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Global Impact: expansion to ‘inject new vitality’ into Brics as nations seek to counterbalance Western dominance
- Global Impact is a weekly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world
- In this issue, we look back at the decision to expand the Brics group of leading emerging markets, and ponders what it means going forward
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The admission of six new countries into the Brics grouping of emerging and developing economies would be “the driving force of the new international order”, according to Brazilian President Luiz Inacio Lula da Silva.
But the expansion of Brics membership could also complicate the bloc’s decision-making process.
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Last week, Brics leaders agreed to admit Argentina, Ethiopia, Egypt, and oil-rich Middle Eastern nations of Saudi Arabia, the United Arab Emirates and Iran into the Brics family from 2024 to forge a viable counterweight that can rival the Group of Seven (G7) wealthy nations.
It is the first major expansion since Brics was formed in 2009 by Brazil, Russia, India and China, with South Africa joining a year later.
02:36
No explanation as China’s Xi Jinping unexpectedly skips speech at Brics business forum
No explanation as China’s Xi Jinping unexpectedly skips speech at Brics business forum
In terms of purchasing power parity, Brics will account for 37 per cent of global gross domestic product (GDP) and nearly half of the world’s population, with the inclusion of the new members. That would compare with the G7’s 30 per cent of global GDP.
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