Building blocks of a global power: Why countries are increasingly turning to BRICS

It has witnessed major political and economic transformations that have only strengthened its resolve, opening a window for it to become a new global pole.

The 15th BRICS summit will begin on 22 August in Johannesburg under the chairmanship of host country South Africa.

On the agenda are several issues related to attendance and requests to join, as well as other key topics, particularly the project of dispensing with the dollar (at least in dealings among members), and the launch of a common currency for BRICS states.

French and Russian interest

French President Emmanuel Macron announced his desire to attend the summit in an unprecedented move for any Western president.

The declaration was welcomed by China, according to Global Times, a newspaper backed by the Communist Party of China. The publication hailed Macron's pragmatism and his bold initiative to break barriers, as evidenced during his recent visit with the European Commission's president, Ursula von der Leyen, to China.

On the other hand, Macron's interest in attending was met with reticence from Russia due to France's involvement in imposing sanctions on the country after its invasion of Ukraine.

Russian President Vladimir Putin's attendance at the summit would also prove to be problematic because of an arrest warrant issued against him by the International Criminal Court (ICC) in March. The warrant states Putin is allegedly responsible for the war crime of forcibly separating thousands of Ukrainian children from their families and deporting them to Russia.

This puts South Africa in a particularly awkward position as a member of the court.

Under a mutual agreement between the two countries, Russia will participate in the summit at the "appropriate level"; it will be represented by its Foreign Minister Sergei Lavrov to sidestep major grievances.

In late May, the South African government issued a decision, published in the Official Gazette, to grant diplomatic immunity to all officials who will attend the BRICS summit, claiming that it is a routine procedure for organising international conferences, regardless of the level of participation. It also stated that the immunities are for the conference and not specific individuals.

This sparked a legal debate between those who believe that the government's decision doesn't take precedence over the ICC arrest warrant and others who believe that the government could repudiate the court's decision if the latter conflicted with the government's obligations, citing article 98 of the Rome Convention that established the ICC.

A similar dispute occurred in 2005 when then-Sudanese President Omar al-Bashir came to South Africa only to leave soon after as news emerged that the country's Supreme Court was about to issue a decision to arrest him.

History of BRICS

The term BRIC, an acronym for Brazil, Russia, India, and China (before South Africa joined), first appeared in a report issued by Lord Jim O'Neill, chief economist and asset manager at Goldman Sachs, on 30 November 2001.

Coined with the help of his aide, Roopa Purushothaman, the term referred to an economic grouping that comprised the four states. O'Neill forecasted that, between 2000 and 2008, the group would grow faster than the G7, which includes Canada, France, Germany, Italy, Japan, the United Kingdom, and America.

In 2003, Dominic Wilson and Purushothaman wrote another report entitled "Dreaming with BRICs: The Path to 2050," also published by Goldman Sachs. It claimed that by 2050, BRIC "could become a much larger force in the world economy" and outdo the G7.

According to a summary of the report: "The list of the world's ten largest economies may look quite different in 2050. The largest economies in the world (by GDP) may no longer be the richest (by income per capita), making strategic choices for firms more complex."

Goldman Sachs' motive was primarily to help its clients make strategic investments. By publishing these reports, they introduced clients, including multinationals, pension funds and sovereign funds, to states that would one day be key destinations for rapid growth and smart investments, due to the size of their markets and the vitality of their export movement.

On the sidelines of the UN General Assembly in New York in 2006, foreign ministers came together to hold the first negotiations to form BRIC.

The group's first summit was held three years later, on 16 June 2009 in Yekaterinburg, Russia, where member states discussed future cooperation between them in trade, food, climate, and security – as well as how to achieve a more influential and representative position for emerging markets.

A new geopolitical reality

The group's third summit took place on 14 April 2011 in China under the name of BRICS, as an official declaration of South Africa's admission – a move that strengthened the group's credibility in representing the global south on the world stage. It was also the starting point for the formation of a new geopolitical reality.

Today, BRICS states don't have a common charter that defines their objectives. Instead, the declarations that come out of their annual summits form the basis of their direction.

As a result, BRICS is no longer only an economic group but has become a political organisation, while still retaining its origins.

