BRICS BRICS

History of the term

The BRIC cut was first proposed by Jim O'Neill, an analyst at Goldman Sachs in November 2001 in a bank research note to draw attention to the high growth rates in Brazil, Russia, India and China. It was an optimistic talking point for investors amid market pessimism following the September 11 terrorist attacks in the US that year. These four countries have adopted the idea. Their rapid growth at the time meant they had common interests and common problems. They had already collaborated on forums such as the WTO and felt their impact on the US-dominated world order would be more significant if their votes were united.

Until 2011, the abbreviation BRIC was used in relation to the organization. In connection with the accession of South Africa to the BRIC on February 18, 2011, according to the statement of the Indian Minister of Finance from that time on, the group began to be called BRICS. According to Goldman Sachs, by 2050 the total economies of the group's countries will exceed the total size of the economies of the richest countries in the world (the G7).

The sequence of letters in a word is determined not only by euphony, but also by the fact that the word itself in the English transcription of BRICS is very similar to the English word bricks - "bricks," thus, this term is used as a designation for a group of countries, due to the growth of which will largely ensure the future growth of the world economy and stock markets in particular.

Goldman Sachs did not assume that there was coordination of economic policies between the BRIC countries. Moreover, it was not assumed that the BRIC countries form a certain economic bloc or official trade association, like the European Union. However, over time, there were signs that "the four BRIC countries seek to form a political club" or "union," and thus transform "their growing economic power into a greater geopolitical" influence. "

Member countries

BRIC members are characterized as the fastest developing large countries. The advantageous position of these countries ensures that they have a large number of resources important for the world economy:

• Brazil is rich in agricultural products;
• Russia is the world's largest exporter of mineral resources;
• India - cheap intellectual resources;
• China - the owner of cheap labor resources;
• South Africa - natural resources;
• Saudi Arabia.

Aktivs

These are the main resources on which the economies of these countries rely. The high population of countries determines the cheapness of labor in them and, accordingly, high rates of economic growth. Ultimately, it is predicted that the large size of these economies in the future will allow them to transform economic growth into political influence, which will lead to the formation of a new economic elite and reduce the influence of the "golden billion."

New Development Bank

Main article: NDB (New Development Bank)

The BRICS countries founded the NDB (New Development Bank), an organisation inspired by the World Bank, which has approved more than US $30 billion in loans for projects such as water and transport infrastructure since it began in 2015 by May 2023.

The population of more than 3 billion people

BRICS countries lead in share in the global economy

In 2022, the five BRICS countries accounted for 31.5% of world GDP, while the G7 share decreased to 30%.

It is expected that by 2030 the share of BRICS in global GDP may exceed 50%.

Digitalization

Main article: Digitalization in BRICS

Chronology of events

2024

RDIF and mining data center operator BitRiver agree to jointly build data centers in the BRICS countries

and Russian Direct Investment Fund (RDIF) the company, BitRiver Russian an operator (data centers data center) for energy-intensive computing and an importer of computing equipment, announced a partnership to jointly implement projects to introduce technology (AI artificial intelligence), increase its share in the Russia global market for computing power to construction and processing centers in data. RDIF countries BRICS TAdviser representatives shared information about this with the portal on October 18, 2024. More. here

The Ministry of Finance of the Russian Federation announced the creation of the BRICS Bridge platform for cross-border payments between the BRICS countries

On June 10, 2024, the Ministry of Finance of the Russian Federation announced the launch of the BRICS Bridge platform, designed to conduct cross-border payments between the BRICS countries. The initiative is aimed at increasing the speed and availability of financial transactions, as well as ensuring sustainable settlements outside the sanctions field. Read more here.

BRICS will have a single technological space

The BRICS member countries will form a single technological space, including on the development of artificial intelligence (AI), this was announced on April 15, 2024 by the press service of the State Duma deputy RFAnton Nemkin with reference to the Parliamentary newspaper.

The almost double increase in the BRICS member countries strengthens the possibility of this association to influence the solution of global issues. A number of them concern the regulation of such a sphere as artificial intelligence - its legal regulation of the BRICS country can and should be carried out not only within its association, but also jointly promote the legislative formalization of such initiatives at the UN platform, said Federation Council Chairman Valentina Matvienko at a meeting with the heads of international affairs committees of national parliaments of the BRICS member countries.

