Context:- At the 15th BRICS Summit in Johannesburg, South Africa, Iran, the United Arab Emirates, Saudi Arabia, Argentina, Egypt, and Ethiopia have been invited to the alliance. Read more about the BRICS Expansion and its influence on global energy transitions and climate finance.
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About the Development:
BRICS, an association of major emerging economies, has extended membership invitations to Iran, the United Arab Emirates, Saudi Arabia, Argentina, Egypt, and Ethiopia during its ongoing 15th BRICS Summit in Johannesburg, South Africa.
This expansion aims to fortify the economies of both the new and existing member countries, and aims to exert pressure on wealthier nations to fulfill long-pending commitments related to climate finance.
BRICS nations have urged developed countries to fulfill their 2009 commitment of providing US $100 billion in climate finance to developing nations by 2020.
Impact of the Expansion:
- With the addition of these new members, the collective alliance will command over 40% of the world’s crude oil production. Additionally, it will account for 29% of the global GDP, granting substantial influence in global energy transitions.
- This significant coalition will likely have increased leverage in global discussions about climate change and finance.
- By the end of 2022, the current (and original six) members of BRICS constituted of 25.77% of the Global GDP, according to the data provided by World Bank (in current U.S. dollar prices). After the expansion, there are now five countries in the grouping whose GDP is over the trillion-dollar-mark.
Insights into BRICS:
- BRICS comprises Brazil, Russia, India, China, and South Africa. Together, these countries constitute a substantial part of the world’s population, GDP, and trade share.
- Originally coined as BRIC in 2001 by economist Jim O’Neill to symbolize emerging economies, South Africa later joined in 2010. This inclusion transformed it into BRICS.
- BRICS nations have conducted annual formal summits since 2009. These summits focus on political and security, economic and financial aspects, as well as cultural and people-to-people exchanges.
- These nations established the New Development Bank, previously known as the BRICS Development Bank. The bank aims to support public or private projects using various financial instruments such as loans, guarantees, and equity participation.
The expansion of BRICS signifies a significant shift in global economic and political dynamics, potentially influencing climate discussions and financial commitments on a global scale.
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