BRICS 2024: A New Paradigm for Global Economic Power (Global South)

BRICS 2024 Critical platform for emerging economies to reshape the global economic order and assert their collective influence, setting the stage for deeper collaboration and more equitable global governance

10/25/20245 min read

BRICS summit 2024 BRICS nations BRICS countries BRICS meeting BRICS leadersBRICS expansion BRICS bank BRICS new development
BRICS summit 2024 BRICS nations BRICS countries BRICS meeting BRICS leadersBRICS expansion BRICS bank BRICS new development

A Global Shift in Economic Power

As the world navigates through unprecedented challenges, the BRICS group—comprising Brazil, Russia, India, China, and South Africa—has cemented its place as a formidable force in global economic and geopolitical arenas. BRICS 2024, hosted in India, stands as a significant milestone in shaping the future direction of these nations, not only individually but also as a collective bloc.

This year’s summit saw discussions ranging from a potential BRICS currency to energy security, trade realignment, and a renewed focus on sustainable development. With the bloc representing over 42% of the global population and accounting for nearly 25% of the global GDP, the decisions made at BRICS 2024 are poised to reverberate across the world.

1. Expansion and Inclusion: A Broader BRICS Influence

One of the central discussions at BRICS 2024 was the potential expansion of the group. Emerging economies outside the current members have expressed interest in joining the bloc, and the member nations are actively considering how this can strengthen BRICS' influence on the world stage. This growing interest signifies a broader shift towards a multipolar world, with BRICS leading the charge to represent the Global South.

As new members may be inducted, the expanded BRICS bloc could provide a stronger counterbalance to Western-led global governance structures like the G7 or the IMF. The inclusion of more nations can further amplify the collective voice of the Global South, creating a broader coalition of emerging economies that can influence global policy on trade, finance, and geopolitics.

2. The BRICS Currency: Reducing Reliance on the Dollar

A major point of intrigue was the discussion surrounding the possibility of a BRICS currency. The idea of a shared currency among BRICS nations, or at the very least, the increased use of national currencies in intra-BRICS trade, is seen as an effort to reduce reliance on the US dollar in global transactions.

For decades, the dollar has been the dominant global reserve currency, but BRICS is looking to challenge that status quo. By promoting trade in local currencies and exploring a common currency, BRICS countries can reduce exposure to currency fluctuations, sanctions, and dependence on US-led monetary policies. This strategy could also foster stronger economic ties within the bloc and streamline trade among its members.

However, implementing such a currency would be a monumental task. Each BRICS nation has distinct economic policies, inflation rates, and monetary systems, making integration challenging. Nevertheless, even the exploration of this idea signifies BRICS' long-term ambition to redefine global economic frameworks.

3. Trade and Investment Realignment: Building New Ties

The BRICS 2024 summit emphasized deepening trade relations and reconfiguring investment flows within the bloc. Trade barriers between BRICS nations are being reduced, and member countries are focusing on expanding trade in key sectors such as technology, pharmaceuticals, and energy.

The summit also introduced new initiatives to boost intra-BRICS investment in infrastructure projects, digital technologies, and green industries. With rising geopolitical tensions across the globe, particularly between the West and Russia or China, the BRICS bloc sees this moment as an opportunity to strengthen trade ties and reduce dependency on Western markets.

In 2024, there was an increasing push for digital trade and the promotion of cross-border e-commerce within BRICS, which aligns with the bloc's long-term goal of leveraging technology for economic growth. Furthermore, the establishment of the BRICS Digital Innovation Hub aims to foster collaboration in fields such as artificial intelligence (AI), cybersecurity, and next-generation 5G networks.

4. Energy Security and Climate Action: Navigating a Green Future

Energy security remains a key agenda for BRICS nations, particularly given the geopolitical disruptions caused by events like the Russia-Ukraine conflict and the global energy price volatility that followed. At BRICS 2024, members agreed on collective efforts to diversify energy sources and explore green energy initiatives that can secure long-term energy independence.

Brazil, with its focus on biofuels, and China and India, with their aggressive push towards renewable energy, are leading the way in climate-focused energy transitions. South Africa, as one of the major coal exporters, discussed phasing down coal usage while seeking international financial support for a just energy transition.

BRICS committed to joint research and development in solar, wind, and hydrogen energy. The push for green infrastructure also includes setting up green finance funds under the BRICS New Development Bank (NDB) to finance sustainable projects across the member countries.

5. Strengthening the New Development Bank (NDB)

Another highlight of BRICS 2024 was the renewed focus on expanding the New Development Bank (NDB). The NDB, commonly referred to as the BRICS Bank, has been critical in funding infrastructure and sustainable development projects in emerging markets. The summit discussed increasing the NDB’s capital base, enabling the bank to finance more projects, both within and outside BRICS member countries.

To bolster the NDB’s influence, BRICS leaders have advocated for extending membership beyond BRICS nations, allowing other developing countries to benefit from the bank’s low-cost financing options. By expanding the NDB’s scope, BRICS intends to create an alternative to institutions like the World Bank and the IMF, offering emerging markets more flexibility and autonomy.

6. Political Alignment and Geopolitical Influence

While the BRICS 2024 summit had an economic focus, the political undertones were undeniable. BRICS continues to advocate for reform of global governance institutions such as the United Nations Security Council (UNSC). India and Brazil, in particular, have long lobbied for permanent seats on the UNSC, and BRICS remains a vocal advocate for the redistribution of power in global institutions to better reflect current geopolitical realities.

The summit also called for peaceful resolutions to conflicts and emphasized multilateralism in addressing global challenges such as security, health, and trade. With the shifting geopolitical landscape, BRICS nations are attempting to position themselves as mediators and stabilizing forces, particularly in conflicts involving major global powers.

7. Addressing Health Challenges Post-Pandemic

Post-pandemic recovery and resilience-building were central to the discussions, with BRICS nations highlighting the need for improved global health infrastructure and shared resources for pandemic preparedness. The summit encouraged cooperation in vaccine research, drug manufacturing, and distribution of medical supplies, building on the lessons learned from COVID-19.

The Future of BRICS

As BRICS continues to evolve and expand its influence, the group represents not just an economic bloc, but a reimagining of global governance structures. The 2024 summit showcased BRICS' ambition to provide an alternative to Western-dominated institutions, while emphasizing inclusivity, sustainability, and shared growth for the Global South.

While challenges remain, the strategic decisions made at BRICS 2024 reflect a growing confidence among its members to shape the future of the global economy. As we look forward, BRICS is set to continue playing a pivotal role in international policy discussions, with the potential to become a central force in global governance.

Key Takeaways from BRICS 2024:

  • Expansion plans signal a stronger voice for emerging economies.

  • Discussions around a BRICS currency may redefine global trade dynamics.

  • Investments in energy security and green initiatives are central to future growth.

  • The New Development Bank is set to become a stronger alternative to Western financial institutions.

  • BRICS continues to push for geopolitical influence, advocating for reforms in global governance.