The 15th BRICS summit in Johannesburg announced that the five-member grouping had invited six new members from West Asia; Egypt and Ethiopia from Africa, and Argentina from Latin America.

Significant positive aspects about the grouping

• Since 2009, BRICS has convened annual summits and is supported by numerous ministerial and expert meetings.
• It has established two significant institutions. First is the New Development Bank (NBD), which provides development assistance. Second is the Contingent Reserve Arrangement, designed to aid countries facing short-term balance-of-payments challenges.
• The NBD has already funded 96 projects with a total value of $33 billion.

Main agenda of BRICS countries

• BRICS member countries have shared discontent with the Western-dominated international institutions that emerged after World War II. These include the World Bank, the International Monetary Fund, the United Nations and, the World Trade Organization.
• The United States has led the Western alliance in both political and economic spheres.
• BRICS challenges this Western-led world order by promoting economic and political cooperation among its member states,
• It is establishing institutions outside of Western control, and advocating strongly for comprehensive reforms to accommodate the interests of emerging economies.
• The Johannesburg Declaration explicitly states that the members “strategic partnership” aims to achieve “a more representative, fairer international order.”

Expansion of BRICS makes the group more influential

• The recent expansion of BRICS’s membership collectively wields significant economic influence within the enlarged organization.
• With the proposed expansion, BRICS will represent 46% of the world’s population. Its share of global GDP will rise from 31.5% in PPP terms to 37%. It is surpassing the GDP share of the G-7, which stands at 30.7%.
• The five core BRICS members currently account for 23% of global exports and 19% of global imports. With the addition of new members, these figures will increase by 3.7% and 3%, respectively.
• The most significant impact will be on the energy sector. The five original BRICS members currently contribute to 20% of the world’s oil production. This share is set to increase to 42%.

Geopolitical importance of BRICS expansion

• Countries from West Asia are already closely intertwined with BRICS members.
• China and India receive 35% of Saudi Arabia’s oil production. Russia, a major oil supplier to China and India, is exploring Brazil as a market. Despite U.S. sanctions, Iran has considerably increased its oil production, and most of it going to China.
• Egypt and Ethiopia play essential roles in the strategically vital Horn of Africa and the Red Sea region. Argentina holds the position of being the second-largest economy in Latin America.
• The recent additions to BRICS, especially those from West Asia, align well with the group’s political and economic framework.
• Since 2020, both Saudi Arabia and the UAE have pursued independent foreign policies, distancing themselves from U.S. influence.
• Saudi Arabia has pursued de-escalation. It has engaged in dialogue with various countries, including Turkey and Iran. It made China-brokered accord with Iran in March this year.
• The UAE has normalized relations with Iran and is expanding its maritime presence across the Gulf, the Gulf of Aden, the Red Sea, and the Horn of Africa.
• Iran’s inclusion in BRICS is significant. It opens opportunities for enhanced regional economic cooperation and the revitalization of long-dormant north-south connectivity projects, including the Chabahar port.

Major takeaways from Johannesburg Declaration

• The Johannesburg Declaration predominantly emphasizes intra-BRICS cooperation and collaboration with other developing nations.
• The member nations have agreed to promote the use of local currencies in trade and financial transactions between BRICS countries and other trade partners.
• The Declaration demonstrates shared viewpoints among its members on various political matters, such as the United Nations’ significance, regional issues in West Asia, the conflict in Ukraine, and global terrorism.