{"id":258962,"date":"2023-09-06T21:29:11","date_gmt":"2023-09-06T15:59:11","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=258962"},"modified":"2023-09-06T21:29:11","modified_gmt":"2023-09-06T15:59:11","slug":"the-implications-of-expansion-of-brics","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-implications-of-expansion-of-brics\/","title":{"rendered":"The implications of expansion of BRICS"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cNot A Job For Quotas\u201d <\/strong>published in \u201cThe Hindu\u201d <\/strong>on 6th September 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS2 \u2013 International Relations – Regional and global groupings<\/p>\n

News<\/strong>– 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.<\/p>\n

What are some significant positive aspects about the grouping?<\/strong><\/h2>\n

Since 2009, BRICS has convened annual summits <\/strong>and is supported by numerous ministerial and expert meetings. <\/strong><\/p>\n

It has established two significant institutions. First is the New Development Bank (NBD)<\/strong>, which provides development assistance. Second is the Contingent Reserve Arrangement<\/strong>, designed to aid countries facing short-term balance-of-payments challenges.<\/strong><\/p>\n

The NBD has already funded 96 projects with a total value of $33 billion.<\/strong><\/p>\n

What is the main agenda of BRICS countries?<\/strong><\/h2>\n

BRICS member countries have shared discontent with the Western-dominated international institutions<\/strong> that emerged after World War II. These include the World Bank, the International Monetary Fund, the United Nations and, the World Trade Organization.<\/p>\n

The United States has led the Western alliance<\/strong> in both political and economic spheres.<\/strong><\/p>\n

BRICS challenges this Western-led world orde<\/strong>r by promoting economic and political cooperation<\/strong> among its member states,<\/p>\n

It is establishing institutions outside of Western control<\/strong>, and advocating strongly for comprehensive reform<\/strong>s to accommodate the interests of emerging economies. <\/strong><\/p>\n

The Johannesburg Declaration explicitly states that the members “strategic partnership” <\/strong>aims to achieve “a more representative, fairer international order.” <\/strong><\/p>\n

How recent expansion of BRICS makes the group more influential?<\/strong><\/h2>\n

The recent expansion of BRICS’s membership collectively wields significant economic influence <\/strong>within the enlarged organization.<\/p>\n

With the proposed expansion, BRICS will represent 46% of the world’s population<\/strong>. Its share of global GDP<\/strong> will rise from 31.5% in PPP terms to 37%<\/strong>. It is surpassing the GDP share of the G-7,<\/strong> which stands at 30.7%.<\/p>\n

The five core BRICS members currently account for 23% of global exports and 19% of global imports<\/strong>. With the addition of new members, these figures will increase by 3.7% and 3%, respectively. <\/strong><\/p>\n

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<\/strong>. This share is set to increase to 42%.<\/strong><\/p>\n

What is the geopolitical importance of BRICS expansion?<\/strong><\/h2>\n

Countries from West Asia<\/strong> are already closely intertwined<\/strong> with BRICS members.<\/p>\n

China and India receive 35% of Saudi Arabia’s oil production<\/strong>. Russia, a major oil supplier to China and India, is exploring Brazil as a market. Despite U.S. sanctions<\/strong>, Iran has considerably increased its oil production<\/strong>, and most of it going to China.<\/p>\n

Egypt and Ethiopia play essential roles in the strategically vital Horn of Africa and the Red Sea region<\/strong>. Argentina holds the position of being the second-largest economy in Latin America.<\/strong><\/p>\n

The recent additions to BRICS, especially those from West Asia, align well with the group’s political and economic framework. <\/strong><\/p>\n

Since 2020, both Saudi Arabia and the UAE have pursued independent foreign policies,<\/strong> distancing themselves from U.S. influence. <\/strong><\/p>\n

Saudi Arabia has pursued de-escalation.<\/strong> It has engaged in dialogue<\/strong> with various countries, including Turkey and Iran. It made China-brokered accord with Iran in March this year.<\/p>\n

The UAE has normalized relations<\/strong> with Iran and is expanding its maritime presence<\/strong> across the Gulf, the Gulf of Aden, the Red Sea, and the Horn of Africa. <\/strong><\/p>\n

Iran’s inclusion<\/strong> in BRICS is significant. It opens opportunities for enhanced regional economic cooperation <\/strong>and the revitalization of long-dormant north-south connectivity projects, <\/strong>including the Chabahar port.<\/strong><\/p>\n

What are major takeaways from Johannesburg Declaration?<\/strong><\/h2>\n

The Johannesburg Declaration predominantly emphasizes intra-BRICS cooperation and collaboration <\/strong>with other developing nations.<\/p>\n

The member nations have agreed to promote the use of local currencies in trade and financial transactions<\/strong> between BRICS countries and other trade partners.<\/p>\n

The Declaration demonstrates shared viewpoints<\/strong> among its members on various political matters,<\/strong> such as the United Nations’ significance, regional issues in West Asia, the conflict in Ukraine, and global terrorism.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cNot A Job For Quotas\u201d published in \u201cThe Hindu\u201d on 6th September 2023. Syllabus: GS2 \u2013 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… Continue reading The implications of expansion of BRICS<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,239,10498],"class_list":["post-258962","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-international-relations","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":16,"cached_at":1698363881,"cached_date":1698439249},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/258962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=258962"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/258962\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=258962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=258962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=258962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}