BRICS Invites Six New Countries
- 26 Aug 2023
On 24th August, the BRICS group, comprising Brazil, Russia, India, China, and South Africa, extended invitation to six additional countries during its Johannesburg summit.
Key Points
- The Six New Countries: Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates will join the grouping as new members on 1st January, 2024.
- Strengthening Global South Representation: With the new members, it will represent nearly half the world's population, including major oil producers like Saudi Arabia, the UAE, and Iran.
- Rationale behind New Members: The expansion of BRICS is driven by two factors: the desire for a platform to express anti-US sentiment and the aspiration for multipolarity, enabling Global South nations to showcase solidarity.
- Challenging Geopolitical Landscape: While the economic performance of BRICS has varied, geopolitical dynamics, like the Ukraine conflict and the China-Russia partnership, have propelled the alliance as a counterbalance to Western-centric forums such as the Group of 7 and the World Bank.
- China's Role in Expansion: The invitation of new members signals China's objective to establish BRICS as an influential and diverse alliance.
- Iran's Noteworthy Inclusion: The inclusion of Iran, Saudi Arabia, and regional rivals in the same group highlights China-Russia's influence.
- China's role in brokering peace between Saudi Arabia and Iran, coupled with its oil trade with Saudi Arabia, demonstrates China's sway.
- Implications for India: India's participation in both the G7 summit and the BRICS expansion demonstrates its nuanced foreign policy approach.
- While China desires BRICS to be anti-western, India seeks to maintain it as a non-western entity.
- Diverse Interests of New Members: Among the new members, India values partnerships with all, yet concerns arise about the potential for BRICS to become more pro-China, potentially marginalizing India's interests and voice.
About BRICS
- BRICS Overview: BRICS, established in 2009 and headquartered in Shanghai, is an acronym representing a coalition of the world's prominent emerging economies: Brazil, Russia, India, China, and South Africa (which joined in 2010).
- Origin and Coinage of "BRIC": The term "BRIC" was introduced by British Economist Jim O'Neill in 2001 to categorize the emerging economies of Brazil, Russia, India, and China.
- BRICS Composition: BRICS unites five influential developing nations, encompassing 41% of the global population, 24% of the worldwide GDP, and 16% of global trade. It is projected that by 2028, BRICS will constitute 35% of the global economy.
- Rotational Chairmanship: The leadership of BRICS rotates annually among its members in accordance with the acronym B-R-I-C-S. Presently, South Africa holds the chairmanship for the year 2023.
Key BRICS Initiatives
- New Development Bank (NDB): The establishment of NDB facilitates funding for infrastructure and sustainable development projects.
- Contingent Reserve Arrangement (CRA): CRA provides financial support to member countries during economic crises.
- BRICS Payment System: This system aims to facilitate cross-border transactions and reduce reliance on external payment mechanisms.
- Customs Agreements: Collaborative efforts to enhance trade facilitation and eliminate trade barriers.
- Remote Sensing Satellite: The initiative involves the development and launch of a remote sensing satellite for earth observation and resource management.
Challenges Faced by BRICS
- Encountering Multifaceted Issues: BRICS has encountered a series of challenges, marked by conflicts like China's assertiveness in eastern Ladakh, causing India-China relations to reach a historic low.
- The strained relations between China and Russia with Western nations, along with internal struggles in Brazil and South Africa, further compound the challenges.
- Diverse Composition: Critics highlight the heterogeneity of BRICS nations as a potential threat to the group's sustainability due to varying interests among its diverse member countries.
- China's Dominance and Trade Imbalance: A prevailing perception is that the group's members engage in more trade with China than with each other, leading to concerns that BRICS could be manipulated to serve China's interests.
- Revamping Global Governance: Amidst global slowdown, trade conflicts, and protectionist tendencies, BRICS faces the critical task of shaping a new global governance model.
- Efficacy and Regional Support: While BRICS has achieved some successes, there are limitations. China's economic ascent has caused an internal imbalance within the group.
- Moreover, BRICS has not effectively mobilized support from the Global South to advance its agenda.
