Introduction
The BRICS as an influential intergovernmental
organisation marked a significant milestone in the recent summit of 2025, held
in Rio de Janeiro, Brazil, from 6–7 July. Comprising Brazil, Russia, India,
China, and South Africa, with recent additions of Egypt, Ethiopia, Indonesia,
Iran, and the United Arab Emirates (UAE), BRICS represents a coalition of
emerging economies seeking to reshape global governance and amplify the voice
of the Global South. The 2025 summit,
hosted by Brazil, underscored the bloc’s growing geopolitical and economic
clout, addressing pressing global issues such as terrorism, global trade,
climate change, and the reform of international institutions like the United
Nations (UN), the International Monetary Fund (IMF), and the World Bank. The
summit’s declaration, shaped significantly by the forceful deliberations of
Indian Prime Minister Narendra Modi, condemned terrorism unequivocally, called
for reforms in global financial and governance structures, and promoted the use
of local currencies in trade—a move that sparked frustration from the US
President. This essay provides a detailed examination of the BRICS summit, its
historical context, membership expansion, procedural framework, key highlights
of the declaration, and its implications for global order, concluding with an
assessment of whether BRICS is a "friendly bloc" in the context of
international relations.
Short History of BRICS Formation
The term BRIC
(Brazil, Russia, India, and China) was first coined in 2001 by Jim
O'Neill, a British economist then
working at Goldman Sachs. He used this acronym to highlight these four
emerging economies, forecasting their substantial influence on global GDP
growth. The term was initially an economic projection, highlighting the
potential of these nations to reshape the global economy due to their large
populations, rapid economic growth, and increasing geopolitical influence. In
2006, the leaders of these four nations formalised the coalition as an informal
diplomatic club, holding their first summit in Yekaterinburg, Russia, in 2009.
The primary objective was to coordinate economic and diplomatic policies to
counterbalance Western dominance in global institutions like the IMF and World
Bank, which were perceived as unresponsive to the needs of developing nations.
In 2010, South Africa joined the group,
transforming BRIC into BRICS, following an invitation from China and acceptance
by the original members. The inclusion of South Africa, formalised at the 2011
summit in Sanya, China, added an African perspective, reinforcing the bloc’s
ambition to represent the Global South. Over the years, BRICS has evolved from
an economic concept into a geopolitical platform, advocating for a multipolar
world order, increased representation in global governance, and economic cooperation
among its members. The establishment
of the New Development Bank (NDB) in 2014 and the Contingent Reserve
Arrangement (CRA) in 2015 marked significant steps towards creating
alternatives to Western-dominated financial institutions.
Extended Members
The BRICS bloc expanded significantly in 2024,
welcoming Egypt, Ethiopia, Iran, and the UAE as full members at the Kazan
summit, followed by Indonesia’s accession in January 2025, making it the first
Southeast Asian member. This expansion increased the bloc’s membership to ten
countries, enhancing its global representation and influence. The inclusion of
these nations was strategic: Egypt and the UAE bring significant economic and
geopolitical weight in the Middle East and North Africa, Iran strengthens the bloc’s
energy profile, Ethiopia adds an East African dimension, and Indonesia
contributes demographic and economic heft as a major Southeast Asian economy.
Saudi Arabia was invited to join but has not yet formally accepted,
while over 30 other nations, including Cuba, Malaysia, Thailand, and Türkiye,
have expressed interest or been designated as “partner countries” with
potential for future membership. The expansion reflects BRICS’ ambition to
represent a broader swathe of the Global South, with the bloc now accounting
for approximately 37% of global GDP and over 40% of the world’s population.
However, this growth introduces challenges, as diverse political systems,
economic models, and national interests could complicate consensus-based
decision-making.
The Present Host
In Rio de Janeiro, Brazil, holding the rotating
BRICS presidency in 2025, and hosted the 17th annual summit. Under the
leadership of President Luiz Inácio Lula da Silva, Brazil aimed to steer the
bloc towards a less confrontational stance compared to Russia’s presidency in
2024, focusing on global governance reforms, climate action, and cooperation
among the Global South. The choice of Rio de Janeiro, a vibrant global city,
underscored Brazil’s commitment to showcasing the bloc’s relevance. Notably, the summit saw the absence of
two key leaders—China’s President Xi Jinping. Sources indicate that China is
facing significant internal challenges in replacing the present leadership.
Russia’s President Vladimir Putin, however participated via video conference due
to an international arrest warrant related to Russia’s invasion of Ukraine.
Brazil’s presidency also aligned with its hosting of the UN Climate Change
Conference (COP30) in November 2025, reinforcing its focus on climate and sustainable
development.
