BRICS is bigger now. Is it better too?

BRICS, the acronym for Brazil, Russia, India, China and South Africa, is a grouping of five major emerging economies that have been cooperating since 2009 on various issues of common interest. Recently, at the 15th BRICS Summit in Johannesburg, the leaders of the five countries announced that they had invited six more countries to join the bloc from January 1, 2024. These are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. This expansion has raised many questions about the rationale, benefits and challenges of enlarging the BRICS.

Why expand?

The BRICS countries have stated that their expansion is based on the principles of openness, inclusiveness and mutual benefit. They have also said that they have reached a consensus on the guiding principles, standards, criteria and procedures of the expansion process. However, these have not been made public yet. According to some analysts, the expansion reflects the changing global dynamics and the need for greater representation and voice of developing countries in global governance. By adding six more countries, the BRICS will increase their share of the world population from 41% to 47%, their share of the world GDP from 24% to 28%, and their share of the world trade from 16% to 19%. This will enhance their collective bargaining power and influence in international forums such as the UN, WTO, IMF and World Bank.

Another possible reason for expanding the BRICS is to diversify and strengthen their economic and strategic partnerships. The six new members are all important regional players with significant markets, resources and geopolitical interests. They can offer new opportunities for trade, investment, infrastructure, energy and technology cooperation among the BRICS countries. For example, Argentina is a major agricultural exporter and a member of Mercosur, a regional trade bloc in South America. Egypt is a key transit country for global trade through the Suez Canal and a leader of the Arab League. Ethiopia is one of the fastest-growing economies in Africa and a hub for regional integration. Iran is a major oil and gas producer and a potential partner for connectivity projects such as the International North-South Transport Corridor. Saudi Arabia is one of the largest oil exporters and a influential actor in the Middle East. The UAE is a global financial center and a pioneer in renewable energy and innovation.

What are the benefits?

The expansion of the BRICS can bring many benefits for both the existing and the new members. For the existing members, it can help them to achieve their common goals of promoting multipolarity, multilateralism and reform of global governance institutions. It can also help them to address some of their challenges such as slowing economic growth, rising protectionism, climate change and terrorism. By engaging with more partners, they can diversify their sources of growth, enhance their resilience and security, and foster mutual learning and cooperation.

For the new members, joining the BRICS can provide them with more access to finance, technology and markets. It can also give them more voice and recognition in global affairs. They can benefit from the existing initiatives of the BRICS such as the New Development Bank (NDB), which provides loans for infrastructure and sustainable development projects; the Contingent Reserve Arrangement (CRA), which provides financial support in times of crisis; the BRICS payment system (BPS), which facilitates cross-border payments among BRICS currencies; and the BRICS Joint Statistical Publication (BJSP), which provides comparable data on key economic indicators. They can also contribute to shaping new initiatives such as the BRICS basket reserve currency (BRC), which aims to reduce dependence on US dollar; and the BRICS vaccine research center (BVRC), which aims to develop vaccines for Covid-19 and other diseases.

What are the challenges?

The expansion of the BRICS also poses many challenges for both the existing and the new members. For the existing members, it can create more complexity and diversity within the grouping, making it harder to reach consensus and coordination on various issues. It can also create more competition and conflicts among them over resources, markets and influence. For example, China may face resistance from India over its Belt and Road Initiative (BRI), which involves several of the new members; Russia may face opposition from Saudi Arabia over its role in Syria; Brazil may face pressure from Argentina over its trade policies; South Africa may face rivalry from Egypt over its leadership in Africa.

For the new members, joining the BRICS may entail some costs and risks as well. They may have to adjust their policies and positions to align with those of the BRICS on some sensitive issues such as human rights, democracy and sovereignty. They may also have to balance their relations with other major powers such as the US, EU and Japan, who may view their participation in the BRICS as a challenge or a threat. Moreover, they may have to deal with the expectations and demands of their own people, who may have different views and aspirations regarding the BRICS.

Conclusion

The expansion of the BRICS is a significant development that reflects the changing global order and the aspirations of the developing countries. It can bring many opportunities and benefits for both the existing and the new members, as well as for the rest of the world. However, it also entails many challenges and risks that require careful management and cooperation. The success of the BRICS will depend on how well they can balance their interests and values, respect their diversity and differences, and work together for common good.

Source: 

(1) BRICS - Wikipedia. https://en.wikipedia.org/wiki/BRICS.
(3) BRICS INDIA 2021 | Ministry of External Affairs. https://www.brics2021.gov.in/about-brics.
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