How BRICS became a global power bloc

• BRICS has evolved from an economic term into a global political bloc
• The group now represents 46% of the world's population
• Recent expansions aim to challenge Western-dominated global finance

What began as an acronym in an investment bank report has transformed into a geopolitical bloc representing nearly half the world's population. The story of BRICS is the story of a changing world order and the rising ambition of the Global South.

From Acronym to Alliance

In 2001, Goldman Sachs economist Jim O'Neill coined the term "BRIC" to identify four rapidly growing emerging markets: Brazil, Russia, India, and China. It was a catchy label for promising investment destinations. For years, that's all it was. But the countries themselves saw an opportunity. In 2006, their foreign ministers met for the first time, formalising the group. By 2009, they held their first official summit, shifting the concept from an economic category to a political platform. The addition of South Africa in 2010 rounded out the bloc, turning BRIC into BRICS and giving it a crucial foothold in Africa. This evolution marked a deliberate move by these nations to co-opt a financial term and build it into a coalition that could speak with a collective voice on the world stage.

Building Alternative Institutions

Rhetoric alone wasn't enough. To offer a tangible alternative to Western-dominated global finance, BRICS launched two major institutions in 2014: the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB was designed to fund infrastructure and sustainable development projects in emerging economies, explicitly positioning itself as an alternative to the World Bank and IMF. Unlike those institutions, the NDB aims to provide lending without the stringent policy conditions often attached to Western loans. By the end of the first quarter of 2026, the NDB had approved 140 projects totaling nearly $43 billion, focusing on clean energy, transport, and social infrastructure. The CRA, a $100 billion fund, was created to provide mutual financial support during currency crises, reducing reliance on the U.S. dollar and Western financial backstops.

A Champion for the Global South

From its inception, BRICS positioned itself as a champion for the developing world. The group’s core mission became advocating for a “multipolar world order”—one where global power is not concentrated in the hands of a few Western nations. This resonated with many countries in Asia, Africa, and Latin America, often referred to as the Global South, who felt underrepresented in institutions like the UN Security Council and the IMF. BRICS provided a platform to demand reforms in global governance and amplify shared concerns about economic fairness and political sovereignty. The bloc's appeal lies in its promotion of South-South cooperation, uniting countries with similar development challenges to advocate for their collective interests.

Expansion and a New Identity

The group's influence took a significant leap with its recent expansion. Starting in January 2024, Egypt, Ethiopia, Iran, and the United Arab Emirates joined as full members, with Indonesia following in 2025. This expansion dramatically increased the bloc's demographic and economic weight, cementing its status as a major global player. Now representing around 46% of the world's population, the enlarged group aims to have a greater say in everything from global energy governance to financial architecture. The inclusion of major oil producers like the UAE and Iran adds significant economic leverage. This growth reflects the bloc's increasing attractiveness to nations seeking strategic independence from the West, though it also brings new complexities and potential for disagreement.

Internal Challenges and Criticisms

Despite its successes, BRICS is not without its problems. The group is often criticized for being more symbolic than substantive and for its internal contradictions. Member countries have vastly different political systems and economic weights, with China's economy dwarfing the others. Geopolitical rivalries, particularly the long-standing border tensions between India and China, pose a significant challenge to collective decision-making and cohesion. Critics also point out that the bloc's declarations are often long on rhetoric about creating a fairer world but short on concrete, transformative action. Balancing the national interests of a diverse and growing membership while presenting a united front remains the primary challenge for the future of BRICS.