BRICS: The Future of World Economic Power in a Changing World Order

By FD Wuriee

The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, stands as a potent force reshaping the contours of the contemporary world order. Emerging from diverse geographical regions and boasting significant economic and geopolitical influence, BRICS embodies a formidable challenge to the traditional hegemony of Western powers. This introduction sets the stage for a comprehensive examination of BRICS and its role in shaping the new world order, drawing on academic perspectives and empirical evidence to illuminate the alliance's impact on global politics, economics, and governance structures. Amidst a backdrop of shifting power dynamics, BRICS' ascent as a cooperative bloc demands scholarly scrutiny to discern its implications for the evolving landscape of international relations.
As the BRICS grouping has gained prominence on the world stage, it has become a focal point of academic inquiry and international policy discussions. This essay seeks to delve into the multifaceted dimensions of BRICS' influence, analysing its economic significance, institutional developments, geopolitical impact, and the challenges it faces in achieving its objectives. At the heart of this examination lies the question of whether BRICS is poised to herald a transformative shift in the global order or if its potential is constrained by internal disparities and external constraints.
Economically, BRICS nations collectively account for a substantial portion of the world's GDP and trade volume. Their concerted efforts to enhance economic cooperation have led to increased trade among member states and have positioned them as crucial players in the global market. Moreover, the creation of institutions such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) underscores their ambition to reform the international financial system. These institutions provide an alternative to the Western-dominated Bretton Woods institutions, marking a significant step toward a more equitable distribution of economic power. In terms of geopolitics, BRICS has not only sought to assert its influence on global governance issues but also to challenge the traditional dominance of Western powers.

The alliance's cooperative stance on climate change, counterterrorism, and regional conflicts has resonated globally. It has advocated for a multipolar world order, emphasizing the need to diversify global power structures and promote a more inclusive international system. This geopolitical orientation has made BRICS a key player in the ongoing debate about the future of global governance. The BRICS alliance presents a compelling case study in the evolving dynamics of the new world order. Its economic clout, institutional innovations, geopolitical aspirations, and challenges all contribute to a complex narrative that demands scholarly exploration. This essay will proceed to examine each of these facets in greater detail, providing an in-depth analysis of BRICS' role in the emerging global landscape and its potential to shape a new world order that accommodates the aspirations of emerging powers alongside the established international order.


 

• Language: English
• Publisher: FD Wuriee
• Release date: Sep 13, 2023
• ISBN: 9798223825685

FD Wuriee

FD Wuriee is a highly skilled consultant with expertise in leadership, strategic management, change management, and entrepreneurship. He pursued his MBA at the University of East London's Business and Law School and completed Applied Management Research at the London Metropolitan Business School. Additionally, he obtained a certificate in Screenwriting from Birkbeck, University of London and completed courses in Producing and Directing from Raindance and London Film Academy. To further enhance his skills, he attended Story and Genre Masterclasses from Robert McKee, Directing Masterclasses from Academy Award-winning Director Ron Howard and Filmmaking Masterclasses from Academy Award winners Spike Lee and Werner Herzog. FD Wuriee is an entrepreneurial professional who has extensive experience in developing and implementing change management strategies, cultivating strong client and partner relationships, and assessing business practices and goals to enhance direction and identify growth opportunities. Areas of Specialisation: Leadership, Change Management, Strategic Thinking, Business Research, Action Research, Entrepreneurship and Creative Industries  

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BRICS

THE FUTURE OF WORLD ECONOMIC POWER                                                   IN A CHANGING WORLD ORDER

FD WURIEE

Angeles Press©

London,  England

ISBN: 979-8-852-76562-5

© FD Wuriee © Angeles Press 2023

The Moral Rights of the Author have been asserted.

ALL RIGHTS RESERVED. No Part of this book may be reproduced, stored in a retrieval system, communicated, or transmitted by any means, mechanical, electronic, photocopying, recording, or otherwise without written consent and permission of the publishers and Author.  

