International Political Economy: BRICS Nations Economic Impact

This report provides a comprehensive analysis of the BRICS nations – Brazil, Russia, India, China, and South Africa – and their impact on the international political economy. It examines the historical context of the BRICS group, formed to address global economic challenges, and explores the economic performance of each member country, highlighting their strengths, weaknesses, and growth potential. The report delves into the accomplishments of the BRICS nations, such as fostering economic cooperation and challenging existing global financial structures, while also identifying areas that require further development. It discusses the challenges faced by the group, including internal disparities, varying levels of industrialization, and the need for effective leadership in addressing global issues. Furthermore, the analysis considers the role of BRICS in promoting regional economic integration and providing alternative solutions for developing nations. The report concludes with an assessment of the BRICS' continued relevance in the evolving global landscape, emphasizing the need for the group to adapt and address the complex economic and political dynamics of the 21st century. The report also provides recommendations for the future of the BRICS nations.

Running head: INTERNATIONAL POLITICAL ECONOMY
International Political Economy
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Executive Summary
The BRICS has been the group that has been developed for the improvement of the
world economy. It has been developed by five countries Brazil, Russia, India, China and
South Africa. The countries have decided to improve the economic condition of the countries
with the development of a relationship with the countries.
There have been changes observed in countries like India. It played an active role in
the development of India. It has acted as the major promoting goals for economic growth and
build in relation with various countries. Especially for India, it has been a platform to develop
a relationship with countries like Latin America, African and Asian Countries.
BRICS has helped the countries to develop a strong objective to meet the needs of the
people within the next coming years. The countries have been witnessed developing in the
last few years with great changes in the economical style of the countries.
The paper is based on the understanding of BRICS and its impact on the economic
condition of the countries. The paper has a description of the areas wherein BRICS have
helped develop in the country on the other hand what are the areas that BRICS needs to
develop. There has been a list of the challenges that have been faced by BRICS.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Analysis of the Countries Involved and Group Itself.................................................................4
Study what has been accomplished by the group, and what has been left undone....................7
Is There Still a Case to be Made for BRICS..............................................................................8
Conclusion................................................................................................................................13
Reference List..........................................................................................................................14
Bibliography.............................................................................................................................16

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Introduction
The term BRICS is a short form of the first letter of the countries that formed the
BRICS group that are Brazil, Russia, India, China and South Africa. The group has been
developed in the year 2001 with the chairman as Goldman Sachs and the assistant manager as
Jim O’Neill (Akhmadeev et al., 2018). The five major emerging countries have developed the
group to meet the rising economic crisis of the world. The countries have come together to
develop a forum that encourages independent international organisation that are capable of
encouraging political, commercial, cultural related cooperation among the different countries,
which was shaped in the year 2011 (Alper, 2018). The countries that have developed the
group are the rising countries that have a significant and impactful impact on the different
kinds of global along with regional affairs. In the year 2015, Russia has holed the chair of the
group hosting the summit of the year. The group has been developed for maintaining a
healthy relationship with the countries that have joined hands together to develop the group.
Before the introduction and implementation of South Africa, the group was known as
BRIC, which was based on the name of the names of the other countries. It acted as
machinery that helped the countries to converse, seek help, identify areas that will help in the
improvement of the cooperation of the countries and exchange opinion. The group has been
developed for challenging the IMF (International Monetary Fund) of US supremacy and
Alternatives to the world Bank (Arrive, & Feng, 2018). The paper will help in the
understanding of the countries and their relationships with each other, which helps in playing
an appropriate aspect in the development of the world economy. The group has a plan for
managing the different kinds of needs of the world within 2030; the group has established
several developments in the past year that have been mentioned along with the things that
need to be performed by the group (Cui, Jiao, & Jiao, 2016). The paper has also portrayed the

