The Latest on BRICS: Expansion, Geopolitical Influence, and Economic Impact

By Siti

May 25, 2025

In International Relations

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BRICS, the acronym for Brazil, Russia, India, China, and South Africa, has been a significant force in the global economic and political landscape for over a decade. Representing a substantial portion of the world's population and economic output, the bloc aims to promote greater cooperation and challenge the dominance of Western-led institutions. This article delves into the latest developments surrounding BRICS, including its recent expansion, growing geopolitical influence, economic initiatives, and the challenges it faces. Understanding these aspects is crucial to grasping the evolving dynamics of the 21st-century world order.

BRICS Expansion: Welcoming New Member States and Re-shaping Global Power

In August 2023, during the 15th BRICS summit held in Johannesburg, South Africa, a historic decision was made: to expand the bloc. Six new countries – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates – were invited to join BRICS, with their membership taking effect on January 1, 2024. However, Argentina later declined the invitation. This expansion is a significant step for BRICS, increasing its global reach and influence. It also signals a desire among many nations to diversify their partnerships and reduce reliance on traditional power centers.

The inclusion of these new members is expected to strengthen the BRICS economic power, particularly with the addition of major oil producers like Saudi Arabia, Iran, and the UAE. This could lead to greater influence in global energy markets and potentially shift the balance of power in international trade and finance. Furthermore, the expansion reflects BRICS' ambition to represent a broader spectrum of developing countries and amplify their voices on the global stage. The criteria for selecting new members focused on factors like economic size, political influence, and regional importance, demonstrating a strategic approach to consolidating the bloc's position.

Geopolitical Implications of BRICS: Challenging the Existing World Order

The rise of BRICS and its expansion have profound geopolitical implications. The bloc increasingly presents itself as an alternative to the Western-dominated international system. It advocates for a more multipolar world order, where power is distributed more evenly among different countries and regions. This stance resonates with many developing nations that feel marginalized by the current global governance structures.

BRICS countries have been vocal in their criticism of the existing international financial institutions, such as the International Monetary Fund (IMF) and the World Bank, arguing that they are biased towards Western interests and do not adequately address the needs of developing countries. The establishment of the New Development Bank (NDB), also known as the BRICS Bank, is a concrete example of their efforts to create alternative institutions that cater to the specific challenges and priorities of emerging economies.

The geopolitical influence of BRICS is further amplified by its members' strategic partnerships and diplomatic initiatives. For instance, China's Belt and Road Initiative (BRI) has significantly expanded its economic and political influence across Asia, Africa, and Latin America, aligning with the BRICS' vision of greater connectivity and development cooperation. Similarly, Russia's role in global energy markets and its diplomatic engagements in various regions contribute to the bloc's overall geopolitical weight.

BRICS Economic Initiatives: The New Development Bank and Beyond

One of the most tangible achievements of BRICS cooperation is the New Development Bank (NDB). Established in 2015, the NDB aims to finance infrastructure and sustainable development projects in BRICS countries and other emerging economies. It serves as an alternative source of funding, complementing the existing multilateral development banks.

The NDB has approved numerous projects across various sectors, including transportation, clean energy, water and sanitation, and urban development. These projects are designed to address critical infrastructure gaps and promote sustainable economic growth in developing countries. The bank's emphasis on local currency financing and its streamlined approval processes are seen as advantages compared to traditional development banks.

Beyond the NDB, BRICS countries are also exploring other avenues for economic cooperation. These include initiatives to promote trade and investment among member states, enhance financial stability, and foster technological innovation. For example, the BRICS Contingent Reserve Arrangement (CRA) provides a framework for mutual financial assistance in times of economic distress, offering a safety net for member countries facing balance of payments problems. Discussions are also underway to explore the possibility of creating a BRICS currency, potentially reducing reliance on the US dollar in international trade and finance.

Intra-BRICS Trade and Investment: Opportunities and Challenges

Strengthening trade and investment ties among BRICS countries is a key priority for the bloc. The combined economic size of BRICS represents a significant market for goods and services, offering substantial opportunities for intra-BRICS trade. However, realizing this potential requires addressing several challenges, including trade barriers, logistical bottlenecks, and regulatory differences.

BRICS countries have been working to reduce trade barriers and promote greater harmonization of standards and regulations. They have also established various mechanisms to facilitate trade and investment, such as trade fairs, business forums, and investment promotion agencies. However, progress has been uneven, and significant challenges remain.

One of the main challenges is the diverse economic structures and development levels of BRICS countries. This can lead to trade imbalances and competition in certain sectors. Additionally, infrastructure gaps and logistical constraints can hinder the flow of goods and services across borders. Addressing these challenges requires a concerted effort to improve connectivity, streamline customs procedures, and promote greater economic integration.

BRICS and Global Governance Reform: Advocating for a More Inclusive System

BRICS has consistently advocated for reforms to the global governance architecture to make it more inclusive and representative. The bloc argues that the existing institutions, such as the United Nations, the IMF, and the World Bank, do not adequately reflect the changing global landscape and the rising influence of emerging economies.