DISCLAIMER

The information provided in this book has been prepared without considering your objectives, financial situation, business needs, organisation, Institution or Country’s needs. Before acting on this information you should consider the appropriateness of the information, having regard to your own extent objectives, financial situation, Institution, business or country’s needs. The information contained in this book is strictly for educational purposes. Therefore, if you wish to apply the ideas contained in this book, you are taking full responsibility for your actions. The author disclaims any warranties (express or implied), merchantability, or fitness for any particular purpose. The author shall in no event be held liable to any person, government, institution, or corporation for any direct, indirect, punitive, special, incidental, or other consequential damages arising directly or indirectly from any use of this material, which is provided as is, and without warranties. As always, the advice of a consultant should be sought.

FD Wuriee is a highly skilled consultant with leadership, strategic management, change management, and entrepreneurship expertise. He pursued his MBA at the University of East London's Business and Law School and completed Applied Management Research at the London Metropolitan Business School. Additionally, he obtained a certificate in Screenwriting from Birkbeck, University of London and completed courses in Producing and Directing from Raindance and London Film Academy. To further enhance his skills, he attended Story and Genre Masterclasses from Robert McKee, Directing Masterclasses from Academy Award-winning Director Ron Howard and Filmmaking Masterclasses from Academy Award winners Spike Lee and Werner Herzog. FD Wuriee is an entrepreneurial professional who has extensive experience in developing and implementing change management strategies, cultivating strong client and partner relationships, and assessing business practices and goals to enhance direction and identify growth opportunities.Areas of Specialisation: Leadership, Change Management, Strategic Management, Business Research, Entrepreneurship and Creative Industries

Chapter Titles:               ​​                ​   Page

1.       The Emergence of BRICS: Historical Overview ​     ​      19

2.       The Economic Significance of BRICS Nations ​     ​       36

3.       BRICS Economic Model and its Implications ​     ​       52

4.       The Future of BRICS and World Governance ​   ​      136

5.       BRICS BANK: ​ ​      178

A New Paradigm in Development Financing

6.       The Contingent Reserve Agreement (CRA) ​ ​      204

and it Implications

7.       The Role of Technology: ​ ​     277

The BRICS Economic Future

8.       Challenges to the BRICS Growth Trajectory                              305

9.       The Role of Women in the BRICS Economies                           323

10.   BRICS and Energy Security:                                                           351

Challenges and Opportunities

11.   BRICS and the Geopolitics of World Trade                   ​    374

12.   BRICS and the World Economy:                                       ​    399

Complementary or Competing?

13.   The BRICS Financial System:                                             ​     414

Integration and Cooperation

14.   BRICS and the Fourth Industrial Revolution                                 450

Introduction

The world is undergoing a tremendous economic upheaval, with the BRICS nations (Brazil, Russia, India, China, and South Africa) positioned to play an important role in defining the world economy's future. The BRICS countries have emerged as important economic powers in the last decade, with a combined GDP of over $20 trillion, accounting for over one-fourth of the world economy.

The BRICS nations are becoming increasingly prominent players in the world economic system as the world's economic centre of gravity shifts eastward. However, the BRICS' rise also brings with it new problems and opportunities, both for the BRICS and the rest of the world.

The purpose of this book is to present a detailed study of the BRICS economic future, exploring the potential and problems that these nations face as they seek to improve their economic development and integration into the world economy. The book also investigates the BRICS' impact on the world economic landscape, examining the consequences of its ascent for the rest of the world.

Chapter By Chapter Overview

Chapter 1: The Emergence of BRICS: Historical Overview

The BRICS countries have a long history that has influenced their contemporary economic and political landscape. This chapter presents a historical overview of each BRICS country, covering major events and trends that have affected their economic growth trajectory.

Brazil, for example, was primarily an agricultural economy, with coffee serving as its principal export. However, Brazil began to focus on industrialisation in the mid-twentieth century, which resulted in tremendous economic growth.

Russia, on the other hand, was essentially an agricultural economy until the 1917 Revolution, when it began its industrialization drive.

