At the end of August, the BRICS announced its first expansion since the founding of South Africa in 2010. In this way, the emerging community will include six new countries on January 1, 2024, increasing the number of members to 11. From Saudi Arabia, Iran, Egypt and Argentina. Ethiopia and the United Arab Emirates.
This expansion will become effective only when this organization reaches the age of majority. It was in 2006 when Brazil, Russia, India and China decided to formalize their cooperative relations, seeking to join forces and act as a counterweight to the US-led Western sphere of influence. The goal was to confront the network of international institutions created by Western countries. It was English economist Jim O’Neill, of the Goldman Sachs financial group, who created the abbreviation (BRIC) in 2001 to which the final S was added, with South Africa later joining.
This new movement heralds changes in the global order following the Russian invasion of Ukraine and in the context of rising tensions between the United States and China. With these new incomes, an economic and political bloc facing the North American giant is supposed to be consolidated, and the general idea of the deterioration of these countries’ relations with the United States is strengthened. The main sign of this was the entry of Saudi Arabia, which until then had considered the United States its great historical ally in the Middle East. On the other hand, the North American giant strengthened the world’s main military alliance – NATO – after the invasion of Ukraine, expanding it even further to the east of the continent.
BRICS: an economic and demographic power
The five countries that currently make up the BRICS group together represent more than 40% of the world’s population (about 3.2 billion people), and with the new additions, the 11 countries will represent more than 45% of it, for a total of 390 million people. From a larger population. If measured by GDP (in nominal terms), the correlation would rise from a total of $27.5 trillion to more than $30.5 trillion. next to, These countries supply more than 45% of the world’s oil. The accession of the six new members practically doubles the global production shareThis conflicts with the interests of the United States and the European Union.
These data reflect the strength of this group of countries. An alternative bloc to the West would be able to destabilize markets and influence, incite, manipulate or even control many of the economic and trade decisions of many countries.
Union does not have much influence
BRICS has sought to offer an alternative to traditional Western-dominated financial and political systems. Among his notable achievements is the establishment of the New Development Bank or BRICS Bank, a multilateral development finance entity with $50 billion in subscribed capital to finance infrastructure and climate-related projects in developing countries. The bank, which counts BRICS members among its shareholders as well as Bangladesh, Egypt and the United Arab Emirates, has so far approved loans worth more than $30 billion since its establishment in 2015.. In comparison, the World Bank has committed more than $100 billion in 2022.
Related publications
China cuts stock transaction tax in half, is it time to invest?
China bans the export of gallium, germanium and their derivatives
