BRICS: THE VOICE OF GLOBAL SOUTH.

MAYANK YADAV

In 1991, when the Soviet Union collapsed and the US triumphed in the Cold War, the world witnessed a single-handed world order led by the United States of America and its allies. This remained unchallenged for over a decade. The liberal institutions, famously called the Bretton Woods institutions, formed in the post World War II phase, were dictated by the rules and regulations of Western countries. This created an unequal and deprived global system where the interests of the rest (the Global South), other than the West, were neglected and marginalised. Such injustice created the ground in the first decade of the 21st century for like-minded nations like Brazil, Russia, India, and China, and later South Africa, to come together and form the group famously called BRICS.

Concretisation of BRICS

The term BRIC was first coined by Jim O’Neill, the chief economist at Goldman Sachs, in his paper “Building Better Global Economic BRICs” in 2001, where he emphasised that Brazil, Russia, India, and China would become the dominant global economies by 2050 and outperform the economic hegemony of Western countries.

In 2006, the BRIC nations began formal dialogue, and the first informal meeting took place at the event of the United Nations General Assembly. The sensitivity regarding the group was followed up by the summit of 2009, where the first official meeting among BRIC countries took place as the BRIC Summit in Yekaterinburg, Russia, with the aim of reforming and enhancing the participation of the Global South in global financial institutions.

2010 is regarded as the formation of the full acronym of the forum “BRICS,” where South Africa was added to make BRICS more inclusive and connected among the developing nations. These five nations belong to three different continents, which fall under the definition of the Global South by the Brandt Line. Later, in 2024, during the 16th BRICS summit in Kazan, Russia, more nations were included in the grouping. They are Indonesia, Iran, UAE, Ethiopia, and Egypt. (Saudi Arabia has not yet officially confirmed as a member.)

BRICS represents more than 30% of the world’s geographical land, 35% of world GDP, and 41% of the world population. It holds a strong presence in the World Bank (14%) and IMF (15%). In 2015, BRICS established the New Development Bank, headquartered in Shanghai, which was the brainchild of former Prime Minister of India, Dr. Manmohan Singh. The NDB aims to provide the Global South an alternative to the World Bank to provide financial assistance for infrastructure development programmes in the developing world.

Significance of BRICS:

In geopolitics, nation-states or blocs of like-minded nations in power are sceptical about losing their hold on the balance of power when new players emerge. In the inter- and post Cold War world, international system was shaped by Western blocs, which had a stronghold in major international institutions like the IMF, World Bank, and WTO. The working mechanisms of these institutions were shaped and designed by developed nations in their favour. Such a realm designed a unipolar and unequal world system.

By contrast, BRICS was formed in the post Cold War world, where new economies like China, Brazil, and India, along with the erstwhile superpower Russia, emerged as key players in the international system. Such emergence brought a call for multipolarity, where everyone has a say, and where power does not lie in a single hand. It brought the neglected nations into the mainstream of geopolitics, which had been ignored by the West in the past. Hence, BRICS is a system that looks at the world beyond the West from the eyes of the rest (the Global South). In conclusion, it democratises the international system and attempts to make it decentralised and inclusive.

BRICS acts as a check and balance to groupings like the G7, which is dominated by the West (except Japan). It brings competition for the betterment and development of the Global South. Before BRICS, Western institutions were working single-handedly in favour of the West without facing any competition or checks and balances. After the formation of BRICS, Western institutions started facing challenges from the Global South. Hence, these liberal institutions began including the issues of developing and underdeveloped countries in their agendas and policies.

BRICS, as a forum, reflects the idea of unity in diversity with a differential model, unlike the G7, which has democracy in all its member nation-states. It is an example of cooperation between democracies (India, South Africa, Brazil), monarchies (UAE), and authoritarian oligarchies (Russia and China), showing its diversity. BRICS has also set aside differences between nations like the UAE and Saudi Arabia with Iran, and between India and China. Hence, BRICS is one of the most prominent working forums where diversity and differences coexist under a unified vision for the Global South.