India, like China, has a long history, with an emphasis on agriculture and textiles. However, following independence, India began on an import-substitution industrialization approach, with the goal of promoting native businesses and reducing dependency on imports.

China, in contrast, embarked on an economic reform programme in the late 1970s, which resulted in tremendous economic growth and China's emergence as a worldwide economic power.

South Africa, the BRICS's newest member, has a complicated history, with apartheid playing a significant role in its economic development. South Africa has developed as Africa's premier economy, despite the challenges of apartheid, with a broad economy that includes mining, agriculture, and manufacturing.

This chapter presents an overview of the historical forces that have created the BRICS nations' economic trajectory, establishing the groundwork for the analysis of the BRICS economic future in the following chapters.

Chapter 2: The Economic Significance of BRICS Nations

The BRICS countries account for more than 40% of the world's population and contribute considerably to the world economy. This chapter examines the BRICS nations' economic significance, focusing on their contributions to world economic growth, trade, and investment. Over the last decade, the combined GDP of the BRICS nations has increased at a rate of more than 5% per year, outperforming the growth of established economies. Factors such as favourable demographics, increased urbanisation, and a burgeoning middle class have all contributed to this expansion.

The BRICS countries also play a vital role in world trade, accounting for more than 23% of world trade. China, in particular, has emerged as a major world trade participant, accounting for more than 12% of world commerce. The BRICS countries have also been active participants in regional trade initiatives such as the Regional Comprehensive Economic Partnership (RCEP) and the Africa Continental Free Trade Area (AfCFTA). In terms of investment, the BRICS countries have also been big contributors, accounting for more than 20% of world FDI flows. China has been a major investor in developing countries through its Belt and Road Initiative (BRI), which aims to improve infrastructure development and connectivity worldwide.

This chapter examines the economic significance of the BRICS nations, emphasising their contributions to world economic growth, trade, and investment. The chapter also looks at the problems that the BRICS countries face as they strive to improve their economic growth and absorption into the world economy.

Chapter 3: BRICS Economic Model and its Implications

The BRICS countries have pursued many economic models, each with its own set of strengths and disadvantages. This chapter examines the BRICS economic model, including its fundamental features, strengths, and limitations, as well as its potential ramifications.

The BRICS countries have embraced a variety of economic strategies, ranging from state-led capitalism in China to a mixed economy in India. Despite these variations, the BRICS economic model shares some characteristics, including a concentration on industrialization, infrastructure development, and export-oriented growth. One of the BRICS economic model's primary strengths is its emphasis on infrastructure development, which has aided economic growth and improved connections within and between members. However, the BRICS countries face issues such as corruption, inequality, and environmental degradation, all of which have consequences for the long-term viability of their economic model.

The BRICS economic model is examined in this chapter, with significant aspects, strengths, and shortcomings identified. The chapter also looks at the future implications of the BRICS economic model, noting the potential and challenges that the BRICS countries have as they seek to improve their economic development and integration into the world economy.

Chapter 4: The Future of BRICS and World Governance

The BRICS countries have emerged as key players in world governance, challenging conventional Western powers' dominance and calling for a more inclusive and multipolar world order. This chapter investigates the future of the BRICS and world governance, looking at the potential repercussions of the BRICS' development for world governance as well as the chances for more cooperation and collaboration. The BRICS countries have been actively involved in world governance, calling for reforms to institutions such as the IMF and the World Bank to reflect the changing world power balance. As the BRICS countries rise, they are likely to play a larger role in determining world governance and the future of the international system.

This chapter investigates the future of the BRICS and world governance, examining the potential consequences of the BRICS' development for world governance as well as the opportunities and hazards connected with growing BRICS participation in world governance. The chapter also looks at the possibility for expanded collaboration and cooperation between the BRICS states and other growing powers, as well as the difficulties that come with balancing competing interests and agendas.