No country can make such a regulation only at home - it should be carried out both at the level of the BRICS countries and at the UN platform, she stressed.

At the same time, for the implementation of joint scientific and technical projects, it is important for the BRICS countries to form a single technological space, which implies the convergence of key legal norms. And the sooner the legislators can do this, the faster the scientists of our countries will reach a new level of interaction, Matvienko said.

AI technologies are developing rapidly, and it is important to become leaders not only in terms of implementation, but also in matters of regulatory regulation, the deputy said.

Nemkin noted that the issue of creating a single technological space is being worked out by the association quite actively. {{quote 'Let me remind you that back in 2023, the Chairman of the PRC called for the creation of a general structure for managing artificial intelligence. The functionality of the regulator could include assessing the best solutions and developing "road maps" for their integration in the member countries of the association. In addition, this is an opportunity to create a legislative framework for the further development of AI, the deputy believes. }}

The penetration of AI in states is uneven. If a single space is created, we will come to a constant exchange, including practical experience, which will have a positive effect on all participants in the association, the deputy is convinced.

Venezuela hopes to join BRICS in 2024

Venezuela is betting on the BRICS and hopes to join the organization during a summit in Russia, Latin American President Nicolas Maduro said. He stressed that "BRICS is the future of humanity." The BRICS summit will be held in Kazan in October 2024.

Maduro called the decision of Javier Miley to refuse Argentina from joining the BRICS stupid. According to the president, this step will return Argentina to the 19th century and turn it into "a vassal of the imperial unipolar world, into a new colony from South America." Thus, the new head of the country acts against Argentines, against Argentine workers and businessmen, he is sure.

Saudi Arabia officially joined the BRICS bloc

In early January 2023, Saudi Arabia officially joined the BRICS bloc. Prince Faisal bin Farhan said the BRICS group was a "profitable and important channel" to strengthen economic cooperation.

2023

Mutual trade between Moscow and the BRICS member countries increased by 36.5% by the end of the year

At the end of 2023, mutual trade between Moscow and the BRICS member countries showed significant growth, an increase of 36.5%. This increase was the result of active interaction in various industries, including industry, in which Moscow high-tech enterprises established supplies of their products to Iran, South Africa and Brazil. This was announced in September 2024 by the Minister of the Government of Moscow and the head of the Moscow Department of Investment and Industrial Policy Anatoly Garbuzov. Read more here.

Record trade turnover between Russia and the BRICS countries - $294 billion

At the end of 2023, the trade turnover of the Russian Federation with the BRICS countries reached a record $294 billion, which is 41.4% of the total volume of Russian foreign trade. Compared to 2019-2020. the volume of trade increased 2.4 times, said on April 2, 2024, the President of the Chamber of Commerce and Industry (CCI) of the Russian Federation, Chairman of the BRICS Business Council in 2024 Sergey Katyrin.

According to him, the export of Russian products of the agro-industrial complex to the BRICS countries in 2023 amounted to more than $9 billion, which is 2.6 times more in comparison with 2019.

At the end of 2023, the trade turnover of the Russian Federation with the BRICS countries reached a record $294 billion

Among the topical issues of cooperation within the BRICS, Katyrin highlighted logistics and mutual settlements. Digital currencies represent great prospects, the head of the Chamber of Commerce and Industry is sure.

According to estimates by the Russian Union of Grain Exporters, cited by TASS with reference to data from Sergei Katyrin, the countries of the BRICS five by the end of 2023 produced a total of 1.17 billion tons of grain per year (42% of world production), and consumed 1.1 billion tons (40% of world consumption). The countries of the union in 2023 accounted for wheat production by 348 million tons per year (44% of the world), and consumption - in the amount of 320 million tons (40% of the world). Corn production in the BRICS states was measured at 474 million tons (39%), consumption - 437 million tons (37%).

In 2023, the BRICS, in addition to the Russian Federation, included Brazil, India, China and the Republic of South Africa (South Africa). In 2024, the composition of the participants was replenished with Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE).

