BRICS: A counterweight to G7 and a forum for Global South cooperation-OxBig News Network

The BRICS bloc—originally comprising Brazil, Russia, India, China, and South Africa—was formed in 2009 and has recently expanded in early 2024 to include Iran, the UAE, Ethiopia, and Egypt. Saudi Arabia has also been announced as a prospective member, though the kingdom has yet to make a final decision on joining.

BRICS traces its roots back to an informal meeting organised by Russia during the UN General Assembly in 2006. The group held its first leaders’ summit in 2009, with South Africa invited to join in 2010.

In January 2025, Indonesia became the latest member to be admitted. Other countries seeking membership include Malaysia and Thailand. In November 2024, Turkey was granted “partner-country status,” a second-tier membership without voting rights, a status also held by Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam.

Together, the BRICS countries represent nearly half of the world’s population, 36 per cent of the global land area, and roughly a quarter of the world’s economic output. The bloc sees itself as a platform for cooperation among Global South countries and as a counterweight to the Group of Seven (G7), which comprises major Western economic powers including the US, Canada, France, Germany, Italy, Japan, and the UK.

BRICS also operates an investment bank and connects major energy producers with some of the largest consumers among developing nations.

The bloc’s expansion enhances its economic influence in a US-dominated world and poses a potential challenge to the US dollar’s primacy in global trade—a development that has angered US President Donald Trump, who has threatened to impose 100 per cent trade tariffs on BRICS members.

On Monday, just hours after BRICS leaders issued the “Rio de Janeiro Declaration” at their 17th summit—criticising US reciprocal tariffs and warning that the indiscriminate rise in tariffs threatens global trade—President Trump responded with a warning. He stated that any country aligning with what he called the “anti-American policies” of BRICS would face an additional 10 per cent tariff.

Like the G7, BRICS began informally before evolving into a high-profile forum addressing global challenges. The group consistently advocates for enhanced economic cooperation among its members and promotes “multipolarity” in global affairs, where no single nation dominates. BRICS has also pushed for increased representation and voting power for developing countries within Western-dominated institutions such as the IMF and World Bank.

China, now the world’s leading industrial power, has been the primary driver of BRICS expansion. South Africa and Russia have supported this growth. India initially hesitated, fearing a larger BRICS might become a mouthpiece for China, while Brazil worried about alienating Western partners. Both eventually agreed to the enlargement.

These concerns were confirmed at the latest summit in Rio de Janeiro, where the group condemned the April 22 terror attack in Jammu and Kashmir’s Pahalgam but notably did not name Pakistan, China’s close ally, which India accuses of harbouring and supporting terrorism. This dynamic has reinforced India’s strategic partnership with the US, marked by enhanced cooperation in defence and technology. Meanwhile, China actively challenges US influence globally, and Iran remains a sworn adversary of America.

For new members, BRICS offers the potential for easier access to financing from wealthier members and a political forum independent of US influence. The inclusion of major fossil-fuel producers could allow the bloc to challenge the dollar’s dominance in oil and gas trade by switching to alternative currencies, a process known as “de-dollarisation.”

Financial achievements are among BRICS’ most significant successes. The member countries agreed to pool USD 100 billion in foreign currency reserves to lend to each other during crises, a liquidity facility operational since 2016. They also founded the New Development Bank, inspired by the World Bank, which has approved USD 39 billion in loans since 2015, focusing mainly on water, transport, and infrastructure projects. For comparison, the World Bank committed USD 117.5 billion to partner countries in fiscal 2024.

Following the US withdrawal from the Paris Agreement, BRICS nations have developed financing mechanisms for energy transition and green projects to combat climate change. They also collaborate on public policies and pharmaceutical technologies to develop vaccines and medications for diseases prevalent in tropical or poorer countries, including tuberculosis, malaria, and yellow fever.