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Contents
Source– The post is based on the article “Not A Job For Quotas” published in “The Hindu” on 6th September 2023.
Syllabus: GS2 – International Relations – Regional and global groupings
News– The 15th BRICS summit in Johannesburg announced that the five-member grouping had invited six new members from West Asia; Egypt and Ethiopia from Africa, and Argentina from Latin America.
What are some significant positive aspects about the grouping?
Since 2009, BRICS has convened annual summits and is supported by numerous ministerial and expert meetings.
It has established two significant institutions. First is the New Development Bank (NBD), which provides development assistance. Second is the Contingent Reserve Arrangement, designed to aid countries facing short-term balance-of-payments challenges.
The NBD has already funded 96 projects with a total value of $33 billion.
What is the main agenda of BRICS countries?
BRICS member countries have shared discontent with the Western-dominated international institutions that emerged after World War II. These include the World Bank, the International Monetary Fund, the United Nations and, the World Trade Organization.
The United States has led the Western alliance in both political and economic spheres.
BRICS challenges this Western-led world order by promoting economic and political cooperation among its member states,
It is establishing institutions outside of Western control, and advocating strongly for comprehensive reforms to accommodate the interests of emerging economies.
The Johannesburg Declaration explicitly states that the members “strategic partnership” aims to achieve “a more representative, fairer international order.”
How recent expansion of BRICS makes the group more influential?
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%. It is surpassing the GDP share of the G-7, which stands at 30.7%.
The five core BRICS members currently account for 23% of global exports and 19% of global imports. With the addition of new members, these figures will increase by 3.7% and 3%, respectively.
The most significant impact will be on the energy sector. The five original BRICS members currently contribute to 20% of the world’s oil production. This share is set to increase to 42%.
What is the geopolitical importance of BRICS expansion?
Countries from West Asia are already closely intertwined with BRICS members.
China and India receive 35% of Saudi Arabia’s oil production. Russia, a major oil supplier to China and India, is exploring Brazil as a market. Despite U.S. sanctions, Iran has considerably increased its oil production, and most of it going to China.
Egypt and Ethiopia play essential roles in the strategically vital Horn of Africa and the Red Sea region. Argentina holds the position of being the second-largest economy in Latin America.
The recent additions to BRICS, especially those from West Asia, align well with the group’s political and economic framework.
Since 2020, both Saudi Arabia and the UAE have pursued independent foreign policies, distancing themselves from U.S. influence.
Saudi Arabia has pursued de-escalation. It has engaged in dialogue with various countries, including Turkey and Iran. It made China-brokered accord with Iran in March this year.
The UAE has normalized relations with Iran and is expanding its maritime presence across the Gulf, the Gulf of Aden, the Red Sea, and the Horn of Africa.
Iran’s inclusion in BRICS is significant. It opens opportunities for enhanced regional economic cooperation and the revitalization of long-dormant north-south connectivity projects, including the Chabahar port.
What are major takeaways from Johannesburg Declaration?
The Johannesburg Declaration predominantly emphasizes intra-BRICS cooperation and collaboration with other developing nations.
The member nations have agreed to promote the use of local currencies in trade and financial transactions between BRICS countries and other trade partners.
The Declaration demonstrates shared viewpoints among its members on various political matters, such as the United Nations’ significance, regional issues in West Asia, the conflict in Ukraine, and global terrorism.
