BRICS

Introduction

BRICS is an acronym for Brazil, Russia, India, China, and South Africa. These countries are considered as the emerging economies that are expected to play a significant role in the global economy in the 21st century. The idea of BRICS was first introduced by Jim O’Neill, a Goldman Sachs economist, in 2001. He predicted that these countries would become the world's largest economies by 2050. The first BRIC Summit was held in 2009 in Russia, and South Africa joined the group in 2010, making it BRICS. In this essay, we will discuss the formation, objectives, and achievements of the BRICS.

Formation of BRICS

BRICS was formed as a result of the growing economic power of these five countries. The idea was to create a platform for these countries to cooperate and collaborate on issues related to the global economy, trade, and politics. The first meeting of the BRIC countries was held in 2006 on the sidelines of the United Nations General Assembly in New York. In 2009, the first BRIC Summit was held in Russia, and the leaders of the four countries decided to establish a formal association. In 2010, South Africa joined the group, making it BRICS.

Objectives of BRICS

The primary objective of BRICS is to promote economic cooperation and development among its member countries. The group aims to enhance trade and investment among its members and to reduce barriers to trade. The group also seeks to increase cooperation in areas such as science and technology, energy, agriculture, and tourism. BRICS also aims to promote political and economic stability in the world by working together on issues related to global governance, climate change, and international security.

Achievements of BRICS

Since its formation, BRICS has achieved significant progress in several areas. One of the significant achievements of BRICS is the creation of the New Development Bank (NDB). The NDB was established in 2014 and is headquartered in Shanghai, China. The bank was created to provide funding for infrastructure projects in the BRICS countries and other developing countries. The bank has a capital of $100 billion, and it has funded several projects in the member countries.

Another significant achievement of BRICS is the creation of the Contingent Reserve Arrangement (CRA). The CRA was established in 2014 and is a pool of foreign exchange reserves that can be used by the member countries to stabilize their currencies in case of a financial crisis. The CRA has a capital of $100 billion, and it provides an alternative to the International Monetary Fund (IMF) for the member countries.

BRICS has also made significant progress in trade and investment. The total trade between the BRICS countries has increased significantly since the formation of the group. In 2020, the total trade between the member countries was $1.17 trillion. The group has also made efforts to reduce barriers to trade, and it has set a target of increasing intra-BRICS trade to $500 billion by 2025.

BRICS has also made progress in science and technology. The group has established the BRICS Science, Technology and Innovation Framework Programme. The programme aims to promote cooperation among the member countries in areas such as biotechnology, nanotechnology, and renewable energy. The group has also established the BRICS Network University, which aims to promote academic cooperation among the member countries.

Challenges Facing BRICS

Despite its achievements, BRICS also faces several challenges that must be addressed to ensure the group's continued success. One of the significant challenges facing BRICS is the diversity of its member countries. The five countries have different economic, political, and social systems, which can make it challenging to reach consensus on issues. For example, China's state-led economic model is different from India's market-oriented approach, which can create tensions within the group.

Another challenge facing BRICS is the geopolitical tensions between some of its members. For example, there are tensions between India and China over their border dispute, which can spill over into other areas of cooperation. Similarly, there are tensions between Russia and the West over issues such as Ukraine, which can create difficulties for the group in its relations with other countries.

BRICS also faces challenges in terms of its image and influence in the global economy. Some critics argue that the group is not as influential as it should be given the size of its economies. Others argue that the group lacks a clear vision and agenda, which can limit its impact on global governance issues.

Future of BRICS

Despite the challenges facing the group, BRICS has significant potential to shape the global economy in the 21st century. The group's combined GDP is expected to surpass that of the G7 countries by 2030, making it a significant force in the global economy. The group has also established itself as a platform for cooperation and collaboration among its member countries and other emerging economies.

Moving forward, BRICS must focus on addressing the challenges it faces and building on its achievements to ensure its continued success. The group must work to enhance cooperation and trust among its member countries and to develop a common vision and agenda for the future. The group must also work to enhance its image and influence in the global economy by promoting its achievements and highlighting its potential to shape the future of the global economy.

Conclusion

In conclusion, BRICS is a significant platform for cooperation and collaboration among five emerging economies that have significant potential to shape the global economy in the 21st century. The group has achieved significant progress in areas such as trade, investment, science, and technology, and has established institutions such as the New Development Bank and the Contingent Reserve Arrangement. However, the group faces several challenges, including the diversity of its member countries, geopolitical tensions, and its image and influence in the global economy. Moving forward, BRICS must focus on addressing these challenges and building on its achievements to ensure its continued success.