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BRICS - 2025 Brazil Summit

06 Jul 2025 GS 2 International Organizations & Bodies
BRICS - 2025 Brazil Summit Click to view full image

What Is BRICS?

  • BRICS is an informal bloc of emerging economies: Brazil, Russia, India, China, and South Africa, now expanded to 11 members.

  • Originally coined as "BRIC" by economist Jim O’Neill (2001), institutionalized with the first summit in 2009.

  • South Africa joined in 2010.

  • BRICS aims to provide a counterweight to Western influence, especially in the World Bank, IMF, UN Security Council, and G7.

Why Is BRICS Expanding?

  • Seeks to represent the Global South and reform global governance.

  • Expansion aims to increase economic heft and geopolitical influence.

  • Recent members include:

    • 2023: Egypt, Ethiopia, Iran, Saudi Arabia, UAE (Argentina declined).

    • 2024: Indonesia joined; 

    • "Partner Country" status introduced for Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan.

  • Over 30 countries applied to join BRICS in 2024.

Geopolitical Significance of Expansion

  • BRICS now accounts for:

    • >25% of global GDP

    • ~45% of global population

  • Influence in global conflicts (Ukraine, Gaza), energy markets (Saudi & UAE), and de-dollarization efforts.

  • Challenges:

    • Internal rivalries: India-China, Saudi-Iran, Egypt-Ethiopia.

    • Governance and decision-making complexities.

    • Uneven relations with the West.

Institutions Established by BRICS

  1. New Development Bank (NDB):

    • Headquartered in Shanghai, operational since 2016.

    • Offers loans, guarantees, equity to sustainable development & infrastructure.

    • Approved $32+ billion across 96 projects.

    • Focus on clean energy, transport, sanitation.

    • New regional offices in Brazil, India, South Africa, Russia.

    • Opened membership to non-BRICS developing countries in 2021.

  2. Contingent Reserve Arrangement (CRA):

    • A currency stabilization fund among BRICS central banks.

    • Functions like a mini-IMF during currency liquidity crises.

    • Limited to original BRICS countries.

Key Issues & Internal Challenges

  • Russia’s invasion of Ukraine: ICC warrant complicates Putin's participation.

  • China-India border disputes: Hinders bloc unity.

  • Economic slowdowns in China, Brazil, South Africa.

  • Authoritarian vs democratic divides: Iran, Russia vs India, Brazil.

De-Dollarization & Currency Initiatives

  • BRICS countries advocate for:

    • Reduced dependence on USD.

    • Increased trade in local currencies (like CNY, INR).

    • Proposal for a common BRICS currency (Lula da Silva).

    • Ideas of crypto or currency basket, but feasibility is questionable due to:

      • Macroeconomic divergence.

      • Lack of fiscal union.

      • Dominance of USD in 80%+ of global trade.

Western Response

  • US and EU downplay BRICS as a geopolitical rival.

  • Biden: BRICS not seen as a major threat.

  • Trump (2025): Called BRICS "dead", threatened 100% tariffs if de-dollarization proceeds.

  • EU analysts warn that Global South discontent is growing due to lack of real reform in Bretton Woods institutions.

What’s Next? – 2025 Rio Summit

  • Brazil chairs BRICS in 2025.

  • Focus areas:

    • Reform of global governance systems.

    • Enhancing South-South cooperation.

  • Notable absentees:

    • For the first time China's Xi Jinping is absent (schedule conflict).

    • Russia’s Putin (ICC arrest warrant).

  • Prospective new members: Azerbaijan, Turkey, Malaysia, etc.



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