In 2001, Goldman Sachs predicted that a group of developing and newly industrialized countries could come to dominate western economies. Since then, those countries have exploded in growth and changed the landscape of world politics. So, what are the BRICS countries? BRICS is an acronym for Brazil, Russia, India, China and South Africa. Those five countries comprise nearly half of the world’s population, a quarter of the world’s landmass and a fifth of the world’s GDP. Their combined GDP is nearly that of the United States and growing. A major aspect of their alliance is the formation of the New Development Bank, to compete with the IMF and the World Bank. This gives them greater leeway to loan each other and other countries, money for development, unrestricted by Western influence. Some say the BRICS will overtake G7 by 2027. Others suggest that they might achieve that goal by 2050.
This will largely be fueled by the rapid expansion of the middle class and higher GDP per capita. At the forefront is China. In 2013, they passed the $4 trillion dollar mark in trade and passed the United States to become the largest trade country in the world. China’s GDP could rival the US by 2020, as it is already the second largest economy. India’s expansion has led to the prosperity of the middle class in recent years. Brazil, which is Oil and Iron rich grew to become the sixth largest economy in the world, briefly overtaking the UK. However, Russia has seen economic difficulty and a declining population. The final country, South Africa was added to the group in 2010, despite having a significantly lower population and economy that any of the other.
Without China, the BRICS would have little political clout and this gives China veto power over BRICS issues. In fact, China’s economy alone is larger than the rest of the BRICS combined. Addtionally, all five countries have mixed records on human rights and ongoing conflicts with their neighbouring countries. The BRICS have seen significant growth in recent years. Even if they don’t become the world’s dominant economies, they will still have far surpassed any expectations from the 20th century.
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