What Is BRICS?
BRICS is a geopolitical and economic alliance originally formed by Brazil, Russia, India, China, and South Africa. The acronym was coined in 2001 by economist Jim O’Neill to describe emerging economies poised to reshape global power. Since then, BRICS has evolved from a loose economic concept into a formal intergovernmental organization.
As of 2025, BRICS has expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, the UAE, and Indonesia, forming what is now often called BRICS+. With over 45% of the world’s population, vast natural resources, and growing technological capabilities, BRICS+ is becoming a formidable force in global affairs.
Why BRICS Matters
BRICS is important because it represents a shift away from Western-centric global governance. Here’s how:
- Economic Power: BRICS+ nations now account for nearly one-third of global GDP and two-fifths of global trade.
- Institutional Alternatives: The New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) offer alternatives to the World Bank and IMF, with more equitable voting structures.
- De-dollarization: BRICS promotes trade in local currencies, reducing dependence on the US dollar and challenging its dominance in global finance.
- Global South Representation: BRICS amplifies the voice of emerging economies, advocating for a multipolar world order and reform of institutions like the UN Security Council.
- Strategic Cooperation: Members collaborate on energy, infrastructure, technology, and climate resilience, often outside Western frameworks.
The Bigger Picture
BRICS is more than an economic bloc it’s a philosophical challenge to the post-WWII Western-led order. It seeks to:
- Rebalance global governance by giving emerging economies more say.
- Diversify global trade and finance, reducing systemic risks tied to Western institutions.
- Foster South-South cooperation, especially in infrastructure, energy, and digital innovation.
Future Outlook for BRICS and Its Members
The next decade could be transformative:
- India, Egypt, and Ethiopia are projected to be the fastest-growing BRICS economies through 2030, driven by digital expansion and catch-up growth.
- China will continue leading in high-tech manufacturing, AI, and green energy.
- Saudi Arabia and the UAE are diversifying beyond oil, investing heavily in infrastructure and tech.
- Russia, Iran, and South Africa may face slower growth due to structural challenges and geopolitical tensions.
Despite internal differences, BRICS is expected to surpass the G7 in economic output by 2030. However, its institutional foundation remains fragile, and a common currency is unlikely in the near term.
How BRICS Challenges Western Dominance in Global Governance
BRICS is reshaping global governance in several ways:
- Reforming Bretton Woods Institutions: BRICS pushes for fairer voting rights and lending practices in the IMF and World Bank.
- Creating Parallel Systems: The NDB and proposed BRICS payment systems offer alternatives to SWIFT and dollar-based trade.
- Expanding Membership: With over 40 countries expressing interest, BRICS is becoming a magnet for nations seeking autonomy from Western influence.
- Promoting Sovereign Equality: BRICS emphasizes non-intervention and equal partnership, contrasting with Western conditionality models.
While not all members share the same geopolitical goals, the bloc’s expansion signals a structural shift in global power away from the West.
Potential Effects of BRICS on Global Trade
BRICS is actively reshaping trade dynamics:
- Intra-BRICS Trade: Trade among BRICS+ nations has surged, now accounting for 40% of global goods trade.
- South-South Trade: BRICS promotes trade among developing countries, reducing reliance on Western markets.
- De-dollarization: Increasing use of yuan, rupee, ruble, and other local currencies is challenging the dollar’s dominance.
- New Trade Routes: Initiatives like China’s Belt and Road and India’s South-South corridors are building alternative supply chains.
- Tariff Tensions: Western responses, such as proposed US tariffs on BRICS nations, may escalate trade wars and accelerate bloc cohesion.
These shifts could lead to a more fragmented but diversified global trade system, with BRICS at its core.
Conclusion: A New Global Chapter
BRICS is no longer a speculative acronym it’s a strategic alliance reshaping the global order. As it expands and matures, BRICS offers:
- A counterweight to Western hegemony
- A platform for emerging economies to assert their interests
- A laboratory for alternative governance models
Its success will depend on whether it can balance internal diversity, build robust institutions, and deliver tangible benefits to its members and partners. If it does, BRICS could become the defining force of 21st-century geopolitics.