COVID-19 and the Counter-Cyclical Responses of the BRICS Countries

The negative impact of COVID-19 on the global political economy has surpassed that of the 2008 global financial crisis in that the immediate health crisis has constrained social and economic activities due to the universal lockdown of national economies. Brazil, Russia, India, China and South Africa (BRICS) are amongst the worst affected, with Brazil recording the second highest number of deaths in the world by October 2020. It is predicted that developing nations will have to contend with the most severe socio-economic damage caused by the pandemic due to a host of factors, such as large infrastructure gaps, extreme poverty rates and high levels of informality. This chapter interrogates the counter-cyclical measures implemented by the BRICS countries to avoid the spread of COVID-19 and the adverse socio-economic implications unleashed by the pandemic. It observes uniformity in the adopted counter-cyclical fiscal and monetary measures through large stimulus packages, but variability in political leadership shown in response to the pandemic; reactiveness on the part of the New Development Bank in shaping emerging economies’ counter-cyclical measures; and the ongoing border tensions between China and India. Some of these elements undermine the BRICS’ cohesion in response to crises and in influencing the post-COVID-19 world order.