Growth and Diversification in BRICS: A New Chapter In Global Dynamics
BRICS: Expansion on the Horizon
- The organisation encompassing Brazil, Russia, India, China, and South Africa, known as BRICS, is headed for a significant expansion on January 1.
- New nations set to join the bloc include Saudi Arabia, Iran, the United Arab Emirates, Ethiopia, and Egypt.
- This move will effectively double the membership of BRICS, enhancing its global influence.
Motivation Behind the Expansion
- The existing BRICS nations laid the groundwork for this expansion in August, sending out invitations to six nations. Only Argentina declined the offer.
- The central intention is linking leading energy producers with significant consumer markets in the developing world.
Progress of Participation and Acceptance
- Representatives from the future member nations have already started integration processes, as demonstrated by their attendance at a BRICS meeting in Durban, South Africa.
- They will also dispatch officials to the upcoming meeting in Moscow scheduled for January 30.
Journey of BRICS: From BRIC to BRICS
- The term "BRIC" was conceived in 2001, indicating the robust economic growth of Brazil, Russia, India, and China.
- It became "BRICS" in 2010 with the induction of South Africa, a testament to the bloc's evolving dynamics.
Increasing Global Interest
- Approximately 30 countries have shown interest in developing relations with BRICS, verifying its growing global relevance.
- Russia's Foreign Affairs Minister, Sergey Lavrov, has acknowledged the increasing international significance of the bloc.
Future Aspirants
- Nigeria, under the leadership of its Minister of Foreign Affairs, Yusuf Tuggar, aspires to join the BRICS alliance within the next two years.
Challenges and Setbacks
- Except for India, BRICS has underperformed compared to other emerging-market peers in the last five years.
- Russia's attractiveness to investors has been diminished due to US-led sanctions.
- Certain sectors in China, especially technology companies, face sanctions and potential investment bans, posing further challenges to the bloc's overall performance.
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