Procedures
BRICS operates as an informal organisation without
a formal charter, secretariat, or common funds, relying on consensus-based
decision-making. The bloc’s annual summits rotate among member states, with the
host country setting priorities and chairing proceedings. Each summit typically
involves ministerial meetings, Sherpa discussions, and working groups to
prepare agendas, culminating in a leaders’ summit where a joint declaration is
issued. The 2025 summit followed this structure, with preparatory meetings held
at the Itamaraty Palace in Rio de Janeiro in April 2025, addressing finance,
artificial intelligence, and green transition.
The declaration is drafted through extensive
consultations, with input from all members to ensure consensus. The process is
collaborative but often contentious due to differing national priorities. For
instance, India’s emphasis on terrorism, Brazil’s focus on climate action, and
China’s push for financial reforms required careful negotiation to produce a
unified statement. The summit also includes bilateral meetings, such as those
between Indian Prime Minister Narendra Modi and other leaders, to address
specific regional and global issues.
Highlights of the Declaration
The 2025 BRICS summit, released declarations on 6
July, is a comprehensive document addressing global challenges, from terrorism
to economic cooperation. Key highlights include:
1. Condemnation of Terrorism: The declaration strongly
condemned terrorism in all its forms, with a particular focus on the 22 April
2025 terror attack in Pahalgam, India-administered Kashmir, which claimed 26
civilian lives. It called for unified global action against terrorism,
rejecting selective or politically motivated responses. The declaration
specifically addressed cross-border terrorism, terrorist financing, and the
need for a Comprehensive Convention on International Terrorism, an Indian
initiative at the UN.
2. Global Governance Reform: The declaration reiterated
BRICS’ commitment to reforming global institutions, particularly the UN
Security Council, IMF, and World Bank, to reflect a multipolar world order. It
called for increased representation of developing nations, with specific support
for African countries and emerging economies.
3. Local Currency Trade and
Financial Innovation: The
declaration endorsed the use of local currencies for intra-BRICS trade,
building on initiatives like BRICS Pay and BRICS Bridge, successors to earlier
payment systems aimed at reducing reliance on the US dollar. It also supported
the NDB’s role in financing infrastructure and sustainable development projects
in local currencies.
4. Climate Action and Sustainable
Development: With
Brazil’s presidency aligning with COP30, the declaration emphasised commitment
to the Paris Agreement and the UN Framework Convention on Climate Change
(UNFCCC). It called for developed nations to meet their climate finance
obligations and highlighted the NDB’s focus on green projects under President
Dilma Rousseff.
5. Middle East and Global Conflicts: The declaration expressed “grave concern” over
the humanitarian crisis in Gaza, condemning Israeli military actions and
supporting a Palestinian state within the 1967 borders. It also condemned
attacks on Iran and called for a ceasefire in Gaza and the release of hostages.
Ukraine was mentioned indirectly, reflecting the bloc’s divisions on the issue.
Condemnation of Terrorist-Sponsored States and Their Mentors
The declaration’s strong stance on terrorism was a
significant achievement, particularly for India. Prime Minister Narendra Modi’s
forceful advocacy ensured that the document explicitly condemned states that
sponsor or abet terrorism, directly or indirectly. The reference to the Pahalgam attack and the call
for action against those “funding, promoting, and providing safe havens to terrorists”
was seen as a pointed critique of countries perceived to support terrorism,
notably Pakistan, though not named explicitly. The declaration’s emphasis on a
“principle-based” approach to counterterrorism, rather than one driven by
political convenience or selective approach, was a diplomatic victory for
India, reinforcing the need for global solidarity against terrorism without
selective application. This stance was interpreted as a “slap”
to states directly or indirectly supporting terrorism, eg, China, Turkey, and,
selectively, the USA, highlighting BRICS’ resolve to address this global
threat.
Weaknesses of the UN and Resolve to Strengthen It
The declaration underscored the perceived
weaknesses of the UN, particularly its Security Council, which BRICS views as
outdated and unrepresentative of the 21st-century geopolitical landscape. The
permanent membership structure, dominated by five nations (the US, UK, France,
Russia, and China), and the veto power they wield were highlighted as barriers to effective global governance. The declaration called for a
comprehensive reform to enhance the
UN’s “democracy, representativeness, and effectiveness,” advocating for the
inclusion of emerging economies like India, Brazil, and South Africa as
permanent members.
Ways to
Strengthen the UN:
1. Expanding
the Security Council: BRICS proposed increasing the number of permanent and non-permanent
seats, with a focus on African and Global South representation.
2. Amending
Voting Patterns and Veto Power: The declaration suggested revisiting the veto
mechanism to reduce its overuse, which often paralyses decision-making. While
Russia and China, as veto-wielding members, resist changes to their own status,
they support broader reforms to enhance the council’s inclusivity.
