The Evolution of BRICS

The BRICS block, consisting of Brazil, Russia, India, China, and later South Africa, was initially formed based on an investment thesis proposed by economist Jim O'Neill. However, the group's impact has been limited due to several factors, including the lack of organic formation, disparate growth rates among member countries, and conflicting interests, particularly between India and China. Despite this, the formation of the New Development Bank (NDB) within BRICS has provided an alternative to Western-dominated institutions like the World Bank. The NDB has approved numerous projects but faces criticism that its funding is insufficient. The proposed expansion of BRICS, known as Brix Plus, aims to include more non-Western countries to challenge the dominance of the US dollar and strengthen geopolitical influence. By conducting trade and loans in local currencies, Brix Plus seeks to create a self-perpetuating network effect that could attract additional members and increase economic resources.