"BRICS" is a political and economic union comprising five major countries: Brazil, Russia, India, China, and South Africa. The current summit of this group is being held in Johannesburg, South Africa in August. 2023 In this summit, apart from other important matters, discussions will also revolve around the inclusion of new members into the union. According to information, several new countries have expressed the desire to become part of this union. Recently, eight different countries showed desire for entering this Organization.
The term "BRICS" was originally coined by a British economist, Jim O'Neill. He initially included Brazil, Russia, India, and China in this term in 2001. Later, South Africa joined the group in 2010. These countries are often seen as potential economic powerhouses of the 21st century.
The BRICS nations believe that these four countries will become the world's largest economic forces in the first half of the 21st century. They might fulfill Jim O'Neill's prediction. These countries have grown their economies considerably and have established themselves as key players on the global stage. China, India, and Brazil, in particular, have experienced significant growth and have emerged as major players in the world economy.
If we look at their per capita income, Russia leads with an annual income of around fifteen thousand dollars per capita. China follows in second place with an annual income of about thirteen thousand dollars per capita. Brazil and South Africa are at the third and fourth positions, respectively, with annual incomes of around nine and eight thousand dollars per capita. India has the lowest per capita income among the BRICS countries, with an annual income of only around two thousand four hundred dollars per capita.
It's worth noting that the global population is currently around eight billion people, out of which about three billion live in BRICS countries. Their combined GDP is around 26 trillion dollars, whereas the total global GDP is roughly equivalent to 100 trillion dollars. Therefore, while they account for around 40% of the global population, their share in the global economy is still around 25%.
Interestingly, despite being home to 40% of the world's population, the representation of BRICS countries in international financial institutions like the IMF is limited. For instance, in the IMF, they collectively hold only 15% of the voting rights. These nations have struggled to establish their influence and voice commensurate with their economic potential. The establishment of a new development bank by BRICS was intended to address this gap, but its impact has been limited.
BRICS nations have faced challenges in achieving their desired outcomes, partially due to rivalry between China and India. Despite being neighbors, these two countries often vie for regional influence and power. India has aspirations to become a significant global power similar to China, which might not be achievable in the near future. China, on the other hand, is working to expand its influence across Asia and other parts of the world, and it has achieved some success in this regard.
Overall, the BRICS union represents a significant grouping of emerging economies with the potential to reshape the global economic landscape. However, internal challenges and varying aspirations among its member countries have sometimes hindered its collective progress.
In this context, India is relying more on the United States, but despite that, India has not condemned the Russian attacks on Ukraine, nor has it made any difference to its trade. Instead, India has imported a significant amount of cheap oil from Russia in recent months. India is doing this because it has a numerous refineries to process Russian oil.
The third aspect is the military alliance. In the BRICS countries, China and India are military rivals to each other. Therefore, India conducts military exercises with the United States and Australia, while China, Russia, and South Africa conduct joint military exercises. Apart from Russia, the BRICS countries have chosen the path of compromise because they have maintained their long-standing political, economic, and military relationships with the United States and the European Union, which they do not want to completely sever. Russia, on the other hand, is already estranged from the United States and the European Union and has been involved in the conflict with Ukraine for a long time.
In order to include Iran in BRICS, efforts are being made, but Iran's relations with other countries are not as good as expected. If Iran were to be included in BRICS, it might be seen as a Western enemy alliance, which is why India and Brazil would probably hesitate. Although recently, China has played a role in improving relations between Iran and Saudi Arabia, the inclusion of both in BRICS could not only impact the region's politics and economy but also yield positive international outcomes.
In this way, BRICS could potentially evolve into BRIICSS, with the inclusion of Iran and Saudi Arabia. Iran's population is around 90 million, and its per capita income is about $4,000 annually, while Saudi Arabia's population is over 100 million, and its per capita income is around $30,000 annually. If Iran and Saudi Arabia join BRICS, the total population of BRICS would be around 3.2 billion, which would constitute approximately 22% of the world's population. South American countries like Argentina, Cuba, and Venezuela also want to join BRICS, but Cuba and Venezuela, like Iran, have significant ties to the United States and the European Union.
Kazakhstan from Central Asia and Ethiopia from Africa could be included, but these decisions can be collectively made by the existing BRICS member countries. However, in addition to expansion, BRICS also faces other challenges, with environmental change being a major concern. Environmentally, both India and China are facing significant issues, with extreme weather conditions causing unexpected rains and flooding. Moreover, the mutual trade of BRICS countries did not reach the desired levels, primarily because the United States and the European Union still hold significant influence in global trade.
International investments are also primarily controlled by the United States and the European Union, although China has significantly increased its share in this century. However, countries like India, Brazil, and Russia do not invest on the same scale as these major economies; instead, they often seek investments from other countries. As Western investment in Russia has declined, China's investment in Russia is increasing, bringing these two countries closer. It's clear that the global political and economic system of the 21st century is undergoing significant changes. In the last fifteen years, India and China have emerged as major economic powers, and the previously unipolar world order, with the United States at its helm, is shifting.
In this context, India is providing a support to the United States, but if India and China improve their relations, it would be easier for the United States to navigate in the BRICS framework. Interestingly, the current BRICS summit has invited the heads of several member countries, including South Africa. However, Russia's president is absent from this summit because of a war crimes warrant issued against Putin by the international court. Although South Africa is a member of the international court, Putin still perceives a threat, so he is speaking remotely while Russia's foreign minister is representing the country at the summit. This BRICS summit from August 22 to 24 was undoubtedly an important event.
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