Chapter 5: BRICS Bank: A New Paradigm in Development Financing

Officially known as the New Development Bank (NDB), is a multilateral development bank established by the BRICS countries (Brazil, Russia, India, China, and South Africa) in 2014. The NDB aims to mobilize resources for infrastructure and sustainable development projects in the BRICS countries and other emerging economies.The idea of establishing the NDB was first proposed by India at the fourth BRICS Summit held in New Delhi in 2012. The Bank was formally launched at the sixth BRICS Summit held in Fortaleza, Brazil, in 2014. The NDB is headquartered in Shanghai, China, and has regional offices in Johannesburg, South Africa, and São Paulo, Brazil.

The NDB has an authorized capital of $100 billion, with an initial subscribed capital of $50 billion, equally contributed by the five BRICS countries. The Bank's governance structure comprises a Board of Governors, a Board of Directors, and a President. Each member country has an equal say in the Bank's decision-making process, and the presidency rotates among the member countries. The NDB's primary focus is on infrastructure and sustainable development projects, including renewable energy, transportation, water supply, and sanitation, among others. The Bank also provides support to private sector projects through loans, equity investments, and guarantees.

The NDB has approved several projects since its inception, including the construction of a photovoltaic power plant in China, the development of a new metro line in India, and the renovation of a wastewater treatment plant in South Africa. The Bank has also issued bonds denominated in its member countries' currencies to mobilize funds for infrastructure development.

In conclusion, the New Development Bank (NDB) is a multilateral development bank established by the BRICS countries to mobilize resources for infrastructure and sustainable development projects. The Bank has an authorized capital of $100 billion, with an initial subscribed capital of $50 billion, equally contributed by the five BRICS countries. The NDB's primary focus is on infrastructure and sustainable development projects, and it also provides support to private sector projects. The Bank has approved several projects and issued bonds to mobilize funds for infrastructure development.

Chapter 6: The Contingent Reserve Arrangement (CRA) and Its Implications

In the landscape of international finance, the Contingent Reserve Arrangement (CRA) stands as a testament to the evolving dynamics of global economic governance. Established by the BRICS countries - Brazil, Russia, India, China, and South Africa - the CRA emerged as a response to the perceived inadequacies of the existing international financial architecture, dominated by Western-led institutions such as the International Monetary Fund (IMF) and the World Bank.

The CRA represents a departure from traditional financial institutions in both its structure and underlying principles. This chapter seeks to elucidate the genesis, mechanisms, and multifaceted implications of the CRA. It explores how this arrangement, borne out of the collective aspirations of emerging economies, is poised to influence the contours of global financial governance. From its origins to its operational intricacies, this chapter delves into the inner workings of the CRA, elucidating the criteria and conditions under which member countries may access its financial resources. Importantly, it examines the CRA's implications for global financial stability, its potential to reshape international financial norms, and its role in fostering South-South cooperation.

Furthermore, the chapter contemplates the future trajectory of the CRA and the challenges it may encounter along the way. It postulates on the arrangement's role as a catalyst for regional and global financial reform while reflecting on the broader implications for the evolving dynamics of the global economy. In sum, the Contingent Reserve Arrangement represents not only an alternative source of financial support but also a symbol of changing global power dynamics and the assertion of emerging economies on the international stage. Understanding the CRA and its implications is essential in deciphering the complex tapestry of contemporary global financial governance. This chapter endeavours to shed light on the multifaceted impact of the CRA, its significance in global financial discourse, and its potential to herald a new era in international finance.

Chapter 7: The Role of Technology in the BRICS Economic Future

Technology has played a crucial influence on the BRICS nations' economic growth and development. Technology has enabled the BRICS nations to overcome traditional hurdles to economic development and compete on a world scale, from breakthroughs in digital infrastructure to innovations in manufacturing and services.

This chapter investigates the role of technology in the BRICS nations' economic future, analysing the possible benefits and problems of growing reliance on technology for economic growth and development. The chapter begins with an assessment of the BRICS nations' current technological position, identifying areas of strength and weakness. The chapter then investigates the potential for higher technological investment to generate economic growth and development, assessing the possible benefits and constraints associated with increased technology adoption. The chapter also investigates the possibility for enhanced collaboration and cooperation among the BRICS states in the field of technology, emphasising the benefits of increased knowledge exchange and capacity building.

