Beyond Poverty Alleviation: Envisioning Inclusive Growth in the BRICS Countries

The BRICS countries (Brazil, Russia, India, China and South Africa) account for almost 42 percent of the world’s population, and contribute to around 24 percent of the global gross domestic product (GDP) and 16 percent of global trade. [1] Since the inception of the BRICS forum in the early 2000s, these countries have witnessed rapid economic growth that is considerably higher compared to the Organization for Economic Co-operation and Development (OECD) countries; provided leadership to the emerging market economies (EMEs) and the developing world; and actively participated in shaping the global economic order. [2] China and India have led this phenomenal growth in the 2000-2021 period (recording average annual growth rates of about 8.6 percent and 6 percent, respectively), followed by the Russian Federation. Even the relatively slower growth rates of Brazil and South Africa are significantly higher than those of the OECD countries (see Figure 1). From the perspective of overall GDP growth and annual per capita GDP growth rates over the same period, all BRICS members, except South Africa, performed better than the OECD countries. This growth was primarily driven by private consumption in most BRICS states. Interestingly, even China, which relied largely on export-driven growth, had begun to acknowledge private consumption as the most significant growth driver in its recent plan documents. [3]