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challenges that the group has faced living the economic condition of the world to such a great
extent.
Discussion
Analysis of the Countries Involved and Group Itself
As commented by Bond (2016), the BRICS countries have the engines for managing
the overall economic growth, which will be suitable for improving the growth-related factors
of the different developing nations as well. Approximately more than sixty per cent of the
estimated 310000 MDR TB cases among has been notified these are the countries which
mainly helps them in standing out in the entire crowd includes China, India, Russia as well as
Brazil. These are the countries which try to be unique due to the sheer type of size as well as
growth potential in comparison to the other countries. The overall idea of the BRICS
combined and it mainly originated from BRIC.
The BRICs countries are the home to the majority of global aspect for the economic
growth in a proper manner. The BRICs are considered to be the world’s foremost developing
economies especially in decades; they have been capable of characterizing by the rapid kind
of economic growth as well as industrialisation. The major aspect of BRICs in the entire
world are basically inclusive of affairs which are keeping on changing in different countries
which are developing. These are troed to be considered as one of the recipients of aiding to
important kinds of givers of the funds.
South Africa- In 2010, South Africa tried and began the proper efforts for joining the
BRIC releated grouping, moreover, the overall process for the formal admission mainly
started in the month of August of the respective year. The South African economy is now the
23rd largest in the entire world and the rate of increase in different products pricing is below
5% and failing. It is richest in terms of the mineral reserves which will be beneficial in

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improving the effectiveness. On the other hand, the economy of South Africa is growing;
however, they are not fast enough and more than 48% of the entire population is trying to
survive below the poverty line which impacts the country’s economic growth (Jakovljevic,
2017).
China- China is the second country in the BRICS wherein there is a high expansion
of the educational achievement and there is rapid kind of economic growth which is the
advantage for the growing aspects of the countries. On the other hand, there are different
issues which include that there is a high level of improvement required in the field of
investment and Bank of China sees inflation as the big kind of risks that can impact the
growth of the entire economy negatively (Jakovljevic, 2017).
India- It is the third country involved in the BRICS wherein the major advantages
which are possessed by the country is 1.15 billion people, and it is considered to be the fastest
growing economies in the entire world. In the case of the natural resources, the country has
been successful in improving their efficiency level and it impacted their production of the
natural resources to a large extent. On the other hand, there are few challenges which can be
impacting the Indian economy in future which includes the fact that there can be differences
in the improvement of the basic achievement in the educational field along with expanding
the entire technological industry. By the BRICS, India is considered to be the second largest
labour force and it can be proving one of the essential aspects which need to be used by the
economy for their future growth.
Russia- It is the other country wherein the major attractions include their capability in
the high-technology related sectors and it accounts only up to the 20% of the entire world’s
oil as well as gas related services. Moreover, on the other hand, there are few disadvantages
which can be impacting their potential in future that include the corruption level which will

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be influencing the efficiency of the economy inefficiently and there can be shortage of the
labour which will be impacting the growth patterns of the country negatively (Arrive & Feng,
2017).
Brazil- It is the last country wherein the major advantage is that it is considered to be
the fastest-growing economies in last centuries and Brazilian economy becoming less
dependent on the different imports which is the most satisfying factors. On the contrary, the
future challenges include the fact that there is weak industrial output which can be impacting
the efficiency to a great extent (Rani & Kaur, 2018).
Although, as commented by Nayyar (2016), the BRICs have not been capable of
reaching to the different levels of industrialisation which helps in characterising the fact that
the traditional type of donors and are still plagued by the tenacious kind of poverty as well as
inequality which impacts their efficiency to a large extent. In such a scenario, the BRICs have
started to the expend the important amount of investment as well as foreign assurance funds
for the developing countries (Arrive & Feng, 2017). For instance- South Africa has become
one of the leading economies in the African economy and is expected to lead peace as well as
security efforts for promoting the regional economic integration along with the fund related
development projects.
The cooperation of the BRICS is mainly covered under political security as well as
economic aspects and it is again related to the people to people exchanges. India along with
Brazil, China along with Russia and South Africa, mainly engages themselves on
understanding the issues related to the global importance through the utilisation of BRICS.
The NDB has been funding as well as decided to fund more than forty-four per cent of the
projects which are worth more than USD 12 billion, within BRICs countries which includes
more than eight projects worth USD 3246 million in the Indian economy as well. In the

