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An informal grouping of countries that has evolved into an intergovernmental organisation, BRICS serves as a forum for cooperation among nine leading emerging economies: Brazil, China, Egypt, Ethiopia, India, Iran, Russia, South Africa, and the United Arab Emirates.

BRICS, an intergovernmental organisation, was initially identified to highlight investment opportunities in emerging markets. Over time, it evolved into a geopolitical bloc, with member governments meeting annually at formal summits and coordinating multilateral policies since 2009.

The principles of non-interference, equality, and mutual benefit primarily guide relations among BRICS countries.

The founding countries—Brazil, Russia, India, and China—held their first leaders’ summit in Russia in 2009 under the name “BRIC.” Following the Group’s expansion, South Africa joined in 2010 and participated as a full member at the 2011 Summit. Iran, Egypt, Ethiopia, and the United Arab Emirates attended their first Summit as full member States during the 2024 Summit in Russia. The acronym “BRICS+” has been informally used to reflect the inclusion of these new members.

BRICS institutions are regarded as alternatives to Western-led organisations such as those dominated by the G7 Bloc of advanced economies. Collectively, BRICS has introduced various initiatives, including the New Development Bank (NDB), the BRICS Contingent Reserve Arrangement, BRICS Pay, the BRICS Joint Statistical Publication, and the proposed BRICS basket reserve currency.

These initiatives have garnered praise and criticism from analysts and commentators, reflecting the group’s growing influence in global economic and political arenas.

How BRICS Came to Be

The term “BRIC” was originally coined to describe foreign investment strategies. It was introduced in the 2001 publication Building Better Global Economic BRICs by Jim O’Neill, who was then the head of global economics research at Goldman Sachs and later served as Chairman of Goldman Sachs Asset Management.

The foreign ministers of the initial four BRIC countries—Brazil, Russia, India, and China—met for the first time in New York City in September 2006 on the sidelines of the General Debate of the UN Assembly. This meeting marked the beginning of a series of high-level diplomatic engagements. A full-scale diplomatic meeting was held in Yekaterinburg, Russia, on June 16, 2009.

The first formal BRIC Summit, also held in Yekaterinburg, took place on June 16, 2009. It was attended by the leaders of the four founding nations: Luis Inácio Lula da Silva (Brazil), Dmitry Medvedev (Russia), Manmohan Singh (India), and Hu Jintao (China). The Summit’s primary focus was improving the global economic situation and reforming financial institutions. The discussions also explored ways for the four countries to enhance cooperation in addressing global challenges and increasing the involvement of developing nations—like three-quarters of the BRIC members—in global affairs.

Following the Yekaterinburg Summit, the BRIC nations announced the necessity of establishing a new global reserve currency characterised by diversity, stability, and predictability. Although their statement did not explicitly criticise the perceived “dominance” of the US dollar—an issue Russia had raised in the past—it did trigger a decline in the dollar’s value against other major currencies.

Expansion in 2010

In 2010, South Africa initiated efforts to join the BRIC grouping. The formal admission process began in August of that year. On December 24, 2010, South Africa officially became a member after being formally invited by China and subsequently accepted by the other BRIC nations. The group was renamed BRICS, with the “S” representing South Africa, to reflect the expanded membership. In April 2011, South African President Jacob Zuma attended the BRICS Summit in Sanya, China, as a full member for the first time.

New Development Bank

In June 2012, the BRICS nations pledged $75 billion to increase the lending capacity of the International Monetary Fund (IMF). However, this contribution was contingent upon IMF voting reforms.

By March 2013, during the fifth BRICS Summit held in Durban, South Africa, member countries agreed to establish a global financial institution as an alternative to the Western-dominated IMF and World Bank. This initiative was the foundation of the New Development Bank (NDB), with plans for its formal establishment by 2014.

During a BRICS leaders’ meeting in St. Petersburg in September 2013, financial commitments toward the reserve pool were announced: China pledged $41 billion; Brazil, India, and Russia each committed $18 billion, and South Africa contributed $5 billion. As China held the world’s largest foreign exchange reserves, it sought a more significant managerial role and proposed hosting the reserve fund.

In October 2013, Russian Finance Minister Anton Siluanov confirmed that $100 billion would be designated to stabilise currency markets, with implementation targeted for early 2014. Brazilian Finance Minister Guido Mantega further confirmed that the fund would be operational by March 2014. However, by April 2014, the currency reserve pool and the Development Bank were delayed, with the timeline pushed to 2015.