Finally, the chapter explores the possible risks and problems connected with greater reliance on technology for economic growth and development, emphasising the importance of adopting technology in a balanced and planned manner. The chapter also examines the possible consequences of rising technological adoption for topics such as job displacement, income inequality, and environmental sustainability.

Overall, the purpose of this chapter is to present a complete assessment of the role of technology in the BRICS nations' economic future, exploring the possible benefits and risks associated with the growing reliance on technology for economic growth and development. The chapter emphasises the importance of a balanced and strategic approach to technology adoption, one that capitalises on the BRICS countries' strengths while addressing the potential dangers and concerns associated with greater reliance on technology.

Chapter 8: Challenges to the BRICS Growth Trajectory

The BRICS countries face a number of hurdles that could stymie their growth trajectory in the coming years. This chapter examines the BRICS states' issues, as well as their implications for the BRICS economic future. One of the most pressing issues confronting the BRICS countries is demographic transition, with ageing populations in Russia and China and a youth bulge in India and South Africa. This generational shift may have ramifications for the labour force, productivity, and economic growth.

Inequality, corruption, and environmental degradation are also threats to the BRICS nations' growth prospects in the next years. These challenges may have ramifications for social stability and political governance in the BRICS countries. This chapter examines the issues confronting the BRICS states, as well as their implications for the BRICS economic future. The chapter also discusses the measures that the BRICS states could take to address these difficulties, noting the opportunities and risks connected with these policies.

Chapter 9: The Role of Women in the BRICS Economies

The BRICS countries have severe gender gaps, with women frequently encountering impediments to education, employment, and economic participation. This chapter examines the role of women in the BRICS economies, exploring the obstacles they face as well as the prospects for improved gender equality and economic development. Despite advances in some areas, such as expanded access to education, women in the BRICS countries continue to confront considerable barriers to employment and economic possibilities. This gender disparity has repercussions for social stability and economic progress, stressing the need for further measures to promote gender equality and women's economic empowerment.

This chapter addresses the role of women in the BRICS economies, analysing the obstacles they face as well as the prospects for greater gender equality and economic development. The chapter also looks at the possible benefits of greater gender equality, underlining the links between gender equality, economic growth, and social stability.

Chapter 10: BRICS and Energy Security: Challenges and Opportunities

Energy security is a significant concern for the BRICS nations as they strive to fulfil rising energy demand while also tackling climate change and environmental sustainability. The BRICS countries have enormous energy resources, including oil, gas, coal, and renewable energy sources. However, the BRICS nations confront substantial hurdles in providing a dependable and sustainable energy supply, including geopolitical threats, infrastructure restrictions, and environmental concerns.

This chapter investigates the difficulties and opportunities connected with energy security in the BRICS countries, analysing the possible implications of energy security for economic growth and development, geopolitical stability, and environmental sustainability. The chapter opens by presenting an overview of the current condition of energy security in the BRICS countries, noting areas of strength and weakness. The chapter then investigates the possibility for expanded investment in energy infrastructure and renewable energy sources to improve energy security and support long-term economic growth and development. The chapter also investigates the possibilities for enhanced collaboration and cooperation among the BRICS states in the field of energy security, emphasising the potential benefits of increased knowledge exchange and capacity building.

Finally, the chapter discusses the potential risks and challenges associated with energy security in the BRICS countries, emphasising the need for a balanced and strategic approach to energy security that addresses geopolitical threats, infrastructure restrictions, and environmental concerns. The chapter also examines the potential consequences of energy security for issues such as climate change, environmental sustainability, and socioeconomic development. Overall, this chapter aims to provide a comprehensive overview of the challenges and opportunities associated with energy security in the BRICS nations, examining the potential implications of energy security for economic growth and development, geopolitical stability, and environmental sustainability. The chapter emphasises the need for a balanced and strategic approach to energy security that exploits the BRICS nations' capabilities while addressing the possible risks and problems connected with energy security.

