What Is the BRICS Group And Why Is It Expanding?
go through Mariel Ferragamo
As the BRICS has grown in membership and global influence, its expansion has come amid disagreements between old and new members over how to lay the foundation for a revised world order.
- The BRICS grouping has emerged as a major political force over the past two decades, with a desire to counterbalance Western influence in global institutions.
- The group’s expansion in 2023 reflects its growing influence but also brings new divisions over issues such as Russia’s invasion of Ukraine.
- Russia’s leadership in 2024 could intensify the EU’s anti-Western focus, including attempts to squeeze out the dollar – but experts say it will be an uphill battle.
The BRICS – representing Brazil, Russia, India, China and South Africa, and now with five new members – is an informal group of emerging economies looking to increase their influence in the global order. The BRICS was established in 2009 on the premise that international institutions were overly dominated by Western powers and no longer served developing countries. The bloc seeks to coordinate member countries’ economic and foreign policies, create new financial institutions and reduce reliance on the U.S. dollar.
However, the BRICS countries have been facing internal divisions over a range of issues, including relations with the United States and Russia’s invasion of Ukraine. At the same time, the growth of its membership has both expanded its influence and created new tensions. While some analysts warn the bloc could undermine the Western-dominated international order, skeptics say its ambitions to create its own currency and develop a viable alternative to the existing system face potentially insurmountable challenges.
Why are BRICS important?
The alliance is not a formal organization but a loose grouping of non-Western economies that coordinates economic and diplomatic efforts around common goals. The BRICS countries seek to build an alternative to what they see as the dominance of Western perspectives in major multilateral organizations, such as the BRICS. world bankthis group of seven (G7), and United Nations Security Council.
The group’s expansion in 2024 will bring a series of geopolitical implications. It represents growing economic and demographic influence: the ten BRICS countries now include more than a quarter accounts for the global economy and nearly half of the world’s population. The organization is poised to influence wars around the world Gaza Strip and Ukraine, the shape of the global economic system, China’s competition with the West, and the transition to clean energy.
However, increased membership also brings new challenges, including growing resistance from Western countries and divisions within the EU. Experts say how BRICS members deal with these tensions will determine whether the group can provide a more unified voice on the global stage.
What is its origin?
The term was originally coined by Goldman Sachs economist Jim O’Neill in a paper. 2001 studyrch paper In it, he noted that the growth of the then-“BRIC” countries (Brazil, Russia, India, and China) was poised to challenge the world economy. Dominate G7 wealthy economies.
Russia was the first country to convene the four countries for a meeting, a decision analysts said was driven by Russian President Vladimir Putin growing desire Create a counterweight to the West. Russia hosted the first official BRIC summit in 2009, and South Africa joined a year later Invitation from Chinaforming the Group of Five that would last for more than ten years.
The next wave of expansion comes at the 2023 BRICS summit, with invitations extended to six new members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE). All except Argentina accepted, as newly elected President Javier Milley pledged to turn the country in a pro-Western direction, saying it would not “Ally with the Communist Party”. Saudi Arabia has reportedly accepted membership, but with Delay in joining No detailed further explanation was given.
What are the BRICS countries doing?
BRICS heads of state meet annually, with each country holding a year-long presidency, setting priorities and hosting the summit. The group relies on consensus-based decision-making and is largely informal: there is no clear charter, secretariat or common fund.
Some thematic areas highlighted its priorities:
Advocate for greater representation in global organizations. BRICS seeks to create a united front of emerging economies’ perspectives in multilateral institutions. The organization’s goal is to promote reform of existing institutions, such as the expansion of the United Nations Security Council, and to form negotiating groups within these institutions. For example, many BRICS countries oppose UN condemnation of Russia’s war in Ukraine and seek common ground on Iran’s nuclear program and conflicts in Afghanistan, Gaza, Libya and Syria.
Coordinate economic policies. The 2008 global recession hit the BRICS hard, leading the group to emphasize economic coordination on issues such as tariff policy, export restrictions on key resources and investment. EU annual foreign direct investment (FDI) inflows more than four times From 2001 to 2021, although the growth rate has slowed down in recent years.
Reduce dependence on the U.S. dollar. increasingly dissatisfied dollar dominance In global deals, BRICS leaders have long Advocate de-dollarization Facilitating increased trade in local currencies and potentially even a common BRICS currency.
Creating alternative financial systems. The group’s New Development Bank (NDB) and Contingency Reserve Arrangement (CRA) are designed to be modeled after the World Bank and International Monetary Fund (IMF) respectively. BRICS members hope alternative lenders will inspire South-South cooperation and reduce reliance on traditional funding sources.
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