Initially formed as “BRIC” – Brazil, Russia, India, China – and subsequently becoming “BRICS”, with the addition of South Africa,[1] this group of countries constitutes a unique coalition of emerging economies that collectively represent a significant counterbalance to the established economic powers of the West. Despite their collective identity, BRICS members are markedly different in many respects. Geographically, they span several continents, with Russia and China sharing a long border, just as China and India do. However, their civilizations are distinct, with Brazil, India and South Africa’s cultures shaped significantly by colonial influences. Economically, China is a major exporter of manufactured goods, India is a rising power in international services, while Brazil, South Africa, and Russia are predominantly exporters of raw materials.
Economic Cooperation and Challenges
The idea of economic cooperation among BRICS members is not just theoretically appealing but is already being explored through various initiatives. For instance, the creation of joint infrastructure for mutual trade, such as commodity exchanges and logistics centers, is under discussion and some preliminary steps have been taken. The energy sector, in particular, presents significant opportunities for collaboration. Russia and Brazil, as large energy exporters, are actively coordinating with major importers like China and India to establish more stable and predictable markets. The proposal to create a joint commodity exchange is in line with ongoing efforts to gain greater autonomy from price fluctuations in Western markets.
However, the concept of establishing free trade agreements within BRICS remains challenging in practice. While trade liberalization could theoretically strengthen economic ties, it also risks intensifying competition in national markets, which could lead to the collapse of entire industries in some member states. Given these concerns, a more feasible approach currently being explored involves multilateral cooperation where national governments support exports through fiscal and credit subsidies, export insurance, and other measures.
Looking ahead, further steps could be taken to deepen economic cooperation within BRICS. These could include the full realization of joint infrastructure projects like commodity exchanges and logistics centers, as well as the development of more active industrial policies. These policies might involve tax benefits, preferential loans, and protectionist measures to nurture key industries and diversify the economic structures of BRICS nations.
The neoclassical economic policies currently favored by Russia, Brazil, and South Africa—characterized by deregulation, privatization, and a focus on market-led growth—have been implemented with the aim of stimulating economic growth and increasing competitiveness. However, in practice, these policies have often led to challenges such as income inequality and limited industrial diversification. In some cases, they have resulted in what are known as “poverty traps,” where economic growth remains sluggish, and the benefits of liberalization do not reach broader segments of the population.
In these countries, the effectiveness of developmental institutions has been frequently hampered by issues such as corruption, which undermines efforts to address fundamental economic problems. Challenges like increasing gross capital formation and diversifying economic structures persist, limiting the long-term growth potential of these economies.
Brazil’s Ambitions within BRICS
Brazil views BRICS as a strategic platform to bolster its influence on the global stage, particularly as it strives for a permanent seat on the United Nations Security Council (UNSC). Brazil’s economic agenda within BRICS focuses on diversifying its trade partnerships and attracting investments to stimulate growth. By aligning with other emerging economies, Brazil seeks to enhance its bargaining power in international fora and reduce its dependence on Western economies.
Additionally, Brazil leverages BRICS to advance its interests in sustainable development, particularly in the context of the United Nations’ Sustainable Development Goals (SDGs). For example, Brazil has prioritized initiatives that address SDG 1 (No Poverty) and SDG 2 (Zero Hunger), with programs like “Bolsa Família” and “Fome Zero,” which have significantly reduced poverty and hunger domestically. These programs have been highlighted in BRICS discussions as models for other emerging economies.
Brazil has also been a strong advocate for integrating SDG 13 (Climate Action) into BRICS’ collective agenda. The country’s commitment to reforestation and sustainable agriculture has been reflected in its leadership of the Amazon Fund, which has received contributions exceeding $1 billion, primarily from international donors, to combat deforestation in the Amazon. Brazil’s emphasis on sustainable energy is evident in its investments in biofuels, particularly ethanol production, where it remains one of the world’s largest producers, contributing to global efforts to reduce carbon emissions.
Furthermore, Brazil has pushed for more collaborative efforts within BRICS to address environmental issues, reflecting its commitment to the Paris Agreement. The country played a key role in the establishment of the BRICS Environment Ministers’ meetings, which have resulted in coordinated action plans focusing on biodiversity conservation and pollution control. Brazil’s stance not only enhances its international reputation but also aligns with its broader goal of securing a leadership role in global governance.
Russia’s Strategic Interests in BRICS
Russian President Vladimir Putin has referred to BRICS as a key component of Russia’s foreign policy strategy. In a recent statement, Putin emphasized BRICS’ role in promoting a multipolar world order, countering the unipolar hegemony of the West. He highlighted BRICS as a vital forum for fostering economic ties, technological exchange, and political collaboration, which are essential for Russia’s long-term strategic interests.
Russia sees BRICS as a strategic counterbalance to Western economic and political dominance. For Russia, BRICS provides a platform to diversify its economic partners and mitigate the impacts of Western sanctions (more on this below). Russia’s interests in BRICS are also driven by its vast energy resources, which it seeks to export to BRICS nations, particularly China and India. The formation of a joint commodity exchange aligns with Russia’s goal of establishing more stable and predictable markets for its energy exports. Furthermore, Russia aims to enhance cooperation in areas like science, technology and defense, thereby strengthening its geopolitical influence.
