BRICS nations are home to about 40% of the world’s population, a combined GDP of $37 trillion dollar, which is equivalent to 22% of the world’s gross product (Ramakrishna and São Pedro Filho, 2014). The bloc is the reason why trade and liberalisation has flourished in Asian markets and these nations. The main reason of the bloc’s formation is to integrate in an uncertain global environment and collectively face challenges and minimise the impact. Despite the sweet collaboration and cooperation by the BRICS nations, there are difficulties that are immense in their magnitude which can even be the reason for gradual dismemberment (Schuman, 2014; O’Brien, Robert and Williams, 2010).
Brazil is facing a huge target of containing unemployment and inflation, which are both at a 10% rate. It is too hard for retail markets to cheer and for the consumers to come out to shop (CNBC, 2016). The debt burden of the nation is high. Some government offices in the capital have not even paid salaries for months. This is likely to change since there is a change in leadership and reforms are in place to counter inflation and unemployment. Inward investments is said to be the primary target for the reforms.
Russia is busy with countering sanctions from the US and adjusting its oil economy (Gereffi, 2013). It seeks to partner India and China to boost its trade which has fallen in the last few years. It is investing heavily in weapons in Syria, Afghanistan and other Aran nations where it is fighting proxy war with the US. It is trying to get its economy on track amidst the issues of oil prices which is going down and lacklustre trade numbers.
India is a booming economy which has shown restraint against recessionary trends. It is however facing deep internal challenges of stabilising its own welfare schemes for the poor, balancing trade with nations with huge trade deficit and resolving several lingering issues with its neighbours Pakistan and China (Bricsmagazine.com, 2017).
China is claiming to be the Asian superpower and it has grown unprecedented in the last few decades. However, it is facing deep challenges of its Asian hegemony claims where all its neighbours are complaining about its threatening of an arrogant attitude. Trump is also not happy with the huge trade deficit with China. China needs new reforms. And it needs to understand the power of collaboration (Grigoriev and Morozkina, 2013). Many analysts say that China is just waiting for its internal bubble to burst and the economy tanks down in no time.
South Africa is undergoing a tough time. Its inflation is high, credit ratings are low and unemployment level is at 23% which is still growing. Among other issues, some of its ministers are facing grave corruption charges amidst the call to revive the economy. The nation is the smallest in terms of GDP in the BRICS nations. It is hoping to utilise partner nations’ support to reverse the decline trend.