In August 2023, Russian President Vladimir Putin said that in the first half of 2023, the trade turnover of the Russian Federation with BRICS partners increased by 40.5% and exceeded $230 billion. According to Putin, over 10 years, mutual investments of the BRICS member states have increased sixfold.^[1]

Invitation from Saudi Arabia, Argentina, Egypt, UAE, Ethiopia and Iran to join the bloc

The BRICS summit held in South Africa in August 2023 ended with the invitation of Saudi Arabia, Argentina, Egypt, the UAE, Ethiopia and Iran to join the bloc of countries with emerging markets. If the invitation is confirmed, it would expand the group to 11 countries from five, increasing its reach to 46% of the world's population and 37% of global GDP.

Brazil and India fear rapid growth in BRICS member countries

India and Brazil are countering China's push to rapidly expand the BRICS emerging market group to increase their political clout and confront the U.S., official sources with knowledge of the matter said in July 2023.

Potential new members include Indonesia and Saudi Arabia. Dozens of other countries are also eager to join the alliance, fueling Western fears that the group is becoming a counterweight to Washington and the EU.

Brazil wants to avoid expanding the alliance partly because of these concerns, and India wants to set strict rules on how and when other countries can get closer to the group without formally expanding it. Any decision would require consensus among the group members, whose meeting will take place Aug. 22-24, 2023.

According to Fyodor Lukyanov, head of the Foreign and Defense Policy Council advising the Kremlin, Russia has no firm position on expanding the BRICS. "Overall, she is in favour of BRICS expansion, but with little enthusiasm. He's following the path of others. We will not block any solution. "

30 countries applied to join BRICS

In May 2023, South Africa reported that applications for joining the BRICS are received almost weekly. According to the Ambassador-at-Large for Asia and BRICS to the South African Foreign Ministry Anil Suklal, we are talking about 30 countries.

New Zimbabwe, citing internal BRICS documents , said that accession to the group is sought Algeria Argentina Afghanistan Bangladesh Bahrain Belarus Venezuela Egypt Zimbabwe Indonesia Iran Kazakhstan,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. Mexico Nigeria Nicaragua However, UAE Pakistan Saudi Arabia they all Senegal Syria Sudan Thailand Tunisia Turkey have to wait for Uruguay the BRICS members to agree on the fundamental concept of expanding the group.

Internal disagreements and G7 sanctions hinder BRICS development

From an economic point of view for 2023, natural resources and agricultural products of Brazil and Russia make them natural partners for Chinese demand. India and China have weaker trade ties with each other, in part because of political rivalries and a bitter border dispute. Like other multilateral forums such as the G7, annual BRICS summits and dozens of other lower-level meetings lead to joint statements that proclaim broad agreement but lack specifics. The biggest obstacle here is that countries have different interests on major policy and security issues - including relations with the US - and different systems of governance and ideology.

Economically, China's gross domestic product is more than twice the gross domestic product of all four other members combined. In theory, this should give him the most influence. In practice, India, which overtook China in terms of population at the beginning of 2023, acts as a counterweight. Thus, the BRICS has not officially approved a large-scale Chinese development initiative called the Belt and Road, partly because India objects to Belt and Road infrastructure projects in the disputed territory owned by Pakistan, its neighbor and principal rival.

Investor interest in emerging markets is still strong. But if two decades ago BRICS was a good idea, in 2023 it largely lost its relevance as an investment topic due to geopolitical changes and the different economic trajectories of members. Except over India the past five years, the BRICS has not outperformed its peers in emerging markets, according to Bloomberg Intelligence.

Sanctions imposed by the U.S. have left Russia uninvested, and some segments of China - especially tech companies - have also come under sanctions or faced a potential investment ban. China is also a mature economy, increasingly separate from other emerging markets and facing a structural slowdown. Brazil's economy has slowed markedly since the end of the global commodity boom about a decade ago, and South Africa's economy has been hit by intermittent power outages for years as public utilities fail to produce enough electricity to meet demand. India is still a growth story that investment banks have compared to China 10 to 15 years ago, though it is unclear whether it will be able to follow China's manufacturing-based model.

Share of BRICS countries in the capitalization of the global stock market

2022

Trade growth between BRICS members by 56% over 5 years to $422 billion

Between 2017 and 2022, trade between the five existing BRICS members grew by 56% to $422 billion.

