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BRICS - The Expansion Challenge
Over 40 countries have expressed their interest to join this international forum
With an increase in the Chinese debt trap and intentions, India is also building bilateral and plurilateral relations with the wider Western nations. India’s hope to balance China’s economy with the support of Russia seems unlikely today. Both Russia and China are co-dependent and have changed strategic realities in the space of geopolitics
The 15th upcoming BRICS Summit has made the world eyeballs roll. BRIC initially did not include South Africa. The acronym was coined in 2001 by then Goldman Sachs Chief Economist Jim O’Neill in a research paper that primarily meant for the growth potential of Brazil, Russia, India, and China.
South Africa’s efforts of joining BRIC started in 2010 and was successfully formalised as an official membership. The country benefitted from trade, market access, improved bargaining power, and most importantly voice in International Issues. With the geopolitical shift, many nations have an interest in strengthening their economic power. BRICS was initiated by Russia to challenge the world order which is dominated by America and west allies. BRICS nations account for 40 % of the world’s population and a quarter of the world economy.
According to the 2023 Summit Chair, South Africa, over 40 countries have expressed their interest to join this international forum. Most of the developing nations have been dissatisfied with the world order and the significant economic decline after the Pandemic. Whether BRICS should go for expansion or not, there is of utmost requirement to foster trust and cooperation and there is a massive change in the geo-political space.
Impact of Geo Politics on BRICS
BRICS was formed as an anti-America and shaped by Chinese priorities. With an increase in the Chinese debt trap and intentions, India is also building bilateral and plurilateral relations with the wider Western nations. India’s hope to balance China’s economy with the support of Russia seems unlikely today. Both Russia and China are co-dependent and have changed strategic realities in the space of geopolitics. The cluster of smaller neighbors of India is influenced by China economically by giving them opportunities to grow and invest in them. The international forum aim for growth and development, yet the ever-changing geopolitics also emphasizes border disputes and good governance.
Role of Policy Makers in BRICS is as follows: 1. Aim for long-term sustainability and not get fixated on a commodity trap; 2. The indebt policies need to be reviewed along with the implications; 3. Policymakers must ensure the FDI inflows from other sources and integrated trade; 4. Developing Finance opportunities should be one major concern that should be addressed by the Policy Makers; and, 5. Restructuring Global Institutions.
Major markets are in Global South and the BRICS aspirants are Low-Income Countries looking to restructure global architecture.
Whether expansion should be accelerated or should there be a broader push towards De-Dollarisation, the summit should also focus on confronting global challenges of terrorism and climate shift along with trade.
It is yet again imperative to have a common ground of expansion among the BRICS Leaders before they invite other Low-Income Nations to join BRICS.
(Writer is a columnist, researcher, and analyst in geopolitics and economics)
