Author: Monica R, Sastra Deemed University
ABSTRACT
BRICS play an important
role in the world order. It is initially formed for the purpose of promoting economic operation among the member countries and promoting recognition to the developing countries. The decision to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates in the 15th BRICS Conference in Johannesburg was a pivotal step to enhance international institutions like the WTO and WHO. BRICS stresses the necessity of addressing the United Nations structure, ownership stakes in the World Bank and International Monetary Fund (IMF), and membership and renewal procedures that prioritize the developed Countries.
INTRODUCTION
BRICS is established for the purpose of fostering the economic co-operation among the member state. The name BRICS is coined by the Jim O Neil in 2001. First it has been established with Four countries in 2006 as BRIC. In 2011, South Africa become the fifth member to make it has BRICS. BRICS represents the emerging economies. United Arab Emirates and 4 other countries were invited to join BRICS. This marked as a significant move in the International arena and it is very much important for the recognition of the developing countries.
FACTORS LEAD TO BRICS FORMATION
Inequitable Voting Power: The unequal distribution of voting power in organizations such as the World Bank and the International Monetary Fund (IMF) is one of the main issues facing the BRICS countries.
According to their financial contributions, these organizations provide Western nations—especially the US and Europe—more clout. Members of the BRICS contend that this injustice limits their influence over decisions and policies.
Absence of Representation: According to the BRICS countries, the organizations’ leadership and decision-making committees fail to fairly reflect the diversity of the world economy. They think that these organizations need to more accurately represent the contributions and economic clout of developing nations like their own.
EXPANSION OF BRICS
The current five-member BRICS grouping Brazil, Russia, India, China, and South Africa took a major step by inviting six more nations to join, it was reported recently at the 15th BRICS conference in Johannesburg. These additional invitees include Argentina from Latin America; Egypt and Ethiopia from Africa; and Iran, Saudi Arabia, and the United Arab Emirates (UAE) from West Asia.
By promoting multipolarity, claiming strategic autonomy, and encouraging economic cooperation among its various members, BRICS is influencing the course of international affairs. BRICS is forging a distinct course in world politics, despite criticism from Western pundits, and its most recent summit is a turning point in contemporary history.
These are the following areas where BRICS+ could have a major worldwide influence.
ENERGY
Some of the largest energy producers and consumers in the world are united under BRICS+. The BRICS+ member states, which now include Iran, Saudi Arabia, and the United Arab Emirates, produce around 43% of the world’s crude oil and 32% of its natural gas. Those shares will increase further if Bahrain, Kuwait, and Kazakhstan are admitted. Additionally, 38% of the world’s petroleum imports come from BRICS+ countries, with China and India leading the way. That percentage would increase to 55% if all new candidates were accepted. A parallel energy trading system might emerge if several of the largest energy buyers and sellers were in the same organization during periods of market volatility. That might give them the power to affect oil prices and enable trade between the BRICS+ economies outside of the Western-led financial system and possible future sanction schemes.
TRADE
Between 2002 and 2022, the group’s present members’ share of global trade in products more than doubled, reaching 40%.. One of the main drivers of this has been China’s expanding role as a consumer and industrial products supplier and commodity importer
There is presently no free trade agreement (FTA) that covers the full ten-nation group, despite the fact that a small number of BRICS+ members have FTAs with one another. However, there are a number of ways in which BRICS+ might be used as a platform to expand intra-BRICS+ market access.
FUNDING FOR GROWTH AND DEVELOPMENT
The BRICS+ nations are eager to become more autonomous from the global monetary system, which is dominated by the West. The organization may start acting as a middleman for exchanges in currencies other than US dollars. Promoting digital currencies is another goal shared by China, Russia, and the other BRICS+ nations. The consortium has released BRICS Pay, a payment app that allows transactions in a number of non-dollar currencies, in beta form. As a result, countries may become less dependent on the US and be less susceptible to sanctions and fluctuations in foreign exchange rates during financial crises.
THE NEW WORLD ORDER
On the international political scene, the BRICS nations are making more of an impression, especially in fields like international negotiations, peacekeeping, and efforts to resolve conflicts. It is crucial to realize that the BRICS want to increase their representation and influence in international affairs, not to displace the West.
The BRICS have the ability to spearhead the shift to a more sustainable and just global economy by utilizing their combined strengths. In the near future, their investments in cutting-edge technologies like blockchain, artificial intelligence, and renewable energy might establish them as significant forces behind innovation and global economic expansion.
In addition, the BRICS nations are attempting to create a new, constructive, and consolidated global governance model as opposed to a unipolar one. The de-dollarization process might proceed more quickly if the BRICS nations agree to use a single currency for trade. In addition to increasing the BRICS nations’ worldwide influence, this action would solidify their position as a major player in world leadership. With its planned expansion, the BRICS nations are expected to account for more than 50% of the world’s GDP by 2030, further solidifying their importance on the international scene.
THE PATH AHEAD
Other countries, such as the Thailand, Vietnam, and Bangladesh and Mexico have indicated a strong desire to join BRICS , are very interested in investing in BRICS as a result of its success and are presently involved in the membership process. The world economy and international order would be significantly impacted if these nations joined BRICS.
The BRICS nations, who contend that they are currently underrepresented, are pushing for reforms in a number of international organizations. In order to enhance international institutions like the World Trade Organization (WTO) and World Health Organization (WHO), they stress the necessity of addressing the United Nations’ structure, ownership stakes in the World Bank and International Monetary Fund (IMF), and membership and renewal procedures. BRICS seeks to establish a more just and inclusive international order by promoting these reforms.
CONCLUSION
The BRICS organization has gained significant geostrategic relevance as a result of its expansion. At the current meeting, the BRICS have stated that the goal of their “strategic partnership” is to create “a more representative, fairer international order.” Recent BRICS membership growth has created a club that shares common global views and interests and, taken as a whole, gives the expanded conclave significant economic influence. One “turning point in modern history” has been characterized as the group’s attempts to establish its strategic autonomy in a multipolar world order.
FAQS
1. What does the expansion of BRICS mean to the world order?
Recently, certain nations were have had been invited to join the BRICS. By this action, the bloc’s power in energy and geopolitics is strengthened, its worldwide representation is improved, and its economic linkages are strengthened.
2. What is the difference between Western alliances like the G7 and BRICS?
The Global South and emerging markets are the emphasis of BRICS, whereas the G7 stands for advanced economies. In contrast to the G7, BRICS places a strong emphasis on Global South collaboration, inclusion, and multipolarity in trade and commerce.
3. In what ways does BRICS resolve geopolitical conflicts among its members?
In order to handle internal conflicts, BRICS encourages communication and diplomacy. Despite ongoing issues like border conflicts between China and India, the group concentrates on shared objectives like multilateralism and economic growth.
SOURCES
https://www.bcg.com/publications/2024/brics-enlargement-and-shifting-world-order
