Oleh : Andi Kurniawan*

REPUBLIKA.CO.ID, JAKARTA -- BRICS has evolved to be more popular and attractive. Worsening geopolitical tension and increasing global economic challenges drive developing countries to seek alternate cooperation to secure future economies and development. BRICS stands for Brazil, Russia, India, China, and South Africa. These countries represent a considerable portion of the worldwide economy. More emerging economies, including Malaysia, Pakistan, El Salvador, and Belarus, have recently applied for BRICS membership.

It signals the growing optimism for more diverse and stable international cooperation among the developing economies amidst the geopolitical risks. However, to what extent will BRICS become an effective channel for dealing with various political and economic problems facing the developing world? This article argues that the effectiveness of BRICS institutions will substantially be influenced by the political behaviours of the key member countries.

Economic Power of BRICS

The institutionalization of BRICS brings new hopes for developing countries to develop equal and fair economic trade cooperation. It has been acknowledged that BRICS countries constituted more than 40% of the worldwide population in 2023. This figure emphasizes BRICS as a promising market for developing countries in a time of potential global trade shifts from the North-South to the South-South. In fact, the global foreign trade share of the four central BRICS countries has attained 17% in 2023, with a total foreign trade value of more than US$ 10 trillion. The share is forecasted to continue increasing with more new member countries joining the group.

The strength of the BRICS economy was further indicated by a substantial share of their GDP. In 2023, according to the World Bank database, the combined GDP of four BRICS countries reached US$ 25.9 trillion, which equalled 25% of the world’s GDP. The percentage is expected to increase in coming years, along with their robust economic performance, including the supply capability of high-demand natural resources such as soya beans (Brazil), petroleum oils (Russia), rice (India), and iron ore (South Africa). Interestingly, the abundant natural resources economy is also followed by their outstanding industrial value-added. In 2023, China was on the top list of countries with the largest industrial value-added worth US$ 6.8 trillion. Likewise, India and Russia were in the fifth and sixth positions, with industrial added value of US$ 887.8 billion and US$619.5 billion, respectively. This notable industrial-added value illustrates the industrial capability and productivity of BRICS countries, not only in natural resource business but also in other strategic sectors, such as construction and manufacturing.