BRICS is Growing:
Here’s What You Need to Know
Writer & Data Visualisation: Shaza Al Muzayen | Editor: Sakina Mohamed | Designer: Ummul Syuhaida Othman
KUALA LUMPUR, Nov 8 (Bernama) -- The BRICS Plus family has recently expanded, welcoming 13 new partner countries to its ranks.
The 13 countries being welcomed into the alliance are Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Türkiye, Uganda, Uzbekistan and Vietnam. However, these countries have yet to be accorded full membership status in the bloc.
Malaysia, which had submitted an application to join the bloc on July 28 this year, welcomed the news of its partnership status as it prepares to assume chairmanship of ASEAN in 2025.
Economy Minister Rafizi Ramli in his national statement at the BRICS Outreach/BRICS Plus Summit in Kazan, Russia said he saw “tremendous synergies” between ASEAN and BRICS, and described the country’s application to the membership as centred on building economic partnerships and strengthening trade ties.
“We want to showcase our regional leadership in semiconductors, energy transition, and Islamic finance,” he said at the summit which was held on Oct 24.
The Beginning of BRICS
Initially known as BRIC, the bloc was born out of Brazil, Russia, India and China’s interest in expanding multilateral cooperation.
Talks to form the bloc began in 2006 at the initiative of Russian President Vladimir Putin and the first BRICS Ministerial Meeting was held at the sidelines of a United Nations General Assembly Session in New York. The meeting was attended by the Foreign Ministers of Brazil, Russia and China and the Defence Minister of India.
The bloc was officially formed in 2009 and originally consisted of Brazil, Russia, India, and China.
The group’s name, BRIC, is an acronym of the names of its four original members. The name pre-dates the bloc’s founding as it was coined by the former Chief Economist of Goldman Sachs, Jim O’ Neill, in a 2001 report describing the four economies (Brazil, Russia, India, and China) that could dominate the global economy by 2050, if their growth was maintained.
In 2010, BRIC became BRICS when South Africa joined the bloc.
BRICS Expansion Through the Years
In its early days, BRICS was an informal grouping of countries with major emerging economies. Recently though, BRICS has begun expanding its membership, incorporating more countries into its sphere of economic and political cooperation.
At the 15th BRICS Summit in Johannesburg, South Africa last year, it was announced that the bloc had invited Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) to become members. All but Argentina and Saudi Arabia accepted the invitation and became full members on January 1, 2024.
Argentina declined BRICS membership after Javier Milei was elected President, while Saudi Arabia has yet to officially accept the invite.
In addition to the nine member countries, BRICS has recently added 13 partner countries - Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Türkiye, Uganda, Uzbekistan and Vietnam.
Due to its expanding membership, the bloc is also informally referred to as BRICS+ or BRICS Plus. There is no formal application process to join BRICS, but new members must be unanimously approved by existing ones.
BRICS Initiatives
Since the formation of BRICS, its members have agreed to collectively set up and support numerous initiatives under the bloc.
One of its first major initiatives was the formation of the New Development Bank (NDB).
Established in 2015, its main goal was to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging markets and developing countries (EMDCs).
It is also considered by some as an alternative to the International Monetary Fund (IMF) and the World Bank. The NDB has so far approved 96 projects worth US$32.8 billion for its members.
At the recent 16th BRICS Summit, members recognised the importance of the NDB and pledged their continued support for the development and improvement of the NDB in the Kazan Declaration.
(The Kazan Declaration is a 32-page communiqué that outlines the bloc’s key areas of partnership and its unified stance on a myriad of global issues.)
Another initiative that was also established in 2015 was the Contingent Reserve Arrangement (CRA). It was created to be a financial safety net to forestall short-term balance of payments pressures, provide mutual support and further strengthen financial stability. Support for the CRA was also reaffirmed in the declaration.
Russia announced at the 16th BRICS Summit that it would take the lead in creating a new international grain exchange platform within BRICS, called the BRICS Grain Exchange. Afterwards the platform would be developed to include other agricultural sectors.
Other initiatives such as the BRICS Payment System or BRICS Pay (an alternative to the SWIFT system) and a potential BRICS common currency were previously mentioned, but no concrete plans have been put forth so far.
However, the declaration at the recent summit did call for increased financial cooperation within BRICS that included more comprehensive cross-border payment instruments, the use of national currencies in financial transactions between BRICS countries and their trading partners, and support for the strengthening of correspondent banking networks within BRICS.
BRICS in Numbers
With the emergence of BRICS Plus, its scale and economic influence is often compared to that of the G7 (Group of 7). Formed in 1975, the G7 are a grouping of major industrial countries (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States of America) that meet yearly to address issues such as global economic management and international security.
As each group represents a powerful bloc in the global economy, here’s a closer look at how they stack up across key indicators:
1. GDP (in US$)
According to the World Bank, the combined GDP of BRICS nations (including that of its partner countries) in 2023 reached approximately $32.43 trillion, or around 30.8 percent of global GDP, with major contributions from China and India’s growth.
The G7, on the other hand, holds a combined GDP of about $46.79 trillion, making up roughly 44.4 percent of global GDP, reflecting its status as a collective of high-income economies.
2. Oil Production
BRICS nations, particularly Russia, China, and Brazil, are significant players in global oil production. Recent BRICS expansions that include major oil producers like Iran and the UAE may significantly boost the bloc's influence in global energy markets. According to the U. S. Energy Information Administration, BRICS nations (including that of its partner countries) collectively produced around 32.86 million barrels of oil per day in 2023.
The G7 countries, led by the United States and Canada, had a lower output that year, collectively producing 19.06 million barrels of oil per day.
3. Population
Based on population data from the United Nations Populations Fund, it is estimated that BRICS nations (including that of its partner countries) represent 4.62 billion people, or 56.9 percent of the world’s population in 2024, providing a vast consumer base and labour force.
In comparison, the G7 countries have a combined population of roughly 778.4 million, making up only about 9.6 percent of the global population. This demographic difference underscores BRICS's potential influence as both a market and a source of labour for global industries.
4. Global Exports (merchandise trade)
Based on figures from the World Trade Organisation, BRICS nations (including that of its partner countries) contributed around $7.07 trillion, or 29.7 percent of global merchandise exports in 2023, powered largely by China’s strong manufacturing and export capabilities ($3.4 trillion).
The G7 nations are close behind, with a contribution of around $6.83 trillion, or 28.7 percent of global merchandise exports.
-- BERNAMA