Economic integration among member states is one of the objectives of the group: it's meant to develop their infrastructure and promote growth opportunities based on innovation, advanced technology, and skill development.

Member states also seek to provide effective ways to grant and exchange loans and provide support to each other in times of crisis, free from the restrictions of borrowing from Western-dominated financial and international institutions.

BRICS also adopts local currencies in the settlement of intra- and extra-group payments, which enhances intra-trading and reduces dependence on the dollar.

On the global level, BRICS strives to strengthen its position as a global economic power with a negotiating capability that could compete with the G7, which accounts for 60% of global wealth.

This is a prelude to the creation of a balanced world economic system, whether bilateral or multipolar, that breaks hegemony and control in the formulation of international public policies and improves the global investment environment.

In this context, BRICS aims to comprehensively reform international organisations, beginning with the UN Security Council and the institutions stemming from the Bretton Woods conference – namely, the IMF and the World Bank. They also wish to review the voting rights distribution rules in these two organisations, with the goal of enhancing the involvement of emerging economies.

BRICS is open to activating international cooperation to solve common crises such as energy rationalisation; combating climate change and reducing the risks of natural disasters; strengthening collaboration in science, education, research and technological development; combating terrorism; and settling international crises, especially the Iranian nuclear programme.

Bulk requests for expansion

The next summit will likely decide the criteria for admission of new members to BRICS, due to an unprecedented number of applications to join, including from states with economic and financial power, and others with demographic and military power.

Thanks to its financing institutions, BRICS has developed into a valuable and attractive choice — particularly for the global south. These countries turn to BRICS for loans that could help fund investment projects or to cover their liquidity needs, steering clear of the harsh lending conditions of international and regional organisations.

The success of BRICS' expansion depends on three things: First, the strength of American pressure to dissuade states from joining a group that is not allied with Western economic systems — especially since several states wishing to join still need the assistance of Western institutions.

Second, avoiding new conflicts. It's true that the admission of new members brings with it additional resources and opportunities, but there's fear that it will also provoke new disagreements and conflicts among members — particularly those with external interests.

Third, ensuring consistency in political and economic positions among the group's states. Turkey, for example, a candidate for the BRICS membership, is a member of Nato, which could complicate the extent of convergence of views if Turkey's application is accepted.

On the other hand, New Delhi is blocking Beijing's efforts to include new members in BRICS because it doesn't want to see more states in a group in which China plays a dominant role – it fears more Chinese influence on a global level.

A team of global analysts believes that the acceptance of poor states into BRICS will weaken it, considering its origins as an economic and investment grouping. But Russia and China think differently. In their view, the economy is no longer the sole criterion. There is also the political equation; decisions will hold little weight at the international level without gaining support and momentum.

If members are poor economically, they may be rich as a supporting force with consumption capacities and regional influence. Therefore, their acceptance into BRICS would strengthen the path to establishing multipolarity.

It's also in the group's interest to increase its voting power in global institutions such as the World Bank, the IMF, and others. At the moment, BRICS states represent more than 40% of the world's population but hold less than 15% of voting rights in lending institutions.

Meanwhile, Russian commentators consider the stances of candidate states inhomogeneous with BRICS. For instance, these states generally didn't support the position of BRICS members when the UN resolution on Ukraine was voted on.

The only common denominator appeared to be a decisive stance toward various Western sanctions, including asset freezes, bans on the use of the SWIFT network and disruptions to supply chains.

BRICS and the Arab region

As for Arab candidates, there are many reasons to join BRICS, both common and unique and political and economic.

America's standing in the Arab region has declined because of its too-lenient, too-strict, or indifferent policies. In turn, China has imposed its economic presence on the Arab region. But that doesn't negate the region's strong links to the West.

Read more: Washington concerned but not alarmed over growing Saudi-China cooperation

Joining BRICS might be considered a way for Arab candidates to maintain or expand their economic and political manoeuvring, potentially allowing them to navigate between different global powers.

The potential for Saudi Arabia to join BRICS is down to more than just recent differences between Riyadh and Washington. One key reason could be the lack of agreement on oil prices and production.

Also noteworthy is the policy of selling oil in dollars; this practice has been followed by the Organisation of the Petroleum Exporting Countries (OPEC) and its states since the 1970s and is relevant to Saudi Arabia's potential move.