The Impact of the Ukraine Conflict
The ongoing conflict in Ukraine and the resulting Western sanctions have significantly impacted Russia’s economy. By participating in BRICS, Russia seeks to circumvent these sanctions by strengthening economic ties with fellow BRICS members. This collaboration includes increasing energy exports to China and India, which have both remained politically neutral vis-à-vis the conflict. The sanctions have pushed Russia to pivot away from Europe and towards Asia, accelerating its integration with the other BRICS economies.
Moreover, the global energy crisis triggered by the war in Ukraine has highlighted the importance of BRICS as a mechanism for economic resilience. With Europe seeking to reduce its dependence on Russian energy, Russia has found in BRICS a reliable market for its energy exports. This shift not only helps Russia stabilize its economy but also reinforces the strategic importance of BRICS in global energy dynamics.
China and India: Balancing Cooperation and Competition
China and India, the two largest economies within BRICS, have a complex relationship characterized by both cooperation and competition. While they collaborate within the BRICS framework, their geopolitical rivalry, particularly along their shared border, poses challenges to deeper integration. Nonetheless, both countries recognize the strategic value of BRICS in amplifying their voices in global affairs and counterbalancing Western influence.
China’s Belt and Road Initiative (BRI) intersects with BRICS objectives, as it seeks to enhance infrastructure connectivity and economic integration across member states. India’s engagement in BRICS is driven by its aspirations to play a more significant role in global governance and to leverage economic partnerships for domestic development. Despite their differences, China and India remain committed to the BRICS vision, understanding that their collective influence can reshape global economic and political landscapes
.South Africa’s Role in BRICS
South Africa, as the smallest economy in BRICS, plays a crucial role as the gateway to Africa. The country views BRICS as an opportunity to strengthen its economic and political ties not only with fellow BRICS nations but also with the broader African continent. South Africa has been instrumental in advocating for the inclusion of African issues in the BRICS agenda, particularly in areas such as infrastructure development, poverty alleviation, and health.[2]
One of South Africa’s key contributions to BRICS is its leadership in the BRICS Vaccine Research and Development Centre, which was proposed during the COVID-19 pandemic to boost vaccine production and research among BRICS nations. Additionally, South Africa has benefited from BRICS cooperation through the NDB, which has financed several infrastructure projects in the country, including renewable energy projects and urban development initiatives.[3]
South Africa also sees BRICS as a platform to advance the African Union’s Agenda 2063,[4] which aims to drive sustainable development and economic integration across the continent. By aligning its national goals with BRICS initiatives, South Africa seeks to attract investments, create jobs, and promote economic growth, while also amplifying Africa’s voice in global governance.
The Future of BRICS: Challenges and Opportunities
The future of BRICS hinges on its ability to navigate internal differences and external pressures. While the group has made strides in establishing institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA),[5] it must address issues of governance, transparency and mutual trust to enhance its effectiveness.
For BRICS to achieve its full potential, member states need to prioritize collaborative initiatives that align with their national interests while advancing collective goals. This includes fostering innovation, enhancing trade and investment flows, and promoting sustainable development. The geopolitical landscape, shaped by the rise of populism, trade wars, and regional conflicts, presents both challenges and opportunities for BRICS to assert its relevance and drive positive change in global governance.
The diversity of BRICS member states and the divergence in some of their policies is a challenge, yet this very diversity is what makes BRICS a unique and potentially transformative coalition. By leveraging their collective strengths and addressing their weaknesses, BRICS countries can play a pivotal role in shaping a more inclusive and multipolar world order.
In this scenario the BRICS+ initiative, which aims to expand the group by including several other emerging economies – namely Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates – reflects the recognition of the need for greater inclusivity and collaboration in addressing global challenges.[6]
The expansion to BRICS+ may enhance the coalition’s strategic and economic clout by integrating more countries with complementary strengths and interests. At the same time, the increased diversity of the expanded group could exacerbate existing differences in political systems, economic models and developmental priorities. Effective governance structures and mechanisms for conflict resolution will be essential to manage these complexities and maximize the potential of BRICS, while minimizing the challenges both for the group’s members and the broader multilateral system.
[1] We will refer to the latest expansion of the group to “BRICS+” in the concluding section of this article.
[2] https://www.sanews.gov.za/south-africa/sa-work-brics-countries-advance-african-agenda
[3] https://www.ndb.int/news/ndb-launches-africa-regional-center-johannesburg-south-africa/
[4] https://au.int/en/agenda2063/overview
[5] New Development Bank (NDB): The NDB, also known as the BRICS Bank, was established to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies. The bank aims to complement existing efforts by multilateral financial institutions, offering an alternative source of funding with a focus on developing countries. More information can be found at: https://www.ndb.int
Contingent Reserve Arrangement (CRA): The CRA is a financial safety net created by BRICS members to provide liquidity support through currency swaps during times of balance of payments crises or market instability. It acts as a mechanism to protect BRICS economies from global financial shocks. More information can be found at: https://www.europarl.europa.eu/thinktank/en/document/EPRS_ATA(2014)542178
[6] https://www.reuters.com/world/brics-poised-invite-new-members-join-bloc-sources-2023-08-24/
Dr. Johnatan Santos is a member of the Department of Theory and History of International Relations, RUDN University. Ph.D. and Researcher at the Nucleus of Research of Environmental Displaced People (NEPDA/UEPB) in Brazil, Member of the Peace Research, Conflict and Critical Security Studies (PCECS) Research Group. Fellow seminarist at the Institute of Latin American Studies of the Russian Academy of Sciences (ILA RAN).
