BRICS Bloc Gains Global Economic Clout

Emerging nations challenge Western dominance amid growing geopolitical tensions.

The BRICS economic bloc, initially dismissed as a marketing concept, now accounts for 32% of global GDP, prompting the West to reconsider its stance as the divide between the Global North and South widens.

Rising Influence of BRICS

Once seen as a mere concept, the BRICS nations—Brazil, Russia, India, China, and South Africa—have solidified their position, producing nearly a third of the world’s economic output. Thomas Piketty suggests Western nations need to engage with BRICS to effectively regulate multinational corporations and manage the global economy.

According to the World Bank, the BRICS nations represent over 40% of the world’s population and account for more than 25% of global trade as of 2023 (World Bank).

Global South Concerns

The conflict in Gaza exacerbates the divide between the Global North and South. For many nations, the civilian casualties from Israeli actions in Gaza, along with the legacy of the Iraq War, highlight what they perceive as Western double standards.

Formed in 2009, the BRICS alliance has expanded, notably at the Johannesburg summit, where six new members—Saudi Arabia, Argentina, Egypt, United Arab Emirates, Ethiopia, and Iran—were invited to join beginning January 1, 2024.

Economic Disparities

Significant income disparities persist worldwide. Data from the World Inequality Lab indicates that average national income per capita is approximately €3,000 per month in G7 countries, less than €1,000 in BRICS nations, and below €200 in sub-Saharan Africa.

In terms of purchasing power parity, the combined GDP of the BRICS countries is projected to surpass €40,000 billion by 2022, exceeding the G7’s €30,000 billion within a global scale of €120,000 billion.

Effectively, the BRICS countries represent the world’s middle class, having successfully improved their economic status through diligence and ambition.

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BRICS Development Bank

The BRICS nations established their New Development Bank in 2014. Based in Shanghai, the bank aims to rival the Bretton Woods institutions (IMF and World Bank), provided these institutions reform their voting systems to better represent the Global South.

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