3. Strengthening
Multilateralism: The
declaration reaffirmed BRICS’ commitment to multilateralism, positioning the UN
as the central platform for global cooperation but urging reforms to make it
more responsive to contemporary challenges.
Resolve for Amending Voting
Patterns of the World Bank
The declaration addressed the need to reform the
voting patterns of the World Bank to prevent funding to states associated with
terrorism. BRICS argued that the current structure, dominated by Western
nations, does not adequately reflect the economic contributions of emerging
economies. The
bloc proposed increasing the voting shares of developing nations to ensure
fairer allocation of resources and to prevent funds from being misused by
states that support or fail to curb terrorism. This resolve aligns with BRICS’
broader push for a reformed international financial architecture that
prioritises the Global South’s interests and ensures accountability in funding
decisions.
Forceful Deliberation of Indian PM in Preparing Declarations
Indian Prime Minister Narendra Modi played a
pivotal role in shaping the 2025 declaration, particularly on the issue of
terrorism. His speech at the summit’s peace and
security session described terrorism as the “most serious threat to the world”
and condemned the Pahalgam attack as an “onslaught on humanity.” Modi’s
insistence on a unified, principle-based approach to counterterrorism, free
from political expediency, ensured that the declaration included strong
language against terrorist financing and cross-border terrorism. His diplomatic
efforts also secured support for India’s long-standing proposal for a
Comprehensive Convention on International Terrorism at the UN. Additionally,
Modi’s advocacy for a multipolar world order and reforms in global institutions
resonated with other BRICS members, reinforcing India’s leadership within the
bloc.
Future
Goals
The 2025 declaration outlined ambitious goals for
BRICS’ future:
1. Economic
Cooperation:
Strengthening intra-BRICS trade through local currency transactions and
expanding the NDB’s role in financing infrastructure and sustainable
development.
2. Global
Governance Reform:
Continuing to push for reforms in the UN, IMF, and World Bank to enhance the
representation of developing nations.
3. Climate
and Sustainability: Aligning with global climate goals, particularly through the NDB’s
focus on green financing and Brazil’s leadership at COP30.
4. Counterterrorism: Advocating for a global
framework to combat terrorism, including the adoption of the Comprehensive
Convention on International Terrorism.
5. Technological
Innovation:
Promoting cooperation in artificial intelligence, digital economy, and science
and technology to foster inclusive growth.
Use of Local Currency in Trade
and US President’s Frustration
The declaration’s endorsement of
local currency trade, facilitated by systems like BRICS Pay and BRICS Bridge,
aims to reduce reliance on the US dollar, a move that has raised concerns in
Washington. These initiatives build on earlier efforts to create alternatives
to the SWIFT system, driven by concerns over Western sanctions and dollar
dominance not palatable for the US. The
push for de-dollarization, while not immediate, signals BRICS’ intent to create
a more autonomous financial system. US President Donald Trump expressed
frustration, describing BRICS as “dead” and threatening 10% tariffs on
countries aligning with its “anti-American policies.” The declaration’s criticism
of rising tariffs, without naming Trump, was a veiled rebuke of US trade
policies, highlighting tensions between the US and the Brics.
Conclusion: Is BRICS a Friendly
Bloc?
BRICS, no more a friendly bloc that provides
the Global South a platform for amplifying their voices,
challenging Western dominance, and fostering South-South cooperation. Its focus
on reforming global institutions, promoting local currency trade, and
addressing issues like terrorism and climate change aligns with the aspirations
of developing nations. However, for Western powers, particularly the US, BRICS’
expansion and de-dollarization efforts are perceived as a challenge to the
established order, as evidenced by Trump’s tariff threats.
BRICS is not inherently anti-Western but seeks a
multipolar world where power is more equitably distributed. Its informal
structure and diverse membership allow flexibility but also pose challenges to
cohesion, as seen in divisions over issues like Ukraine. The 2025 summit demonstrated BRICS’s ability to balance competing
interests, with India’s leadership on terrorism and Brazil’s on climate action
showcasing its multifaceted agenda. While not a monolithic bloc, BRICS’ growing
influence—representing 37% of global GDP and over 40% of the world’s
population—makes it a significant player in global affairs.
In conclusion, BRICS is a “friendly bloc” for those
seeking a more inclusive global order but a potential adversary for those
invested in maintaining the status quo. Its future success will depend on navigating
internal divisions and translating its ambitious declarations into actionable
outcomes. As the bloc prepares for India’s presidency in 2026, its role as a
counterweight to Western dominance and a champion of the Global South will
likely intensify, reshaping the contours of international relations in the 21st
century.
Disclamer; the content presented in this blog is based on
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