Chapter 11: BRICS and the Geopolitics of World Trade

The rise of the BRICS nations has posed a challenge to the world's major powers, both economically and politically. As the BRICS countries have become more integrated into the world economy, they have pushed to create world trade laws and norms, challenging the traditional dominance of the United States, Europe, and Japan.

This chapter delves into the geopolitics of world trade and the role of the BRICS countries in shaping the world trading system. The chapter begins with an assessment of the current situation of world commerce, noting the problems and opportunities connected with the world economy's increasing interdependence. The chapter next looks at the potential consequences of the BRICS nations' growth for the world trading system, assessing the potential benefits and problems of growing trade and investment linkages between the BRICS states and the rest of the world. The chapter also looks at the possibility for enhanced trade coordination and cooperation among the BRICS nations, emphasising the benefits of increased knowledge exchange and capacity building.

Finally, the chapter addresses the potential risks and challenges associated with rising competitiveness and conflict in world trade, emphasising the importance of a balanced and strategic approach to BRICS-world trade relations. The chapter also examines the potential consequences of rising world trade competition and conflict for topics such as political stability, economic development, and environmental sustainability.

Overall, the purpose of this chapter is to present a complete overview of world trade geopolitics and the role of the BRICS states in influencing the world trading system. The chapter emphasises the importance of a balanced and strategic approach to trade relations between the BRICS countries and the rest of the world, one that capitalises on the BRICS countries' strengths while addressing the potential risks and challenges associated with increased competition and conflict in world trade.

Chapter 12: BRICS and the World Economy: Complementary or Competing?

Since its inception in 2006, the BRICS alliance has grown as a major actor in the world economy. The BRICS  nations have considerable economic potential and consumer demand, with a combined GDP of more than $18 trillion and a population of more than 3 billion people. However, some analysts are concerned about the possibility of economic competition and war with existing powers such as the United States, Europe, and Japan as a result of the BRICS nations' ascent. These worries have been exacerbated by expanding trade deficits between the BRICS countries and the rest of the world, as well as increased competition for resources, markets, and investment.

This chapter examines the prospects for economic complementarity and competition between the BRICS states and the world economy. The chapter opens by presenting an overview of the BRICS nations' economic performance and importance in the world economy. It then investigates the factors driving the emergence of the BRICS nations, as well as the potential consequences of their ascent for the world economy. The chapter also examines the prospects for economic cooperation and collaboration between the BRICS countries and the rest of the world, emphasising the advantages of increasing trade and investment relations. Finally, the chapter discusses the potential risks and challenges associated with rising economic competitiveness and conflict, emphasising the importance of a balanced and strategic approach to BRICS-world economic relations.

Overall, the purpose of this chapter is to provide a comprehensive overview of the economic relationship between the BRICS nations and the world economy, including an examination of the potential for economic complementarity and competition, as well as the implications of the BRICS nations' rise for the world economic system.

Chapter 13: The BRICS Financial System: Integration and Cooperation

The BRICS nations' financial systems have played a vital role in fuelling economic growth and development in these countries. With the growth of the BRICS nations, there has been an increased focus on the possibility for more integration and collaboration among these financial systems, with the goal of encouraging better financial stability and economic progress.

This chapter investigates the integration and cooperation of the BRICS nations' financial systems, analysing the possible benefits and problems of increased financial integration and cooperation. The chapter begins with an assessment of the current situation of the BRICS nations' financial systems, identifying areas of strength and weakness. The chapter then looks at the possibility for more financial integration and collaboration among the BRICS nations, assessing the possible benefits and challenges of greater financial integration and cooperation. The chapter also investigates the possibilities for enhanced collaboration and cooperation among the BRICS states in financial regulation and oversight, emphasising the potential benefits of increased knowledge exchange and capacity building.