Joining BRICS represents the Kingdom's desire to boost its global economic power by diversifying its investment prospects.

Saudi Arabia's investments in the United States – the Kingdom's largest arms supplier – exceed $800bn compared to just $100bn in China, according to statements and press reports from multiple Saudi sources. The Kingdom joining BRICS could represent a very promising intersection between its development plans and projects and China's "One Belt, One Road" initiative.

Egypt, on the other, aims mainly to eliminate its dependence on the dollar through trade with BRICS members – this would enable it to alleviate the pressure caused by a shortage of dollars.

Algeria sees joining BRICS as an important step to trigger its economic cycle by bringing foreign capital to the country, reducing its reliance on oil derivatives as a primary source of national income, and moving toward a diversified economy, including the development of the services sector.

Tunisia in BRICS is another promising prospect, particularly after the state's discussions with the IMF reached a deadlock due to the latter's conditions, which the Tunisian president said would lead to the impoverishment of the people and threaten social peace.

Timeline and milestones of BRICS summits

• 16 June 2009

The first summit was held in Yekaterinburg, Russia, where member states discussed future cooperation between them in trade, food, climate, and security – as well as how to reach a more influential position for emerging markets.

• 15 April 2010

The second summit, held in Brasilia, discussed the global recession and ways to recover from it, as well as ways to cooperate among member states; it also discussed South Africa's candidacy.

• 14 April 2011

The third summit was held in China under the name of BRICS, as an official declaration of South Africa's admission to the group – a move that strengthened the group's credibility in representing the Global South on the world stage; a new geopolitical reality was being formed.

• 29 March 2012

The fourth summit was held in New Delhi, India, and announced the establishment of a fibre-optic cable to secure communications between BRICS states.

• 26 March 2013

The fifth summit was held in Durban, South Africa; the proposal to establish the New Development Bank and the Emergency Reserve Agreement was discussed; the Business Council and its thinktank were announced.

• 14 July 2014

The sixth summit was held in Fortaleza, Brazil, where several agreements were signed, the New Development Bank was established, and an emergency reserve was arranged for BRICS states. South American heads of state were invited to attend; ways to develop cooperation with these countries were discussed.

• 8 July 2015

The seventh summit was held in Ufa, Russia, with the participation of the Shanghai Cooperation Organsation and the European Union; global economic crises were discussed.

• 15 October 2016

The eighth Summit was held in Benaulim, India, where the fight against terrorism and climate change were discussed. A plan of action to strengthen relations between member states was announced, and a meeting was held between their leaders and the custodians of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.

• 3 September 2017

The ninth summit was held in Xiamen, China, with the participation of the Emerging Markets and Developing Countries Dialogue. the group was also expanded to BRICS+. The summit was attended by representatives of Thailand, Mexico, Egypt, Guinea, and Tajikistan as observers.

• 25 July 2018

The 10th summit was held in Johannesburg, South Africa, and discussed the emerging industries of member states and ways to increase their contribution globally. Argentina and Turkey were invited to attend the summit – the latter in its capacity as OIC chair.

• 13 November 2019

The 11th summit in Brasilia discussed developments in science and innovation in the group's countries and ways to develop technology and digital currencies. it concluded agreements to combat drug trafficking and organised crime at the domestic and international levels; it also declared a commitment to multilateralism and the cooperation of sovereign states to maintain peace and security.

• 17 November 2020

The 12th summit was held virtually in St. Petersburg, Russia, in partnership with the Shanghai Cooperation Organisation via video conferencing, due to the COVID-19 pandemic; it discussed achieving better living standards for the peoples of BRICS states and developed plans to promote peace, the economy, and social and cultural issues.

• 9 September 2021

The 13th summit, virtually held in New Delhi, India, addressed inequality in access to vaccines, diagnostics, and treatments, especially for the world's poorest and most vulnerable peoples.

• 23 June 2022

The 14th summit in Beijing, China, was held virtually due to Russia's military operations in Ukraine; then, the Chinese president stated that "past tragedies tell us that hegemony doesn't bring peace or security and only leads to wars and conflicts." He denounced sanctions as "a missile strike on the global economy" and urged unity in the face of financial challenges.