Brazil, Russia, India and China (BRIC)

What is BRICS?

BRICS is an informal international bloc originally formed by Brazil, Russia, India, and China (BRIC). South Africa joined in 2010, turning BRIC into BRICS. The grouping promotes economic cooperation among major emerging economies and seeks greater influence in global economic governance, offering an alternative voice to Western-led institutions.

Key takeaways

• Originated as an economic thesis (2001) about the rising importance of select emerging markets.
• Evolved into a diplomatic and economic partnership with annual summits, a New Development Bank, and cooperation mechanisms.
• Expanded significantly in 2024–2025 to 11 full members and introduced a “partner country” category.
• Focuses on development finance, IMF/World Bank reform, infrastructure projects, and reducing reliance on Western-dominated systems.
• Faces internal challenges from diverse political systems, economic models, transparency standards, and regional conflicts.

Origins and evolution

The BRIC acronym was coined in 2001 by a Goldman Sachs economist as an analytical concept predicting rapid growth among Brazil, Russia, India, and China. Informal diplomacy among those countries grew through the 2000s, leading to the first official BRIC summit in 2009 and South Africa’s inclusion in 2010.

What began as an investment-focused thesis transformed into a political and economic partnership that champions the interests of emerging and Global South economies in international forums.

Major expansion (2024–2025)

Beginning in 2024, BRICS underwent its largest expansion since formation:
* New full members added: Egypt, Ethiopia, Iran, Saudi Arabia, United Arab Emirates (2024) and Indonesia (2025), bringing membership to 11.
* Partner-country category introduced: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam were designated as partners.

The expansion broadened BRICS’ geographic and resource base, increasing its global economic footprint and political reach.

Objectives and activities

BRICS pursues several recurrent priorities:
* Economic cooperation and trade facilitation among members.
* Reforming international financial institutions (IMF, World Bank) to better reflect emerging markets.
* Financing infrastructure and sustainable development via the New Development Bank (NDB).
* Political coordination on regional crises and global governance issues.
* Exploring alternatives to dollar-dominated finance and settlement systems (though with practical and political limits).

BRICS operates largely through annual summits, ministerial meetings, working groups, and institutions like the NDB. The chair rotates annually among member heads of state.

Economic influence

Collectively, BRICS members account for a large share of the world’s population and a substantial portion of global GDP. Factors that drove their earlier rapid growth included favorable demographics, lower labor costs, commodity endowments, and catch-up industrialization.

Expansion and coordination aim to increase their share of global economic output and influence over international rule-making, especially in development finance and trade.

Constraints and internal challenges

Despite potential, BRICS faces structural and political hurdles:
* Diverse political systems, economic models, and development priorities complicate consensus.
* Differences over transparency, governance, and rule-of-law standards can limit deep financial integration.
* Regional rivalries and bilateral disagreements among members or partners may undermine cohesion.
* Economic slowdowns, commodity price swings, and uneven reform progress reduce the predictability of long-term convergence.
* Practical obstacles exist to any rapid displacement of established institutions or the U.S. dollar as the dominant reserve and settlement currency.

Notable initiatives

• New Development Bank (NDB): Established to finance infrastructure and sustainable development projects within member countries and beyond.
• BRICS Parliamentary Forum and interbank cooperation mechanisms: Channels for political dialogue and financial collaboration.

Membership (as of 2025)

Full members (11): Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, United Arab Emirates, Indonesia.

Partner countries (10): Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, Vietnam.

A brief note on the original BRIC investment thesis

The BRIC concept began as an economic forecast that these emerging economies could rise to outsized importance by mid-century. Financial market outcomes were uneven: growth slowed after the 2007–2008 crisis and other shocks, and some BRICS-focused investment vehicles underperformed, illustrating that long-term potential does not guarantee steady returns.

Conclusion

BRICS has evolved from an analytical label into a substantive, though informal, geopolitical and economic grouping. Its expanded membership and institutional initiatives increase its capacity to influence global governance and development finance. Nonetheless, internal diversity and geopolitical constraints mean BRICS’ role as a cohesive counterweight to Western-led structures will likely develop incrementally and unevenly.