Finally, the chapter addresses the possible risks and challenges of increasing BRICS financial integration and collaboration, emphasising the importance of a balanced and strategic approach to financial integration and cooperation. The chapter also considers the potential consequences of greater financial integration and cooperation for topics such as financial stability, economic development, and political relations. Overall, the purpose of this chapter is to provide a complete review of the BRICS nations' financial system integration and collaboration, assessing the possible benefits and challenges associated with increased financial integration and cooperation. The chapter emphasises the need for a balanced and strategic approach to BRICS financial integration and cooperation, one that exploits the BRICS nations' strengths while addressing the potential risks and problems associated with further financial integration and cooperation.

Chapter 14: BRICS and the Fourth Industrial Revolution

The Fourth Industrial Revolution (fourth industrial revolution) is a transformative force that is altering how we live, work, and interact with one another. The 4IR is driving innovation and economic growth around the world, from advances in artificial intelligence and robots to the Internet of Things and 3D printing. With large investments in R&D, innovation, and technology adoption, the BRICS countries are at the vanguard of the 4IR. This chapter examines the BRICS nations' role in the 4IR, looking at the possible benefits and challenges of greater membership in the 4IR.

The chapter starts with an assessment of the current situation of 4IR in the BRICS countries, identifying areas of strength and weakness. The chapter then analyses the potential for expanded investment in 4IR to promote economic growth and development, assessing the benefits and constraints connected with higher technology adoption and innovation. The chapter also investigates the possibility for enhanced collaboration and cooperation among the BRICS nations in the field of 4IR, emphasising the benefits of increased knowledge exchange and capacity building. Finally, the chapter looks at the potential risks and problems of expanded 4IR participation, such as job displacement, economic inequality, and environmental sustainability.

Overall, the goal of this chapter is to present a comprehensive review of the BRICS nations' engagement in the 4IR, assessing the possible benefits and challenges of expanded membership in this revolutionary force. The chapter emphasises the importance of a balanced and strategic approach to technology adoption and innovation, one that capitalises on the BRICS countries' strengths while addressing the possible dangers and concerns associated with expanded 4IR engagement.

Chapter 1 Overview

The Emergence of BRICS: Historical Overview

The BRICS countries have a long history that has influenced their contemporary economic and political landscape. This chapter presents a historical overview of each BRICS country, covering major trends that have affected their economic growth trajectory.

Brazil, for example, was primarily an agricultural economy, with coffee serving as its principal export. However, Brazil began to focus on industrialisation in the mid-twentieth century, which resulted in tremendous economic growth.

Russia, on the other hand, was essentially an agricultural economy until the 1917 Revolution, when it began its industrialization drive.

India, like China, has a long history, with an emphasis on agriculture and textiles. However, following independence, India began on an import-substitution industrialization approach, with the goal of promoting native businesses and reducing dependency on imports.

China, in contrast, embarked on an economic reform programme in the late 1970s, which resulted in tremendous economic growth and China's emergence as a worldwide economic power.

South Africa, the BRICS's newest member, has a complicated history, with apartheid playing a significant role in its economic development. South Africa has developed as Africa's premier economy, despite the challenges of apartheid, with a broad economy that includes mining, agriculture, and manufacturing.

This chapter presents an overview of the historical forces that have created the BRICS nations' economic trajectory, establishing the groundwork for the analysis of the BRICS economic future in the following chapters.

Chapter 1

The Emergence of BRICS: Historical Overview

The term BRICS refers to the five major emerging economies of Brazil, Russia, India, China, and South Africa. These nations are sometimes referred to as the BRICS economies or simply the BRICS. The BRICS have become increasingly significant in the world economy and politics, challenging the dominance of the developed world.

This chapter provides a historical overview of the emergence of the BRICS as a group of emerging powers. It examines why these countries came together, the factors that led to their growth and development, and the challenges they have faced. The BRICS originated in the 1990s when the term BRIC was coined by Goldman Sachs economist Jim O'Neill. The term was used to describe Brazil, Russia, India, and China as potential drivers of world growth. South Africa was later added in 2010, and the term became widely used. BRICS.

