BRICS+ is entering a qualitatively new stage of development. Whilst the first two phases were characterized by representation and expansion, implementation is now coming to the fore.
Three phases of evolution
It is impossible to understand the current stage without looking back. BRICS has already gone through two main phases. The first was representation: developing economies demanded a stronger voice in global governance, arguing that existing institutions were out of step with the new economic reality. The second was expansion: the alliance increased its membership and strengthened its claim to represent a broader range of countries in the Global South.
Now comes the third and most challenging phase – implementation. Its logic is fundamentally different: success is measured not by declarations or by the number of flags around the summit table, but by the organization’s ability to implement its decisions. It is precisely this transition that defines the agenda and priorities of the current stage.
Economic functionality
According to some Indian experts, the key feature of the third phase is a shift in focus from geopolitical confrontation to economic functionality. India has not sought to define BRICS through opposition to another group of countries, but has instead focused its agenda on trade, SMEs, technology, digital infrastructure, sustainable supply chains, development finance, standards and industrial cooperation.
Strategically, this approach is justified precisely by the logic of the third phase. BRICS comprises countries with very different political systems, foreign policy priorities and economic ties. Some have complex relations with Western countries, whilst others have extensive economic ties and security partnerships with the US and Europe. Any attempt to transform this diverse group into a rigid geopolitical alliance would weaken it. BRICS is stronger as a platform for strategic autonomy, economic diversification and multilateral cooperation – that is, as a space where countries can cooperate without being forced to choose a particular camp.
The shift from intergovernmental dialogue to the real economy
The substance of the third phase is revealed through specific mechanisms. One of the most significant contributions of the current chairmanship is bringing small and medium-sized enterprises to the forefront of the economic debate. This is crucial because implementation cannot be limited solely to dialogue between governments, state-owned corporations, major banks, and infrastructure companies.
For the third phase to take place, an Indian manufacturer, a Russian distributor, a Brazilian agribusiness, or an entrepreneur from the UAE must be able to find partners, finance transactions, make payments, and move goods between the union’s markets. New Delhi has placed access to financing and technology, as well as sustainable growth, at the center of the agenda of the Working Group on SMEs. The logic is simple: the main obstacle to trade lies not in a lack of business opportunities, but in the limited availability of financing. This is precisely where BRICS can make a practical contribution that distinguishes the third phase from the previous ones.
Practical Settlements as a Prerequisite for Implementation
The second key area of the third phase is financial settlements. The expert community is actively discussing “de-dollarization” and even a possible single BRICS currency. However, the truly urgent need is for reliable transactions.
The next step is to improve the interoperability of payment systems, strengthen correspondent banking channels, ensure transparency in foreign exchange mechanisms, and establish commercially viable settlements in national currencies. A single BRICS currency is a much more distant prospect: the member economies differ significantly in terms of inflation rates, monetary policy, capital controls, the depth of financial markets, and trade patterns. A currency union without economic convergence would create more problems than it would solve.
Compatibility Without Losing Sovereignty
India’s digital experience is another important advantage at the implementation stage. The country has developed nationwide digital platforms covering identification, payments, and government services, and its international partnerships in digital infrastructure extend to many countries.
Within the BRICS framework, India has initiated discussions on digital public infrastructure, cybersecurity, digital governance, networks of the future, digital skills, and startup ecosystems. The key issue in the third phase is interoperability: the alliance must establish technical specifications under which various national digital systems can interact securely without requiring each country to relinquish its technological sovereignty. Looking ahead, this could involve a compatible payment architecture, digital customs documentation, trusted electronic signatures, business verification, logistics data, and platforms for SMEs. If successful, digital infrastructure will become just as important for integration as ports and railroads.
Standards: The Technical Foundation for Implementation
India rightly emphasizes the importance of sustainable and diversified value chains. The BRICS trade ministers have advanced work on the Economic Partnership Strategy through 2030, covering services, trade, investment, the internationalization of SMEs, and sustainable supply chains. But one element deserves greater attention: standards.
Companies will not be able to build integrated supply chains if each market applies completely different requirements for certification, technical documentation, and compliance. India’s chairmanship has fostered cooperation among national standardization bodies. This may seem less dramatic than discussions about currencies or geopolitics, but it is often more important for business. Mutual recognition of standards, testing, and certification reduces costs, eliminates non-tariff barriers, and enables SMEs to enter new markets. This should become one of the main economic priorities of the third phase.
Expansion and the Problem of Coordination: Challenges of the Third Phase
Expansion has changed the nature of BRICS. A larger group represents more consumers, resources, investment capital, and geopolitical influence. But it also creates a coordination problem: the more members there are, the harder it is to reach meaningful agreements.
This is precisely why the third phase requires institutional consolidation. BRICS must resist the temptation to equate success with an increase in the number of members. The number of members is less important than the organization’s ability to implement its decisions.
Criteria for Success in the Third Phase
The third phase will be evaluated based on extremely specific criteria. Will an Indian businessman be able to sell goods to Russia more easily? Will a Russian small business find a reliable partner in India? Will an African entrepreneur gain access to affordable financing? Will a Brazilian company be able to enter a new supply chain? Will capital from the Gulf states support productive investments in other countries of the Global South? Will countries be able to cooperate without being forced to choose one geopolitical camp over another?
The priority areas for the third phase have already been identified: cross-border payments and financial infrastructure, SMEs, digital public infrastructure, AI, fintech and cybersecurity, critical minerals and energy security, transportation and logistics, standards and certification, food security, development finance, healthcare and pharmaceuticals, climate cooperation, education, and science.
If the answers to practical questions are increasingly positive, BRICS+ will achieve more than just expansion. It will begin to build the economic infrastructure of a truly multilateral world—and this is precisely what the third phase is all about.
Vlad Markin, Deputy Editor-in-Chief of NEO
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