Business
Explaining the BRICS Alliance
Discover the BRICS alliance, a bloc of major emerging economies challenging the global order. Learn about its members, goals, and recent expansion.
What is it?
BRICS is an acronym for a group of influential emerging economies, originally comprising Brazil, Russia, India, China, and South Africa. Formed to enhance cooperation and amplify the collective voice of developing nations, the bloc aims to reform global financial and political institutions. It operates on principles of mutual respect and sovereign equality, providing an alternative platform for economic and political dialogue outside of traditional Western-led forums. A key initiative is the New Development Bank (NDB), which funds infrastructure and sustainable development projects in member countries.
Why is it trending?
BRICS is currently trending due to its significant expansion and its perceived challenge to the US-dominated global order. In 2024, the group officially welcomed Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates as new members, substantially increasing its economic weight and geopolitical influence. This expansion is seen as a major step towards creating a multipolar world. Furthermore, ongoing discussions about increasing the use of local currencies in trade and the potential development of a common BRICS payment system are making headlines as a move toward "de-dollarization."
How does it affect people?
The rise of BRICS affects people globally by shifting economic and political dynamics. For individuals in member countries, it can lead to new trade opportunities, infrastructure development funded by the NDB, and greater diplomatic influence. For the rest of the world, it could alter global supply chains, investment flows, and the dominance of the US dollar, which might impact currency exchange rates and the cost of imported goods. The bloc's growing influence means its collective decisions on climate, trade, and security will increasingly shape international policy and everyday life.