Perhaps you’ve come across this acronym recently and wondered what it means. Let’s break it down and look at some basic facts.
BRICS denotes the powerful grouping of the world’s leading emerging market economies, namely Brazil, Russia, India, China, and South Africa. It aims to promote peace, security, development, and cooperation.
Brief introduction to BRICS
Originally formed as BRIC in 2006, the organization held its first official summit in Russia on June 16, 2009. The following year, South Africa joined the group, which was then renamed to BRICS.
The BRICS countries house 41% of the global population and account for 24% of the world GDP and over 16% of the world trade. They have been the main engines of global economic growth through the years. Over a period of time, these countries have come together to deliberate on important issues under three pillars of cooperation: political and security cooperation, economic and financial cooperation, and cultural and people-to-people cooperation.
BRICS recently expanded with the addition of Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.
What to expect from the 2024 Summit
The BRICS 2024 Summit will be held in Russia from October 22 to October 24, with three major announcements to be expected.
One has to do with the creation of a basket-type reserve currency aiming to challenge the US dollar. It combines BRICS currencies and is backed by precious metals, including gold. Its potential impact on the US dollar remains uncertain, with experts debating its ability to challenge the dollar’s dominance. However, if a new BRICS currency were to stabilize against the dollar, it could weaken the power of US sanctions, leading to a further decline in the dollar’s value.
The world will also expect an announcement regarding the bloc’s continued expansion. In 2023, BRICS invited six countries to join the alliance (Argentina declined the offer). Earlier this year, more than 30 nations confirmed interest in joining BRICS, but the number may have increased over the course of the year.
In a surprising development, NATO member Turkey announced its interest in becoming a member. It joins countries like Venezuela, Nigeria, Malaysia, and Thailand, all of which are seeking entry. Every nation listed has a reason to want admission. Moreover, they all bring some value to what the collective is building. However, the question of expansion is one only the current members can answer.
Finally, the BRICS 2024 Summit should bring into focus the group’s New Development Bank. Better known as the BRICS Bank, it will celebrate its 10th anniversary in 2025. Therefore, it is expected that a roadmap or a strategic announcement of some sort is pending.
Why don’t we hear more about BRICS in the local and national news? I can’t say for sure, but there are many sources of up-to-date information if you are interested in learning more. The internet is an obvious choice – a quick Google search will bring up plenty of material. In addition, you can find more about BRICS on social media platforms such as X (formerly Twitter), Telegram, and Instagram. Happy hunting!
Sources:https://watcher.guru/news/brics-3-major-announcements-to-expect-at-the-2024-summit
