Answer:

Introduction:

BRICS (Brazil, Russia, India, China, and South Africa) is an informal group of emerging economies that represents a significant share of the world’s population, GDP, and trade. Together, these five countries account for approximately 41% of the global population, with a combined GDP of around $18.7 trillion, representing about 23% of the world’s total economic output. It aims to deepen cooperation among its members and serve as a bridge between the developed and developing world.

BRICS as an institution has immense potential in several areas:

• Economic Power: Trade Volume: In 2020, the total trade among BRICS countries reached $1.4 trillion, demonstrating the significant economic exchange within the bloc.
  • BRICS countries attract a considerable amount of FDI. In 2020, they received a total of $102 billion in FDI inflows.
• Emerging Markets: BRICS countries are major emerging markets with substantial growth prospects. Their rising middle classes and increasing consumer demand present significant opportunities.
• Trade and Investment: By promoting intra-BRICS trade and reducing barriers, such as tariffs and non-tariff barriers, BRICS can stimulate economic growth and foster mutually beneficial partnerships.
• Infrastructure Development: The establishment of the New Development Bank (NDB) provides a platform for member countries to finance infrastructure projects.
  • New Development Bank (NDB) since its establishment in 2014, the NDB has approved funding for 44 infrastructure and sustainable development projects, with a total lending amount of $12.4 billion.
• Technological Innovation: Collaboration in research and development, knowledge sharing, and capacity building can propel technological advancements.
  • BRICS nations account for a substantial number of global patent applications. In 2020, China alone filed over one million patent applications, ranking first globally.
• Energy and Resource Security: By leveraging their combined strength, BRICS can enhance energy security, promote renewable energy solutions, and negotiate favorable terms in global resource markets.
• BRICS nations have made significant investments in renewable energy. As of 2020, they collectively accounted for more than 40% of global renewable energy capacity.
• Global Governance: BRICS can have a greater impact on global governance and push for reforms in international institutions like the IMF and WTO. .
• Cultural and People-to-People Exchanges: Promoting cultural exchanges, tourism, and people-to- people contacts can foster greater understanding, goodwill, and cooperation among member countries.
  
• South-South Cooperation: BRICS represents the concept of South-South cooperation, emphasizing solidarity and partnership among developing countries.
  • They have established mechanisms such as the BRICS Business Council and BRICS Academic Forum to enhance collaboration across sectors.

Reasons for Failure to Achieve Full Potential:

• Lack of Institutionalization: BRICS, as an institution, lacks a formal organizational structure and operates mainly through annual summits.
• Diverse Interests and Priorities: The member countries of BRICS have different political systems, economic structures, and regional priorities.
• Dominance of Big Three: The dominance of Russia, China, and India within the BRICS bloc creates an imbalance of power. Other member countries may feel marginalized, leading to limited participation and a lack of inclusive decision-making.
• Narrow Scope and Base: BRICS has focused primarily on economic cooperation and limited its membership to five nations.
• Lack of Progress in Institutional Reforms: While BRICS has advocated for reforms in global financial institutions, such as the IMF, little progress has been made in implementing these reforms.
• External Challenges: External factors such as economic slowdowns in China and Brazil, political tensions between member countries, and the impact of global events like the 2008 financial crisis have hindered the progress and cooperation within BRICS.

Way Forward:

• Economic Convergence: Foster inclusive growth, infrastructure investment, and targeted development programs to reduce economic disparities among BRICS countries.
• Dialogue and Mutual Understanding: Encourage open dialogue, bridge political differences, and build consensus on common goals and shared values.
• Confidence-Building Measures: Implement measures to manage geopolitical rivalries, address territorial disputes, and promote stability through bilateral and multilateral negotiations.
• Strengthening Institutional Framework: Develop formal structures, enhance coordination, and establish mechanisms for regular consultations and joint decision-making.
• Broadening the Agenda: Expand the focus beyond economic issues to include climate change, sustainable development, social inequality, and human rights.
• Enhanced Implementation Strategies: Develop robust implementation plans, streamline processes, and promote effective project management to deliver tangible outcomes and ensure accountability.

In conclusion, BRICS has untapped potential, but challenges such as economic disparities, political differences, geopolitical rivalries, institutional limitations, limited scope, and implementation hurdles have hindered its progress. By addressing these challenges through cooperation, dialogue, institutional reforms, expanded focus, and effective implementation strategies, BRICS can overcome its limitations and unlock its full potential as a significant global institution.