Leaders of the BRICS nations, which include Brazil, Russia, India, China, and South Africa, met recently to discuss the possible expansion of their economic bloc. The leaders believe that expanding the bloc will amplify the voice of developing nations and serve the geopolitical interests of China and Russia. While a decision on accepting new members was expected during the summit, it is now likely to be announced on Thursday.
During the closed-door discussions, Chinese President Xi Jinping, Brazilian President Luiz Inácio Lula da Silva, Indian Prime Minister Narendra Modi, and South African President Cyril Ramaphosa expressed their support for the principle of expansion. Over 20 countries, including Saudi Arabia, Argentina, Egypt, and Iran, have applied for membership in BRICS, with Saudi Arabia’s potential membership bringing it closer to China and Russia.
The expansion of BRICS could be seen as a symbolic coalition between China and Russia amid growing tension with the United States and the collapse of Russia’s relationship with the West due to its actions in Ukraine. However, the bloc has faced challenges in translating its policies into action due to the diverse economic and political priorities of its members. One concrete policy discussed during the summit is the plan to shift away from using the US dollar for trade between BRICS nations in favor of local currencies.
While the intention to move away from the dollar won’t have an immediate impact, it highlights the dissatisfaction among developing nations with the current global order. However, there is no consensus within BRICS on a trade currency, and further discussions are needed. The fact that over 20 countries have applied for membership in BRICS signals a broader discontent among developing economies with the global order.
On the sidelines of the summit, South Africa signed agreements with China’s state-owned electricity companies to address its energy crisis, which has resulted in daily power outages across the country.
Overall, the leaders of BRICS are considering the expansion of their economic bloc to amplify the voice of developing nations and serve their own geopolitical interests. While a decision on accepting new members is yet to be announced, the potential expansion of BRICS highlights the dissatisfaction among developing economies with the current global order.