Russia provides BRICS countries with Earth remote sensing data

In 2022 Russia , BRICS handed to the countries over the results space of surveys by domestic satellites remote sensing of the Earth "Canopus-V" of territories with a total area of ​ ​ over 85 thousand square kilometers. This was announced on December 21, 2022 by representatives of the holding. "Russian Space Systems" More. here

Algeria has submitted a formal application to join the BRICS

In November 2022, Algeria submitted an official application to join the BRICS.

A number of other countries, including those, want to join the economic bloc Argentina. Iran The Foreign Ministry China reported that several more countries are "knocking on the doors" of the BRICS:,,,. Indonesia Turkey Saudi Arabia Egypt

China initiates conversation on BRICS expansion at the expense of new countries

China, which seeks to raise its profile on the world stage and counter Western influence, initiated a conversation about expanding the group when it chaired the summit in 2022, raising concerns among other members of the group that their own influence could be weakened.

India blocks Azerbaijan's participation in upcoming BRICS summit

In August 2022, India blocked Azerbaijan's participation in the BRICS summit. This year, the BRICS leaders summit was held online.

Algeria aims to join BRICS

On July 31, 2022, Algerian President Abdelmadjid Tebboune announced that the republic was interested in joining the BRICS.

"Algeria has almost all the conditions to join the BRICS and is strongly interested in joining this alliance."

2019

Russia intends to create its own cryptocurrency with the BRICS countries

On November 15, 2019, it became known that Russia and the member countries of the BRICS group could develop a single payment system based on a special cryptocurrency. This was announced by the head of the Russian Direct Investment Fund (RDIF) Kirill Dmitriyev.

The development of national segments of payment systems and their sustainable integration are an important factor in economic partnership between the BRICS countries in the face of increasing non-market risks of the global payment infrastructure. RDIF, as chairman of the BRICS Business Council Financial Services Working Group, participated in the discussion of the possibility of using a single cryptocurrency to make settlements between member countries. Such settlements shall be carried out through the BRICS payment system, said Kirill Dmitriyev at the BRICS summit

The BRICS group includes Brazil, Russia, India, China (PRC) and South Africa.

The creation of a single payment system is a consequence of two reasons. The BRICS countries want to get a convenient tool for quick settlements with each other and reduce their dependence on the currencies of countries outside the group.

We are talking, first of all, about the dollar, the national currency of the United States.

BRICS countries are reducing the share of settlements in dollars. In Russia, over five years, the share of the dollar in foreign trade settlements decreased from 92% to 50%, and the ruble - increased from 3% to 14%, said Kirill Dmitriyev

According to him, the launch of a single payment system within the BRICS group can lead to stimulating settlements in the national currencies of countries and ensure the stability of these settlements, as well as investments between the BRICS member countries, which form over 20% of the world inflow of foreign direct investment.

There is a growing number of disputes in investment arbitration courts around the world, and the establishment of a permanent arbitration institute at the international level with the participation of all BRICS countries will ensure its actual independence in conditions when state courts in the world are increasingly losing independence and becoming hostages of political circumstances. noted Dmitriyev

In addition to the unified payment system and domestic cryptocurrency, a special alliance for the development of artificial intelligence (AI) can be created within the BRICS. The head of the RDIF noted that the fund received a positive response from the BRICS member countries to the idea of ​ ​ creating such an alliance.

Before starting to use the unified cryptocurrency of the BRICS member countries, Russia must form a legislative framework governing the use of virtual money on its territory. As of November 15, 2019, the code of Russian laws did not include a single clause defining the rules for interaction with the crypt^[2].

Russia has created a digital platform for the exchange of data between scientists in the BRICS

September 21, 2019 became the creation of a digital platform in Russia, which other BRICS countries (Brazil, India, China, South Africa) will use to select new research projects and create transnational teams of scientists. The decision will provide an open exchange of scientific knowledge and data on teams of scientists, First Deputy Minister of Education and Science of Russia, Academician of the Russian Academy of Education and Science Trubnikov told TASS.

Since we have created several digital platforms for interaction, Russia has taken the initiative that when we announce a new wave of the competition, we will primarily support those projects that play an active role in this digital platform. That is, they post there information about themselves, about their laboratories, scientists, projects, - explained Trubnikov.

