The Evolution of BRICS: Growth, Achievements, and 2024 Challenges
BRICS: History, Purpose, Achievements, and Challenges
NEW DELHI, Sept 12 (Reuters) - Leaders of the BRICS group of nations will meet on Saturday in the Indian capital of New Delhi for their annual summit, amid mounting geopolitical tension, disruptions in energy markets, shipping, and global trade.
Here is a look at the bloc's history, and the challenges it faces today.
What is BRICS?
The acronym BRIC was coined by Goldman Sachs Chief Economist Jim O'Neill in 2001, in a research paper highlighting the growth potential of Brazil, Russia, India, and China, but it was not until 2009 that the countries came together as a bloc.
South Africa joined them in 2011, creating BRICS as it is known today.
The grouping expanded in 2024, when Egypt, Ethiopia, Iran and UAE became members, and in 2025, when Indonesia joined.
Saudi Arabia has also been invited to be part of the bloc but has not formally accepted the invitation.
Why Was BRICS Formed?
BRICS was set up to challenge a world order dominated by the United States and its Western allies.
Together, its members account for more than 40% of the world's population and almost a quarter of the global economy.
The grouping today focuses on political and security cooperation, economic and financial cooperation, and people-to-people exchanges, according to the BRICS website set up by India during its presidency this year.
Members meet annually, with the chairmanship rotating among them.
Key Achievements of BRICS
The New Development Bank
BRICS' biggest achievement is the multilateral New Development Bank, established in 2015 to finance infrastructure and sustainable development projects in emerging markets.
The bank has approved 139 projects worth nearly $43 billion, according to its website, but suspended new transactions in Russia in the face of sanctions.
Financial Innovations and Payment Systems
In addition, a BRICS Pay System is being set up, with the aim of linking members' fast payment systems to enable cross-border settlements without relying on dollar-based banks.
Members are also exploring linking their central bank digital currencies and are increasingly settling trade in national currencies as they pursue alternatives to dollar-based payment systems.
Challenges Facing BRICS in 2024
Internal Differences and Divergent Interests
From disagreements on core purpose to divergent interests, BRICS is grappling with many challenges today.
While Russia and China consider the bloc a counterweight to the West, India and Brazil see it as more focused on economics and reform.
The 2024 expansion has also complicated its consensus-oriented approach, with divergent foreign policy interests hindering agreement.
Diplomatic Hurdles and Consensus Building
This hurdle will come into sharp focus this week, as India seeks to strike a joint statement by bridging differences between Tehran and Washington-ally Abu Dhabi, which are on opposing sides of the U.S.-Iran war.
Their differences prevented a joint statement during the BRICS foreign ministers' meeting in New Delhi in May.
How Does the West View BRICS?
Western Caution and Geopolitical Concerns
Most Western nations are cautious about the grouping, recognising it as a platform that can slowly shift the balance of geopolitical power, but the bloc has repeatedly clashed with U.S. President Donald Trump, who has termed it "anti-American".
He has also threatened to slap tariffs on its members if they try to set up a new BRICS currency, or back any currency to replace the U.S. dollar.
Debate Over a Common BRICS Currency
Brazil floated the idea of a common BRICS currency during its chairmanship last year but the idea was later scrapped.