what is BRICS and its purpose?

What is BRICS and Its Purpose? Understanding the Global Impact of This Emerging Alliance

In a world where global alliances shape economies and politics, many are asking, "What is BRICS and its purpose?" BRICS is an acronym representing five major emerging economies: Brazil, Russia, India, China, and South Africa. This powerful group has evolved beyond a simple economic classification to become a strategic coalition that aims to reshape global governance, challenge Western-dominated financial systems, and create new opportunities for cooperation among developing nations.

The nations of Brazil, Russia, India, China, and South Africa are together known as BRICS. Originally, the name was intended to describe the rapidly expanding economies of China, India, Brazil, and Russia. Later, South Africa joined, and in 2024-2025, Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia joined the alliance. The goal of BRICS is to promote collaboration in fields such as global governance, trade, and investment.

Here's a breakdown:

• Brazil, Russia, India, China, and South Africa are the original members of the BRICS alliance.

• Expanded Membership (BRICS+): Indonesia, Egypt, Ethiopia, Iran, and the United Arab Emirates.

• BRICS is an intergovernmental organization whose goal is to increase its members' economic and geopolitical cooperation.

• Global Impact: According to Startup India, the BRICS countries together account for a sizable share of the world's population (about 3 billion people) and a sizeable chunk of its GDP (estimated at 37.3%)

• According to Britannica, they are viewed as a possible alternative to international organizations that are dominated by the West.

• Focus Areas: The organization seeks to promote collaboration in fields such as global governance, trade, investment, and technology.

How powerful is BRICS?

A sizeable share of the world's population, GDP, and commerce is represented by the strong and expanding BRICS group of emerging economies. Although BRICS is not a military alliance like NATO, its goal is to challenge the dominance of Western-led institutions and change world governance.

Here's a breakdown of BRICS's power and influence:

Economic Strength:

 GDP: According to some estimates, the BRICS nations—Brazil, Russia, India, China, and South Africa, along with new members—account for a significant portion of the world's GDP, surpassing 40%.

Trade: BRICS is a major player in world trade, especially when it comes to commodities. 

Growth: The economies of the BRICS countries have typically grown at greater rates than those of many industrialized countries, making a substantial contribution to the expansion of the world economy.

Population: The BRICS countries, which include some of the most populous countries like China and India, are home to a sizable share of the global population.

Resource Wealth: With their abundance of natural resources, the BRICS countries are major participants in the world's resource and energy markets.

Geopolitical Influence:

Alternative to Western Institutions: By fostering a more multipolar global order, BRICS seeks to offer a substitute for Western-dominated organizations such as the World Bank and G7.

Global Governance: The goal of BRICS is to increase the representation of rising economies in international decision-making concerning matters such as trade, security, and climate change.

South-South Cooperation: By encouraging common interests and group efforts, BRICS promotes collaboration between developing nations.

Obstacles and Restrictions:

Internal Conflicts: The diverse political structures and occasionally opposing national interests of the BRICS countries might impede coordinated action, even in the face of common goals.

Economic Diversification: Although the economies of the BRICS countries have grown impressively, several members struggle with diversification and dependence on particular industries or commodities.

Dependency on International Markets: Because the BRICS economies are still linked to the global financial system, any downturns or disturbances in the world economy may have an impact on their prospects for expansion.

With considerable economic and geopolitical clout, BRICS is a formidable force in the world economy. Despite its difficulties, its expanding membership and emphasis on South-South collaboration indicate that its significance will only rise in the years to come.

Is BRICS bigger than G7?

Indeed, the BRICS nations collectively own a bigger percentage of the global economy than the G7 nations in terms of GDP as assessed by purchasing power parity (PPP). This indicates that BRICS economies together account for a larger share of global economic output when taking into account the relative worth of goods and services inside each nation as well as the cost of living.

Here's a more thorough explanation:

Brazil, Russia, India, China, and South Africa are the members of the BRICS alliance.

Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States are all members of the G7.

Economic Power:

The BRICS countries, especially China and India, are seeing significantly faster rates of economic growth than the G7 countries, which typically have greater per capita GDPs (more money per person).

Global GDP Share:

When calculating GDP at purchasing power parity, the BRICS nations overtook the G7 in 2018. According to Statista, by 2024, the G7 will account for 30% of the global GDP at PPP, while BRICS will account for 35%.

Future Forecasts:

 According to IMF projections, China alone will be responsible for a sizable amount of the future global economic development driven by the BRICS nations.

Why is BRICS important to India?

India and trade within the BRICS With the help of BRICS, India is able to settle disputes and improve ties with South America and Africa.

Global power balance: India can pursue a multipolar world through BRICS, acting as a counterbalance to US dominance and allying with nations like China and Russia without entirely committing to either side.

Improving strategic autonomy: The forum strengthens India's multi-alignment posture by enabling it to collaborate across various blocs (such as BRICS and QUAD). 

What is BRICS currency?

A system that lessens dependency on the US dollar for international trade is being considered by the BRICS countries (Brazil, Russia, India, China, and South Africa). But as of right now, there isn't a single, cohesive BRICS currency. Discussions instead focused on creating a blockchain-based payment system (BRICS Pay) to enable transactions between member nations and using local currencies for trade.

Who controls BRICS?

There is no single entity that controls BRICS. It functions as an intergovernmental body with a rotating chairmanship that is based on consensus. One of the member nations takes over as chairman each year, offering guidance and hosting the annual summit. As of right now, Brazil has replaced Russia as the BRICS president for 2025.

Will BRICS replace the US dollar?

The BRICS countries have been looking for methods to lessen their reliance on the US currency for years, particularly in the wake of Western sanctions against Russia. Some members have pushed for the creation of a new financial system or the use of their local currencies in commerce. The Kremlin, meanwhile, has refuted any immediate intentions to introduce a common BRICS currency.

Where is BRICS headquarters?

Shanghai, China, is the right response. The headquarters of BRICS (Brazil, Russia, India, China, and South Africa) are in Shanghai, China. In 2001, Goldman Sachs created the abbreviation BRICS, which stands for Brazil, Russia, India, and China.

Is BRICS changing the world?

The group's 2024 expansion came with a range of geopolitical implications. It represents growing economic and demographic heft: the eleven BRICS countries now comprise more than a quarter of the global economy and almost half of the world's population.

Is BRICS a threat to the US dollar?

In the meanwhile, the dollar's hegemony is not seriously threatened by the BRICS. The BRICS group's leading member, China, wants to lessen its dependency on the currency. By supporting RMB exchanges, Beijing is pushing for increased RMB use.