BRICS' Johannesburg meeting amid talks of expansion

Vibha Sharma

Chandigarh, August 22

Prime Minister Narendra Modi on Tuesday left for Johannesburg for the first in-person BRICS Summit since 2019. In those terms, it is an important geo-political and geo-economic event. This time, however, leaders of the BRICS—the grouping of major emerging economies Brazil, Russia, India, China and South Africa—are also expected to discuss a framework to admit new members on the platform.

There are also reports of a bilateral meeting between PM Modi and Chinese President Xi Jinping, giving an additional reason to watch out for at the summit. China and India are the two major regional powers of Asia and two most populous countries and among the fastest growing economies in the world.

This summit would provide a useful opportunity for BRICS to identify future areas of cooperation and review institutional development, PM Modi said in his statement.

BRIC to BRICS

As on date, BRICS comprises five nations—Brazil, Russia, India, China and South Africa.

However, the acronym BRIC did not include South Africa when it was coined in 2001.

The term BRIC was originally developed in the context of foreign investment strategies. It was introduced in the 2001 publication by then-chairman of Goldman Sachs Asset Management, Jim O’Neill, in the paper underlining the growth potential of four countries—Brazil, Russia, India and China.

The term was coined by Roopa Purushothaman, who was a research assistant in the original report, according to reports.

The first formal meeting of the group was held in 2009 with the aim to provide a common platform and global playing field for member countries in a world order dominated by the US and its Western allies. Therefore, Brazil, Russia, India and China are the founding members. South Africa became a member in 2010, expanding the acronym to BRICS.

BRICS, the strength     

While India and China are the two most populous countries in the globe, together the five nations account for more than 40% of the world and one-fourth of the global economy. Geopolitics apart, the grouping’s basic strength is geo-economics—multilateral trade, development and cooperation—making it a plausible platform for others to join amid economic sanctions and the domination of West in international bodies.

BRICS is essentially a movement of “emerging economies” and a geopolitical rival to the G7 intergovernmental political forum comprising countries like Canada, France, Germany, Italy, Japan, the UK and the US.

BRICS, the expansion

Now, there are plans to expand BRICS and add to its geopolitical and geo-economic strength.

Agency reports suggest that “over 40 countries, including Iran, Saudi Arabia, the United Arab Emirates, Argentina, Algeria, Bolivia, Indonesia, Egypt, Ethiopia, Cuba, Democratic Republic of Congo, Comoros, Gabon and Kazakhstan” have expressed interest to become its part.

For Gulf countries, BRICS may be a platform for a better access to global bodies, say experts, while African nations like Ethiopia see it as a platform for better representation for the continent and being a part of the aim—a global political and economic player. Smaller countries hope BRICS membership will unleash economic and development benefits due to increased trade and investment.

Earlier in July, National Security Advisor (NSA) Ajit Doval participated in a meeting of ‘Friends of BRICS’ in the South African capital. In addition to BRICS, Belarus, Burundi, Iran, the UAE, Saudi Arabia, Egypt, Kazakhstan and Cuba also participated in the discussions.

BRICS, the challenges

While growing membership is expected to lend the grouping more clout, sceptics point to the developments around the New Development Bank or the “BRICS bank”, the bloc’s “most concrete achievement” to express doubts. Its sluggish pace of lending has also been hampered by sanctions against founding member Russia, they point.

Once a booming economy, China seems to be slowing. The country is also facing tensions with the US over semiconductors.

Russia, too, is facing sanctions and isolation following the war with Ukraine.

Apparently, not everyone is keen on the idea of expansion, reports suggest. While China and Russia are bullish on the issue, Brazil is “worried about rushing with the process”, they add.

All eyes are on Johannesburg

This BRICS meet is happening at an important geopolitical and geo-economic juncture, say experts.

This is the first in-person summit since the Covid-19 pandemic.

This is also the first in-person meeting since the Russia-Ukraine war and economic slowdown in Russia and China.