BRICS Expansion: Challenging Western Dominance
This editorial is based on The implications of the expansion of BRICS which was published in The
Hindu on 06/09/2023. It talks about the recent expansion of the BRICS along with their efforts to promote
cooperation and build institutions outside Western control.
For Prelims: BRICS, New Development Bank, BRICS Contingent Reserve Arrangement
For Mains: Geo-strategic Values of the New BRICS Members, Criticisms Against BRICS, Regional
Developments Shaping BRICS Membership Expansion
Recently, during the 15th BRICS summit held in Johannesburg, it was announced that the existing five-
member BRICS grouping, consisting of Brazil, Russia, India, China, and South Africa, had taken a
significant step by inviting six new countries to join. These new invitees are Iran, Saudi Arabia,
and the United Arab Emirates (UAE) from West Asia; Egypt and Ethiopia from Africa;
and Argentina from Latin America.
BRICS is shaping the future of international relations by advocating for multipolarity, asserting
strategic autonomy, and fostering economic cooperation among its diverse members. Amidst criticism
from Western commentators, BRICS is carving out a unique path in global politics, making its
recent summit a pivotal moment in modern history.
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What are the Objectives of BRICS?
Rejection of Emerging Global Binary Divide: India and other BRICS members reject the idea of
an emerging global binary divide, which suggests a world characterised by two opposing and
dominant powers, often likened to a new Cold War. They do not agree with this perspective
and consider it short-sighted.
Assertion of Strategic Autonomy: BRICS members, including India, are emphasizing their
commitment to asserting their strategic autonomy. This implies that they want to make
independent decisions and policies on the global stage, rather than being aligned with any
particular superpower or bloc.
Multipolar World Order: BRICS countries are advocating for a multipolar world order.
They envision a world where power and influence are distributed among multiple major
players rather than being concentrated in the hands of a few dominant nations.
Demand for Voice and Respect for Interests: BRICS member nations are demanding that their
voices be heard and their interests respected in international affairs. This suggests a desire for
a more equitable and inclusive global governance system where the concerns of emerging
economies are taken into account.
What are the Views of BRICS Towards West-led Organisations?
Unequal Voting Power: One of the primary concerns of BRICS nations is the unequal distribution
of voting power within institutions like the International Monetary Fund (IMF) and the World
Bank.
These organisations give more influence to Western countries, particularly the
United States and European nations, based on their financial contributions. BRICS
members argue that this inequity diminishes their ability to shape policies and
decision-making processes.
Lack of Representation: BRICS nations have argued that the leadership and decision-making
bodies of these institutions do not adequately represent the diversity of the global economy. They
believe that these institutions should better reflect the economic weight and
contributions of emerging economies like themselves.
What are the Criticisms Against BRICS?
Lack of Shared Vision: Western commentators have criticised BRICS for not having a clear and
cohesive shared vision. This implies that the five-member countries may not have a unified and
consistent approach to global issues or may not be working towards common objectives.
Being a "Talk-Shop": BRICS is accused of being primarily a forum for discussion and dialogue
rather than an organisation that takes concrete actions or achieves meaningful outcomes.
In other words, it is seen as a platform where leaders from these countries engage
in discussions but do not produce tangible results or solutions.
No Worthwhile Achievements: Critics argue that BRICS has not produced any substantial or
significant achievements that would justify its existence as a bloc. They may contend that
the group's activities have not had a meaningful impact on global affairs or have failed to
address key challenges effectively.
How BRICS is Challenging this West-led World Order?
Ongoing and Comprehensive Nature of BRICS Interactions: Since 2009, the BRICS member
countries have been holding annual summit meetings. Additionally, the BRICS framework is
supported by various ministerial and expert conclaves, implying that it's not just a summit
but also a platform for sustained engagement.
Alternative Institutions: In response to their dissatisfaction with Western-dominated
institutions, BRICS nations have taken steps to create alternative financial institutions. The
most notable example is the establishment of the New Development Bank (NDB), also known
as the BRICS Bank and Contingent Reserve Arrangement (CRA).
The NDB aims to provide financing for infrastructure and sustainable development
projects in member countries and other emerging economies. This initiative is seen as
a way to reduce dependency on Western institutions.
CRA aims to assist member countries facing short-term balance-of-payments pressures.
Use of Local Currencies: BRICS members have agreed to encourage the use of local currencies
in internal trade and financial transactions among themselves and with other trading partners.
