The 15th summit of the BRICS consortium, consisting of Brazil, Russia, India, China, and South Africa, is underway in Johannesburg from August 22 to August 24. The inception of the term “BRIC,” initially excluding South Africa, dates back to 2001, when Jim O’Neill, the then Chief Economist of Goldman Sachs, highlighted the growth potential of Brazil, Russia, India, and China.
Established informally in 2009, this group aimed to provide its members with a platform to challenge the global hegemony led by the United States and its Western allies. Russia took the initiative to bring this bloc into existence.
It’s essential to note that BRICS isn’t a formal multilateral organization like the United Nations or the World Bank. What sets BRICS apart is its rotational chairmanship; each member nation assumes the leadership for a year. Together, these nations account for over 40% of the world’s population and a quarter of the global economy. Beyond geopolitics, their focus extends to economic cooperation, promoting multilateral trade, and fostering development. The consensus-driven bloc is closely affiliated with the Group of 20 (G20), a coalition of major economies.
Interestingly, more than 40 countries have expressed a keen interest in joining this forum, including Iran, Saudi Arabia, the United Arab Emirates, Argentina, Algeria, Bolivia, Indonesia, Egypt, Ethiopia, Cuba, the Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan, as revealed by South Africa, the chair of the 2023 summit.
These aspiring nations perceive BRICS as an alternative to global organizations dominated by traditional Western powers. They anticipate several benefits, including access to development finance and increased opportunities for trade and investment.
The dissatisfaction among developing nations with the existing global order was exacerbated by the COVID-19 pandemic, particularly as life-saving vaccines were predominantly reserved for wealthier countries.
Iran, boasting a significant portion of the Middle East’s oil reserves, earnestly hopes for swift progress toward BRICS membership.
Saudi Arabia, a heavyweight in the oil industry, engaged in discussions within the “Friends of BRICS” talks held in Cape Town in June, enjoying the backing of Russia and Brazil in its quest to join BRICS.
Meanwhile, Argentina, in July 2022, received China’s formal support for its aspirations to become a BRICS member. Ethiopia, one of Africa’s fastest-growing economies, formally applied for BRICS membership in June, emphasizing its commitment to collaborate with international institutions aligned with its interests.
Bolivia’s President Luis Arce has expressed a strong desire for BRICS membership and is expected to participate in the summit. The government’s declaration in July underscored its determination to reduce reliance on the U.S. dollar for foreign trade, aligning with the BRICS leaders’ goal of diminishing dependence on the U.S. currency.
Algeria, in its bid to diversify its economy and bolster ties with China and other nations, applied for BRICS membership in July. This North African nation, rich in oil and gas resources, also sought to become a shareholder in the New Development Bank, commonly known as the BRICS Bank.
The global landscape is evolving, with these aspirants looking towards BRICS as a platform for a more balanced world order and promising opportunities on the global stage.
