BRICS Glossary: Cheat Sheet

November 9, 2024 by JBS

Key Concepts and Definitions

The BRICS glossary provides clear, concise explanations of key terms, concepts, and organizations relevant to BRICS.

Understanding these terms will enhance your insights into the political, economic, and social dynamics within BRICS and its influence on the global stage.

BRICS Glossary: Key Concepts for Global Diplomacy

A

• Accession: The process by which new member countries join BRICS, as seen with recent additions like Egypt, Ethiopia, United, United Arab Emirates (UAE), and Iran.

• ASEAN: The Association of Southeast Asian Nations, an economic and political group in Asia interacting with BRICS economies.

• Association: The preferred term for BRICS, emphasizing its informal nature and collaborative approach.

B

• Balance of Payments: A statement of all transactions made between entities in one country and the rest of the world over a defined period.

• Bretton Woods System: A historical financial order post-WWII that established systems like the IMF and influenced global currency stability.

• BRICS: An acronym for Brazil, Russia, India, China, and South Africa, representing a group of major emerging economies.

• BRICS+: An informal name used to acknowledge the expansion of BRICS beyond its original five members.

• BRICS Cooperation: A comprehensive source of information covering a wide range of topics related to the BRICS organization

• BRICS Bank: Also known as the New Development Bank (NDB), a multilateral development bank established by BRICS nations.

• BRICS Summit: An annual meeting of the heads of state of BRICS countries to discuss economic cooperation and global issues.

• Blockchain: A decentralized, digital ledger technology that could potentially be used in BRICS financial initiatives.

C

• Capital Markets: Financial markets for buying and selling equity and debt instruments, which BRICS countries are developing.

• Contingent Reserve Arrangement (CRA): A financial mechanism established by BRICS to provide support to members facing short-term balance of payments pressures.

• Cryptocurrency: A digital or virtual currency using cryptography, which BRICS nations are exploring for alternative payment systems.

• Currency Swap: An agreement to exchange currency between two foreign parties, often used in international trade.

D

• Debt-to-GDP Ratio: A measure of a country's debt relative to its economic output, used to assess financial health and stability.

• Dedollarization: The process of reducing dependence on the U.S. dollar in international trade and finance, a goal of some BRICS members.

• Developing Economies: Countries with growing industrial and economic bases, often associated with BRICS nations.

• Digital Yuan: China’s digital currency, significant within BRICS as a model for potential future digital currencies in emerging economies.

E

• Emerging Markets: Developing economies with rapid growth and industrialization, often associated with BRICS countries.

• Energy Policy: Strategies for energy production and consumption, a key area for BRICS cooperation given members' varying energy resources.

• Exchange Rate: The rate at which one currency will be exchanged for another, crucial in BRICS trade relations.

• Expansion: The process of adding new member countries to the BRICS group.

F

• Fiscal Policy: Government decisions about spending and taxation, impacting economic stability and development in BRICS nations.

• Foreign Direct Investment (FDI): Cross-border investments made by companies in BRICS countries, contributing to their economic growth.

• Fortaleza Summit: The 2014 BRICS summit where the New Development Bank and Contingent Reserve Arrangement were established.

• Free Trade Agreement (FTA): Agreements to reduce or eliminate tariffs and other trade barriers between nations, sometimes considered among BRICS members.

G

• GDP (Gross Domestic Product): An indicator that represents the total monetary value of all finished goods and services produced within a country's borders over a specific time period, typically measured annually.

• Geopolitics: Geopolitics is the study of how Earth's geography—both human and physical—affects politics and international relations.

• Global South: A term used to refer to developing countries, many of which align with BRICS' economic perspectives.

• Goldman Sachs: The investment bank where economist Jim O'Neill coined the term "BRIC" in 2001.

H

• Hegemony: The leadership or dominance of one country or group over others, which BRICS aims to counterbalance in the global economy.

• Hydrocarbons: Organic compounds used as fuel, such as oil and gas, significant for energy policies in BRICS nations like Russia and Brazil.

I

• IMF (International Monetary Fund): An international organization that BRICS seeks to reform or provide alternatives to.

• Inflation: The rate at which the general level of prices for goods and services rises.

• Infrastructure Development: Projects related to transportation, energy, and communication facilities.

• Intergovernmental Organization: A body composed of sovereign states, which BRICS has evolved into.

J

• Jim O'Neill: The economist who originally formulated the BRIC acronym, predicting these economies would dominate global growth by 2050.

• Joint Venture: A business arrangement where two or more parties agree to combine resources for a specific goal.

K

• Kazan Summit: The planned BRICS summit to be held in Kazan, Russia, in October 20244.

• Knowledge Economy: An economy driven by information, technology, and skilled labor, an area of focus for BRICS as they develop high-tech sectors.

L

• Liquidity: The availability of liquid assets to a market or company, essential for BRICS banks and companies in managing investments.

