Iran’s membership in the BRICS group has opened new horizons for economic cooperation, sustainable development, and reducing dependence on the Western financial system.
Since its establishment in 2009, the BRICS group has played a significant role in global economic and political transformations. Recently expanded with the inclusion of new countries into “BRICS Plus,” the group seeks to shift the global order in favor of developing nations by providing independent financial frameworks and strengthening scientific and technological cooperation. This article, summarizing a report from the Financial Intelligence Organization on the BRICS Union, examines the opportunities and challenges of cooperation with BRICS, focusing particularly on Iran’s membership in the group. It aims to provide insights into the future and its role in global developments.
Table of Contents
Introduction
The BRICS group, consisting of five leading emerging economies—Brazil, Russia, India, China, and South Africa—is one of the most important multilateral cooperation institutions of the 21st century. In its latest expansion, the union has transformed into an intergovernmental organization with new members, including Egypt, Ethiopia, the United Arab Emirates, Iran, Indonesia, and Bolivia. Initially formed under the name BRIC with four countries at Russia’s proposal in 2006, the group was renamed BRICS following South Africa’s accession in 2010. The primary goal of BRICS is to establish frameworks for economic, political, and social interactions among its members to promote sustainable development and expand mutual benefits. With over 3 billion people (42% of the world’s population), 30% of the world’s land area, and 25% of global GDP, BRICS is recognized as one of the largest economic and political blocs globally.
Over the years, BRICS has sought to play a crucial role in reshaping the global economic order through enhanced international cooperation. The establishment of institutions such as the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA) exemplifies these efforts. Additionally, its annual summits provide a platform for member states to discuss key international issues and strengthen bilateral and multilateral cooperation. This report explores the foundations, opportunities, and challenges related to BRICS and analyzes Iran’s potential role as a BRICS Plus member. It is hoped that this review will offer a comprehensive perspective for a better understanding of the group’s current state and future prospects.
Introduction and Primary Objectives of the BRICS Group
The BRICS group, comprising the five leading emerging economies of Brazil, Russia, India, China, and South Africa, was established in 2009 to enhance economic, political, and social cooperation and create a more equitable global order. As one of the world’s most influential economic blocs, it aims to address global economic and political challenges while reducing dependence on the Western-dominated financial system.
Primary Objectives of the BRICS Group
Sustainable Development and Expanding Mutual Benefits
Utilizing extensive natural resources, human capital, and economic capacities, BRICS aims to facilitate sustainable economic growth nationally and internationally through cooperation among its members. Emphasizing economic and social justice, the group seeks to ensure equal conditions for all members and partner countries.
Creating a New Global Economic Order
Member states, criticizing the dominance of the U.S. dollar and the Western financial system, strive to establish an independent global financial system. The creation of institutions such as the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA) represents concrete steps in this direction. These institutions play a key role in financing developmental and infrastructure projects and addressing economic crises in member states.
Enhancing Influence in International Decision-Making
With approximately 42% of the world’s population and a significant share of global GDP, BRICS plays a vital role in balancing international power. The group aims to increase its participation in key global decision-making processes and influence economic and political policymaking in international forums.
Strengthening Cooperation in Innovation and Technology
One of BRICS’ key goals is to advance new technologies and establish a platform for scientific knowledge exchange among its members. This collaboration includes research and development in areas such as renewable energy, healthcare, agriculture, and digital technologies. The creation of joint innovation and research centers also strengthens the scientific and industrial capabilities of member countries.
Promoting South-South Integration
As a successful model of South-South cooperation, BRICS aims to bridge the gap between developed and developing nations by establishing shared collaboration platforms. The group also seeks to enhance economic and political relations among its members and other developing countries to form a unified front against global challenges.
Initial Achievements of the BRICS Group
Since its inception, BRICS has achieved significant milestones that have reinforced its position in the international arena.
Establishing Independent Financial Frameworks
The establishment of the New Development Bank and the BRICS Contingent Reserve Arrangement are among the group’s most critical achievements. These institutions finance infrastructure and development projects, reduce member states’ dependence on the Western financial system, and enhance their economic stability.
Holding Regular Annual Summits
Since 2009, BRICS has held annual summits at various levels, providing a platform for setting joint objectives, evaluating progress, and strengthening cooperation in multiple fields.
Advancing Infrastructure and Development Projects
BRICS plays a key role in facilitating major infrastructure projects in member states. These projects include investments in renewable energy, transportation networks, and digital infrastructure, contributing to economic and social growth.
Strengthening Cooperation Across Multiple Sectors
The group has established diverse collaboration avenues in sectors such as energy, agriculture, healthcare, and environmental protection. These partnerships enhance the economic and social capabilities of its members.
Contributing to Global Economic Crisis Management
Through institutions like the Contingent Reserve Arrangement, BRICS provides the financial instruments necessary to address economic crises. These mechanisms help member states secure the financial resources required during economic downturns.
Understanding the Platforms Formed Under BRICS
Since its establishment in 2009, the BRICS group has created numerous platforms and institutions to enhance multilateral cooperation and increase its influence in the international system. These platforms have been designed to better manage economic, scientific, political, and social issues among members and exert a greater impact on global order. Below, we examine the most important platforms formed under BRICS.
