BRICS Expansion: Five including Iran, Saudi Arabia & UAE join bloc

In a move to enhance its strategic influence in response to the prevailing dominance of the West in global affairs, the BRICS bloc of top emerging economies, including India, Russia and China has announced the induction of five full members. As Russia took on the BRICS presidency, President Vladimir Putin declared on Monday that the group has now expanded to a 10-nation body with Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joining as new members. During the BRICS summit in Johannesburg in August, the leaders of the bloc approved a proposal to admit six countries, including Argentina, into the group starting from January 1. However, last week, Argentina’s new President Javier Milei announced the withdrawal of his country from becoming a member of the BRICS (Brazil-Russia-India-China-South Africa). “Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joined BRICS as new full members which is a strong indication of the growing authority of the association and its role in international affairs,” Putin said in an address. The Russian President said BRICS is attracting an ever-increasing number of supporters and like-minded countries that share its underlying principles such as sovereign equality, openness, consensus, and aspiration to form a multipolar international order and a fair global financial and trading system. In his remarks, Putin said that the Russian 2024 BRICS chairmanship under the motto ‘strengthening multilateralism for equitable global development and security’ will focus on positive and constructive cooperation with all concerned countries. “We will spare no effort to ensure that, while preserving traditions and being guided by the experience gained by the association in years past, we facilitate the harmonious integration of new participants in all formats of its activities,” he said, according to the Kremlin. “Of course, we will consider the degree to which many other countries, about 30 of them, are prepared to join the BRICS multi-dimensional agenda in one form or another,” he said. To this end, we will start working on the modalities of a new category of BRICS partner countries, he said. “In general, Russia will continue to promote all aspects of the BRICS partnership in three key areas: politics and security, economy and finance, and cultural and humanitarian contacts,” he said. “Naturally, we will focus on enhancing foreign policy coordination among the member countries and on jointly seeking effective responses to the challenges and threats to international and regional security and stability,” he said. Putin said the priorities under the Russian presidency of the grouping will include promoting cooperation in science, high technology, healthcare, environmental protection, culture and sports. “In total, over 200 events of different levels and types will be held in many Russian cities as part of the chairmanship,” he said.“We encourage representatives of all countries interested in cooperating with our organisation to take part in them. The BRICS Summit in Kazan in October will be the culmination of our chairmanship,” he added. WHAT IS BRICS? The acronym BRIC, which did not initially include South Africa, was coined in 2001 by then Goldman Sachs chief economist Jim O’Neill in a research paper that underlined the growth potential of Brazil, Russia, India and China. The bloc was founded as an informal club in 2009 to provide a platform for its members to challenge a world order dominated by the United States and its Western allies. Its creation was initiated by Russia. The group is not a formal multilateral organisation like the United Nations, World Bank or the Organisation of the Petroleum Exporting Countries (OPEC). The heads of state and government of the member nations convene annually with each nation taking up a one-year rotating chairmanship of the group. WHO ARE THE MEMBERS? Brazil, Russia, India and China are the founding members. South Africa, the smallest member in terms of economic clout and population, was the first beneficiary of an expansion of the bloc in 2010 when the grouping became known as BRICS. Together the countries account for more than 40% of the world population and a quarter of the global economy. Apart from geopolitics, the group’s focus includes economic cooperation and increasing multilateral trade and development. The bloc operates by consensus. All the BRICS countries are part of the Group of 20 (G20) of major economies. WHICH NATIONS WANT TO JOIN BRICS AND WHY? Over 40 countries, including Iran, Saudi Arabia, United Arab Emirates, Argentina, Algeria, Bolivia, Indonesia, Egypt, Ethiopia, Cuba, Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan had expressed interest in joining the forum, according to 2023 summit chair South Africa. They view BRICS as an alternative to global bodies viewed as dominated by the traditional Western powers and hope membership will unlock benefits including development finance, and increased trade and investment. Dissatisfaction with the global order among developing nations was exacerbated by the COVID-19 pandemic when life-saving vaccines were hoarded by the rich countries. Iran, home to around a quarter of the Middle East’s oil reserves, has said it hopes the mechanism for new membership would be decided “at the earliest.” Oil heavyweight Saudi Arabia was among more than a dozen countries that participated in “Friends of BRICS” talks in Cape Town in June. It has received backing from Russia and Brazil to join the BRICS. Argentina said in July 2022 it had received China’s formal support in its bid to join the group. Ethiopia, one of Africa’s fastest-growing economies, said in June it had asked to join the bloc, with a foreign ministry spokesman saying the country will continue to work with international institutions that can protect its interests. Bolivia’s President Luis Arce has expressed interest in BRICS membership and is expected to attend the summit. Its government said in July it was determined to curb dependence on the U.S. dollar for foreign trade, instead turning to the Chinese yuan, in line with BRICS leaders’ stated aim to reduce dependence on the U.S. currency. Algeria said in July it has applied for BRICS membership and to become a shareholder in the New Development Bank, the so-called BRICS Bank. The North African nation is rich in oil and gas resources and is seeking to diversify its economy and strengthen its partnership with China and other countries. With inputs from agencies.