New members to join BRICS

The BRICS bloc has expanded by bringing on six new countries, including Iran, Saudi Arabia, and Egypt. This expansion is seen as a significant victory for China and Russia, increasing China’s political clout and helping to reduce Russia’s isolation.

However, Russia and China face growing economic headwinds that could undermine the economies of the nations whose interests they claim to be promoting. The grouping is heterogenous and has no clear political coherence except in the desire to reshape the current global financial and governing system to one that is more open, more varied, and less restrictive.

The 11 countries have a population of around 3.7 billion people but comprise five democracies, three authoritarian states, two autocratic monarchies, and a theocracy. Their financial clout is comparatively small, except for China, which dominates the group and pressed hard for expansion.

The addition of Saudi Arabia and the United Arab Emirates provides more financial heft, especially as the group tries to increase the size and influence of its own small development bank.

The expansion also bolsters Beijing’s bid to show the growing support for its agenda despite its alienation of many countries in the developed world over its “no-limits partnership” with Russia and its tacit support for the invasion of a sovereign Ukraine. Iran’s inclusion is a complicated choice, and some analysts worry that it might increase geopolitical tensions with Western powers.

China’s president declared the membership expansion is historic, showing the determination of BRICS countries for unity and cooperation for the broader developing world. However, the appearance of success for China may turn out to be the most significant takeaway from the summit meeting, which otherwise failed to deliver on its long-stated goal of establishing a BRICS currency to rival the hegemony of the US dollar.

The group encouraged members to use local currencies in trade. The historical record of the BRIC summits is not reassuring, as the meetings are all about symbolism, and it remains to be seen whether the changes introduced at this week’s summit will have the impact the countries are hoping for.

While BRICS nations may have forged unity in opposition to Western hegemony, their goals remain different. The global architecture of Western-dominated institutions needs to change with the times. The BRICS is perceived as a move that is not anti-West. Iran’s accession alongside Saudi Arabia was perhaps the biggest surprise, given Tehran’s vital role in supplying Russia’s invading army and Riyadh’s long-term security alliance with the United States.

Saudi officials are skeptical that Washington is truly committed to the Middle East and negotiated a rapprochement with Tehran in Beijing earlier this year, raising China’s diplomatic stature.