BRICS is a group of 5 countries which stands for Brazil, Russia, India, China and South Africa. It was initially coined as BRIC by an economist at Goldman Sachs named Jim O’Neill in 2001, but later South Africa was added in 2010. It aims to promote peace, security, development and cooperation among the countries. These five countries are predicted to dominate the world economy by 2050. These five countries account for one-fourth of the world economy, thus nearly accounting for 40% of the International trade.
According to the International Monetary Fund, China accounts for more than 70% of the group’s economy, India 13%, Russia and Brazil 7% each and South Africa 3%. Four of the five countries in this group have the largest share of population and land area. It has also bridged the gap between the Northern and the Southern world. The community plays a critical role in setting global economic policies, reducing inequalities and promoting financial stability. It has also emerged as the voice for developing countries, thus defending their rights across the world. There are also summits held by these countries.
Around the world where organisations which are involved in regional and global cooperation have seemed to lose their momentum, here BRICS is considering its expansion with other nations.
The BRICS summit was held in June this year via virtual mode and agreed to propose the expansion process and also stressed the clarification of guiding principles, declaration, criteria and procedures for the expansion process after full consideration and consensus. India was focused on shared economic interest, and Russia was focused on bypassing western sanctions, but China took the most ambitious route, to create BRICS as a western rival, a forum to take on the United States. There are many countries that want to join BRICS as stated by China in the meeting.
Russian Foreign Minister Sergey Lavrov stated that “over a dozen” countries have formally applied to join the BRICS. Countries like Argentina and Iran had formally applied to become a part of BRICS. Other countries like Algeria, Saudi Arabia, Turkey, Egypt and Afghanistan are interested along with Indonesia, which is expected to make a formal application to join at the upcoming G20 summit in Bali. This expansion is more likely to accelerate the process. Though there will be certain criteria set as agreed by the current members. It is more likely that granting of new memberships will tentatively start next year.
Zhu Tianxiang, director at the Center for BRICS Political and Security Studies, Institute of BRICS Studies of Sichuan International Studies University, stated that many countries who are willing to join have faith that this expansion will only lead to the better voice of opinions of the developing world, equitable distribution of resources, thus leading to better governance and promote economical and social order all around the world. Zhu also stated that priority will be given to those members who place a better voice and opinions of developing countries of different regions.
But what does this Expansion mean? Politically, China wants to counter the G20 and G7, which is directly countering the United States. Two countries – Argentina and Iran have applied for BRICS, these two countries are rich in resources and both are emerging economies, also, there is a long list of potential members identified by China as emerging economies, some also being western allies, which works quite well for China’s plan. Now, what should India do in such a situation? China wants India to sign off the new members, without this BRICS cannot expand, but can India say no to these countries?
If we say yes, it means we are giving power to China and if we say No, it would be denying our old partnerships which is not an easy choice to make. Though there is no report or news on this as such, whatever happens, the committee should not do away with its guiding principles like the economic reforms, greater representation in global monetary systems, diverse monetary systems and reforms to the United Nations Security Council, which were the big goals set by the BRICS.
Written by Irfan Ali
Edited Labdhi Shah