The BRICS nations are countries with large populations, vast territories, and abundant natural resources. They share a common goal of greater economic and political influence in the world. As a result, they have experienced rapid economic growth and development over the past few decades. The BRICS' ability to take advantage of globalisation and the rise of the digital economy has been a key driver of their growth. They have been able to compete with more established players in the world economy by developing new technologies and growing trade and investment between their countries.

Although the BRICS are a crucial player in the global economy and politics, they encounter various obstacles like political instability, corruption, and economic inequality. These hindrances have impeded their advancement and hindered their ability to accomplish their objectives. Nevertheless, the emergence of the BRICS has disrupted the dominance of developed nations, and they remain a significant influence in shaping the future of the world economy.

The BRICS nations have similar traits that have aided in their fast economic progress and growth in recent decades. They all possess large populations, vast territories, and abundant natural resources, along with a shared aspiration for greater global political and economic influence. These factors have been instrumental in their growth and development. Despite facing obstacles, the BRICS remain a crucial player in the global economy and politics. Their emergence has disrupted the dominance of developed countries, and they continue to shape the future of the world economy.

The emergence of the BRICS can be attributed to several factors, including their substantial size and population. Together, the BRICS countries account for around 42% of the world's population and 23% of global GDP. This significant population and economic power have given them greater leverage in the global economy and enabled them to exert influence on international affairs. Moreover, the abundance of natural resources in these nations has played a key role in their growth. Brazil and Russia are endowed with rich oil and gas reserves, while India and China have substantial coal and mineral reserves. South Africa is also endowed with mineral resources, including platinum, diamonds, and gold. The availability of these resources has contributed significantly to the rapid growth of the BRICS economies.

The BRICS nations have profited from the worldwide economy's globalization. This has enabled them to expand their trade and investment activities, leading to economic growth. Moreover, the emergence of the digital economy has allowed them to compete on par with established players in the world economy. However, despite their rapid economic progress, there still exists a significant wealth disparity between the affluent and the underprivileged. This inequality has resulted in social upheaval and political instability in some instances.

To sum up, the emergence of the BRICS group as a cluster of developing nations is a significant event in the global economy and politics. These countries have grown increasingly important in the world economy and their emergence as key players has challenged the dominance of the developed world. Despite facing several challenges, such as political instability and economic inequality, the BRICS continue to play a critical role in shaping the future of the world economy. In recent years, the BRICS nations have made notable strides in economic development and poverty reduction. For instance, China has lifted over 800 million people out of poverty since the onset of its economic reforms in the 1970s. India has also made significant progress in reducing poverty, with the percentage of people living in poverty dropping from 45% in 1993 to 21% in 2011.

The BRICS nations have made significant strides in infrastructure and technology, leading to positive economic growth. Notably, China invested in high-speed rail, while India focused on renewable energy. Brazil invested in biofuels, and Russia honed its natural resource industries. Additionally, the BRICS countries have increased their political influence worldwide through various economic and political alliances, including the BRICS Development Bank and the Shanghai Cooperation Organisation. These partnerships have bolstered the BRICS' bargaining power in the global economy and their ability to impact international affairs.

The emergence of the BRICS as a group of emerging powers has far-reaching implications for the future of the world economy and politics. These nations have challenged the dominance of developed countries and are expected to continue doing so in the years to come. As the BRICS countries become increasingly influential, their success or failure will have significant impacts on the rest of the world. However, they also face significant environmental challenges. Many of these countries rely heavily on fossil fuels, which is contributing to climate change. The BRICS countries are responsible for a significant portion of world carbon emissions, and continuing to rely on fossil fuels is unsustainable in the long term. Nonetheless, the BRICS nations are also investing heavily in renewable energy and have the potential to become leaders in the shift towards a low-carbon economy.

The BRICS countries have to deal with social and economic inequality as a major challenge. Although they have made notable progress in reducing poverty,