BRICS
Overview
BRICS is a cooperation body of emerging economies named after the English initials of Brazil, Russia, India, and China, and its name was completed as BRICS when South Africa joined in 2010. It aims to represent the voices of emerging markets and developing countries against the existing international order centered on Western advanced countries, and to expand multilateral cooperation in the economic, financial, and security fields. In January 2024, Egypt, Ethiopia, Iran, the United Arab Emirates, and Saudi Arabia newly joined (or were invited), establishing it as a representative platform of the "Global South" in name and reality.
Key Details
Background and History
In 2001, Goldman Sachs economist Jim O'Neill first introduced the term "BRIC," highlighting the growth potential of the four countries. In 2006, on the occasion of the G8 foreign ministers' meeting held in St. Petersburg, Russia, the foreign ministers of Brazil, Russia, India, and China met, launching a substantive consultative body, and in 2009 the first summit was held in Yekaterinburg, Russia. In 2010, South Africa joined, making it BRICS.
Organizational Structure
BRICS is not a supranational organization with legal personality like the European Union, but a loose cooperation body with the summit as its highest decision-making body. A summit is held annually, and the chair country is rotated among member states. Working-level channels include foreign ministers' meetings, finance ministers and central bank governors' meetings, and meetings of senior security representatives.
New Development Bank (NDB) and Emergency Reserves
The New Development Bank (NDB), agreed upon at the 2014 Fortaleza summit, was launched in 2015 with its headquarters in Shanghai. With initial capital of $100 billion, it provides funding for infrastructure and sustainable development projects in member countries. The Contingent Reserve Arrangement (CRA), launched the same year, is a $100 billion financial safety net designed to respond to short-term liquidity crises in member countries. In 2016, an NDB regional office opened in New Delhi, India.
Key Cooperation Agendas
First, de-dollarization and expanding settlement in local currencies. BRICS countries have discussed ways to reduce dependence on the dollar in trade settlement and increase the use of their own currencies, such as the yuan, ruble, rupee, and real. Second, infrastructure investment in developing countries and low-carbon transition. Third, global governance reform, including reform of the UN Security Council and quota reform at the International Monetary Fund (IMF) and World Bank. Fourth, cooperation in health, agriculture, energy, and science and technology.
Member States and Expansion
In addition to the initial five countries, the 2024 expansion was carried out, with Egypt, Ethiopia, Iran, and the United Arab Emirates formally joining, while Saudi Arabia received an invitation but is coordinating the accession process. Argentina withdrew its accession after a change of government at the end of 2023. In addition, about 40 countries, including Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Thailand, and Venezuela, have expressed interest or are discussing partner-country status.
Limitations and Criticism
There are many criticisms that joint action is difficult because member states differ greatly in political systems, economic size, and interests. Representative examples include the border conflict between India and China, China's Belt and Road Initiative and India's opposition, and differences among member states over Russia's war in Ukraine. Some member states are also wary of BRICS being seen as an "anti-Western solidarity" against the Western-centered order. The discussion of creating a single currency also continues to be debated over its feasibility.
Latest Trends
At the 16th summit held in Kazan, Russia, in October 2024, member states adopted the Kazan Declaration, which included interconnection of payment systems, establishment of a grain exchange, and expansion of NDB capital. In 2025, Brazil took over the chair country and put "strengthening Global South cooperation" as its top agenda item, while climate change response, AI governance, and health cooperation emerged as new core topics. As U.S. tariff policies and geopolitical tensions grow, experiments with local currency settlement within BRICS appear to be accelerating. However, the challenges of increased decision-making costs due to expansion and exposure of internal differences are also growing. For South Korea, it is necessary to closely manage the impact of BRICS expansion on supply chains, resource diplomacy, and external trade strategy.
Related Topics
- [[New Development Bank]]
- [[De-dollarization]]
- [[Global South]]
- [[G20]]
- [[Belt and Road Initiative]]