BRIC
BRIC is an acronym representing Brazil, Russia, India, and China, identified for their significant roles as emerging economies globally. These countries are characterized by large populations and considerable production capacities, collectively accounting for over 40% of the world's population and approximately 36% of global GDP. The grouping highlights the potential for Brazil and Russia to become leading suppliers of raw materials, while India and China are anticipated to dominate in manufacturing and services. Initially coined by Jim O'Neill of Goldman Sachs in 2001, the acronym gained traction as these nations showed promise for substantial economic growth.
While not a formal political alliance or trading bloc, the BRIC nations engage in annual summits to discuss mutual goals and collaborate on various economic and political governance issues. In 2011, South Africa was added to the grouping, leading to the formation of BRICS, which includes broader African representation. Key initiatives from these summits include the establishment of the New Development Bank, aimed at financing development projects without reliance on traditional Western financial institutions. The BRIC nations continue to evolve, with recent summits focusing on enhancing cooperation in areas such as trade, agriculture, and security, demonstrating their collective ambition to increase their influence in global governance.
Subject Terms
BRIC
BRIC is an acronym for Brazil, Russia, India, and China that pertains to the economies of these nations. Inclusion in the group is based on population size and production. The BRIC nations are thought to be on a similar course of economic development. They also have the largest emerging economies in the world. It is believed that Brazil and Russia will one day become the world’s leading suppliers of raw materials, while India and China will become the world’s prevailing suppliers of manufactured goods and services. Furthermore, many companies view the BRIC nations as opportunities for foreign expansion because of their reduced labor and production costs.
The BRIC nations are not a political alliance, nor are they a trading association. However, they are thought to have the ability to develop into a dominant economic union. BRICS is a related acronym that includes South Africa among the developing economies. The member nations have gathered at annual summits to discuss their goals.
Origin
The acronym BRIC was coined by Jim O’Neill of Goldman Sachs in 2001. O’Neill was the chair of the investment banking firm’s asset-management division. The acronym first appeared in a 2001 Goldman Sachs paper, “The World Needs Better Economic BRICs.” The acronym also appeared in a 2003 Goldman Sachs report. The report posited that Brazil, Russia, India, and China would have wealthier economies than most other nations by 2050.
In 2011, South Africa was added to the list of BRIC nations. As a result, the acronym BRICS was formed. South Africa is believed to have similar economic potential as the other four nations. However, the main reason South Africa was added to the group was so the continent of Africa was represented. O’Neill disagreed, saying that South Africa should not be included in the group because its population and economy are not large enough.
Criteria for Inclusion in BRIC
Population size is one of the main criteria that determines the BRICS. Together, the four nations encompass much of the world’s people, accounting for more than 40 percent of the total population as of January 2023. China used to have the largest population in the world, but its population declined by about 2.08 million from 2022 to 2023. Experts believe the high cost of education and child care has caused many Chinese couples to put off having children. In 2023, China's population was about 1.41 billion. In 2023, India had a higher population of about 1.45 billion. Brazil and Russia have considerably smaller populations, about 211 million people and 145 million people, respectively.
Production is another important criterion for BRICS. The BRIC nations combined account for a large portion of the world’s production. The nations represent about 36 percent of the world’s gross domestic product (GDP). GDP is the total value of goods and services that a nation produces in a certain timeframe. Broadly, GDP measures the strength of a nation’s economy. The GDP of one year is typically compared to the GDP of other years. In general, the BRIC nations’ GDPs are increasing every year. For example, India’s GDP increased from about 3.4 billion in 2022 to 3.6 billion in 2023.
Summits
Several annual summits have been held among the BRICS nations. The leaders of the nations gathered at the summits, which were hosted by a different member nation each year. Additional nations have been invited to attend, expanding the number of BRICS members. The first summit took place in Yekaterinburg, Russia, in 2009. As part of a third summit in Sanya, China, in 2011, South Africa was invited.
During the fifth summit in Durban, South Africa, in 2013, two major pillars of BRICS were reinforced—collaboration with an emphasis on economic and political governance and cooperation among member nations. The nations agreed to work toward reforming global governance, including the World Bank and the International Monetary Fund, and reforming political institutions such as the United Nations. The World Bank is an international organization that provides assistance to developing nations. The International Monetary Fund (IMF) is an organization that fosters worldwide monetary and exchange stability and advances international trade. The United Nations is an international organization that seeks to improve human rights and minimize conflicts throughout the world. Cooperation among the BRICS nations involves a focus on finance, economy, trade, agriculture, international crime, science and technology, health, education, and similar matters.
At the sixth summit in Fortaleza, Brazil, in 2013, the BRICS agreed to establish the New Development Bank, which was used to invest in development projects and finance infrastructure. The bank had initial capital of $50 billion, as well as $100 billion in reserve currencies. The move enabled nations to obtain loans without the support of world powers such as the United States, which holds veto power with the IMF, and European nations, which are influential in the workings of the World Bank.
At the 2016 BRICS summit in Goa, India, all members declared their support for the fight against terrorism. Despite ongoing tensions between India and Pakistan, Pakistan’s ally, China, also pledged its support. India and Russia signed joint venture deals across many sectors, including air defense systems and warships, and also signed an agreement to combat online security threats. All members also agreed to move more quickly to cooperate economically and to enter a free trade pact with the other members.
In 2024, the summit took place in Kazan, Russia. It was hosted by President Vladimir Putin, who invited Egypt, Ethiopia, Iran, and the United Arab Emirates to become new members, expanding upon the original first four nations and South Africa.
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