BRICS- the era of Multipolar Global Order!

Описание: BRICS is an acronym for a group of five major emerging economies: Brazil, Russia, India, China, and South Africa. The term was originally coined as "BRIC" by economist Jim O'Neill in 2001, to highlight the growing influence of these four countries on the global economy.

BRIC began functioning as a formal group during the G-8 Outreach Summit in 2006, held its first summit in Russia in 2009.

In 2010, South Africa joined the group, turning it into BRICS.

The main aim of BRICS is to promote economic cooperation, development, and a multipolar world order. These countries hold annual summits and work together in areas like trade, infrastructure, finance, and global governance and challenge the traditional dominance of Western powers in global affairs.

In 2014, BRICS established the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) as alternatives to the World Bank and IMF, reducing dependence on Western-led financial institutions and to fund infrastructure and development projects in member and other developing countries. BRICS represents about 40% of the world’s population and nearly 25% of global GDP.

At the 2023 Johannesburg Summit, BRICS invited six new countries namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and UAE to join; indicating a shift toward creating a broader "BRICS+" alliance.

BRICS created a strong foundation for cooperation among developing countries (South-South cooperation), promoting mutual economic growth, development, and political dialogue. Now BRICS acts as a geopolitical counterbalance to Western alliances like G7 and NATO, especially on issues like trade, sanctions, climate change, and international law.

BRICS countries have consistently called for reforms in global financial and political institutions like the International Monetary Fund (IMF) and United Nations Security Council (UNSC), aiming to make them more representative of developing nations.

In 2023, BRICS leaders emphasized the use of national currencies (like the rupee, yuan, and ruble) for bilateral trade and supported the idea of a new BRICS financial architecture.

The idea of a BRICS currency has emerged in recent years as part of the bloc’s effort to reduce dependency on the U.S. dollar in international trade. While no official common currency exists yet, BRICS countries have discussed creating a shared trading currency or alternative payment system to enhance financial sovereignty and promote trade in local currencies.

But what actually led to the development of BRICS Financial System?
Sanctions on Russia (especially after the 2022 Ukraine conflict) and threats to other BRICS countries exposed the risks of being tied to Western-controlled systems like SWIFT, IMF, and World Bank.

This encouraged the group to create alternative payment systems and consider a shared currency and thereby they sought financial independence and wanted to avoid vulnerabilities caused by dollar fluctuations and U.S. monetary policy.

Key Initiatives of BRICS: New Development Bank (2014), Contingent Reserve Arrangement (CRA), BRICS Grain Exchange, BRICS Rapid Information Security Channel, STI Framework Programme (2015) etc.

The 17th BRICS Summit was held in Rio de Janeiro, Brazil on 6–7 July 2025, under the theme “Strengthening Global South Cooperation for a More Inclusive and Sustainable Governance”.

The members discussed deeper trade and investment ties, including expanding use of local currencies and digital payments such as BRICS Pay.

Key outcomes of the meeting are-
Strong condemnation of tariff hikes and unilateral sanctions, expressing concern over US protectionism.
Denounced military strikes in Gaza and Iran, calling for an immediate ceasefire and a two‑state solution for Palestine.
Condemned the Pahalgam attack, affirming a zero‑tolerance stance against terrorism.
Reviewed the 2025 Economic Partnership Strategy and launched planning for a 2030 strategy with emphasis on digital economy, trade, sustainable development.

United States President Trump threatened an additional 10% tariff on imports from BRICS countries, calling their efforts "anti‑American".
BRICS leaders denounced these moves as damaging to global trade and supply chains.

The growing geopolitical importance of BRICS reflects the shift from Western-led global dominance to a more balanced, multipolar world.

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