BRICS Grouping

Subject: International Relations | GS Paper II

UPSC Notes

BRICS is a grouping of emerging economies that promotes economic cooperation, political coordination and greater representation of developing countries in global governance.

Origin

  • The term BRIC was coined by Goldman Sachs economist Jim O'Neill in 2001.

  • Original members were Brazil, Russia, India and China.

  • South Africa joined in 2010, transforming BRIC into BRICS.

Membership

The expanded grouping includes the following countries:

  1. Brazil

  2. Russia

  3. India

  4. China

  5. South Africa

  6. Egypt

  7. Ethiopia

  8. Iran

  9. United Arab Emirates

  10. Indonesia

  11. Saudi Arabia, whose formal membership status requires attention to differing official descriptions.

Major objectives

  • Strengthening cooperation among emerging economies.

  • Reforming global financial institutions.

  • Increasing the representation of developing countries.

  • Promoting trade and investment.

  • Encouraging cooperation in climate change, health and sustainable development.

  • Strengthening the voice of the Global South.

Important institutions

New Development Bank (NDB)

  • Established in 2014.

  • Headquarters: Shanghai, China.

  • Provides financial assistance for infrastructure and sustainable development projects.

Contingent Reserve Arrangement (CRA)

  • Provides financial support to members facing short-term balance-of-payments pressures.

  • Acts as a financial safety-net mechanism.

Nature of BRICS

  • Not a military alliance.

  • Does not have a permanent secretariat.

  • Decisions are generally based on consensus.

  • Presidency rotates among member countries.

Key Pointers

  • BRIC coined: 2001.

  • Original members: Brazil, Russia, India and China.

  • South Africa joined: 2010.

  • First BRIC summit: 2009, Russia.

  • New Development Bank: 2014.

  • NDB headquarters: Shanghai.

  • 2025 presidency: Brazil.

  • 2026 presidency: India.

  • Main agenda: Global South and global governance reform.