According to him, on the basis of the Russian digital platform, it will be possible to create "virtual distributed research teams" to solve various problems. The deputy minister also stressed that the use of digital infrastructure and open data is a new trend in the scientific community of the BRICS countries.

In 2019, BRICS participants supported about 30 multilateral scientific projects, and the total number of transnational research applications is about 300. 

Grigory Trubnikov says the BRICS countries plan to focus the efforts of their scientists on developing innovative projects. At the same time, this will not prevent the BRICS from continuing to develop fundamental and search research.

We are constantly approaching the topic of the transfer of technologies and innovations, but now for the first time there has been an emphasis on the need to do this extremely seriously, - said the academician.

In September 2019, Russian Finance Minister Anton Siluanov said that by 2030 the BRICS countries will occupy more than half of the world economy.^[3]

2018

BRICS countries ahead of G7 in share of world GDP on PPP

Taking a share of the world GDP on the PPP of the G20 countries from the IMF website, the following picture is obtained: if in the early 1990s the G7 countries gave about half of the world GDP, then in 2018 - only 30%, and the BRICS is already ahead of them in this.

However, all this is primarily due to China and India. China can already compete not only with other countries, but also with the associations of countries.

Agreement on the creation of a joint cyber police

The heads of the BRICS countries signed in August 2018 during the Johannesburg final declaration on cooperation in various fields held at the summit. Among other things, the document includes a clause on the creation of a joint cyber police.

According to a member of the Scientific Council under the Security Council of the Russian Federation Andrei Manoylo, the signed document pays special attention to the cooperation of the BRICS countries in the field of ensuring collective information security, including in the field of the use of information and communication technologies (ICT). The creation of a joint cyber police is designed to help organize a response to current cyber threats such as information terrorism, extremism, as well as information warfare operations and large-scale hacker attacks.

"Since everyone has real problems in terms of ensuring information security and protection from information war operations, even those China seeking to isolate themselves from these threats with their" Golden Shields "and the relatively recently adopted new law cyber security on 2016, copying the" Spring package. " With all the high degree of inflation of cybermusculation, in China, and there Russia India Brazil REPUBLIC OF SOUTH AFRICA are still problems associated with ensuring security and protecting state sovereignty, which, in principle, cannot be solved at the national level, "the specialist noted.

It is assumed that the joint cyber police will work on the principle of Interpol and have a supranational character, but the activities of the new law enforcement agency will be limited to the countries participating in the BRICS.

2017

Creation of the BRICS Plus program to attract new countries to cooperation

BRICS Plus was created in 2017. Representatives of non-BRICS countries were invited to the association for discussions. Russia and China supported the process of expanding BRICS plus membership and cooperation, including expanding the composition of BRICS members.

The concept of safe functioning and development of the Internet

Russia appealed in the summer of 2017 with a proposal to the BRICS countries (Brazil, Russia, India, China and South Africa) to discuss the concept of safe functioning and development of the Internet. This was announced by the head of the Ministry of Telecom and Mass Communications Nikolai Nikiforov.

The unified rules for managing digital space, submitted to the UN by the Ministry of Telecom and Mass Communications of the Russian Federation, proposed to consider the countries of BRICS Russia. The initiative was voiced by the head of the department Nikolai Nikiforov at a meeting of the Ministers of Communications and Telecommunications in Hangzhou (China). He said: "Today at the meeting, among other things, we proposed to consider the concept of the UN Convention on Safe Internet. We hope that the BRICS countries will somehow express their position to the concept of the convention^[4].

The head of the Ministry of Telecom and Mass Communications noted that the Internet and information technologies today should be considered as a kind of infrastructure basis for the digital economy. "More and more industries and households are switching to certain digitalized processes, so it is important for us to ensure the stable development of the Internet, it is important for us to make it function reliably so that no one can have any influence," Nikiforov explained.

He believes that now it is necessary to determine the international and national levels of regulation of the digitalization of society and fix in the concept. "National legislation in different countries differs, this is normal, but it is important to understand that national legislation in the field of regulating certain aspects of the use of digital technologies and the functioning of interfaces may also differ. Something can be allowed in one country and banned in another. We need to treat this with respect, "he stressed.