This demonstrates a desire to reduce reliance on major global currencies like the
US dollar and promote the use of their own currencies in international transactions.
Advocacy for Reform: BRICS nations are advocating for significant reforms in the existing
international order. They seek a more representative and fairer global system that takes
into account the interests and voices of emerging economies.
This reform agenda includes calls for changes in international financial
institutions and global governance structures.
Increased Economic Influence The BRICS grouping collectively possesses considerable
economic power. The expansion of BRICS membership has further boosted its influence. The group
represents a significant portion of the world's population, Gross Domestic Product (GDP),
global trade, and energy production.
Energy Sector Impact: The passage highlights the significant impact of BRICS expansion on the
energy sector. With the inclusion of new members, BRICS countries collectively produce a
substantial share of the world's oil, making them a crucial player in global energy
markets. This underscores their potential to shape energy policies and markets.
What are the Geo-strategic Values of the New BRICS Members?
Energy Resources: The inclusion of new BRICS members from West Asia, such as Saudi Arabia
and Iran, is significant due to their substantial energy resources. Saudi Arabia is a major oil
producer, and a significant portion of its oil production goes to BRICS countries like
China and India.
Iran, despite facing sanctions, has increased its oil production and exports, primarily
directed toward China. This highlights the importance of energy cooperation and
trade among BRICS members.
Diversification of Energy Suppliers: Russia has been a significant supplier of oil to China and
India. With the inclusion of Brazil as a new member, Russia is exploring additional markets for its
energy exports, which demonstrates the potential for diversified energy sources within
BRICS.
Strategic Geographical Presence: Egypt and Ethiopia are strategically located in the Horn of
Africa and the Red Sea region, which is of immense geostrategic importance due to
its proximity to critical maritime trade routes. Their presence adds to the geopolitical
significance of BRICS in this region.
Latin American Economic Influence: Argentina, as one of the largest economies in Latin
America, would brings economic influence to the BRICS grouping. Latin America has historically
been a region of interest for global powers, and Argentina's inclusion would further
strengthen BRICS' presence in this part of the world.
Update: Argentina has formally withdrawn from the expansion of the BRICS bloc.
What are the Regional Developments Shaping BRICS Membership Expansion?
Independent Foreign Policy: Both Saudi Arabia and the UAE are noted for pursuing independent
foreign policy paths, particularly since 2020. This implies that they have sought to assert their
sovereignty and make foreign policy decisions that align with their own national interests
rather than being heavily influenced by external powers, such as the United States.
Ending the Qatar Blockade: Saudi Arabia's decision to end the blockade on Qatar in January
2021 is also considered a significant step in this regard. As a result, there was a significant change
in the Gulf region, as it signaled a willingness to resolve regional disputes and improve
relations with neighboring countries.
Iran-UAE Relations: UAE has normalised ties with Iran and aims to expand its maritime presence
in the Gulf, Gulf of Aden, Red Sea, and Horn of Africa.
Iran's inclusion in BRICS offers opportunities for regional economic
cooperation and the revival of connectivity projects through Chabahar port, which India
is involved in.
Conclusion
The expansion of the BRICS group has brought considerable geo-strategic value to the grouping. The
BRICS through its current summit has asserted that their "strategic partnership" will be directed at
achieving "a more representative, fairer international order". The recent expansion of BRICS's membership
has shaped a grouping that is aligned in terms of global perceptions and interests and collectively
provides considerable economic clout to the enlarged conclave. The group's efforts to assert their
strategic autonomy in a multipolar world order have been described as a "turning point in modern
history".
Dishti Mains Questions:
Discuss the evolving role of BRICS and its expansion in shaping international relations and its strategies
to challenge the existing global order.
UPSC Civil Services Examination, Previous Year Questions (PYQs)
Q. Consider the following statements: (2016)
1. New Development Bank has been set up by APEC.
2. The headquarters of the New Development Bank is in Shanghai.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)
Q. The ‘Fortaleza Declaration’, recently in the news, is related to the affairs of (2015)
(a) ASEAN
(b) BRICS
(c) OECD
(d) WTO
Ans: (b)
Q. With reference to a grouping of countries known as BRICS, consider the following
statements: (2014)
1. The First Summit of BRICS was held in Rio de Janeiro in 2009.
2. South Africa was the last to join the BRICS grouping.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Ans: (b)
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