BRICS Welcomes Five New Members as Argentina Opts Out
On New Year’s Day, the BRICS bloc, originally comprised of India, Brazil, China, and Russia, expanded its membership, welcoming Saudi Arabia, Iran, the United Arab Emirates (UAE), Ethiopia, and Egypt as full members. This move has doubled the size of the organization, making it a ten-member coalition. Russian President Vladimir Putin has assumed the chairmanship for the upcoming year.
While the inclusion of these five nations marks a significant expansion, Argentina, led by President Javier Milei, ultimately chose to abstain from joining BRICS. The decision came after a reversal of the membership bid initiated by Milei’s predecessor.
The expansion of BRICS garnered attention as it included major energy producers like Saudi Arabia and Iran alongside significant developing countries such as the UAE, Ethiopia, and Egypt. The move was part of an invitation extended in August by the existing BRICS members to six other nations. Anil Sooklal, Pretoria’s ambassador to the bloc, confirmed that the new members actively participated in a recent BRICS sherpa meeting in Durban, South Africa, indicating their acceptance of the invitation.
These new members are set to send representatives to a sherpa meeting scheduled in Moscow on January 30, further solidifying their integration into the BRICS framework. However, Putin hinted that this expansion might be the last for a while, suggesting a potential freeze on new memberships.
The BRICS alliance, initially conceptualized by economist Jim O’Neill in 2001, aimed to highlight the robust economic growth in Brazil, Russia, India, and China. South Africa joined in 2010, broadening the group’s continental representation. Over the years, BRICS has garnered interest from approximately 30 countries seeking various forms of association.
Russian Foreign Affairs Minister Sergey Lavrov mentioned this week that numerous nations expressed interest in establishing ties with BRICS. Nigeria, Africa’s most populous nation, also plans to pursue BRICS membership within the next two years, according to Minister of Foreign Affairs Yusuf Tuggar.
Despite the expansion, it’s noteworthy that, except for India, the BRICS nations have underperformed compared to their emerging-market peers in the last five years, as reported by Bloomberg Intelligence. Factors such as US-led sanctions affecting Russia and certain sectors in China may pose challenges for these nations.
Information for this briefing was found via Bloomberg, The Tribune India, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.