[Answered] How has the economic compulsion behind the formation of BRICS influenced its trajectory and objectives? How does BRICS differentiate itself from other global alliances like NATO in terms of its goals and functions?

Recently, six new members Argentina, Iran, UAE, Saudi Arabia, Ethiopia, and Egypt were inducted into BRICS in August in South Africa. The recent expansion of BRICS’s membership collectively wields significant economic influence within the enlarged organization. With the proposed expansion, BRICS will represent 46% of the world’s population. Its share of global GDP will rise from 31.5% in PPP terms to 37%.

How has economic compulsion affected the formation of BRICS?

• Counterbalance Western dominance: The goal to balance out the economic hegemony of Western nations, especially the United States and the European Union, is one of the primary economic drivers behind BRICS. With combined GDP projected to be 36% of the global GDP and the population of its members projected to be 47% of the world population by 2050, BRICS could pose a serious challenge to the dominance of the G7 comprising Canada, France, Germany, Italy, Japan, the U.K., and the U.S.
• Reduce dependency on the dollar: India and China both are trying to reduce their dependency on the dollar & are pushing for more trade, investment, and business in their currencies and together, through BRICS, so they can push their currencies as alternative currencies to the dollar.
• New Cold War: Many nations have been concerned about ongoing issues between the US & China that obstruct their economic development & so are eyeing India, Brazil & South Africa to provide a counterweight to China’s dominance.
• Reform of Global Financial Institutions: BRICS has called for reforms in international financial institutions like the IMF and the World Bank to give emerging economies greater representation and decision-making power.

How is BRICS different from NATO?

• Focus on economic development: BRICS primarily focuses on economic cooperation and development rather than military or security concerns which is the core mandate of NATO highlighted in its principle of collective defense.
• Diverse Membership: BRICS includes countries from different continents and regions with diverse political systems, making it distinct from alliances like NATO, which are often region-specific and focused on security.
• Soft Power and Economic Leverage: BRICS countries often use their economic clout and soft power to influence global affairs, while NATO relies on military strength and security deterrence.
• Multilateral Approach: BRICS generally takes a more multilateral approach to global issues, advocating for a multipolar world order and greater inclusivity in international decision-making. NATO, on the other hand, is a Western-led alliance with a specific focus on transatlantic security.

Conclusion:

BRICS-Plus should be based on rule-based order and the forum should not leave any room for ‘economic hegemony’ and ‘anti-West agenda’. India must find creative ways of blunting Chinese strategy in BRICS-Plus to ensure equitable distribution of power in the group.