When Goldman Sachs Chief Economist Jim O’Neill coined the term BRICs in 2001 to describe the future growth economies of Brazil, Russia, India and China as consequential new actors on the global stage, he captured the early mood of that era: the rise of those countries was just beginning, and the emerging world was on the move.
When Goldman Sachs Chief Economist Jim O’Neill coined the term BRICs in 2001 to describe the future growth economies of Brazil, Russia, India and China as consequential new actors on the global stage, he captured the early mood of that era: the rise of those countries was just beginning, and the emerging world was on the move.
The BRIC nations embraced the term, invited South Africa to join them in 2010 (hence, the BRICS with a capital “S”), kicked off a round of summits over the next decade and the world seemed ready to be shaken by this acronym of new powers. Then reality kicked in. The 2010s were not as good for the BRICS. China saw its world-beating growth temper and, according to a BRICS Investment Report published by the United Nations this year, only South Africa saw FDI inflows grow robustly in this period.
Today, none of the BRICS – except India – would be considered hopeful economic stars and the geopolitical rivalry between the two largest members – India and China – has accelerated in recent years. Brazil, Russia, and South Africa are, in varying degrees, limping forward amid slow growth. They’re also under clouds of mismanagement and corruption and, in Russia’s case, increasing isolation.
Like an aging rock band, the BRICS show seemed to be fizzling out. Until now.
In late August, the BRICS leaders gathered in Johannesburg for one of their most consequential summits. Injecting new blood into the group, the BRICS announced six new members had been invited to join their club: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.
In one swoop, the BRICS rose in relevance again, adding new financial firepower as well as geopolitical heft to a group that has come to be viewed by some as the new voice of the global South. The term encompasses countries across the developing world and emerging markets from Latin America to Asia to Africa. The irony that this “voice of the Global South” emerged from a Goldman Sachs white paper has been lost on many.
Contributor:Afshin Molavi
