Lecture Notes on BRICS

Introduction to BRICS

• BRICS is an international coalition consisting of Brazil, Russia, India, China, and South Africa.
• Aims to represent emerging economies and challenge Western dominance in global affairs.
• Malaysia has expressed interest in joining BRICS.

Origins of BRICS

• Initially formed as BRIC (Brazil, Russia, India, China) without South Africa.
• Officially established during the first summit in Russia in 2009.
• South Africa joined in 2010, transforming BRIC into BRICS.
• Announced new members (Egypt, Ethiopia, Iran, UAE) to form BRICS+ effective January 1, 2024.

Economic Impact

• BRICS+ represents 37.3% of global GDP.
• New members increase BRICS+ influence in international platforms like the UN and WTO.
• The coalition focuses on economic cooperation, trade, and investment.
• Key sectors of collaboration: infrastructure, technology, and energy.
• BRICS countries contribute over 34% of global GDP.

Comparison with G7

• G7 consists of advanced economies: Canada, France, Germany, Italy, Japan, UK, and US.
• G7 represents mature economies while BRICS targets emerging markets.
• BRICS has higher growth rates compared to G7, signaling a shift in economic power.

Strengths and Diversity of BRICS Members

• Each BRICS member has unique strengths:
  • China: technology and industry.
  • India: IT services.
  • Russia: natural resources, particularly oil and gas.
  • Brazil: agriculture and biofuels.
  • South Africa: mining and rare earth minerals.
• The diversity among members creates synergies for mutual benefit and effective global challenge handling.

Geopolitical Influence

• BRICS covers 30% of the world's land area, enhancing strategic importance in trade and regional influence.
• Acts as a bridge between different global regions (East, West, North, South).
• Engages in various political and security issues beyond economic aspects.

New Development Bank (NDB)

• Established in 2015 to support infrastructure projects and development initiatives.
• Aims to reduce reliance on traditional financial institutions like IMF and World Bank.
• Provides loans and financial support to enhance infrastructure, promoting a fairer financial system.

Malaysia's Interest in Joining BRICS

• Reasons for joining:
  1. Access to broader markets and business opportunities.
  2. Reduce reliance on the US dollar to safeguard economy.
  3. Benefit from NDB and CRA for infrastructure and financial support.
• Joining BRICS could diversify trade partners and improve competitiveness in global markets.

Conclusion

• BRICS is beyond just an economic pact; it is a rising power in the global arena.
• Offers opportunities for member countries, especially for Malaysia's economic development.
• Understanding global economic conditions is crucial for personal financial implications.
• Thank you for your attention!