Annual Summits
BRICS annual summits have been regularly held since 2009, serving as one of the most important decision-making and coordination platforms among members. These summits include various levels, such as meetings of senior leaders, foreign ministers, finance ministers, and specialized working groups.
Objectives and Role of the Summits
BRICS summits provide an opportunity for leaders and senior officials of member countries to exchange views on key international issues and internal group matters. These summits result in the release of joint statements outlining the group’s positions and programs on trade, investment, the environment, health, and technology.
Key Outcomes of the Summits
One of the main achievements of these summits is the formulation of long-term strategies for cooperation among members and the strengthening of multilateral relations. For example, recent summits have highlighted topics such as de-dollarization, strengthening an independent financial system, and expanding scientific and technological cooperation.
Financial Platforms
One of BRICS’ key achievements is the establishment of independent financial platforms that help member countries reduce their dependence on the Western financial system and the US dollar while protecting their economic stability.
New Development Bank (NDB)
Founded in 2014, the primary mission of this bank is to finance infrastructure and sustainable development projects in member countries and other developing economies.
Bank Performance: NDB has approved dozens of projects with a budget exceeding $32 billion, including investments in renewable energy, transportation, and digital infrastructure.
Bank Structure: NDB has an initial capital of $100 billion, with equal voting rights among its founding members, preventing any single country from dominating the institution.
BRICS Contingent Reserve Arrangement (CRA)
The CRA is designed as a financial fund to provide short-term liquidity to member countries during economic crises.
Objectives: Reducing financial pressures, strengthening economic stability among members, and providing emergency solutions in response to financial crises.
Financial Structure: This fund holds reserves totaling $100 billion, with contributions determined based on each country’s economic strength (China: $41 billion, India, Russia, and Brazil: $18 billion each, and South Africa: $5 billion).
Councils and Various Assemblies
To improve coordination and develop cooperation in different areas, BRICS has established several specialized councils and assemblies that play a crucial role in advancing the group’s objectives.
BRICS Business Council
This council serves as a bridge between businesses and the private sectors of member countries. Its primary goal is to facilitate investments and expand international trade among members.
BRICS Science and Innovation Forum
This forum provides a platform for knowledge exchange and the implementation of joint scientific and technological projects among members. It focuses on areas such as advanced technologies, clean energy, and healthcare.
BRICS Parliamentary Forum
This forum was established to strengthen legislative cooperation and coordination among the parliaments of member countries. It facilitates the adoption of laws related to BRICS’ goals.
Innovation and Research & Development Centers
Another key focus of BRICS is fostering innovation and scientific research through the establishment of specialized centers in these fields.
BRICS Innovation Center
This center supports research projects and the development of cutting-edge technologies. It focuses on areas such as artificial intelligence, blockchain, and environmental technologies.
BRICS Vaccine Research & Development Center
Established in response to global health challenges, particularly pandemics, this center aims to develop innovative vaccines and strengthen scientific cooperation in the health sector.
BRICS Industrial Centers
These centers work to enhance industrial technologies and strengthen joint collaboration in manufacturing and industry. Their goals include creating sustainable supply chains and reducing dependence on Western countries.
Impacts and Future Outlook
The platforms and institutions associated with BRICS reflect the group’s efforts to strengthen multilateral cooperation and increase its influence in global governance. These institutions not only help member countries reduce their dependence on the Western financial and economic system but also provide a foundation for sustainable development and broader global interactions.
Economic Relationship Development: The creation of independent financial structures paves the way for expanded trade and joint investment among members.
Increasing Global Influence: Strengthening international relations and coordination among members has positioned BRICS as a key player in managing global crises.
Scientific and Technological Leadership: BRICS research and innovation centers help member countries lead in global scientific and technological competitions.
By establishing financial, scientific, and innovation platforms, BRICS has reinforced its role in shaping the future global order. Annual summits, independent financial institutions, various councils and assemblies, and research centers all demonstrate the group’s efforts to foster convergence among members and reduce dependence on Western-dominated structures.
Ultimately, BRICS’ success in utilizing these platforms and expanding its global influence depends on the commitment and effective cooperation of its members. The group can become one of the main actors in the international system by developing economic relations and strengthening scientific collaborations.
Opportunities and Challenges for BRICS
BRICS faces challenges such as economic imbalances among members, internal conflicts of interest, and Western opposition. China, as the largest BRICS economy, plays a dominant role in the group, which may reduce cohesion among members. Additionally, political disputes between some members, such as tensions between India and China or Russia and the West, make intra-group coordination more difficult.
However, BRICS has significant opportunities to expand its influence. Through trade and investment development, technological cooperation, and efforts to reduce the dominance of the US dollar, the group can become a major player in the global economy.
Future Outlook for BRICS
Leveraging its economic, human, and natural resources, BRICS can play an influential role in shaping the future global economy. Some key pathways to strengthening this role include:
Creating a Common Currency: BRICS could enhance its role in reshaping the global financial system by developing a new currency for international settlements.
