The evolution of BRICS and its challenges today

Leaders of the BRICS group of nations will meet on Saturday in the Indian capital of New Delhi for their annual summit, amid mounting geopolitical tension, disruptions in energy markets, shipping, and global trade.
The acronym BRIC was coined by Goldman Sachs Chief Economist Jim O'Neill in 2001, in a research paper highlighting the growth potential of Brazil, Russia, India, and China, but it was not until 2009 that the countries came together as a bloc.

WHY WAS IT FORMED?
BRICS was set up to challenge a world order dominated by the United States and its Western allies.
Together, its members account for more than 40% of the world's population and almost a quarter of the global economy.
The grouping today focuses on political and security cooperation, economic and financial cooperation, and people-to-people exchanges.

WHAT HAS IT ACHIEVED?
BRICS' biggest achievement is the multilateral New Development Bank, established in 2015 to finance infrastructure and sustainable development projects in emerging markets.
The bank has approved 139 projects worth nearly $43 billion, according to its website, but suspended new transactions in Russia in the face of sanctions.
In addition, a BRICS Pay System is being set up, with the aim of linking members' fast payment systems to enable cross-border settlements without relying on dollar-based banks.
Members are also exploring linking their central bank digital currencies and are increasingly settling trade in national currencies as they pursue alternatives to dollar-based payment systems.

WHAT ARE THE CHALLENGES?
From disagreements on core purpose to divergent interests, BRICS is grappling with many challenges today.
While Russia and China consider the bloc a counterweight to the West, India and Brazil see it as more focused on economics and reform.
The 2024 expansion has also complicated its consensus-oriented approach, with divergent foreign policy interests hindering agreement.

HOW DOES THE WEST VIEW BRICS?
Most Western nations are cautious about the grouping, recognising it as a platform that can slowly shift the balance of geopolitical power, but the bloc has repeatedly clashed with US President Donald Trump, who has termed it "anti-American".