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increasing kind of the global environment, it has been seen and noticed that BRICS nations
need to provide the viable type of the leadership-related alternative for the different
developing nations (Wang et al., 2016).
Moreover, to move their focus towards the different development of the meaningful
role in world affairs, the BRICs need to play an active role in the resolution of the conflict.
The BRICS need to create a proper platform for the appropriate policies as well as related
response mechanisms which will be capable of improving the growth prospects of the
developing nations successfully. BRICS possess the immense kind of natural resources in
some of the regions as well as the scarcity of the different resources in others as well. The
different members of BRICs have essentially different kinds of statutes with the current kind
of global order (Cousins et al., 2018). Thus, in such scenario, China as well as Russia are
established as the global powers and they have the permanent type of membership on the UN
security council, while, Brazil, India along with South Africa aspire to the global type of
influence and impact and these are currently qualified as the regional powers as well.
Study what has been accomplished by the group, and what has been left undone.
As it has been discussed earlier that the group has been formed for meeting the
economic needs of the countries. Brazil, Russia, India, China and South Africa came together
to meet the needs of the world economy by the year 2030; these countries were the main
drives that will help in the meeting of the economic crisis of the organisation (Castro
Camioto et al., 2016). South Africa has a huge kind of influence on Africa, hence; the other
countries later on decided to bring South Africa to join the group as it will have an influence
in the entire development of the economy of the world. BRICS has held the summits that
were based on the discussion of the economic crisis in the world and to meet it as easy as
possible. From the research that has been taken place by Bond (2016), BRICS has forty per
cent of the world population, 25.9 per cent of the world’s geography, and 40 per cent of the

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worlds GDP. The above information is clear about the efficient working of the group. With
the development of the group, China and India became the world’s largest and the dominant
supplier of manufactured goods and services.
On the other hand, Brazil and Russia dominant in supplying raw materials. There has
been extreme growth in the resources of the countries such as coffee, sugarcane, iron as well
as crude oil (Cooper, 2016). There has been development in the edible product of the
countries meeting the needs of the countries.
However, there is a lot that the group needs to achieve within the next coming years like an
expansion of the market. It has been observed in the paper earlier that India and China have
been performing great with the increasing supplies of manufactured products. Hence, it is the
time for the increase of the market that will help in the increase in the economy of the
organisation (Cooper, 2016). Increase in the resources will help the group to increase the
economic power with the increase in the export of the products. Development of the region is
another aspect the group needs to look after that will help in the maximum level of
development of countries. Hence, the improvement of the regional development will help in
moving a step forward for the group in achieving their aims. Various aspects need to be
developed. However, the development of the monetary resource is an important factor that
will help in the investment in the business of the countries (Nayyar, 2016). Increase in the
monetary development will help in the improving of the overall growth of the business as
well as the economic condition of the countries.
With the creation of the group, there have been drastic changes observed in the
countries. There has been development in the economic condition of the countries with the
development of the group (Sinha, Gupta, Shahbaz & Sengupta, 2019). Brazilian economy
before the development of the group was completely dependent on the export that would help