It is an institution that gives bargaining power to the Global South, where collective consensus and a robust institutional structure have the potential to cooperate and negotiate with the West. The voice of the Global South can be amplified through BRICS. An empowered BRICS also has the potential to reform global institutions long dominated by Western powers.

Achievements of BRICS:

Formed as an institution for reform in the global sphere, BRICS has evolved since 2010 from a reforming forum to an independent one. It has expanded its vision beyond socio-economic issues to emerging challenges like climate change, counterterrorism, people-to-people ties, and track-two diplomacy. In 2014, BRICS founded the New Development Bank with an initial capital of $100 billion from its founding members. The NDB has financed over $35 billion in infrastructure and sustainable development projects across BRICS nations and other developing countries like Bangladesh and Egypt. (Financial assistance to bangladesh at the time of climate catastrophe in 2022 and For a young entrepreneur programme in Ethiopia). Complementing the NDB, BRICS also launched the Contingent Reserve Arrangement in 2014, aimed at providing financial safety to developing nations during balance-of-payment crises on softer terms compared to the IMF.

Economically, intra-BRICS trade has surpassed $300 billion annually, with growing momentum toward trading in local currencies. In 2023, China and Brazil agreed to trade in their respective currencies. The Global South had already witnessed the economic recession of 2008 and the West’s sanction policies against Russia. These events pushed BRICS nations to explore alternatives to dollar-based trade. BRICS has also developed a Vaccine Development Centre, acting as a mechanism to provide vaccines to developing and underdeveloped nations during future pandemics.

Challenges and Their Breakthroughs:

Although many schools of thought see BRICS as an institution challenging the G7, to compete effectively, BRICS must have a common charter and a permanent secretariat system. A robust institution would allow BRICS to work more consistently and gain an upper hand over the G7, which also lacks a permanent institutional structure.

Donald Trump’s hawkish and sceptical approach toward BRICS made some BRICS partners hesitant to pursue deeper economic cooperation, like an alternative SWIFT system or a de-dollarisation mechanism. However, Trump’s constant transactional and bullying approach could also backfire and act as a catalyst for BRICS members to unite more strongly. For instance, Trump called for tariffs on Brazil, Russia (500%), India, China, and South Africa. Such actions could provide space for deeper cooperation among BRICS partners.

The India–China issue is a critical bottleneck, acting as a friction point in BRICS’ growth. Both nations have historical conflicts and border disputes that hinder collective consensus. However, Russia can play the role of mediator. India and China must handle their differences bilaterally. Their political and ideological disagreements should not be allowed to derail BRICS’ overall agenda, as happened with the SCO.

Sanctions imposed by the West and the US on Russia, due to the Ukraine war, have also slowed BRICS’ progress. Other members fear and hesitate in cooperating too closely with Russia due to potential backlash. Similarly, the Iran–Israel conflict impacts the INSTC corridor, a vital link between BRICS countries.

Although areas like artificial intelligence, cyberspace, space exploration, and critical minerals are gaining global importance, BRICS has yet to formalise cooperation in these domains. BRICS should develop dedicated wings for space, AI, and cybersecurity. Countries like Russia, India, and China can help launch satellite programs for developing nations. There’s also a need for a unified policy on AI adoption and regulation tailored to the needs and capabilities of the Global South, which lacks the finance and infrastructure to compete in such areas.

A Message to the West:

The formation of Western-led institutions like the IMF, World Bank, and G7 was not perceived as anti–Global South by developing nations. However, the scepticism shown by the West, especially during Donald Trump’s era, towards BRICS portrays BRICS as an anti-West bloc. Unlike NATO, which was a military alliance formed to counter adversaries, BRICS is not a military bloc. It is a socio-economic platform that provides financial and developmental support to countries that have long been neglected.

BRICS connects ancient civilisations and rich cultures like India, China, Russia, and Iran. Cooperation between BRICS and the G7 can bring peace and justice to an increasingly anarchic world. It also opens the door for meaningful cooperation with the Global South. The journey of BRICS is ongoing and historic, as it was born to introduce the voice of the Global South into global institutions and has matured into a credible platform that supports development without the conditions and biases of the West.