In July 2014, during the sixth BRICS Summit in Fortaleza, Brazil, the BRICS members officially signed agreements to establish the $100 billion New Development Bank (formerly referred to as the “BRICS Development Bank”) and a reserve currency pool worth an additional $100 billion. Other agreements included cooperation frameworks between BRICS export credit agencies and collaborative innovation strategies.

The Fortaleza Summit was followed by a meeting in Brasília between BRICS leaders and the Union of South American Nations (UNASUR) presidents, further solidifying cooperation between the two groups.

A Range of Initiatives

Since 2011, the National Institutes of Statistics of the BRICS nations—comprising IBGE (Brazil), Rosstat (Russia), the National Bureau of Statistics of China, the Central Statistics Office of India, and Statistics South Africa—have collaborated on an annual joint statistical publication. This initiative aims to provide a unified data platform, offering statistical comparisons, insights into adopted methodologies and results beneficial to all participating countries.

In 2012, BRICS began planning an optical fibre submarine communications cable system, referred to as the BRICS Cable, to facilitate secure telecommunications between member countries. This project was partly motivated by concerns over surveillance by the U.S. National Security Agency, which monitored global telecommunications traffic flowing through the United States. However, as of 2023, the construction of this cable system had yet to commence.

In August 2019, during the fifth meeting of BRICS communication ministers in Brasília, Brazil, a letter of intent was signed to enhance cooperation in the Information and Communication Technology (ICT) sector. This agreement underscored the Group’s commitment to advancing technological collaboration.

The New Development Bank (NDB), a key BRICS institution, announced plans to disburse $15 billion to member states to support struggling economies after the COVID-19 pandemic. The 2020 BRICS Summit, held virtually in St. Petersburg, Russia, focused on addressing the pandemic’s impact and reforming the multilateral system.

At the 13th BRICS Summit in 2021, Indian Prime Minister Narendra Modi called for a transparent investigation into the origins of COVID-19, urging full cooperation from all nations under the World Health Organisation (WHO). In response, Chinese President Xi Jinping emphasised the need for BRICS nations to oppose the politicisation of the investigation process.

In May 2023, South Africa announced plans to grant diplomatic immunity to Russian President Vladimir Putin and other officials, allowing them to attend the 15th BRICS Summit despite the International Criminal Court (ICC) arrest warrant against Putin. However, in July 2023, Putin confirmed that he would not personally attend the Johannesburg Summit, held from August 22 to 24. Instead. He participated remotely, delivering remarks and joining all BRICS leaders’ sessions, including the Business Forum, through virtual channels.

2024 Expansion

At the 15th BRICS Summit in August 2023, South African President Cyril Ramaphosa announced the invitation of six emerging market countries—Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE)—to join the bloc. Full membership for these nations was initially scheduled to commence on January 1, 2024.

However, political developments in Argentina disrupted its anticipated membership. Following the November 2023 general election, Argentina’s new President, Javier Milei, pledged to withdraw the country’s application. On November 30, 2023, incoming Foreign Minister Diana Mondino confirmed Argentina’s decision not to join BRICS. By December 29, 2023, the Argentine government formally communicated its withdrawal from the application process to all BRICS leaders.

Saudi Arabia also delayed its entry into BRICS. While initially slated to join on January 1, 2024, the country announced in mid-January that it was still evaluating its decision. As of April 2024, Saudi Arabia’s membership remained under consideration.

The BRICS expansion was framed as a strategic move to foster a multipolar global order, counterbalancing the Western-dominated geopolitical landscape. China Daily highlighted the expansion as evidence of increasing interest from developing nations in joining BRICS.

On October 24, 2024, the Bloc extended invitations to 13 additional countries—Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam—to participate as “observer partner countries.” While these nations were not granted full membership, their observer status allows them limited engagement and support from BRICS member States.

Currently, the economic and political dynamics of the Bloc are significantly influenced by China, which contributes approximately 70% of the organisation’s total GDP. Among the member countries, Brazil, India, and China are notable for their inclusion in the world’s top ten nations by population, land area, and gross domestic product (GDP) in both nominal and purchasing power parity (PPP) terms.

