The BRICS economies

Unlike the European Union, the BRICS framework is not an institutionalised organisation. It comprises five sovereign countries with their political system, currency, and economy. Thus, the BRICS economy must be analysed separately for each member. Indeed, the countries

display enormously different economic profiles, challenges, and policies.

Besides that, the BRICS economies are emerging market economies with a few things in common. Due to the different profiles, policies and market orientations, a coherent common economic strategy is neither achievable nor the goal of the BRICS framework. In general, the BRICS framework has to be analysed in the context of geopolitics and national security. This context of geopolitics and national security. This is why the BRICS countries are committed to de de-dollarisation. Today, around 80 per cent of international transactions use the US Dollar (SWIFT 2015). This inherently weakens the BRICS countries' position, as they depend on US monetary policy. More importantly, all such transactions go through the SWIFT transactions system. This sensitively exposes these countries to Western sanctions. To circumvent such sanctions and strengthen their power, it is essential for the BRICS countries to achieve significant de de-dollarisation of global trade. As a first step, they aim to de de-dollarise intra intra-BRICS trade, as the partners have decided at the BRICS summit in August 2023. Most importantly, they seek to create a system allowing international trade in local currency (Reuters 2023). While the heads of states emphasise that they do not seek to replace the SWIFT system, it clearly aims to gain independence from Western Western- con trolled international transactions. This is a step particularly relevant to Russia, which has Russia, which has been banned from the use of SWIFT in the face of its war against Ukraine. Both Russia and China have developed alternatives to SWIFT that could be implemented within the BRICS framework ( framework ( Gouvea & Gutierrez 2023 Gouvea & Gutierrez 2023 ). The BRICS countries are further trying to cut free from US US-dominated international economic organisations. The establishment of the New Development Bank and the Contingent Reserve Agreement can be viewed as a mean to accomplish this goal . Both institutions should be

considered as an effort to gain independence from the International Monetary Fund. The Contingent Reserve Agreement allows the BRICS countries to rely on funding in times of crisis without restricting themselves to Western restrictions. The New Development Bank, on the other hand, finances (sustainable) infrastructure projects of its member states. While this approach of the NDB allows for more independence while conserving sovereignty, it also deepens the BRICS relations to facilitate further cooperation. However, such collaboration is strictly restricted to non non-invasive measures. No BRICS member has yet been willing to sacri fice a piece of sovereignty. This is why there have not been deep talks about a common currency, sovereignty. This is why there have not been deep talks about a common currency, even though this has been rumoured in public.

The BRICS economies are part of the global biggest economies. Even though they are emerging market economies, they account for around a third of the global GDP and 40 per cent of the world's population (Tian et al. 2020). Even though the BRICS economies fa ce significant challenges, they are still expected to experience significant growth over the following decades. A «Goldman Sachs» projection projects an average of 189 per cent economic growth by 2075. The G7 countries, on the other hand, are only expected to grow around 50 per cent (Daly & Gedminas 2022). Even though such long long-term views should be taken with a grain of salt, this study is consistent with other research. With the prospect of further emerging market countries joining the BRICS framework, Wes tern domination of global trade and its institutions in particular stand challenged significantly. H owever, due to a lack of cohesive institutions and actions, they yet lack the negotiation power they could have. As for now, BRICS as an BRICS as an orgaization is not of much re levance for global trade and businesses businesses. However, its member states as individuals are highly relevant players to shape trade and will gain more influence in future times.

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