2.5. Significance and Challenges

♤ While some are skeptical about the BRICS formation, there is no doubt that this group of countries along with a number of others at similar levels of development is playing an

increasingly important role in the global economy. The contribution of BRICS countries to global GDP has increased from 8% in 2000 to 24% in 2017. Being home to 43% of the world’s population, three of the BRICS economies are ranked in the top 10 by GDP size, namely China (2nd), India (7th) and Brazil (9th).

♤ Many challenges lie ahead for the BRICS

♤ Each of these emerging economies are presently on divergent growth paths, which in turn translate into differing priorities and the lack of a unified agenda.

♤ Nevertheless, since these five countries cumulatively hold considerable weight in global economics and politics, their continuing engagement serves well for stable growth prospects in the regions they encompass.

♤ This is why overcoming individual ambitions is a prerequisite if the trends toward deepening through institutionalization (via the year-old New Development Bank and the proposed ratings agency) are to actually materialize.

♤ In that sense, it makes more sense for the BRICS quintet to subscribe to a well-defined economic scope to avoid getting caught in the quagmire of geopolitical rhetoric.

♤ Though such a mandate would be necessarily limited, seeking exclusively to promote investments and commercial collaboration, they would also invariably reflect the dynamism of these five powerful economies.