BRICS Impediments

BRICS is a loose alliance of developing countries – Brazil, Russia, India, China, and South Africa. These countries represent about half of the global population and almost one-third of the global GDP. The BRICS group is a major economic and political force. The BRICS group has since become the largest group of nations in the world.

In the face of global challenges such as climate change and income disparities, the BRICS countries of Brazil, Russia, India, China, and South Africa have become increasingly significant actors within the global economy. At the same time, the BRICS nations have sought to challenge existing global institutions and align themselves with the emerging global order.

Formation of BRICS:

The process of the creation of BRICS countries started in 2005.  They have distinct historical backgrounds and cultural traditions. At the beginning of the 21st century, the world was divided into two blocks. The first block consisted of advanced economies. Emerging countries formed the second one.

The BRICS alliance was formed in 2009 in order to promote economic development. Brazil, Russia, India, China, and South Africa are the five BRICS nations. They are the largest developing countries and can be classified as emerging powers. BRICS have gradually become the world’s fastest developing countries in recent years.

Why was the BRICS alliance formed?

It was born out of a common interest in promoting trade and development across countries in the region. It was formed to improve their nations’ economies and the global socio-economic situation. 

History of BRICS:

At the turn of the century in 1993, the world was still dominated by the West, with the U.S. and Europe as the largest economic powers. The emerging economies of India, China, and Brazil, which are now known as the BRICS, believed that the world was becoming more globalised. The BRICS nations saw an opportunity to create a new group of global economic powers that would not rely on the West for their success but instead become a self-reliant economic powerhouse.

Challenges/Impediments faced by BRICS:

The four BRICS nations — Brazil, Russia, India, and China — are at a turning point. These four countries account for more than half of global GDP, and each one is emerging as a significant global power, but each faces challenges that have brought them to the brink of instability. All four face similar challenges and are experiencing rapid and radical changes in their geopolitical and economic positions.

1. The BRICS countries are facing many challenges on a daily basis. The first challenge is to promote the prosperity of their countries. This is the most important goal for the BRICS countries, and it is the first focus for the leaders of the countries in order to tackle the problems of development.

2. Governance issues are inherent in the BRICS countries due to the transition from authoritarianism to democracy and from a non-transparent economy to a transparent one with the growing need for the public sector to play a major role in the development process, such as ensuring social security, public infrastructure and provision of universal education.

3. The BRICS economies began to slow down after the U.S. housing market crash (which was triggered by the financial crisis) and the subsequent government bailouts. 

4. The main reason for the slowdown in BRICS growth is the growing debt problem in the countries of the BRICS, as they try to implement structural reforms and rebalance their economies from a heavy dependence on exports.

Importance for India:

The BRICS alliance was important for India in many ways. Firstly, it was an opportunity to learn about other countries and their cultures, and secondly, because it was a way to create mutual understanding between these countries and India.

The BRICS alliance was important for India because it provided an example of how the world can work together to fight poverty by harnessing the power of the private sector. They are the largest economies in the world. The BRICS countries account for over half of the global GDP. Together, they have a combined $27 trillion in GDP or about 40% of global GDP, and the BRICS countries hold more than 70% of the world’s gold.

Contribution to global growth:

The BRICS countries have been important contributors to global growth over the years. For instance, they have provided a major boost to the global economy, and is the world’s fastest-growing major trading bloc. They also have contributed to the global environment, by promoting sustainable development, especially in the areas of energy and food security. The BRICS countries are also home to the global middle class. 

Conclusion:

BRICS (Brazil, Russia, India, China, and South Africa) have a shared and growing economy, identity, and future. It is expected that BRICS will have a larger share of the world GDP and will be able to influence its global governance. BRICS countries have a great potential for further development. However, the political situation is still a major obstacle to overcome. As said by a writer, “They have a huge potential for the future, but without the political climate being more conducive to sustainable development, the world is unlikely to see the BRICS as fully developed economies”.