When small BRICS become Mighty Walls: Reshaping the Global World Order

Article by Grace Waithera

September 15, 2023.

In the grand tapestry of geopolitics just as it is with life, it's often the small pieces that, when combined, create a formidable force. It may be easy to dismiss them as minute and inconsequential on their own, but the power they wield when they come together is one to be feared.

Much like a wall- built brick by brick, the BRICS alliance of Brazil, Russia, India, China, and South Africa has quietly grown into a formidable force with ambitions to reshape the global world order.

China has the largest GDP amongst the BRICS countries, sitting at 16.86 trillion U.S. dollars in 2021, while the other BRICS members are all below three trillion. Combined, the BRICS bloc holds a GDP of over 29.02 trillion U.S. dollars, which is slightly more than the?United States.

Why China is part of BRICS

Although both China and the United States have mutual political, economic, and security interests, there are also unresolved concerns, with different views such as on the political status of Taiwan or territorial disputes in the South China Sea. The U.S. Director of National Intelligence Avril Haines is calling China the “most consequential threat” to U.S. national security, as China and U.S edge closer to a war. On Monday, Xi Jinping directly accused the United States of suppressing China’s development, stating, “Western countries — led by the U.S. — have implemented all-round containment, encirclement and suppression against us.” Meanwhile Russia which is lead in the world in terms of nuclear weapons and advanced missile systems, continues its friendship with China, an indication that should it come down to a war between China and U.S.A, China may have full backing from Russia.

Therefore, the BRICS alliance provides a tool for China and other countries, to come together and demand inclusion through global impact, which they feel they have not been rightfully accorded by the United States. Rather than go to war, BRICS is a better tactic to exert force. The entire formation of BRICS is a statement to the United States and the world at large saying: Enough is enough.

Could this be the largest alliance among countries, surpassing previous predecessors like G-20? Only time will tell.

The Genesis of BRICS

It's quite fascinating that the term "BRICS" itself was coined by an economist working at Goldman Sachs back in 2001. This visionary economist, Jim O'Neill, prophesized that by 2050, Brazil, Russia, India, and China would dominate global growth. These nations, now collectively known as BRICS, have consistently ranked among the world's fastest-growing emerging market economies. Their growth can be attributed to factors such as low labor costs, favorable demographics, and abundant natural resources.

BRICS commands power, attention and respect on the global stage due to its sheer size and economic clout. These five nations collectively account for more than 40% of the world's population and contribute a quarter of the global economy's GDP. Their combined resources, including oil, give them significant leverage in international affairs.

The Significance of Each Member

Each BRICS member brings a unique set of strengths to the alliance. Brazil is an agricultural powerhouse, Russia boasts vast energy reserves, India is a tech and services hub, China is the world's manufacturing epicenter, and South Africa plays a vital role in African affairs. Together, they form a diverse yet cohesive group, each contributing its expertise to the collective goals of the alliance.

The BRICS Expansion

In a historic move, the BRICS bloc of top emerging economies is expanding its reach and influence by inviting six new nations to join its ranks. Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates have been invited to become full members starting from January 1st of the next year. This expansion marks a pivotal moment for BRICS, which initially consisted of Brazil, Russia, India, and China when it was formed in 2009, with South Africa joining in 2010.

The expansion list is notably "energy-centric," with several new members being major players in the global energy market. This focus may be driven by considerations related to energy pricing and reducing vulnerability to oil price fluctuations.

?The Significance of BRICS Expansion

1. A Stronger Global Coalition: BRICS seeks to grow a stronger coalition of developing nations to represent the interests of the Global South more effectively on the global stage. The inclusion of these new members strengthens the alliance's ability to advocate for the concerns and aspirations of developing nations.
2. Diverse Geopolitical Implications: The inclusion of Saudi Arabia, Iran, the UAE, and Egypt reflects a Middle East-centric expansion. This development carries geo-economic, geostrategic, and geopolitical implications, wielding immense power. It could prompt BRICS nations to reassess their Middle East policies and may lead to adjustments in their existing approaches.
3. Reducing Dollar Dominance: BRICS has been vocal in challenging the dominance of the U.S. dollar in global trade. The inclusion of new members offers opportunities to establish trade regimes outside the dollar's dominance, potentially increasing the use of local currencies in international trade among BRICS nations.
4. Changing Global Alliances: The expansion signifies a shift in global alliances, with many nations in Africa and beyond moving away from Western-centric alliances and toward closer ties with BRICS nations. This shift could have implications for the balance of power in international relations.
5. BRICS as a Global Voice: The expanded BRICS bloc represents a more significant share of the world's population and economy. While it has the potential to be a powerful voice for reform in global governance, its effectiveness will depend on its ability to forge agreements on needed reforms and serve the interests of the entire Global South.

Challenges Facing BRICS

Despite its potential, BRICS faces numerous challenges. Internal divisions among members with differing foreign policy goals can hinder consensus decision-making. Additionally, some of BRICS' grand ambitions, such as reducing reliance on the U.S. dollar, have proven difficult to achieve in practice. The New Development Bank, a notable BRICS achievement, faces challenges due to sanctions against founding shareholder Russia.

BRICS+ and a New World Order

The recent expansion of BRICS to BRICS+ with the inclusion of new members represents a significant step toward reshaping the global world order. This development signals a growing dissatisfaction among developing nations with the existing international system, particularly in the face of unilateral financial sanctions and inequities in climate finance commitments. More than 40 nations have expressed interest in joining the BRICS bloc of major developing economies, according to South Africa's ambassador to the group. This surge in interest showcases BRICS' growing appeal and influence on the global stage. With 22 countries formally applying to join, the expansion could significantly bolster BRICS' political clout.

While challenges remain, the determination of BRICS nations to forge ahead suggests that the world should indeed welcome these new kids on the bloc. BRICS is seeking to create a more robust coalition of developing nations capable of advancing the interests of the Global South on the world stage. This expansion allows BRICS to better represent the concerns and aspirations of developing nations.

Until next week!

Yours Sincerely,

The Tech Savvy Millennial.