Category: KB

Source: United States Institute of Peace

Brics is expanding.

The grouping which originally began with Brazil, Russia, India, China – was coined in 2001 by then Goldman Sachs chief economist Jim O’Neill – expanded to include South Africa in 2010.

The bloc was founded as an informal club in 2009 to provide a platform for its members to challenge a world order dominated by the United States and its Western allies.

Its creation was initiated by Russia.

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The group is not a formal multilateral organisation like the United Nations, World Bank or the Organisation of the Petroleum Exporting Countries (OPEC).

The heads of state and government of the member nations convene annually with each nation taking up a one-year rotating chairmanship of the group.

It now represents around 3.5 billion people – 45 per cent of the world’s population.

Its combined economies are valued at over $28.5 trillion – nearly a third of the global economy.

But which countries have recently joined? Which want to join now and why? And what does the expansion mean for the West?

With Prime Minister Narendra Modi attending the 16th Brics Summit in Kazan, let’s take a closer look at how Brics is expanding.

Which countries joined recently?

Brics in 2023 invited six countries – Argentina, Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates – to become new members of the bloc.

The formal invitation was made during a summit in August in Johannesburg.

While all BRICS members had publicly expressed support for growing the bloc, there were divisions among the leaders over how much and how quickly.

Members at the time said the move would help reshuffle a world order they view as outdated.

In January, five of these nations – Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates – said they were joining the BRICS bloc.

Argentina declined the invitation to join.

As per Al Jazeera, this came after President Javier Milei took office.

Milei has vowed to increase ties with the West.

However, Saudi Arabia later said it is not yet joining the group and that the matter is being considered by its leadership.

Ultimately, Egypt, Iran, Ethiopia, and UAE joined the bloc.

Which want to join now and why?

Dozens of countries have voiced interest in joining the grouping.

Algeria, Bolivia, Cuba, Democratic Republic of Congo, Turkiye, Comoros, Gabon, Kazakhstan, Vietnam, Thailand and Malaysia have all expressed interest in joining the forum.

Turkiye, a Nato member, formally requested to join BRICS in September.

As p_er Bloomberg,_ Turkiye is looking to become part of the bloc as it eyes increasing its global influence.

President Recep Tayyip Erdogan’s administration is looking further than its time-tested allies in the West, people familiar with the development told the outlet.

Erdogan’s government believes the centre of geopolitics is moving away from the developed economies.

Turkiye is also eyeing improving its economic relationship with Russia and China.

This is a departure for the NATO member nation which has historically been suspicious of Moscow and been a US ally.

Turkiye is also thought to be upset over the lack of forward movement in its decades-long attempt to join the European Union.

According to Al Jazeera, Thailand said it was interested in joining the grouping during the BRICS Dialogue with Developing Countries held in Russia in June.

Malaysia too expressed interest in becoming a member ahead of a visit from Chinese Premier Li Qiang.

The bloc “can help Malaysia’s digital economy grow faster by allowing it to integrate with countries that have strong digital markets and also take advantage of best practices from other members,” Rahul Mishra, associate professor at the Center for Indo-Pacific Studies at Jawaharlal Nehru University in New Delhi, told DW.

“Thailand would also be able to draw investments in important industries including services, manufacturing, and agriculture,” Mishra added.

Bolivia’s President Luis Arce has expressed interest in BRICS membership.

His government has said it is determined to curb dependence on the US dollar for foreign trade, instead turning to the Chinese yuan, in line with BRICS leaders’ stated aim to reduce dependence on the US currency.

Algeria last July it has applied for BRICS membership and to become a shareholder in the New Development Bank, the so-called BRICS Bank.

The North African nation is rich in oil and gas resources and is seeking to diversify its economy and strengthen partnership with China and other countries.

The countries hope the bloc can level the global playing field. Most nations view BRICS as an alternative to global bodies viewed as dominated by the traditional Western powers and hope membership will unlock benefits including development finance, and increased trade and investment.

Dissatisfaction with the global order among developing nations was exacerbated by the COVID-19 pandemic when life-saving vaccines were hoarded by the rich countries.

“That so many countries are willing to go to Russia, deemed a pariah state not so long ago for having violated international law by invading Ukraine, confirms a trend followed by an increasing number of countries in the world: They don’t want to have to choose between partners,” Tara Varma, a visiting fellow at the Brookings Institute, told Al Jazeera.

Adam Gallagher, writing for USIP.org, noting the size of the bloc, said there are clear economic benefits to joining the grouping.

“Intra-BRICS trade is one area that the group has found its footing,” Gallagher said. He noted how the June 2024 BRICS foreign minister’s meeting encouraged “enhanced use of local currencies in trade and financial transactions” by Brics members.

Gallagher said that countries like Malaysia, who want to join the grouping, are looking to form alliances across the globe and preserve their strategic autonomy.

“For these countries, it’s not about taking sides. Some countries also believe BRICS membership will give them a greater voice and representation in international politics. It’s not all about anti-Western ideology,” Gallagher wrote.

James Chin, a professor of Asian Studies at the University of Tasmania told DW “both Thailand and Malaysia are seen as middle powers.”

“It’s better for them to join groups like BRICS so that they will have a larger voice in the international arena. But the major benefit will be trade,” Chin added.

What does the expansion mean for the West?

Experts say that these growing number of nations who want to join Brics shows that they want their financial independence – and that the established world order may be vulnerable.

“In the aftermath of the war in Gaza, Russia and China have more effectively harnessed this anti-Western sentiment, capitalising on frustrations over Western double standards as well as the use of sanctions and economic coercion by the West,” Asli Aydintasbas, a Turkish foreign policy expert, was quoted as telling the Brookings Institute as per Al Jazeera.

“It doesn’t mean that middle powers want to trade US dominance for Chinese, but it means they are open to aligning with Russia and China for a more fragmented and autonomous world.”

As per Al Jazeera, Brics members and their associates clearly want to decrease their reliance on the US dollar and Europe’s Society for Worldwide Interbank Financial Telecommunication (SWIFT) network.

This comes after Russia was cut-off from the system in the aftermath of the invasion of Ukraine in 2022.

“China now has an alternative to the SWIFT payment system, though limited in use, and countries like Turkiye and Brazil increasingly restructure their dollar reserves into gold,” Aydintasbas added. “Currency swaps for energy deals are also a popular idea – all suggesting a desire for greater financial independence from the West.”

As per CFR.org, Western nations until now have talked down the bloc as a threat.

White House National Security Advisor Jake Sullivan has said Brics isn’t a geopolitical rival, while Treasury Secretary Janet Yellen has downplayed the de-dollarisation strategy of Russia and China.

But some argue that the West needs to do some serious introspection.

“The accusation that the West is arrogant toward the needs of the Global South is serious. It cannot be answered by offering ‘value-based partnerships’ and a ‘rules-based’ multilateralism when the interest of the BRICS is focused on changing those rules in global finance, trade, and other standard-setting procedures,” Günther Maihold, senior fellow at the German Institute for International and Security Affairs, was quoted as saying by CFR.org.

“Ignoring BRICS as a major policy force—something the U.S. has been prone to do in the past—is no longer an option,” Tufts University scholars wrote in 2023.

It remains to be seen how the US-led West will react.

With inputs from agencies

MIL OSI USA News –