Expanded BRICS: A New Global Economic and Political Force

First Annual Summit of the Expanded BRICS

The first annual summit of the expanded BRICS (Brazil, Russia, India, China, and South Africa) took place in Kazan, Russia on Tuesday. This was the first meeting since the group underwent a major expansion in 2023. The group decided to invite six nations to join, four of which – Egypt, Ethiopia, Iran, and the United Arab Emirates – formally joined the bloc on January 1, 2024. Argentina declined the invitation, while Saudi Arabia is still considering it.

BRICS Aims to Strengthen Global Influence

As reported by Felix Richter from Statista, the expansion of BRICS beyond its founding members and South Africa, which joined in 2010, is aimed at bolstering its influence as a global economic and political force. This move is seen as a counterbalance to the G7 and other Western-led institutions. The group's goal is to promote a more multipolar world, thereby reducing the dominance of the United States and its allies.

South Africa's President on BRICS Expansion

South African president Cyril Ramaphosa, speaking about the expansion of the BRICS, stated last year: “We shared our vision of BRICS as a champion of the needs and concerns of the peoples of the Global South. These include the need for beneficial economic growth, sustainable development and reform of multilateral systems.”

BRICS Represents Significant Share of World’s Population and GDP

As illustrated in Richter's chart, the expanded BRICS now represents approximately 45 percent of the world’s population and 35 percent of global GDP when measured at purchasing power parity.

Impact on Global Oil Production

With Iran and the United Arab Emirates joining the group, the combined oil production of the bloc has risen by nearly 50 percent. The group now accounts for almost 30 percent of global oil output, as per the Energy Institute's data.

BRICS' Influence on Global Exports

However, when it comes to exports, the group’s influence is relatively small. Last year, the nine members of the group accounted for just 22 percent of global merchandise exports. China alone contributed nearly two-thirds of the bloc’s exports.

China's Dominant Role within BRICS

Despite claims of BRICS being an equal partnership of countries with differing views but a shared vision for a better world, it is hard to overlook China's dominant role within the group. China's GDP, measured at purchasing power parity, is larger than the combined GDP of the other eight BRICS members. This sizeable economic power makes it difficult to envision China not using this advantage in negotiations within the bloc.

Bottom Line

The expansion of BRICS signifies an interesting shift in global economic and political dynamics. With its increased representation and influence, the group is poised to challenge the dominance of Western-led institutions. However, the dominant role of China within the group raises questions about the balance of power within BRICS itself. What are your thoughts on this development? Do share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, available every day at 6pm.