BRICS: Acronym for Brazil, Russia, India, China, and South Africa

By James Chen (updated August 24, 2023). Reviewed by Gordon Scott. Fact checked by Melody Kazel
(https://www.investopedia.com/terms/b/brics.asp).

The term BRICS is an acronym for Brazil, Russia, India, China, and South Africa. The coin was
initially created as BRIC (without South Africa) by Goldman Sachs economist Jim O'Neill in
2001, claiming that by 2050 the four BRIC economies would come to dominate the global
economy. South Africa was added to the list in 2010. The BRICS countries operate as a loose
organization that seeks to further economic cooperation amongst member nations and increase
their economic and political standing in the world.

Understanding the BRICS

Brazil, Russia, India, China, and South Africa ranked among the world's fastest-growing
emerging market economies for years, thanks to low labor costs, favorable demographics, and
abundant natural resources at a time of a global commodities boom.

The group has a set of joint priorities, which include:

• Working on resolving regional problems, such as the Iranian nuclear program and
conflicts in Libya, Syria, and Afghanistan.
• Tackling financial and economic issues like reforms at the World Bank and International
Monetary Fund (IMF).
• Establishing the BRICS Interbank Cooperation Mechanism.

The Goldman Sachs thesis didn’t suggest that these countries would become a political alliance
like the European Union (EU) or even a formal trading association. Instead, the investment
banking firm said these countries have the potential to form a powerful economic bloc, even
acknowledging that its forecasts were optimistic and dependent on significant policy
assumptions.
Still, the implication was that economic power would bring political power, and indeed
leaders from BRICS countries regularly attended summits together and often acted in concert
with each others’ interests.

History of BRICS

BRICS sees itself as a counter to the traditional Western-led global order, with many member
states seeing the organization as a way to boost their influence around the world. Still, many of
the nations disagree on fundamental factors, such as transparency and a balanced approach,
which may hinder the growth of the group.
The group operates as an informal grouping of nations that meet annually at the BRICS
convention, where members and heads of state seek to further economic cooperation between
the nations. The head of state of a member nation acts as the chairman of the group, rotating
once a year. Informal meetings began in 2006 but the group's first official meeting was on June
16, 2009, in Yekaterinburg, Russia.
Because of the economic power of the nations, as well as the idea of disentangling from
the West to a degree, BRICS claims that over 40 countries seek to join the group. The BRICs
announced that it invited additional countries to join the group at its 2023 summit. Full
membership will be granted to Argentina, Ethiopia, Iran, Saudi Arabia, Egypt, and the United
Arab Emirates on Jan. 1, 2024.
Some of the other key developments of the group include:
 • The development of the New Development Bank. The institution was established in
2015 to provide emerging markets and developing countries with funding for
infrastructure and sustainable development projects.
• Establishing the BRICS Parliamentary Forum, which is designed to “strengthen and
promote contacts at the leadership level of chambers, committees and groups of
parliamentarians.” This body is responsible for inter-parliamentary exchanges and
consultations along with the development of new mechanisms for inter-parliamentary
cooperation.

What countries are in BRICS?

The BRICS nations are Brazil, Russia, India, China, and South Africa. In 2023, the group invited
Argentina, Ethiopia, Iran, Saudi Arabia, Egypt, and the United Arab Emirates to join. Full
membership is expected to be granted as of Jan. 1, 2024.

Why was BRICS created?

BRICS was created by Goldman Sachs as an analytical grouping of emerging market countries
that witnessed strong economic growth and were poised to dominate the world economy by
2050. These countries now operate as a loose organization, seeking to further economic ties with
each other.

What is the main goal of the BRICS?

The main goals of BRICS are cooperation, development, and influence in international affairs.
Goals include economic cooperation, development financing, political coordination, social and
cultural exchanges, technology and innovation, sustainable development, and peace and security.

The bottom line

BRICS is an informal grouping of emerging market countries that seek to establish deeper ties
between their nations and cooperate on economic expansion, including trade. The countries act
as a balance against traditional Western influence, seeking to depend on each other for growing
influence in the world.

KEY TAKEAWAYS

• BRICS is an acronym that refers to Brazil, Russia, India, China, and South Africa.
• Goldman Sachs created the term BRIC in 2001 for Brazil, Russia, India, and China under
the belief that these economies would dominate global growth by 2050.
• The BRICS nations offered a source of foreign expansion for firms and strong returns
for institutional investors.
• The organization seeks to deepen economic cooperation between the member countries
and stand in contrast to the Western sphere of power.
• Saudi Arabia, Iran, Ethiopia, the United Arab Emirates, Egypt, and Argentina were
invited to join BRICS in 2023.

1. Answer the following questions:

a) What is BRICS? BRICS is an informal grouping of emerging market countries. The acronym refers to Brazil, Russia,
India, China and South Africa.
It is a possibility because these countries are
b) Can BRICS create a new world order? Give your opinion really powerful economically.
c) How many leaders’ summits have been held? There has been 15 leaders' summits, they meet annually.
d) What are the major issues faced by BRICS countries? Resolving regional problems, such as the Iranian
nuclear program and conflicts in Libya, Syria, and
e) Who is the President of the BRICS Bank? Afghanistan.
Dilma Rousseff.