The recent BRICS summit in Johannesburg has become a focal point of global attention, surpassing even the inaugural summit in Yekaterinburg (Russia) in 2009, or the third summit in Sanya (China) in 2011 when South Africa became a member. This time around, six countries – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE – were invited to join BRICS as full members.
This move sets the stage for more countries to join in the future, signalling the beginning of a new chapter. BRICS 2.0 could have worldwide implications, affecting the role of the US-led Western Alliance centred around G7, the emerging economies and developing nations, and how they engage in global affairs in the near future.
- At Johannesburg Summit, the BRICS group expanded its membership to represent a larger portion of the world’s population, GDP, and international trade.
- This expansion was primarily motivated by China and supported by Russia and South Africa.
- Once India and Brazil agreed to the principle of expansion, the selection of six new members was reached by consensus.
- This expansion assumes significance as at least 23 countries from the Global South showed interest in joining BRICS, demonstrating the group’s value.
- This positive perception contrasts with the negative view held by foreign policy experts of Western countries.
BRICS 2.0: Two Questions Need Answers
Is The Expansion Good For BRICS?
- BRICS leaders believe that expansion is beneficial.
- The proposed BRICS-XI will gain greater political weight.
- The level of this increased influence is tied to the success of forging internal unity.
Why Were These Six Countries Chosen?
- Argentina was chosen to give more representation to Latin American countries in the group.
- Egypt was selected due to its strong relationships with China and India.
- Ethiopia’s inclusion resulted from a compromise between Nigeria and Kenya.
- Saudi Arabia and the UAE were brought in to help re-fund the New Development Bank, thus enabling it to finance more development projects.
- Iran was chosen because of its strategic position as a link among West, Central, and South Asia.
- The BRICS 2.0 includes six of the top 10 oil-producing countries: Saudi Arabia, Russia, China, UAE, Brazil, and Iran. This represents a shift in global power away from Western dominance.
Future Challenges For BRICS 2.0
- During the Johannesburg meeting, the leaders agreed to have their foreign ministries expand the BRICS partner country model.
- Countries such as Indonesia, Vietnam, Bangladesh, Mauritius, Nigeria, Kenya, and an unspecified Latin American country are being considered for admission.
- A primary concern is getting United Nations Security Council (UNSC) membership for the original BRICS nations, which include India, Brazil, and South Africa. This is mentioned in the seventh paragraph of the Johannesburg Declaration.
- Achieving this membership needs the backing of the permanent UNSC members, China, and Russia. Without their support, it may reveal their contradictory stance on this matter.
The Question Of BRICS Common Currency
- The topic of a common BRICS currency was a key point before the summit, even though BRICS isn’t pushing for it.
- The joint statement’s paragraph 44 clarifies that BRICS will promote the use of local currencies in trade and financial transactions.
- The transactions will be within BRICS and their trade partners, focusing on systems that are fast, inexpensive, transparent, safe, and inclusive.
- If this leads to reduced reliance on the dollar (de-dollarisation), many in the international community might welcome this change.
Will India Benefit From BRICS 2.0?
India could see several benefits from BRICS 2.0.
- The country welcomes both the potential for UNSC membership and the chance to trade in local currency.
- The G20 is viewed as the most important multilateral forum for international economic and financial cooperation.
- China and Russia have promised to support the successful G20 presidencies of India, Brazil, and South Africa. This support suggests that these two nations might be more agreeable, leading to a consensus-based Delhi Declaration at the G20 summit in September.
- A meeting between President Xi Jinping and Prime Minister Narendra Modi during the summit could quicken the resolution process for border disputes in Ladakh’s western sector.
Growing Confrontation With The West And Balancing Act By India
- The world has changed and now BRICS is in a situation where two of its members, Russia and China, are in major conflict with the West, which is led by the United States.
- Although the other BRICS members do have concerns regarding the West, their inclination is towards engaging in dialogue with Western countries rather than resorting to confrontation.
- As six new members join BRICS, the internal dynamics of the group will continue to evolve.
- India, a member of BRICS, finds itself in a difficult position. On one side, it’s increasing its cooperation with the West; on the other, it’s actively voicing and pursuing the interests of the Global South.
(This article is based on BRICS 2.0, which was originally published in The Indian Express on November 28, 2023.)