and Vietnam have all taken the necessary steps to apply for membership, while other Asian nations such as Myanmar and Sri Lanka are openly considering applying. 
• Potential for Peacebuilding: The inclusion of rival countries in the Middle East such as Iran and potentially Saudi Arabia indicates that BRICS membership may be used to facilitate peace and development in a region historically preoccupied with US sanctions and military involvement. The expansion of BRICS would challenge the heavy U.S. influence in developing countries, which BRICS member states see as a successful step towards equalizing power on an international scale. 

Failures and Critiques 

• Intra-group Disagreements: Differing cultural values, contrasting political ideologies, and competing economies all pose obstacles for BRICS to strengthen cohesion and thus influence. The group’s two largest members in terms of population and GDP, India and China, disagree about whether or not the group should expand, and have also engaged in armed border disputes in recent years. 
• Lack of Global Economic Influence: Despite efforts to “de-dollarize” by promoting trade between member states in local currencies, the USD still dominates international trade. The dollar was present on at least one side of nearly 90% of all international trade transactions in 2022. The dollar was on one side of 97% of all trades involving the Indian rupee, and 94% of all trades involving the Chinese renminbi. Furthermore, much of the world’s international commodity trading is priced by the dollar, and the dollar frequently comprises the foreign currency reserves of many countries’ central banks. Globally, 58% of foreign exchange reserves were held in dollars, including an estimated 50% in China and India. 
• Risk of Unilateralism: While the growth of all BRICS members has slowed since its conception, China’s economy is larger than any other economy within the agreement, and trade within the alliance mostly flows through China. This runs the risk of BRICS becoming an exclusively China-led group as opposed to a mutual power-sharing alignment of non-Western nations. With China now being the United States’ major rival globally, China’s de-facto leadership within the agreement will necessitate a strong U.S. response. Whether U.S. foreign policy will take a continued adversarial approach, or a new, collaborative effort remains to be seen.