2007
The global economy is booming. The United States and Europe dominate world trade. Wall Street
bonuses are soaring, China’s exports are unstoppable, and everyone believes globalization is a one-way
road — to endless growth.
But then… one company changes everything.
On September 15, 2008, Lehman Brothers, a 158-year-old investment bank filed for bankruptcy.
Global markets froze, millions lost their jobs, and confidence in Western financial systems evaporated
overnight.
Russia
South Africa
Resources
Obsessed
With red
No forest
China
Brazil
Good at
math
Dance
India
Russia
South Africa
Resources
Obsessed
With red
China
BRICS
No forest
Good at
math
Dance
India
Brazil
Ambitious
Awkward
and somehow still functioning
By Trapoom Kamdokrap
International Business
The world’s most ambitious
group project — five countries
with different skills,
overlapping strengths, and
completely different time
zones.
From an Acronym to an Alliance
• The name ‘BRIC’ - In 2001, Jim O’Neill from
Goldman Sachs coined the term to describe
four fast-growing economies that could one
day rival the G7.
• Brazil, Russia, India, and China
In 2001, BRICS GDP was $2.36 trillion (21.9% of
global GDP). The G7 held 42.8%. But for how
long?
BRICS Plus and G7 countries' share of the world's total gross domestic product (GDP) in purchasing
power parity (PPP) from 2000 to 2024
• In 2001, G7 economies were twice
the size of BRICS.
• By 2018, BRICS started to outgrow
the G7 — Thanks to China and
India’s rapid growth, BRICS’ share
of global GDP (PPP) surpassed the
G7 in 2018.
(Source: Statista, 2024)
Core Objectives of BRICS
pillars of cooperation
Financial and
economic
cooperation
Political and
security
cooperation
Cultural and
people-topeople
cooperation
Core Objectives of BRICS
The main goals of BRICS can be categorized into three pillars:
1. Economic and Financial Cooperation
• Promote Economic Growth: To enhance trade, investment, and economic collaboration among
member countries.
• Establish Alternative Financial Institutions: A key objective is reducing reliance on Western
financial institutions and the US Dollar. This is achieved through NDB and CRA
Institution
Purpose
Strategic Importance
New Development Bank (NDB)
Provides funding for infrastructure
and sustainable development
projects in BRICS and other
developing countries
Functions as an alternative to the
World Bank, explicitly aiming to issue
loans in local currencies to reduce
reliance on the US Dollar.
provides emergency financial
support during currency crises or
instability ($100B initial capital).
Serves as a functional competitor to
the IMF, offering a financial safety net
against global liquidity and currency
pressures, thus strengthening SouthSouth cooperation.
Contingent Reserve Arrangement
(CRA)
Core Objectives of BRICS
2.Political and Security cooperation
The fundamental geopolitical purpose of BRICS is to facilitate the world’s transition from a U.S.-led
unipolar system to a new multipolar framework where global affairs are shaped by a diverse range of
countries
• Increasing Global South Influence: BRICS serves as a political and diplomatic coordination forum
dedicated to increasing the influence of the Global South in international governance
• Reforming Global Institutions: The group specifically aims to improve the legitimacy, equity in
participation, and efficiency of existing global institutions, including UN, IMF, the World Bank,
and WTO
• Coordinate Foreign Policy: To strengthen political and security cooperation, and coordinate
common positions on major international issues, promoting peace, security, and cooperation.
Core Objectives of BRICS
3. People-to-People Exchange and Development
• Strengthen Social Cooperation: To foster closer ties and mutual understanding among the
peoples of the BRICS countries through cooperation in culture, sports, education, and civil society.
(e.g. the Young Diplomats' Forum, the Parliamentarians' Forum, the Trade Union Forum, the BRICS Civil
Forum and the Media Forum.)
The BRICS+ Expansion (2023–Present)
The Rise of the Global Majority Bloc
The 15th BRICS Summit in Johannesburg (August 2023) focused on "Inclusive Multilateralism" and
announced a major expansion.
•New Members (2024/2025): Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the United Arab
Emirates.
•Immediate Global Impact:
•Economic Heft: The enlarged BRICS+ now comprises more than 35% of the global economy
(GDP) and nearly half of the world's population.
•Resource Control: The inclusion of major oil and gas producers (KSA, Iran, UAE) grants the bloc
substantial influence over global energy markets.
•Diplomatic Influence: The expansion solidifies BRICS+'s position to exert influence over major
global conflicts and the shape of the global economic system.
Internal Challenges and Future Outlook
Challenges to Cohesion
•Internal Rivalry: The long-standing geopolitical and economic competition between China and India
remains the most significant internal friction. This rivalry can delay or obstruct key collective decisions.
•Technical Hurdles: Progress on BRICS Pay is hindered by deep disparities in financial regulation,
currency convertibility issues (e.g., between the Yuan and Rupee), and differences in capital mobility.
The system remains heavily reliant on bilateral agreements.
Thank you