The rise and growth of the BRICS

[A little extra item today, which may become important. Also, as I head toward 1000 subscribers, the more observant of you may have noticed that I have modified the title of this Substack - a little corny I know. Substack is increasing rapidly in its scope and size - it was time to be more clear as to what I write about. Also, I have changed the logo photo to Aoraki (Mount Cook) in Aotearoa/NZ. Thank you for your interest.]

The foreign ministers of the five BRICS countries (Brazil, Russia, India, China and South Africa) met in South Africa today (01/06/23) to discuss two key items on their agenda:

1.      To possibly extend their membership

2.      To establish a shared currency.

Who wants to join the BRICS?

The first possible new member is Saudi Arabia. The existing BRICS members represent more than 42% of the world’s population and account for 23% of global gross domestic product (GDP). Saudi Arabia will add little to the former, but significantly to the latter. Some 18 other countries have expressed interest in joining, including Algeria, Argentina, Egypt, Indonesia, and Iran.

Currency matters

The BRICS group of emerging nations wants to become a serious economic and political force, which Saudi Arabia’s membership would strengthen. As a starting point, BRICS nations have already agreed to pool $100 billion of foreign currency, funds they can tap into during emergencies, and have founded their own bank that has approved more than $30 billion of loans for water, transport, and other infrastructure projects since 2015.

Issues

There are several issues that may arise from both of the above. There are territorial rivalries, differing economic prospects and they operate under widely varying political systems and ideologies. At a global level, China has an economic and a political rivalry with a fellow member, Russia, as well as with the USA. The war in Ukraine will also cause further complications with the international sanctions imposed on Russia by western nations.