BRICS: Here’s what to know about the international bloc

In 2001, researchers at the investment bank Goldman Sachs published a paper that detailed how four emerging economies—Brazil, Russia, India and China—were set to reshape the global economy in the coming years.

The paper noted that the so-called BRICs bloc had a “healthier environment” for economic growth than many developed countries and that their share of global GDP was set to increase. “It is time for the world to build better global economic BRICs,” the paper stated.

Years later, in 2006, the leaders of the BRICs countries officially created the BRICs group, an informal coalition that would help the governments coordinate economic and political efforts around shared goals. In 2009, the bloc held an inaugural BRICs Summit in Yekaterinburg, Russia. A year later, South Africa formally joined the group, expanding the acronym to BRICS.

In recent years, the bloc has continued to court new members, with Chinese President Xi Jinping noting in 2022 that adding new economies will “inject new vitality into BRICS cooperation and increase the representativeness and influence of BRICS.”

At the 2023 BRICS summit, the bloc formally invited six more countries—Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates—to join. Argentina chose not to join BRICS after a change in government and Saudi Arabia is reportedly still considering its membership.

Several other countries—including Cuba, Malaysia, Thailand and Türkiye, among others—are considered BRICS partner countries and have applied for or expressed interest in future BRICS membership. Thailand, for instance, officially drafted a letter of intent earlier this year, noting in a statement that “joining BRICS would benefit Thailand in many respects” and that membership would boost its “prospects of being one of the international economic policy makers.”

Today, BRICS countries are home to roughly 3.3 billion people — over 40% of the global population.

The BRICS economies also account for an estimated 37.3% of global gross domestic product based on purchasing power parity. China alone represents 19.05% while India accounts for 8.23%, according to the International Monetary Fund. Meanwhile, the United States and the European Union account for roughly 14.5% each.

Moreover, the BRICS bloc is increasingly becoming a major economic power with regards to commodities trading.

Take oil, for example. With the addition of Iran, the UAE and potentially Saudi Arabia, the BRICS group could control nearly half of oil production worldwide and account for an estimated 35% of total oil consumption, according to an analysis by S&P Global. “With Saudi onboard the BRICS grouping would be a commodities powerhouse,” the report states.

The BRICS countries also have a large consumer base and labour force given their large populations.

In 2024, the bloc's labour force participation rate was 60.6 %, totalling 1.5 billion people, according to the International Labour Organization. Within the participation rate, a large gender gap persists with men participating at 73.9% and women at 47.4%.

Furthermore, participation in the informal economy of BRICS countries is high. In recent years, an estimated 934.4 million people in BRICS countries worked in the informal economy, the vast majority of whom are in India.

“Informal work is pervasive in some BRICS, and productivity gains are linked to transitions to formality and better working conditions,” a 2023 International Labour Organization report said.

This year, the unemployment rate in BRICS countries stands at 5.3 %, totalling 84.7 million people.

In recent years, BRICS countries have expanded cooperation efforts, increasing alignment on issue areas ranging from national security and economic development to cultural exchanges and humanitarian projects.

The expansion of BRICS is also advancing new pathways of multilateralism. This includes the establishment of new institutions that could challenge existing multilateral organizations such as the Group of Seven (G7) and the World Bank.

In 2015, for instance, the BRICS bloc founded the New Development Bank (NDB), a multilateral development lender based in Shanghai, China. In recent years, NDB has funded various projects ranging from increasing liquified natural gas transportation capacity in China to modernising freight rail systems in South Africa.

Moreover, the NDB often funds development projects in local currencies, which analysts say could over time pose a challenge to the dominance of the US dollar in the global economy.

In October, at the 16th BRICS Summit in Kazan, Russia, the bloc noted in its final declaration that the coalition supports “the NDB in continuously expanding local currency financing and strengthening innovation in investment and financing tools.”

Observers differ on how much the BRICS bloc aims to directly challenge the West, as well as to what extent internal divisions may hinder BRICS unity. Yet experts agree that cooperation and collaboration worldwide is required in order to mitigate the various issues confronting the global economy.

In January, the World Economic Forum’s Global Cooperation Barometer 2024 warned that as “cooperation is becoming an imperative, the world order appears to be fragmenting.”

Nonetheless, the report noted that “cooperation is multifaceted, and elements of cooperation can coexist with elements of rivalry,” adding that “leaders can practice ‘coopetition’ – balancing cooperation and competition – to advance shared interests in specific areas, despite lack of alignment elsewhere.”