The global economy finds itself at a critical juncture, having to navigate sustainable industrial approaches that are climate-friendly while also grappling with the economic turmoil brought about by the Russia-Ukraine war. Amidst these challenges, the BRICS group has emerged as a formidable economic bloc, demonstrating impressive resilience and economic dynamism. This raises the question: what are the BRICS countries doing right, economically?
Originally, the BRICS group was identified to highlight investment opportunities in what were projected to be the world’s growing economies. However, in recent years, it has evolved into a geopolitical group with annual meetings, summits, and coordinated policies. The original members of the group are Brazil, Russia, India, China, and South Africa. On 1 January 2024, they were joined by Iran, Egypt, Ethiopia, and the United Arab Emirates. The BRICS countries are often regarded as the unofficial rivals of the G7.
BRICS nations account for approximately 30% of the world’s land surface and 45% of the global population. South Africa is the largest economy in Africa, while Brazil, Russia, India, and China are among the world’s ten largest countries by population, area, and gross domestic product (GDP). The initial five members of the BRICS group are also members of the G20. As of 2018, they had a combined nominal GDP of US$28 trillion (27% of global Gross World Product), a total GDP (PPP) of around US$57 trillion (33% of global GDP PPP), and an estimated US$4.5 trillion in combined foreign reserves.
The group’s economic achievements over the last 20 years have been remarkable, prompting deeper inquiry into its modus operandi to better understand the strengths of the group and how they navigate the challenges posed by modern-day economics.
Diversification
An examination of BRICS economies reveals that these countries practise economic diversification, meaning they do not rely on a single industry or product. China, for instance, has a manufacturing-focused economy and is a leader in technology and innovation. Its investments in artificial intelligence, 5G, and green technology have positioned it as a global tech powerhouse. Similarly, Brazil and South Africa have made significant advancements in agriculture, mining, and tourism, leveraging their rich natural resources and strategic geographic locations.
Infrastructure Investment
BRICS countries have successfully made infrastructure development a cornerstone of their economic strategy. Each of the BRICS countries is investing significantly in infrastructure development to support long-term growth. South Africa has focused on improving transportation, energy, and telecommunications infrastructure to facilitate trade and attract international investment. India’s infrastructure projects, such as the Smart Cities Mission, aim to boost urban development and economic connectivity.
Innovation and Technology
BRICS nations have made significant strides in technology and innovation. China’s technological advances have driven rapid growth in e-commerce, biotechnology, and electric vehicles, fuelled by government support for research and development (R&D). India, not far behind, has established itself as a global IT and tech innovation hub, with a thriving startup ecosystem and a strong emphasis on technology-driven solutions in sectors such as healthcare and education.
Economic Reform and Policy
The economic successes of the BRICS nations would not have been possible without the right economic reforms and prudent policy measures. Over the years, each member state has implemented economic policies that have achieved growth and stability. Russia, for instance, has shifted its focus away from oil, investing in sectors such as technology and agriculture. Brazil, on the other hand, has introduced reforms to improve its fiscal situation and ease of doing business, streamlining regulations and attracting foreign investment.
Building Human Capital
Investing in education and skill development has been a priority for BRICS nations. Human capital is crucial for long-term economic success, and these nations have spared no effort in maximising it. India and China have invested heavily in education and vocational training, building a skilled workforce to support diverse industries. Brazil and South Africa have initiated programmes to improve education and job readiness in their countries, further contributing to their economic growth and development.
The BRICS nations have displayed immense resilience through investments, policy reforms, and a focus on innovation and sustainability, which underpins their economic success. By diversifying their economies, investing in infrastructure, and fostering technological advancements, BRICS nations have positioned themselves as pivotal players in the global economy. It is crucial that African leaders review their strategies and resolve to achieve sustainable economic growth.
