Established in 2006, BRICS is an influential group of five major emerging economies: Brazil, Russia, India, China, and South Africa. Initially formed as “BRIC” with Brazil, Russia, India, and China, the group expanded to include South Africa in 2010, becoming BRICS. This coalition aims to foster economic growth, political collaboration, and advocate for reforms in international financial institutions.

The formation of BRICS marked a significant shift in global economic dynamics. These nations, each with unique economic strengths, collectively represent over 40% of the world’s population and about 25% of the global GDP. Brazil, known for its rich natural resources and agricultural exports, pairs with Russia, a global energy powerhouse abundant in oil and natural gas. India brings rapid economic growth and a robust technology sector, while China, the world’s second-largest economy, dominates in manufacturing and exports. South Africa, the continent’s most developed economy, serves as a crucial gateway to Africa, rich in minerals and resources.

The objectives of BRICS are ambitious and multifaceted. The group seeks to promote peace, security, and development within its member states, while also pushing for a more equitable representation of emerging economies in global financial institutions like the IMF and World Bank. Enhancing trade and investment among the members, fostering cooperation in science, technology, education, and health, and advocating for a multipolar world order are central to BRICS’ mission.

Over the years, BRICS has made notable achievements. The establishment of the New Development Bank (NDB) in 2014 stands out as a major milestone. This institution finances infrastructure and sustainable development projects within BRICS nations and other emerging economies, providing a credible alternative to Western-dominated financial bodies. The Contingent Reserve Arrangement (CRA) was also created to offer financial support to members facing balance of payments crises. Regular annual summits facilitate discussions on global and regional issues, with the presidency rotating among member countries, ensuring equal representation and influence.

In terms of trade, BRICS nations have initiated agreements aimed at boosting intra-BRICS commerce and reducing reliance on Western currencies. This move towards de-dollarization reflects the group’s broader strategy to diversify global economic power and reduce dependency on the US dollar.

The rise of BRICS is significantly impacting the global economy. By diversifying economic power away from traditional Western economies, the group is reshaping global financial structures. The creation of alternative institutions like the NDB and CRA challenges the dominance of entities such as the IMF and World Bank. Furthermore, BRICS’ push to use local currencies in trade could diminish the global demand for the US dollar, potentially weakening its status as the world’s primary reserve currency.

For the US economy, the implications are profound. The de-dollarization efforts by BRICS could reduce the dollar’s global dominance, affecting its value and influence. Increased economic competition from BRICS nations could challenge US markets, resources, and geopolitical standing. Additionally, BRICS’ advocacy for reforming international institutions might lead to a diminished US role in global decision-making bodies.

In conclusion, BRICS is not just a coalition of emerging economies; it is a powerful force driving the shift towards a multipolar world order. Its efforts to promote economic cooperation and reform global governance challenge the traditional dominance of Western powers. While the full extent of its impact on the global economy and the US remains to be seen, BRICS undoubtedly plays a pivotal role in shaping the future of international relations and economic policies.