• Local Currency Bond Markets: Financial markets that BRICS countries are developing to reduce reliance on foreign currencies.

• Local Currency Trading: Local currency trading involves the use of each member country's currency in bilateral trade. This practice aims to simplify transactions, reduce exchange rate risks, and strengthen economic ties among BRICS nations.

• Local Currency Settlement (LCS): The practice of settling international trade in local currencies rather than a foreign reserve currency like the U.S. dollar.

M

• Macroeconomics: The branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.

• Multilateralism: The practice of coordinating national policies in groups of three or more states, a principle embraced by BRICS.

• Multipolar World: A global power structure with multiple centers of authority, which BRICS advocates for.

N

• New Development Bank (NDB): The multilateral development bank established by BRICS countries.

• Non-interference: A principle adhered to by BRICS countries, respecting each member's sovereignty in domestic affairs.

O

• Oil Reserves: Stockpiles of crude oil, important for BRICS nations like Russia, which are major players in the global oil market.

• OPEC+: An alliance of oil-producing countries, some of which are now BRICS members.

P

• Pillars of BRICS: The three main areas of cooperation: political and security, economic and financial, and cultural and people-to-people exchanges.

• Public-Private Partnership (PPP): A cooperative arrangement between public and private sectors, used within BRICS for large infrastructure projects.

Q

• Quantitative Easing (QE): A monetary policy where a central bank buys securities to increase money supply and stimulate the economy.

• Quota Reform: Efforts to adjust voting rights and representation in international financial institutions, a goal of BRICS countries.

R

• Regional Integration: The process of overcoming barriers that divide neighboring countries, fostering cohesiveness, often discussed in BRICS contexts.

• Renminbi (RMB): The official currency of China, increasingly used in international trade among BRICS nations.

• Remittance: Money sent back home by citizens working abroad, an important income source in some BRICS countries.

• Reserve Currency: A currency held in large amounts by governments as part of their foreign exchange reserves; BRICS aims to reduce reliance on the U.S. dollar as a reserve currency.

S

• Sanctions: Restrictions imposed on countries to limit economic or political power; several BRICS members are subject to Western sanctions.

• Sectorial Cooperation: Collaboration between BRICS countries in various sectors such as energy, health, education, and science and technology.

• Sovereign Wealth Fund: A state-owned investment fund, which several BRICS countries maintain.

• Sustainable Development: Economic growth that is environmentally responsible and socially inclusive. This concept encourages member countries to invest in green technologies and sustainable practices.

T

• Tariff: A tax imposed on imported goods, a critical aspect of BRICS’ negotiations on trade policies with each other and the world.

• Trade Bloc: A type of intergovernmental agreement where regional barriers to trade are reduced or eliminated among participating states.

• Trade Deficit: When a country's imports exceed its exports, a concern in BRICS trade discussions.

• Track I, II, and III: Different levels of cooperation among BRICS members, ranging from formal diplomatic engagement to civil society interactions

U

• UNCTAD: The process of one state acting alone on the global stage, often avoided in BRICS, which emphasizes multilateral approaches.

• Unilateralism: United Nations Conference on Trade and Development, an organization that works closely with BRICS countries on development issues.

• Unipolarity: A distribution of power in which one state exercises most of the cultural, economic, and military influence, which BRICS aims to challenge.

V

• Valdai Club: The Valdai Club is a prominent international think tank and discussion platform focused on geopolitical, economic, and security issues, particularly in relation to Russia.

• Value Chain: The process by which businesses receive raw materials and add value to create a finished product, relevant for BRICS manufacturing industries.

• Voting Rights: The allocation of decision-making power in international organizations, which BRICS seeks to reform in institutions like the IMF and World Bank.

W

• World Bank: An international financial institution that BRICS often seeks to reform or provide alternatives to.

X

• Xenocurrency: Foreign currency, relevant in discussions of BRICS' efforts to reduce dependence on the U.S. dollar.

• Xi Jinping’s Belt and Road Initiative (BRI): China's global development strategy that impacts trade routes and infrastructure in BRICS-aligned regions.

Y

• Yekaterinburg: The Russian city where the first official BRICS summit was held in 2009.

• Yuan: The Chinese currency, increasingly promoted within BRICS as an alternative to the U.S. dollar for international transactions.

Z

• Zero-sum Game: A situation in game theory where one participant's gain results from another's loss, often used to describe traditional views of international relations that BRICS seeks to move beyond.

To navigate the complexities of BRICS effectively, familiarity with its key terms and concepts is essential.

Familiarity with the BRICS Glossary Cheat Sheet is essential for anyone interested in global economics, trade relations, and international diplomacy.

By leveraging this knowledge, you can engage more effectively in discussions surrounding BRICS and its impact on the global stage.

BRICS Glossary Cheat Sheet: FAQ

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