Strengthening Internal Convergence: Establishing cohesive institutional structures and reducing internal disputes could improve the group’s coordination and influence.
Expanding International Relations: Strengthening cooperation with other countries, especially in the Global South, will help solidify BRICS’ position in the international system.
The objectives and achievements of BRICS demonstrate the bloc’s high potential to influence global governance and provide alternative solutions to the challenges facing emerging economies. Despite multiple challenges, continued multilateral cooperation, strengthened unity among members, and leveraging available opportunities can transform BRICS into one of the world’s most prominent economic and political players.
Challenges Facing the BRICS Group
Economic Imbalance Among Members
One of the fundamental challenges of the BRICS group is the significant disparity in the level of economic development among its member states. China, as the world’s second-largest economy, accounts for a major share of the BRICS GDP, whereas South Africa is considered the smallest economy in the group. This imbalance complicates joint decision-making and the fair distribution of resources.
Conflicting Interests and Internal Limitations
Each member country has its own political and economic priorities and goals, which sometimes conflict with one another. For example:
- Economic competition between China and India;
- Political tensions between Russia and some Western countries, which may affect BRICS relations;
- Failure to institutionalize.
BRICS lacks a cohesive organizational structure and an official charter. This can reduce coordination and the group’s effectiveness in addressing global challenges. Moreover, the absence of a central body for policy coordination and decision-making may slow down the progress of joint initiatives.
Western Obstructions
Western powers, particularly the United States, may take restrictive measures against BRICS due to concerns over its growing influence. The instrumental use of economic sanctions and efforts to strengthen the dollar-dominated financial system are examples of such measures.
Weak Political Convergence
The BRICS countries have not yet achieved real political convergence. This is due to differences in governance systems, foreign policies, and varying perspectives on international issues. Such a situation prevents BRICS from effectively participating in key global decision-making.
Opportunities and Potential Challenges of Iran’s Membership in BRICS+
Economic and Regional Opportunities for Iran
Increased Regional and Global Influence: Membership in BRICS+ can help Iran enhance its influence in international decision-making and play a more significant role in regional and global equations.
Development of Economic Infrastructure: Iran can benefit from BRICS’ financial and technological resources to develop its infrastructure projects. These collaborations may include renewable energy development, transportation, and information technology.
Expansion of Trade and Investment: BRICS+ membership can facilitate Iran’s access to emerging markets of member countries and create more investment opportunities.
Reduced Dependence on the Western Financial System: Cooperation with BRICS allows Iran to utilize the group’s independent financial system and reduce its reliance on the US dollar.
Strengthening Scientific and Technological Cooperation: Through engagement with leading BRICS countries, Iran can gain access to advanced technologies and enhance its scientific and research capabilities.
Political Barriers and Sanctions
US and Western Sanctions: Economic and financial sanctions imposed by the US may limit Iran’s cooperation with BRICS members and hinder the full utilization of membership opportunities.
Misalignment of Iran’s Foreign Policy: Iran’s foreign policy sometimes does not align with the interests and perspectives of other BRICS members, which may reduce political and economic cooperation.
Regional Tensions: Due to regional conflicts and tensions, Iran faces challenges in expanding relations with some BRICS member states.
Internal Issues: Constant changes in domestic policies, economic instability, and weak resource management may limit Iran’s ability to take full advantage of BRICS opportunities.
Iran’s membership in BRICS+ can create numerous economic, technological, and diplomatic opportunities. However, to fully leverage these opportunities, Iran must work on reducing domestic and international tensions, strengthening economic policies, and enhancing regional cooperation. This approach can position Iran as a more influential player in global affairs.
The BRICS group, focusing on strengthening economic, political, and technological cooperation among member countries, has played a significant role in shifting global dynamics. Due to its large population, substantial share of global GDP, and vast natural resources, the group has considerable potential to influence the global order.
Conclusion
General Analysis of BRICS’ Status and Future
Achievements: BRICS has succeeded in establishing independent financial frameworks such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), playing a crucial role in reducing dependence on the Western financial system and strengthening economic cooperation among members. Additionally, holding regular summits and expanding scientific and technological collaborations are other strengths of this group.
Challenges: Economic imbalances among members, conflicting interests, and weak institutionalization remain obstacles for BRICS. Western obstructions and a lack of political coordination can also negatively impact the group’s objectives.
The Future of BRICS and Iran’s Role
The expansion of BRICS through BRICS+ can create new opportunities for developing countries. Iran’s membership in this framework could:
- Aid in infrastructure development and reduce dependence on the Western financial system;
- Provide opportunities for trade and investment expansion;
- Strengthen Iran’s position in international affairs.
However, Iran needs to mitigate domestic and international tensions, improve economic policies, and enhance diplomatic efforts to make the most of these opportunities.
As one of the world’s largest economic and political blocs, BRICS has significant potential to strengthen South-South cooperation and reshape global order. Despite the challenges, internal cohesion and strategic planning can make this group a more influential actor on the global stage. For Iran, BRICS+ membership represents a unique opportunity that could significantly impact its economic and diplomatic future.