Nikiforov, expressing concern about the existing monopoly on information platforms in the world, noted: "We believe that the digital economy is impossible without a single trust in the information space, and this cannot be done without the fact that we are on the present norms of international law, not some invented agreements, but directly on the basis of international law, directly in the UN should approve these approaches. There should be some understandable and transparent international rules within the framework of which it is determined who has the right to do, how we ensure security on the Internet, how we ensure the security of the personal data of our citizens, how we manage the critical infrastructure so that no one can bring any interference into work. And today there is not a single international document that somehow determined this. "

Industrial Partnerships

In July 2017, the BRICS Industry Ministers (Brazil, Russia, China, India, South Africa) signed a joint action plan on Saturday to deepen cooperation, CGTN reported. During the consultations, the ministers discussed cooperation issues during the current period of active development of new technologies, when industry simultaneously receives many opportunities, but also faces certain challenges.

2016: $100 billion Mutual Support Fund set up

BRICS countries have agreed to combine $100 billion in foreign currency, which they can lend to each other in emergency situations. This liquidity mechanism began to operate in 2016.

2015: Foundation of the New Development Bank

The BRICS countries founded the NDB (New Development Bank), an organisation inspired by the World Bank, which has approved more than US $30 billion in loans for projects such as water and transport infrastructure since it began in 2015 by May 2023. (South Africa in 2020 took out a loan of $1 billion to combat the COVID-19 pandemic).

2011

Brazil and South Africa join BRICS

Brazil and later South Africa joined this group in February 2011, completing the formation of the original BRICS group.

Goldman Sachs predicts BRICS dominance by 2050

In 2011, Goldman Sachs argued that the economic potential of Brazil, Russia, India and China is such that they could become the four dominant economic systems by 2050. The thesis was proposed by Jim O'Neill, a global economist at Goldman Sachs. These countries occupy more than 25% of the world's land, 40% of the population and have a combined gross domestic product (GDP) of $15.435 trillion. In almost every comparison, they will be the largest global object. These four countries are among the largest and fastest growing emerging markets.

However, Goldman Sachs did not argue that the four countries would create a political union (such as the European Union or any official trade association like ASEAN). Nevertheless, these countries have taken steps to increase their political cooperation - mainly for the sake of influencing the US position in major trade agreements or, through the implicit threat of political cooperation, as a way to extract political benefits from the US - such as proposed nuclear cooperation with India.

The BRIC countries account for 26% of the Earth, 42% of the world's population (2.83 billion people) and 14.6% of world GDP . Brazil, Russia, India and China produce about 40% of wheat (over 260 million tons), 50% of pork (over 50 million tons), more than 30% of poultry meat (over 30 million tons), 30% of beef (about 20 million tons) of the global figure. In the BRIC countries, 32% (0.5 billion hectares) of global arable land is concentrated. Brazil, Russia, India and China have significant integration potential, the implementation of which will more effectively influence global processes.

The Economist publishes annual tables of socio-economic national statistics in its Pocket World in Figures. Forecasting the global ranking of BRIC countries and economic systems according to different categories creates a stumbling block for understanding the common in the economics of BRIC. Economic arguments make it possible to classify Mexico as a BRIC, for example, while the inclusion of South Africa in this group is unreasonable. Goldman Sachs, published in December 2005, explained why Mexico was not included in the original BRIC. According to the work, among the countries taken into account, only Mexico and perhaps Korea has the potential to compete with the BRIC, but these countries have economies that the founders of the BRIC decided to exclude initially because they were seen as more developed; Mexico is becoming the sixth largest economy, taking a stand before Russia.

2010: Invitation of South Africa to join BRICS

In late 2010, South Africa was invited to join the group, expanding membership to another continent.

2009: The first summit of the heads of countries of the BRIC members in Yekaterinburg

In 2008, a summit of foreign ministers of the BRIC countries was held in Yekaterinburg. In 2009, a summit of the heads of the BRIC member countries was also held there.

2006: Russia organizes the first meeting of BRIC foreign ministers on the sidelines of the UN General Assembly

The first meeting of BRIC foreign ministers was organized by Russia on the sidelines of the UN General Assembly in 2006.

2005: First meeting of Russia, India and China in St. Petersburg

After the creation of the term BRIC (economies of Brazil, Russia, India and China) in the early 2000s, in 2005 the first meeting of the RIC group (Russia, India and China) took place in St. Petersburg.

Notes