What’s the news?

• The 15th BRICS summit held in Johannesburg recently made headlines with its announcement to expand its membership.

Central idea

• Originally comprised of Brazil, Russia, India, China, and South Africa, BRICS has now doubled its membership by welcoming Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. While some anticipated that this expansion would transform BRICS into an anti-Western platform, the reality appears to be different.

BRICS expansion and political compromises

• Expansion Initiated by China: China took the lead in pushing for the expansion of BRICS, which was originally composed of Brazil, Russia, India, China, and South Africa. This initiative was supported by Russia.

• Initial Reservations from India and Brazil: At the outset, India and Brazil expressed reservations about expanding BRICS. Their concerns revolved around the potential for BRICS to become an overtly anti-Western platform.
• Concerns About China’s Dominance: India, in particular, was cautious about further empowering China within the group. It was wary of an expanded membership that might add more clout to an already dominant China.
• Selection Reflects Political Compromises: The choice of new members, which includes Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, appears to be driven more by political compromise than by the application of specific, agreed-upon criteria.
• New Members’ Relationship with the West: Notably, the new members, with the exception of Iran, have significant stakes in their relationships with Western countries. This indicates that BRICS’ expansion may not have transformed it into an explicitly anti-Western alliance.
• Balancing Act: The expansion of BRICS seems to be a balancing act, seeking to accommodate the interests and concerns of both original and new members. It aims to maintain the group’s unity and relevance on the global stage.

Why are countries from the Global South interested in joining the BRICS?

• Hedging Against Uncertainty: Global South countries are joining BRICS as a means of hedging against an increasingly uncertain world marked by shifting political and security dynamics. They seek to strengthen their position in the face of unpredictable global events and challenges.
• Vulnerability to Sanctions: Many of these countries are concerned about their vulnerability to sanctions, particularly from the United States. For example, U.S. sanctions froze a significant part of Russia’s foreign exchange reserves, which raised anxieties among Global South countries about their own vulnerability to such measures.
• Expectation of an Alternative Global Currency: Some Global South countries may have expectations that BRICS, with China as a prominent member, could lead a shift toward an alternative global currency.
• Promotion of Local Currencies: BRICS has been actively promoting the use of local currencies for trade settlement and the raising of funds through local currency bonds. These efforts are seen as modest yet useful steps in reducing dependency on the U.S. dollar.
• Development Finance: BRICS has established the BRICS New Development Bank (NDB), which has provided development finance for developing countries. Global South countries may see this as an opportunity to access financing for their development projects.
• Demand for Greater Global Governance Voice: There is growing frustration among Global South countries that their interests and aspirations continue to be ignored by dominant Western powers in international institutions like the UN, IMF, and World Bank.

BRICS’ role in a changing world

• Economic and Technological Advancements: BRICS, comprising major emerging economies like Brazil, Russia, India, China, and South Africa, has witnessed significant economic growth, technological advancement, and military capabilities. This positions BRICS as substantial global players.
• Not a Gathering of the Weak: Unlike earlier groupings of weaker nations, BRICS represents countries with substantial global influence and capabilities.
• Energy Superpower: BRICS, with members like Saudi Arabia, Iran, and Russia, has the potential to become a significant energy superpower, dominating the global energy market.
• Diverse Ideologies: Unlike the G7, BRICS lacks a common ideological affinity, with member countries having diverse political systems, economic models, and foreign policy priorities.
• Shorter History: BRICS is a relatively young group compared to the G7, which means it is still evolving in terms of its objectives, mechanisms, and institutional frameworks.

Challenges and differences within the BRICS grouping

• Diverse Interests and Priorities: BRICS is composed of countries with varying geopolitical priorities, economic structures, and foreign policy objectives. These differences can pose challenges when trying to reach consensus on collective goals and initiatives.
• Internal Contestations: The existence of internal contestations and differences among BRICS member countries is evident. For example, the India-China rivalry is an example of such internal dynamics. These differences can impact the group’s cohesion and decision-making.
• Lack of Common Security Perspective: Unlike the G7, which is a tightly knit security grouping, BRICS countries do not share a common security perspective. They have varying security interests and priorities, which can make it challenging to coordinate on security-related matters.

A Way Forward: Towards Collaborative Global Governance

• Acknowledging Current Challenges: To move forward, it’s essential to acknowledge the existing challenges in the international order. Recognize that the world is facing significant global issues, from climate change to economic disparities, that require collective action.
• Equal Participation: Encourage equal participation and representation of all countries, including emerging powers, in discussions and decision-making processes. Recognize that the global landscape has evolved and that the voices of emerging powers are essential in shaping the future.
• Engagement and Dialogue: Promote open and constructive engagement between Western countries, such as those in the G7, and emerging powers, including BRICS nations. Foster dialogue that seeks common ground while respecting diverse perspectives.
• Reform Existing Institutions: Consider reforms in existing international institutions like the United Nations, the IMF, and the World Bank to better reflect contemporary geopolitical realities. Ensure that these institutions are more inclusive and responsive to the needs and concerns of all nations.
• Utilize Forums like the G20: Leverage platforms like the G20, which bring together both advanced and emerging economies, to facilitate discussions and negotiations on global governance. Use these forums as spaces for collaborative problem-solving.

Conclusion

• For India, participating in multiple groupings, including BRICS, the Shanghai Cooperation Organization, the Quad, and regular engagement with the G7, offers a strategic approach to addressing its multifaceted interests and aspirations. As BRICS expands its influence, it is essential for India to continue pursuing this nuanced approach to global governance.

Also read:

The implications of the expansion of BRICS

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