Navigating the path to sustainable development in BRICS countries

Abstract

This study is a comprehensive analysis of the economic, environmental and social efficiencies of the BRICS countries (Brazil, Russia, India, China and South Africa) from 2010 to 2023, using the data envelopment analysis (DEA) method. In an innovative extension, the study estimates a second-stage regression to explore the impact of institutional support, specifically financial disbursements from the New Development Bank (NDB), on national sustainable development performance. Key findings reveal that Russia maintains the highest economic efficiency, averaging 94%, despite geopolitical tensions and economic pressures. Brazil, while initially leading in earlier years, shows a fall to 83%, reflecting challenges in maintaining high efficiency. India and China exhibit moderate economic efficiency, by structural and environmental challenges. South Africa, despite low inputs and outputs, achieves notable efficiency, particularly in environmental and social dimensions, with scores of 98% and 95.57% respectively. The findings suggest that bloc-level cooperation, through mechanisms like the NDB, can contribute positively to national efficiency outcomes. This paper contributes to the literature by integrating institutional development finance into a DEA framework and offering a comparative perspective on BRICS countries' sustainable growth trajectories within the Global South.