Business

BRICS puts on annual show of unity

The Global South bloc met amid low levels of public interest and cooperation on climate but advances on development finance and bilateral relations
<p>Leaders from BRICS nations participate in the 13th annual summit despite diplomatic tensions within the group (image: Alamy)</p>

Leaders from BRICS nations participate in the 13th annual summit despite diplomatic tensions within the group (image: Alamy)

Amid scepticism and a lack of public interest, domestic crises and the backdrop of Covid-19, last week the BRICS countries delivered on their commitment to hold an annual summit without showing the signs of disunity that has beset the group in recent years.

So what still holds the bloc of so-called emerging nations together?

In a virtual event, the heads of state of host country India, Brazil, Russia, China and South Africa renewed the group’s pledge of cooperation for the thirteenth time, in an event that passed without incident, unlike the barbs of last year. It also failed to attract much public interest.

Internet searches for BRICS-related news during the summit fell to one of their lowest points levels in the group’s history, according to Google Trends. Online searches usually peak in popularity during the event but have rarely sparked as much interest as the 2014 summit, when the bloc launched the New Development Bank (NDB).


Scepticism towards the progress of the bloc pervades. It launched in 2009 with industrialised nations in the grip of the financial crisis with great – perhaps too great – expectations over its potential to redefine global governance. Today, not even one of the BRICS’ most enthusiastic supporters, the economist Jim O’Neill, who coined the group’s acronym two decades ago, seems impressed with the latest developments.

“The bloc’s ongoing failure to develop substantive policies through its annual summitry has become increasingly glaring,” O’Neill wrote after the event.

BRICS’ first decade of success

O’Neill’s frustration derives from what he recalls the “roaring success” of the four founding BRICS nations first decade. South Africa joined the group in 2010.

In 2009, Russia hosted the first summit, seeking a more active voice on global economic affairs in response to the devastating financial crisis.

It was a super interesting moment of confidence building

In its early years, “countries pushed for reforms of the International Monetary Fund and the World Bank and offered an alternative to the international financial order by creating the NDB,” said Karin Costa Vazquez, of the Center for BRICS Studies at Fudan University.

At that time, and excluding Russia, countries formed the BASIC group, offering an alternative voice in international climate negotiations after the “failure of developed countries to define a climate agenda” and the collapse [of COP15] in Copenhagen”, said Izabella Teixeira, who was Brazil’s environment minister from 2010 to 2016.

“The BRICS were an environment of important political dialogue,” Teixeira told Diálogo Chino. “It was a super interesting moment of confidence building. There was an informality in the conversation among the ministers.” The group’s diplomatic role, Teixeira added, “was absolutely important” in the negotiations that would later culminate in the 2015 Paris Agreement.

From then on, however, experts chart the emptying of the BRICS as a group, as economic and political crises burdened member countries. It witnessed recession in Russia, South Africa and Brazil, tensions between China and India and the belligerent anti-China rhetoric of Jair Bolsonaro, who became president in 2018 and began to deconstruct environmental policies and isolate himself diplomatically.

“The country has gone against the world,” Teixeira said. 

BRICS retains relevance

Although the heyday may be behind it, BRICS is still relevant today, according to Costa Vazquez. “The BRICS is the only space that the largest emerging economies in the world have to coordinate positions and propose initiatives of common interest to the five members. This is no small thing when we are talking about more than 30% of world GDP,” she said.

Vazquez argues that in order to keep functioning, the multilateralism of the bloc has given way to more bilateral agreements. As such, it is more flexible, limiting cooperation when interests diverge and resuming and expanding it when they converge.

Since BRICS doesn’t function as an economic bloc, it does not have a formal statute of rules that dictate its behaviour. The cost of membership is low, and the diplomatic benefits are still significant, according to Oliver Stuenkel, from the Getulio Vargas Foundation.

$101billion


the value of China-Brazil trade in 2020 (US$), a figure that is expected to be easily surpassed this year

Stronger diplomatic relations can also reflect booming bilateral trade. For example, trade between Brazil and China should hit a new record in 2021. Last year, bilateral trade topped US$100 billion for the first time and as of last month, it had already surpassed US$93 billion.

Unsurprisingly, Bolsonaro adopted a milder tone on China at the recent BRICS summit. Meanwhile, China’s President Xi Jinping said that, regardless of the difficulties, the BRICS will maintain solid and constant cooperation.

NDB offers hope

Despite few new articulations on historic areas of cooperation such as climate, the main product of the BRICS, the NDB, is gaining momentum. Paulo Nogueira Batista Júnior, and economist who was vice-president of the bank between 2015 and 2017, criticised the slowness of the NDB to produce results and fulfil its aspirations of becoming a global development bank.

Today, however, Batista Junior sees advances. “In the last two years, the bank seems to have moved a little more and achieved some results,” he said. “For example, it has approved projects, including support programs to combat Covid-19, continues to hire employees, built its headquarters, developed technically and opened the process of inaugurating new members.”

In early September, the NDB announced the addition of Uruguay, the United Arab Emirates and Bangladesh to its membership. In its six years of operation, the bank has approved some 80 projects, with investments totalling US$30 billion. The bank has also made US$10 billion available to BRICS member countries to combat Covid-19.

“The bank is already part of the landscape,” said Batista Junior. Can the same still be said of the BRICS bloc?

Cookies Settings

Dialogue Earth uses cookies to provide you with the best user experience possible. Cookie information is stored in your browser. It allows us to recognise you when you return to Dialogue Earth and helps us to understand which sections of the website you find useful.

Required Cookies

Required Cookies should be enabled at all times so that we can save your preferences for cookie settings.

Dialogue Earth - Dialogue Earth is an independent organisation dedicated to promoting a common understanding of the world's urgent environmental challenges. Read our privacy policy.

Cloudflare - Cloudflare is a service used for the purposes of increasing the security and performance of web sites and services. Read Cloudflare's privacy policy and terms of service.

Functional Cookies

Dialogue Earth uses several functional cookies to collect anonymous information such as the number of site visitors and the most popular pages. Keeping these cookies enabled helps us to improve our website.

Google Analytics - The Google Analytics cookies are used to gather anonymous information about how you use our websites. We use this information to improve our sites and report on the reach of our content. Read Google's privacy policy and terms of service.

Advertising Cookies

This website uses the following additional cookies:

Google Inc. - Google operates Google Ads, Display & Video 360, and Google Ad Manager. These services allow advertisers to plan, execute and analyze marketing programs with greater ease and efficiency, while enabling publishers to maximize their returns from online advertising. Note that you may see cookies placed by Google for advertising, including the opt out cookie, under the Google.com or DoubleClick.net domains.

Twitter - Twitter is a real-time information network that connects you to the latest stories, ideas, opinions and news about what you find interesting. Simply find the accounts you find compelling and follow the conversations.

Facebook Inc. - Facebook is an online social networking service. China Dialogue aims to help guide our readers to content that they are interested in, so they can continue to read more of what they enjoy. If you are a social media user, then we are able to do this through a pixel provided by Facebook, which allows Facebook to place cookies on your web browser. For example, when a Facebook user returns to Facebook from our site, Facebook can identify them as part of a group of China Dialogue readers, and deliver them marketing messages from us, i.e. more of our content on biodiversity. Data that can be obtained through this is limited to the URL of the pages that have been visited and the limited information a browser might pass on, such as its IP address. In addition to the cookie controls that we mentioned above, if you are a Facebook user you can opt out by following this link.

Linkedin - LinkedIn is a business- and employment-oriented social networking service that operates via websites and mobile apps.