BRICS FAQs

Currently, the political, economic, and diplomatic leadership of Brazil, Russia, India, China, and South Africa gather in Santon South Africa for the BRICS Summit. A lot of deliberations are currently going on including whether and how BRICs should be expanded. But what exactly is BRICs, how does it impact on the world’s geopolitics, and how the global south countries relate with other countries especially in this area of great power play. And more importantly. what should be the focus of African countries in all this formation- in terms of trade, trade finance, infrastructure, market acces etc. Here are some of the issues worth focusing on for those who would want to keep up with this grouping.

What is BRICS?

Fun fact is the term was ?originally coined in 2001 as "BRIC" by the Goldman Sachs economist Jim O'Neill in his paper Building Better Global Economic BRICs. Goldman Sachs Global Economic Paper No. 66. Briefly, O'Neill and his team made a startling prediction: Four developing nations- Brazil, Russia, India, and China (the BRICs)-would overtake the six largest Western economies within forty years. The BRIC analysis permanently changed the world of global investing, and its accuracy has stood the test of time. Interestingly O’Neill did not stop here but in fact continued making further analysis including the ‘Next Eleven Next Eleven" countries: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam. See more?in his The Growth Map: Economic Opportunity in the BRICs and Beyond and The BRIC Road to Growth .

When was BRICS Formed?

The foreign ministers Brazil, Russia, India, and China met on the fringes of the United Nations General Assembly in the fall of 2006. Their leaders' first meeting was held in Sapporo on the eve of the G8 Toyako-Hokkaido Summit in 2008, and their first standalone summit took place in 2009 in Yekaterinburg, Russia. Since then, the BRICs ministers responsible for foreign affairs, finance and the economy, trade, agriculture, and health have met. At the official level, there have been meetings held to discuss science and technology, national security, competition, and statistics. See more here .

How many Summits has the BRICS Grouping had?

South Africa is hosting the 15th Summit of BRICSs, others have been Beijing , June 23, 2022 (virtual)New Delhi , India, September 9, 2021 (virtual),Moscow Summit , Russia, November 17, 2020 (virtual),Brasilia, Brazil , November 13-14, 2019,Johannesburg , South Africa, July 25-27, 2018,Xiamen , China, September 3-5, 2017,Goa , India: October 15-16, 2016,Ufa , Russia: July 8-9, 2015,Fortaleza , Brazil: July 14-16, 2014,Durban , South Africa: March 26-27, 2013,New Delhi , India: March 29, 2012,Sanya , China: April 14, 2011,Brasilia , Brazil: April 15, 2010, and Yekaterinburg , Russia, June 16, 2009.

When did South Africa join BRICSs?

South Africa joined the BRICS in 2010 after receiving an official invitation from the group. South Africa is by far the smallest BRICS country in both economic and demographic terms.

BRICS Trade Numbers

UNCTAD’s 2023 BRICS Investment Report notes?that ?that Brazil, the Russian Federation, India, China and South Africa (BRICS) now form one of the world’s most important economic blocs, representing more than one quarter of global GDP, and 42 per cent of the world’s population.According to data from Statista The leading, dominant exporter?since 2000 has been China.

How does BRICS engagement with Africa Countries.

According to a 2013 AfDB report , the reasons behind BRICS countries’ involvement in Africa include their appetite for the continent’s natural resources, Africa’s large and untapped agricultural sector as well as the opportunity for investments and transfer of technology and knowledge targeting the growing middle class.

Which Nations Want to Join BRICS?

Reuters recently reported that Over 40 countries, including Iran, Saudi Arabia, United Arab Emirates, Argentina, Algeria, Bolivia, Indonesia, Egypt, Ethiopia, Cuba, Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan have expressed interest in joining the forum, according to 2023 summit chair South Africa. The main motivations seem to be that BRICS is being viewed as an alternative to global bodies viewed as dominated by the traditional Western powers and hope membership will unlock benefits including development finance, and increased trade and investment. ?See the report here .

What Influence will BRICs have in international finance architecture development financing?

In 2014, with $50 billion (around €46 billion) in seed money, the BRICS nations launched the New Development Bank(NDB) as an alternative to the?World Bank ?and the?International Monetary Fund . In addition, they created a liquidity mechanism called the Contingent Reserve Arrangement to support members struggling with payments. the BRICS bank is open to new members. In 2021,?Egypt , the United Arab Emirates, Uruguay and?Bangladesh ?took up shares. However, these were much lower than the respective $10 billion investments made by the bank's founding members. See mote here .

NBB therefore has the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).So far there are several projects ranging from roads to water that NBD has finances in the BRICS membership countries.

What is the future of the BRICS?

The Economist has reported that the BRICS founders are divided on the prospect of expansion. China and Russia want new members. It notes that; ‘New members, especially stridently anti-American candidates such as Iran, would increase China’s influence and make the?BRICS?more of an anti-American accord. Mr Putin sees a bigger?BRICS?as a way of offsetting the Western alliance against Russia. But for the same reasons, expansion is less palatable to Brazil and India’ see more here . There are obviously different predations on the shape and form that BRICs will take, and this depends on the lenses an observer uses. A lot will come clearer at the Summit closes later today.

What is the implication of BRICS on Trade at the Multilateral Level?

Research shows that the G20 and the BRICS are among the most important global governance mechanisms.?Both are located at the nexus of global decision-making which allows them to play a significant role in the decision-making of trade and investment policies. For more, see ?J. Wouters and ?S. Van Kerckhoven thoughts in their work ??‘The ?G20 and the BRICS on Trade and Investment: Trends and Policies’

Stay tuned for a deep analysis of the BRICS 15TH Summit in the coming days.

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Patrick Anam?