China has been vigorously pushing for the expansion of the BRICS grouping of nations with a hidden motive of bolstering its political influence to counter the United States of America.
Among the current BRICS members, Brazil and India have expressed strong reservations about admitting new countries. Brazil appears to lean towards a pro-US approach, while India seeks robust laws to facilitate the addition of new members.
The objections raised by India and Brazil came just before the BRICS summit scheduled in Johannesburg, South Africa, from August 22 to 24, 2023.
During this summit, Brazil, Russia, India, China, and South Africa will discuss the possibility of expanding the group. Indonesia and Saudi Arabia are seen as front-runners for joining BRICS, and Belarus has recently submitted an application.
China’s proposal for expansion has triggered a global race, with many countries vying intensely to join this elite group.
This has led the West to believe that BRICS could be used to counterbalance the dominance of the US and EU. While Brazil and India have opposed the move, South Africa, another member country, seeks to discuss the membership option constructively.
With its significant global impact, experts believe that the expansion idea represents a shift in power from the US and the West to the East, symbolized by China’s rise.
Chinese Foreign Minister Wang Yi responded to the development by stating, “The BRICS leaders meeting last year authorized the expansion of membership; adding more members to BRICS is the political consensus of the five BRICS countries.” Russia, although having its own reservations, does not firmly oppose the idea of BRICS expansion.
The Johannesburg summit aims to present BRICS as a formidable political and economic force in the years ahead, taking place amid heightened tensions between the US and China.
China will also address the issue of a single currency during the summit, seeking to reduce the dollar’s global dominance. Russian leader Vladimir Putin will attend the summit virtually amid fears of an ICC arrest warrant against him.
A recent development of interest is India’s objection to Pakistan’s participation in a side event to the upcoming BRICS summit in late June of the same year, which seemingly irritated China. While several developing/emerging economies were welcome to participate in the virtual event, Pakistan accused India of blocking its participation, leading to its international isolation and embarrassment. It was believed that China, as the host country, had invited Pakistan after consultations with all BRICS members.
Indian Foreign Minister Subrahmanyam Jaishankar, in his address to the press in June, emphasized the need to deliberate on standards, criteria, and procedures for admitting new members to BRICS.
India believes that while there is no active template for the addition of a new BRICS member, essential factors such as a country’s economic contribution, size, cultural influence, and representation of its region must be taken into consideration.
Additionally, the new member country must equally represent the Global South continents of Asia, Africa, and South America.
BRICS is perceived as a strong alliance of emerging economies aimed at establishing peace, security, development, and global cooperation.
Despite speculation about the topics to be discussed at the upcoming BRICS summit, South African ambassador to BRICS, Anil Sooklal, has clarified that the discussion regarding an alternative global currency is not on the agenda.
With its significant global impact, experts believe that the expansion idea represents a shift in power from the US and the West to the East, symbolized by China’s rise.
China is lobbying vigorously for countries like Pakistan, while many other nations are also aspiring to join BRICS in a bid to uplift their economic status.
China also aims to counter the US’s ability to wield the dollar as a weapon by imposing sanctions on countries, repaying foreign debts, and affecting currency appreciation through changes in the Federal Reserve’s interest rates.
This has prompted developing nations to explore alternative currencies for settling trade payments and international credit.
While India has not supported the idea of a BRICS currency and favors the US, it is China that seeks to promote the Yuan as the new global currency backed by BRICS. China’s extensive multi-billion dollar high-interest loans through the Belt and Road Initiative (BRI) and the loans worth $33 billion granted by the BRICS’s New Development Bank (NDB) for 96 projects within the five founding countries, along with its avoidance of strict IMF conditions for bailout packages, have given rise to the idea of an alternative politico-economic power structure supported by Russia and China.
Despite speculation about the topics to be discussed at the upcoming BRICS summit, South African ambassador to BRICS, Anil Sooklal, has clarified that the discussion regarding an alternative global currency is not on the agenda.
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