The BRICS and Collective Financial Statecraft

In the early 21st century, five rising powers (Brazil, Russia, India, China, and South Africa) formed an exclusive international club, the BRICS. Although not extreme revisionists, the BRICS recognize an ongoing global power shift and contest the West's pretensions to permanent stewardship of the existing economic order. Together they exercise collective financial and monetary statecraft to achieve larger foreign policy goals. The BRICS share common aversions (e.g., resentment over being junior players in economic governance, as targets of financial sanctions and subject to U.S. dominance of the global financial system) and common interests (e.g., obtaining greater financial autonomy and influence in Bretton Woods institutions). Their financial statecraft ranges from pressure for inside reforms of international organizations and markets, to outside options exercised through creating new multilateral institutions and opportunities in international financial markets. To the surprise of many observers, the joint actions of the BRICS have been largely successful. Although each member has unique motivations for collaboration, China controls resources that permit it the greatest influence in intra-club decision-making and with the United States and other incumbent rule-makers. The BRICS future depends not only on their bargaining power and adjustment to markets, but also on their ability to overcome domestic impediments to sustainable economic growth, the basis for their international influence.