As of 2024, all five founding members of BRICS—Brazil, Russia, India, China, and South Africa—are also members of the G20. Together, they represent a combined nominal GDP of US$28 trillion (27% of the global gross world product), a total GDP (PPP) of approximately US$65 trillion (35% of global GDP PPP), and combined foreign reserves estimated at US$5.2 trillion.

BRICS Summits

Since 2009, BRICS has held annual summits, with each member country taking turns to host. Before South Africa’s admission, two BRIC summits took place in 2009 and 2010.

The First Summit with all five BRICS members was held in 2011 in China, marking the expanded group’s formal meeting.

The First Summit with all nine member countries occurred in 2024 in Russia.

Due to the COVID-19 pandemic, the 2020, 2021, and 2022 Summits were conducted via video conference, adapting to the global health crisis. 

At the Kazan Summit, Russia made a concerted push for the creation of a new payment system, aiming to provide an alternative to the global bank messaging network SWIFT. This proposal is part of Moscow’s strategy to circumvent Western sanctions imposed in response to its war in Ukraine.

Russian President Vladimir Putin envisions BRICS—recently expanded to include Egypt, Ethiopia, Iran, and the United Arab Emirates alongside Brazil, Russia, India, China, and South Africa—as a powerful counterweight to Western influence in global politics and trade. A cornerstone of this vision is an alternative international payment platform, designed to shield participating nations from Western sanctions and reduce reliance on the US dollar.

The Kazan Summit, held from October 22 to 24, 2024, was presented by Moscow as evidence that Western attempts to isolate Russia have failed. Central to Russia’s agenda was its call for overhauling the global financial system to diminish the dominance of the dollar.

Central to this initiative is a proposal for a new payment system based on a network of commercial banks linked through the BRICS central banks, as outlined in a document prepared by Russia’s finance ministry and central bank, and distributed to journalists ahead of the Summit.

The proposed system would leverage blockchain technology to store and transfer digital tokens backed by national currencies. This framework would enable these currencies to be exchanged securely and efficiently, bypassing the need for transactions in U.S. dollars.

Russia views this proposal as a solution to its growing challenges in settling trade payments, even with friendly nations like China, where local banks are wary of potential secondary sanctions imposed by the United States.

One specific mechanism under discussion is the BRICS Cross-Border Payment System, designed to facilitate trade in local currencies. This shift is partially driven by perceptions of increasing risks associated with the U.S. dollar. However, the focus on local currencies is not solely about de-dollarisation but also about achieving cheaper and more efficient transactions.

For Russia, cut off from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), this represents a financial lifeline. For Egypt, it offers a way to alleviate pressure on foreign reserves. Meanwhile, South Africa, Brazil, and India are adopting a more cautious approach, favouring diversification without fully divesting from the dollar.

Russian President Vladimir Putin, who presided over the closing session of the BRICS Summit, lauded the Bloc’s role in countering Western policies. He emphasised the need for a new payment system to bypass sanctions, aiming to counterbalance what he referred to as the West’s “perverse methods.”

Putin accused the West of attempting to suppress the rising power of the Global South through illegal unilateral sanctions, blatant protectionism, manipulation of currency and stock markets, and persistent foreign influence, all under the guise of promoting democracy, human rights, and the climate change agenda.

“Such perverse methods and approaches – to put it bluntly – lead to the emergence of new conflicts and the exacerbation of existing disputes,” Putin stated.

However, Yaroslav Lissovolik, founder of the BRICS+ Analytics think tank, noted that while the creation of such a system is technically feasible, it would take time. “After the significant expansion of BRICS membership last year, achieving consensus has arguably become more challenging,” he remarked.

The Russian document accuses existing institutions, such as the International Monetary Fund (IMF), of primarily serving the interests of Western countries and argues that these institutions need reforms to reflect the evolving global economy better. Russian Finance Minister Anton Siluanov recently urged BRICS members to establish an alternative to the IMF.

In addition to proposals aimed at facilitating trade and investment, Russia has put forward the idea of creating a ‘BRICS Clear’ platform to facilitate trade in securities. The document also calls for improved communication between credit rating agencies in BRICS countries, alongside the development of a common rating methodology. However, it stopped short of advocating the establishment of a joint BRICS rating agency, an idea that the Group had previously discussed.

