BRICS Leading Structural Transformation

Abstract

The five emerging economies of Brazil, Russia, India, China, and South Africa, collectively known as BRICS, encompass vast territories rich in natural resources. Moreover, with a combined population accounting for over 40% of the global total, these countries have garnered significant attention from foreign investors seeking lucrative markets with immense growth potential. In an era marred by export concentration and fierce competition, nations often depend heavily on a small number of key markets. Consequently, any decline in demand or trade disputes with developed countries can lead to substantial economic loss. Against this backdrop, the BRICS countries may emerge as crucial partners for less-developed countries (LDCs) thanks to their tremendous trade prospects. As part of the South-South group, the BRICS countries have already begun engaging in economic cooperation and foreign aid initiatives with LDCs. They collectively constitute the primary source of aid from non-DAC (Development Assistance Committee) nations. This growing prominence has propelled the BRICS into the limelight as a viable alternative to the OECD-DAC (Organisation for Economic Co-operation and Development-Development Assistance Committee). By fostering a grouping that encompasses BRICS and LDC countries, namely Brazil, Russia, India, China, South Africa, and the least developed countries, the potential for economic growth is further heightened. This partnership would facilitate access to crucial financial resources, spur structural transformation by diversifying GDP sectors, and foster specialised economic relationships with LDCs. To better understand the significance of LDC countries, examining their classification by the United Nations is essential. This categorisation considers their historical establishment background and underscores the need for a global partnership to drive their development agendas. Furthermore, a comprehensive list of countries within this LDC group has been compiled for reference. Against this backdrop, the pivotal role of BRICS in assisting LDC countries gains further prominence. The potential benefits of such a partnership and the challenges ahead are also subjects of extensive discussion. The cooperation and collaboration between LDC countries and BRICS hold immense promise across various sectors. By complementing each other's strengths, these nations can forge a powerful alliance that fuels collective progress and prosperity. The path forward entails collaboration in industries ranging from infrastructure development, agriculture, and manufacturing to technology transfer, capacity building, and investment facilitation. Through cooperation and strategic initiatives, LDC countries and BRICS can lay the foundation for sustainable economic growth, elevated standards of living, and the attainment of shared development objectives. (F. Littrell and Prem, 2017)