BRICS: What is it, who wants in and why

Summary:

• BRICS, consisting of Brazil, Russia, India, China, and South Africa, represents over 40% of the world's population and a quarter of the global economy.
• The informal club focuses on economic cooperation, multilateral trade, and development, operating by consensus.
• Several countries, including Saudi Arabia, Argentina, Ethiopia, and Bolivia, have expressed interest in joining BRICS, aligning with the group's goals.
• China, Russia, and South Africa are more supportive of expansion, while Brazil is cautious and India remains undecided.

The group of emerging economies known as BRICS makes up more than 40 percent of the world's population and a quarter of the global economy. And more countries want to join the club, which aims to challenge a world order seen to be dominated by the U.S. and its Western allies. But what exactly is BRICS? Who wants in? And why?

The Origins and Structure of BRICS

Underscoring the growth potential of Brazil, Russia, India, and China, a chief economist at Goldman Sachs came up with the BRIC acronym in 2001. The group was founded as an informal club in 2009, with its creation initiated by Russia. South Africa joined the following year, although it's the smallest member in terms of economic clout and population. Unlike formal multilateral organizations like the UN or World Bank, BRICS leaders usually meet annually, rotating through one-year chairmanships. The group operates by consensus and focuses on economic cooperation, multilateral trade, and development.

Expanding Interest and Membership Requests

The current chair, South Africa, reports that over 40 countries have expressed interest in joining BRICS. Iran hopes to expedite the new membership process, while Saudi Arabia, backed by Russia and Brazil, seeks entry. Argentina claims China's support for its membership. Ethiopia and Bolivia, with their growing economies, have shown interest. In July, Bolivia opted for the Chinese Yuan to reduce reliance on the U.S. dollar for foreign trade, aligning with BRICS' aims. Algeria also applied for membership and to become a shareholder in the BRICS Bank.

Differing Views on Expansion

While China advocates for BRICS expansion amid trade and geopolitical conflicts with the U.S., current members have varying opinions. South Africa and Russia, aiming to overcome diplomatic isolation due to the Ukraine war, are enthusiastic about growth. Brazil remains skeptical, and India has yet to decide on its stance.

As BRICS continues to attract interest from various nations seeking to challenge established global dynamics, the group's future trajectory will likely be influenced by the evolving geopolitical landscape and the economic priorities of its member countries.