BRICS countries have called for greater representation and voting power for developing countries in these institutions. They have also advocated for reforms to the decision-making processes to make them more transparent and accountable. These efforts are aimed at ensuring that the interests and perspectives of developing countries are taken into account in global policy-making.

The push for global governance reform is driven by the belief that a more inclusive system is essential for addressing the complex challenges facing the world, such as climate change, poverty, and inequality. BRICS argues that a more representative system would lead to more effective and equitable solutions to these challenges.

Internal Challenges and Divergences Within BRICS: Maintaining Cohesion

Despite its growing influence, BRICS faces internal challenges and divergences that can hinder its effectiveness. The bloc comprises countries with diverse political systems, economic structures, and foreign policy priorities. These differences can lead to disagreements and tensions, making it difficult to forge a unified stance on certain issues.

One of the main challenges is the varying levels of economic development among BRICS countries. China's economy is significantly larger than the economies of the other member states, which can lead to imbalances and concerns about Chinese dominance within the bloc. Additionally, geopolitical rivalries and historical grievances can create tensions among member countries.

Maintaining cohesion within BRICS requires careful management of these internal challenges. The bloc has developed various mechanisms for dialogue and consultation to address disagreements and build consensus. These include regular summits, ministerial meetings, and working groups. However, the effectiveness of these mechanisms depends on the willingness of member countries to compromise and prioritize the collective interests of the bloc.

Future Prospects for BRICS: Potential Growth and Evolving Role

Looking ahead, the future prospects for BRICS appear promising, despite the challenges it faces. The bloc is expected to continue to grow in economic and political influence, driven by the rapid economic growth of its member countries and its expanding membership. BRICS is likely to play an increasingly important role in shaping the global agenda and promoting a more multipolar world order.

The expansion of BRICS is expected to further strengthen its economic power and geopolitical reach. The inclusion of major oil producers like Saudi Arabia and the UAE will enhance the bloc's influence in global energy markets, while the addition of countries like Egypt and Ethiopia will expand its presence in Africa.

However, realizing the full potential of BRICS will require addressing the internal challenges and divergences that can hinder its effectiveness. The bloc needs to strengthen its mechanisms for dialogue and consultation, promote greater economic integration, and develop a common vision for the future. If BRICS can successfully navigate these challenges, it has the potential to become a truly transformative force in the 21st century.

The Impact of Geopolitical Conflicts on BRICS: Navigating a Complex Landscape

Geopolitical conflicts, such as the war in Ukraine, have a significant impact on BRICS. The differing stances of member states on such conflicts can create tensions within the bloc and complicate its efforts to present a united front on global issues. For example, while some BRICS members have condemned the invasion of Ukraine, others have maintained a neutral or supportive position towards Russia.

These differences in perspective can make it difficult for BRICS to formulate a common response to geopolitical crises. They can also affect the bloc's relationships with other countries and regions. Navigating this complex landscape requires careful diplomacy and a willingness to find common ground. BRICS members need to prioritize dialogue and cooperation to manage disagreements and maintain cohesion in the face of geopolitical challenges.

BRICS and Sustainable Development Goals: Contributing to Global Progress

BRICS countries recognize the importance of achieving the Sustainable Development Goals (SDGs) and are committed to contributing to global progress in this area. The SDGs, adopted by the United Nations in 2015, provide a framework for addressing the world's most pressing challenges, such as poverty, hunger, inequality, and climate change.

BRICS countries are actively implementing policies and programs to advance the SDGs within their own borders and are also providing assistance to other developing countries. The New Development Bank (NDB) is playing a key role in financing sustainable development projects in BRICS countries and other emerging economies.

However, achieving the SDGs requires a concerted effort from all countries and stakeholders. BRICS needs to strengthen its cooperation on sustainable development and work with other countries to mobilize the resources and expertise needed to achieve the SDGs by 2030.

Technological Cooperation Within BRICS: Fostering Innovation and Digital Transformation

Technological cooperation is an increasingly important area of focus for BRICS. The bloc recognizes that technological innovation is essential for driving economic growth, improving productivity, and addressing social and environmental challenges. BRICS countries are working together to promote cooperation in areas such as artificial intelligence, digital technologies, and renewable energy.

They are also establishing joint research and development projects, sharing best practices, and facilitating the transfer of technology. The aim is to foster innovation, promote digital transformation, and create new opportunities for economic growth and development. However, realizing the full potential of technological cooperation requires addressing challenges such as intellectual property rights, data security, and regulatory differences.

BRICS' Future: A Force for Global Change

In conclusion, BRICS continues to evolve as a significant force in the global landscape. Its expansion signifies a growing desire for a more inclusive and multipolar world order. While internal challenges and geopolitical complexities remain, the bloc's commitment to economic cooperation, sustainable development, and global governance reform positions it as a key player in shaping the future. As BRICS navigates these challenges and continues to adapt, its impact on the world stage is likely to become even more pronounced. The next few years will be crucial in determining whether BRICS can truly fulfill its potential as a catalyst for positive global change.