A BRICS Grain Exchange

As the world’s top wheat exporter, Russia is also advocating for the creation of a BRICS grain trading exchange, supported by a pricing agency, to serve as an alternative to Western exchanges that currently set international agricultural commodity prices. Russia’s multifaceted initiatives underscore its determination to challenge Western dominance in global finance and trade. Whether these proposals gain traction depends on the ability of BRICS nations to navigate technical, political, and logistical hurdles. While the path to implementation may be fraught with challenges, the discussions signal a shift in the global economic order and the waning supremacy of the US dollar.              

The 16th BRICS Summit in Kazan, Russia, marked a transformative moment in the evolution of the Bloc, solidifying its role as a crucial platform for the Global South in addressing global challenges. As an inclusive multilateral forum open to emerging markets and developing countries, BRICS has positioned itself as a champion of international cooperation and sustainable development. With its continued growth and influence, the Bloc raises significant questions for the West about the keys to its success. For those seeking answers, the 2024 BRICS Summit offered many insights, writes Ivor Vaz.

The 16th annual BRICS Summit, held from October 22-24, 2024, in Kazan, Russia, was the first to feature Egypt, Ethiopia, Iran, and the United Arab Emirates as members following their accession at the 15th Summit. The theme, Strengthening Multilateralism for Fair Global Development and Security, underscored the Bloc’s commitment to a more equitable global system.

Strengthening Russia’s Global Presence

Patryk Kugiel, Chief Analyst at the Asia-Pacific Programme of the Polish Institute of International Affairs, highlighted the Summit’s role in reshaping perceptions of Russia. “The worst mistake the West can make is to dismiss the Summit as mere theatre,” he warned, emphasising its diplomatic and strategic significance.

Says Kugiel: “The Summit was historic for two main reasons. First, as expected, it provided an easy diplomatic victory for Vladimir Putin. The Russian President demonstrated that he has not been isolated, trading an extra seat at the Group of Seven (G7) for a central role in the ‘B9,’ and potentially in an expanded ‘B-more’ in the future. Moreover, by advancing discussions on prioritising transactions in national currencies, he further loosened the grip of sanctions. He also positioned himself as a mediator by facilitating talks between the leaders of China and India for the first time in five years.”

“Secondly, and more importantly, it marked the first expansion of the Group since South Africa joined in 2010. Not only did the Summit add four new members, but over 30 countries reportedly expressed interest in future membership. Additionally, 13 States have already been admitted to the newly created category of partner countries. While expansion may amplify internal differences with potentially negative implications for cohesion, it also underscores the growing appeal of BRICS in the Global South,” he added.

Fyodor Lukyanov, Chair of the Council on Foreign and Defence Policy (Russia), echoed these sentiments, “The 2024 BRICS Summit demonstrated that Russia’s isolation is a Western construct. The rest of the world sees little value in joining the policy of pressuring Russia, irrespective of their stance on specific Russian actions.”

Milestones and Innovations

The Kazan Summit introduced significant developments that could reshape global economic and political landscapes. The Summit formally welcomed the new BRICS members: Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE). Notably, Argentina, expected to join, opted out in late 2023 due to a policy shift under President Javier Milei, reflecting a significant geopolitical development in Latin America, while Saudi Arabia is still considering its formal invitation.

Meanwhile, Miguel Díaz-Canel, the President of Cuba, was invited to the Summit but remained in Cuba due to the 2024 blackout. Aleksandar Vučić, the President of Serbia, could not attend because of a conflicting visit from European Union representatives to Serbia. Cuba and Serbia sent representatives to the Summit.

A core focus of the 2024 Summit was modernising security and economic cooperation, with key discussions ranging from counterterrorism to carbon-unit trading. The Summit also addressed critical security challenges, including cybersecurity, terrorism, and regional stability. Historically, the BRICS have been more successful in opposing Western dominance in global governance structures than in articulating a clear, cohesive vision for reform. The increased diversity within the expanded BRICS Bloc could complicate efforts to achieve unified policy positions, particularly in multilateral forums such as the Group of Twenty (G20).

While the Organisation of the Petroleum Exporting Countries Plus (OPEC+) will continue to manage the international oil market, the expanded BRICS energy profile could influence the sector in the long term. Including the UAE and Iran significantly boosts the BRICS energy profile, and if Saudi Arabia formally accepts BRICS membership, the Bloc will represent 42% of the global oil supply. The presence of major oil exporters alongside key importers, China and India—both of which did not favour Western sanctions on Russia—highlights the Bloc’s potential to establish alternative trade mechanisms that bypass the dominance of the U.S. dollar and the financial influence of the Group of Seven (G7).

