Shyam Saran writes: BRICS is growing – and that doesn’t hurt India’s interests

Source– The post is based on the article “Shyam Saran writes: BRICS is growing – and that doesn’t hurt India’s interests” published in “The Indian Express” on 22nd September 2023.

Syllabus: GS3- Regional and global groupings

News– The recent BRICS summit in Johannesburg, South Africa witnessed the joining of five major emerging economies.

What are some facts about BRICS expansion?

The group was formed in 2009. Initially it consisted of Brazil, Russia, India, and China, with South Africa joining a year later.

Six new members have been added: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.

There is also interest from several developing countries to join. It may lead to further expansions.

Initially, there were indications that India and Brazil were not particularly enthusiastic about such an expansion.

India was concerned that an expanded membership may bolster China’s influence within the group.

However, it appears that the selection of new members was driven more by political compromise than by agreed-upon criteria.

Except for Iran, the new members have significant relationships with the West.

Why do developing countries want to join BRICS?

They want to protect themselves in an increasingly uncertain world characterised by shifting political and security dynamics. There is a prevailing concern about their vulnerability to US sanctions.

There may be an expectation that China will lead a shift towards an alternative global currency. It reflects growing frustration among developing countries that their interests and aspirations continue to be overlooked by developed nations.

International institutions such as the UN and multilateral financial institutions like the IMF and the World Bank remain dominated by the G7. Major emerging economies are demanding a greater say in global governance.

What are the achievements of BRICS?

It has established the BRICS New Development Bank (NDB). However, it conducts its business in US dollars, despite the group’s stated objective of diversifying away from the dominant US currency.

BRICS has also created a contingency reserve that member countries can tap into in case of balance of payments issues.

What is the comparison between BRICS and G7?

Unlike the G7, BRICS lacks a strong ideological alignment and cohesiveness. The G7 has evolved over five decades. In contrast, BRICS has a relatively short history of just 15 years.

It faces more internal disagreements among its members as compared to G7. The rivalry between India and China is a notable example.

The G7 is a closely-knit security alliance. All its members are part of NATO and Japan is a US treaty alliance. In contrast, BRICS countries do not share a unified security perspective.

Why Western countries claim BRICS undermining the established international order created by the West are hollow?

Western nations themselves have been gradually weakening and disregarding the rules and norms of this order.

This includes the gradual sidelining of the United Nations, the adoption of protectionist trade measures, and an attempt to shift the responsibility for a more sustainable energy transition onto developing nations.

The application of the principles of the “liberal international order” has become selective.

It is essential for the G7 to engage with these emerging powers to formulate a new set of mutually acceptable international rules.

What are the options for India?

For India, a policy of active participation in multiple international groups has proven to be wise. Joining an expanded BRICS does not conflict with India’s interests.

India does not need to make an exclusive choice between BRICS, the Shanghai Cooperation Organisation, the Quad, and regular engagement with the G7.

These engagements broaden India’s diplomatic options and contribute to help India in an increasingly polarised global landscape.