BRICS

In 2001 a banker at Goldman Sachs wrote a catchy label for four fast-growing economies. The four governments had not asked for it. Five years later they began meeting anyway. That label became BRICS, a club of emerging powers with its own bank.

Think of three questions as you read. How did a label become a club? How did it get a bank? And what happened at New Delhi in 2026?

1How did a banker’s label become a club?

In 2001 Jim O’Neill of Goldman Sachs coined the term “BRIC”. He used it to group Brazil, Russia, India and China as big emerging markets. It was an investment idea, not a political plan.

In September 2006 the four foreign ministers met on the sidelines of the UN General Assembly. On 16 June 2009 their leaders held the first summit in Yekaterinburg, Russia. South Africa joined on 24 December 2010, and the name became BRICS.

• BRIC coined: 2001.
• First summit: Yekaterinburg, 2009.
• South Africa joined: 2010.

2How did the club get a bank?

The 6th summit met in Fortaleza, Brazil, in July 2014. There the five leaders signed the agreement creating the New Development Bank. They also set up the Contingent Reserve Arrangement, a $100 billion pool for currency emergencies.

The NDB began work in July 2015. Its home is Shanghai. Each of the five founders holds an equal share. K.V. Kamath of India was its first president.

Do not mix up the two. The NDB lends money for projects. The CRA is a swap pool for countries short of foreign currency.

• NDB: Shanghai, signed 2014.
• CRA: $100 billion currency pool.
• NDB lends; CRA swaps.

3How did BRICS grow bigger?

At Johannesburg in August 2023, BRICS invited six countries: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE. Four joined on 1 January 2024: Egypt, Ethiopia, Iran and the UAE. Argentina stepped back.

Indonesia became a full member on 6 January 2025. It is the first Southeast Asian member. At Kazan in October 2024 BRICS created a “partner country” rank.

BRICS is an economic grouping of emerging powers. It is not a military alliance. That is the difference from the SCO.

• Joined 1 Jan 2024: Egypt, Ethiopia, Iran, UAE.
• Indonesia: Jan 2025.
• Partner rank created at Kazan, 2024.

4What happened at New Delhi in 2026?

India chaired BRICS in 2026. The 18th summit met at Bharat Mandapam, New Delhi, on 12–13 September. Xi Jinping came in person, his first India visit in seven years. Vladimir Putin also attended. Brazil’s President Lula did not come.

Members adopted the New Delhi Declaration unanimously on 12 September. It backs wider UN Security Council reform with more voice for developing countries. It opposes unilateral tariffs and carbon border taxes that break WTO rules. It condemns terrorism and demands an immediate ceasefire in Gaza. (Source: Eurasia Review) (Source: Outlook India)

India hosted in New Delhi in 2012 and in Goa in 2016. In 2021 India chaired but the summit was virtual. So 2026 is its third in-person summit.

• 18th summit: New Delhi, 12–13 Sep 2026.
• Declaration: adopted 12 Sep.
• Goa was 2016, not New Delhi.

5What are the exam traps?

• First summit was in Russia, not Brazil.
• NDB lends; CRA swaps.
• Indonesia joined in 2025.
• Fortaleza = 6th summit, 2014.