BRICS becoming powerful bloc

Joe Biden has much to answer for over the emergence of the previously inconsequential five-nation BRICS alliance into an expanded, well-funded 11-nation body primed to play a pivotal role in furthering China’s and Russia’s geopolitical interests across the world. Xi Jinping and Vladimir Putin (by video from Moscow because he was fearful of possible arrest over war crimes charges) dominated last week’s summit in Johannesburg of leaders of the five BRICS countries – Brazil, Russia, India, China and South Africa – as well as leaders of 60 mainly developing countries.

Six extra nations joined. They are Saudi Arabia, previously regarded as a rusted-on Western ally but which has moved closer to China amid serious differences with the Biden administration; the United Arab Emirates; Iran; Egypt, another Western ally, proposed by Mr Putin; Ethiopia, and; Argentina. BRICS officials say another 16 countries, including Indonesia, Thailand and Vietnam, are knocking on the door. An expanded BRICS alliance aims to transform itself “into a unified global organisation that can challenge Western domination of international bodies such as the UN, the IMF and the World Bank”, and provide a counterpoint to the G7 and G20.

BRICS, in its original form, was founded in 2001 primarily as a trade organisation. In 2015 it made its first move to present itself as an alternative to the IMF and World Bank for developing countries, setting up the New Development Bank. The NDB has issued nearly $US33bn in loans to developing countries, reducing their reliance on the West. The addition of cash-rich petrostates Saudi Arabia and the UAE will add to the NDB’s financial muscle. It is expected to become a vehicle for China to spread its Belt and Road Initiative.

China and Russia dominating the expanded BRICS, which will cover about 40 per cent of global GDP and 46 per cent of the world’s population, will bring geopolitical advantages for Beijing and Moscow.

Strained relations between the rulers in Riyadh and the Biden administration contributed to Saudi Arabia’s decision to join BRICS. So have perceptions that any new Republican administration in Washington would be fundamentally isolationist. As London’s Sunday Times reported from Johannesburg, representatives from developing countries “sat down (happily) with delegates from Russia and China, proving that the global coalition in support of Ukraine is nowhere near as large as many would like us to believe”. The West will pay a heavy price if it fails to counter BRICS becoming a potent new player on the world stage.