Key Outcomes

During the Summit, BRICS members introduced a revolutionary payment system named BRICS Pay, designed to streamline transactions and enable the exchange of financial information between the central banks of member nations. This system is an alternative to the Western interbank system SWIFT, facilitating smoother and more autonomous international settlements.

The BRICS Kazan Declaration was officially adopted, signalling a unified commitment to significant global reforms. BRICS nations emphasised the need to reform the United Nations and its Security Council, advocating for the full participation of the State of Palestine in the UN, contingent upon achieving a two-state solution. Additionally, BRICS nations agreed to explore the feasibility of establishing an autonomous cross-border settlement and depository system. To this end, finance ministers will continue evaluating the utilisation of national currencies, innovative payment tools, and alternative platforms, with a detailed report expected during the forthcoming Presidency.

On October 24, Russia hosted a plenary session of the 16th BRICS Summit in the BRICS Plus/Outreach format. This gathering brought together leaders from the Commonwealth of Independent States (CIS), delegations from Asian, African, Middle Eastern, and Latin American nations, and heads of multiple international organisations, underscoring the Bloc’s expansive and inclusive approach.

In a significant step towards broader collaboration, 13 nations have been welcomed as BRICS partner countries. These include Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam. This expansion highlights the growing appeal of BRICS as a platform for fostering global cooperation and addressing shared challenges across diverse regions.

Bilateral Dialogues: Deepening Partnerships

A series of high-level bilateral meetings during the Summit highlighted the Bloc’s role in fostering collaboration:

• China-Russia Cooperation

Chinese President Xi Jinping and Russian President Vladimir Putin held a bilateral meeting in Kazan, reaffirming the strength of China–Russia relations. Both leaders described their partnership as profound and resilient, even amidst turbulent geopolitical conditions. They emphasised the importance of advancing the comprehensive integration of the Belt and Road Initiative with the Eurasian Economic Union, a move aimed at facilitating and bolstering the high-quality development of their economies.

In anticipation of the 80th anniversary of the establishment of the United Nations and the victory in World War II in 2025, China and Russia agreed to deepen their comprehensive strategic cooperation. They pledged to uphold the international system centred on the United Nations.

The leaders also articulated a shared vision for enhancing the BRICS cooperation framework, to achieve what they termed “Greater BRICS Cooperation.”

Russia expressed interest in developing an alternative international payment solution within the BRICS framework to reduce dependence on traditional Western financial structures and mitigate the impact of U.S. secondary sanctions.

• India-China Rapprochement

Indian Prime Minister Narendra Modi and Chinese President Xi Jinping held their first formal bilateral meeting in five years, following the deadly military clash between the two nations in 2020. The leaders announced they had agreed to resolve the four-year-long standoff, including the complete disengagement of troops. President Xi underscored the significance of the two ancient civilisations in the Global South, asserting that a stable and cooperative India-China relationship could serve as a model for other emerging nations.

Prime Minister Modi highlighted that maintaining steady progress in India–China relations is essential for the welfare and future of their combined 2.8 billion people. He noted that this stability is vital for their respective populations and for fostering regional and global peace and stability. Both nations agreed to approach their relationship with a strategic and long-term perspective. They stressed the importance of preventing isolated issues from adversely impacting their broader ties.

• India-Iran Partnership:

Discussions between PM Modi and Iranian President Masoud Pezeshkian focused on strengthening trade and connectivity through the Chabahar Port and the International North-South Transport Corridor. They also addressed regional stability and the Israeli-Palestinian conflict.

President Pezeshkian accepted the invitation from PM Modi to visit India.

• Russia-South Africa Alignment:

South African President Cyril Ramaphosa held a bilateral meeting with Russian President Vladimir and reaffirmed Russia’s role as a “valued ally,” citing its support during the apartheid era.

Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa opted to attend the BRICS Summit over the 2024 Commonwealth Heads of Government Meeting (CHOGM), which took place in Samoa during the same week. The Independent noted that this decision highlights the prioritisation by these two Commonwealth nations of strengthening ties with China and Russia over the broader, yet less focused, agenda of CHOGM.