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in the increase of the economy of the country. However, with the development of the group,
the country had stopped being dependent on the export market. It focused on the development
of poverty of the countries helping in the improvement of the countries economic growth.
The aims and objectives of the group helped to develop the condition of the people around
the world and help them to improve their economic condition (Nadeem, Gan & Nguyen,
2017). Russia being one of the developed countries with great knowledge of technology is a
great benefit that helped other countries to meet the need of the countries in producing a large
number of products that will help in the development of the economy of the particular
country.
However, along with the increase in the economy of the country, there must also be
an increase in the education and knowledge of the people of the country (Dau & Wesley,
2016). Hence, the group must also ensure that along with the increase in the economy of the
country there must be increased in the educational condition of the country that will help the
people efficient enough to work in every sphere. In the coming years, the group must ensure
that there will be an increase in the number of n=inevesters that will help in the meeting of
the objectives of the group.
Is There Still a Case to be Made for BRICS
There are a few aspects which are required to be incorporated and improved as it will
be playing a vital role in improving the condition of the BRICs in a suitable manner.
Firstly, there can be an introduction of institutional flexibility wherein the BRICS nations can
have different opinions and visions of the role of the groups and what it may be meaning to
each of them. The different mechanisms of the formulation of the policy need to be highly
dynamic along with inclusive and it is crucial that the flexibility should be maintained and
needs to be kept central to the very idea of BRICS (Shen et al., 2017). The role of the nodal

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research organisations and think that the tanks are kept as the most essential in the respective
aspect.
There should be reviving of the traditional knowledge systems along with practices is
the second step which needs to be followed by the BRICs countries as quite often, it has been
noticed that the terms such as developing and developed are torn out of the strictly economic
context, and they are given with the unjustifiably broad connotation (Alexey & Alexander,
2018). It is critical for BRICs for focusing on the reviving of the indigenous kind of practices
along with knowledge in the range of different domains which will be capable of designing
the different construction practices for the developing nations successfully (Cooper, 2016).
Sharing of the Innovations and technology is the other step which can be taken by the
BRICS countries wherein they need to be more proactive in bolstering research and funding
innovations along with technology. Proper exchange of the different information on the
scientific as well as technological policies as well as programs needs to keep the long-term
orientation on the cooperation projects (de Castro Camioto et al., 2016). It will be becoming
capable of providing the most suitable outcomes for developing nations within a short period.
At a minimum, the different BRICs members can be mutually benefiting themselves from the
documentation, sharing information along with standardisation, which will be accelerating
the cross-border technology sharing in a successful approach.
Lastly, it can be seen that the different BRICS countries need to analyse the cultural
exchange suitably which will be reducing the high level of impact which has been created on
them in a more efficient manner (Jakovljevic et al., 2017).
Challenges faced by BRICS:
In the 2018 summit of BRICS that was hosted by Africa Russian President Vladimir
Putin said that the group BRICS is facing a lot of challenges, tasks and opportunities that

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should be addressed in the subsequent years to come (Wilhelm, 2018). The summit showed
the reiteration of the Russian President about the important efforts by the state members in
order to consolidate dialogues and cooperation in certain multifaceted areas. In his
declaration he also expressed readiness of Russia to actively support all the priorities that
needs to sorted out for the chairmanship and also they will participate in the final preparation
for the execution of the tenth BRICS summit which is set to be taking place in Johannesburg.
The 2018 summit of BRICS had the theme of collaboration for inclusive growth,
industrial revolution and also shared prosperity (Ji, Bouri & Roubaud, 2018). This theme has
helped in providing the explanation that the countries in the group BRIC are increasingly at
the front position in the grounds of technological advancement (Pingyao & Jingyun, 2012).
The leaders of each country will have to review the first ten years of BRICS and they will
also have to discuss the cooperation that will be provided in the future by their respective
countries including the prospects that would help in the expansion of the group.
South Africa is facing most of the challenges for BRICS to overcome despite the
progress that it has made by being a part of the group. One of the most important challenges
that remain in the land of Africa is surveillance (Cassiolato, 2014). The outbreak of TB made
it difficult for the country or even the group to procure the solution due to the lack in the
efficient execution of surveillance. However, the current system that is prevalent in the
country is much better and greatly improved. Another challenge that is faced by the group as
well as the country of South Africa is the challenge of diagnosis. Without a better process of
diagnosis, it becomes extremely difficult for the group as well as the country itself to get to
know the extent of any health outbreak. Apart from diagnosis and surveillance, Infection
control and Treatment also poses a huge challenge for BRICS and Africa itself. However,
these challenges are being eventually overcome through improvements and coordination with