BRICS Expansion

Why in the News?

Recently at the 15^th BRICS summit, the five-member grouping of BRICS decided to expand by the inclusion of 6 more countries in a move to strengthen its claim of being a ‘voice of the Global South’.

BRICS:

1. BRICS consists of Brazil, Russia, India, China, and South Africa.
2. In the Johannesburg Summit, BRICS has agreed to extend membership to 6 other countries:
   • Iran
   • The United Arab Emirates (UAE)
   • Saudi Arabia
   • Argentina
   • Egypt
   • Ethiopia
3. BRICS currently represents ~40% of the world’s population and more than a 25% of the world’s GDP.
4. With the inclusion of new member states, it will represent almost 50% the world’s population, and also include 3 of the world’s biggest oil producers- Saudi Arabia, the UAE and Iran.

Expansion of BRICS membership:

1. BRICS is driven by two basic impulses:
   • An anti-US sentiment is simmering currently in the world where all countries are looking for a grouping to use that sentiment to gather together.
   • Growing consensus for multipolarity has led countries of the Global South to be in a platform to express their solidarity.
2. The Anti-US sentiment has been a driving force.
   1. 1. With the onset of Ukraine war, west has grouped together as one bloc and Russia-China partnership on the other.
      2. The expanded membership has turned it into an aspiring bloc to challenge the western geopolitical view.
      3. It can emerge as a counterweight to Western-led fora like G7 and the World Bank.

• • • iv. Russia regards the expansion could reduce its isolation due to sanctions keep its beleaguered economy afloat by co-opting for Global South.

2. 1. 5. Russia wants to dilute opposition to its illegal occupation of Ukrainian territory.
3. Expansion of membership has been driven mainly by China.
   • Membership to Iran will lead to strengthening of China-Russia imprint as the former has strained relationship with the west and adds the anti-US axis,
   • The membership of two regional rivals- Saudi and Iran is followed by a peace deal brokered by China between Tehran and Riyadh, recently.
4. Saudi Arabia, a traditionally US ally has been falling out in the recent times and the BRICS membership is in line with that.
5. Argentina which is facing a severe economic crisis currently will hope for financial aid from BRICS.
6. Inclusion of Saudi Arabia and the UAE could bring new investment and trade opportunities.
7. Egypt’s strategic location along with the newly discovered gas fields can leverage BRICS in the economic and geopolitical arena.

Outcomes of the 15^th BRICS Summit:

1. Call for Global South to foster beneficial economic growth
2. Sustainable development
3. Reform of multilateral systems such as the UN Security Council
4. Commitment to uphold the international law as per the UN Charter 
5. Commitment to peaceful resolution of differences and disputes through dialogue and inclusive consultation. 
6. Pitched for increasing the use of local currencies, alternative financial arrangements and alternative payment systems to reduce the dependency on the US dollar.

MCQ:

Consider the following statements about BRICS:

1. All decisions in BRICS are taken by Consensus.
2. Iran, Argentina and Nigeria have joined as the new members of the BRICS.
3. The New Development Bank (NDB) is an initiative of BRICS.

How many among the above statements are incorrect?

1. Only 1
2. Only 2
3. Only 3
4. None

Ans: a)

The BRICS takes unanimous decisions i.e., All decisions in BRICS are taken by Consensus of all members of the grouping. Therefore, statement 1 is correct.

Nigeria is not a member of BRICS. The new members shall include- Iran, Saudi Arabia, UAE, Argentina, Egypt and Ethiopia. Therefore, statement 2 is incorrect.

The New Development Bank (NDB) is an initiative of BRICS set up through an agreement signed in 2014 and started operations in 2015. The bank intends to mobilise resources for infrastructure and sustainable development projects in Emerging Markets and Developing Countries (EMDCs). Therefore, statement 3 is correct.