BRICS has emerged as a significant alternative force in the global balance of power. Initially formed in 2006 by Brazil, Russia, India, China, and South Africa, the alliance was created to address the global power imbalance and provide economic alternatives, especially for developing nations. BRICS was founded on the idea of promoting more equitable global governance and offering alternative solutions that would reduce the dependency of developing countries on Western-dominated systems.
In January 2024, BRICS expanded its membership to include Ethiopia, Egypt, Iran, Saudi Arabia, and the United Arab Emirates (UAE), growing from five to ten member states. This expansion signifies the group’s increasing influence and relevance in world politics and the global economy.
The BRICS alliance is proving to be a formidable player in both economic and political spheres. Collectively, BRICS nations have a population of 3.5 billion people, accounting for 45% of the world’s population. Economically, the group wields considerable power, with a combined GDP exceeding $28.5 trillion, representing 28% of the world’s total economic output. Additionally, BRICS countries control 47% of the world’s oil reserves, further solidifying their strategic importance in the global energy market.
This economic and political clout has made BRICS an attractive alternative for countries looking to reduce their dependency on Western-led financial institutions and trade systems. The group’s establishment of the New Development Bank (NDB) in 2014 was a pivotal moment, as it offers financial support to member countries and other developing nations, challenging the dominance of the World Bank and the International Monetary Fund (IMF), which have traditionally been influenced by Western interests.
The ability of BRICS to offer non-Western solutions to global economic issues has resonated with many developing countries, providing them with a platform to pursue their own financial models and trade strategies without relying solely on Western-led frameworks.
The 16th BRICS Summit is currently taking place in Kazan, Russia. This is a significant moment for the alliance as it includes Ethiopia, Egypt, Iran, Saudi Arabia, and the UAE as new members for the first time in the annual meeting. This expansion showcases the increasing influence of the alliance.
In addition to the member states, over 20 nations have been invited to the Kazan summit, reflecting the increasing interest in BRICS as a global platform. Remarkably, more than 30 countries have submitted requests to join BRICS, recognizing its potential as an alternative force in global governance. Nations from East Asia, Africa, and Latin America have expressed interest, understanding that BRICS offers not only economic benefits but also a political voice for developing countries in a world dominated by Western powers.
Among these candidates are Indonesia, home to the world’s largest Muslim population; Turkey, a NATO member; and Nigeria, Africa’s most populous country. These nations are eager to align themselves with BRICS, seeking greater economic independence and alternative political partnerships.
The benefits of joining the expanded BRICS+ group are becoming increasingly clear, particularly for developing countries. In a global order largely shaped by U.S. and Western influence, BRICS offers an alternative economic and political framework. Countries that join BRICS gain the ability to trade in their own currencies, reducing reliance on the U.S. dollar and avoiding the conditions often imposed by Western financial institutions.
Trade between BRICS members has grown over time, allowing them to create their own credit and aid structures. This shift enables countries to bypass traditional aid models dependent on the approval of institutions like the World Bank and IMF. Additionally, BRICS countries are now playing a pivotal role in surpassing the economic influence of the Group of Seven (G7), offering more inclusive and flexible trade practices for developing economies.
BRICS also presents an attractive alternative by allowing countries to circumvent the sanctions that Western nations often impose to enforce their political objectives. By trading in local currencies, BRICS members can reduce their exposure to external economic pressures and trade more freely.
This growing flexibility and independence are driving many developing countries, particularly in Africa and Asia, to express strong interest in joining BRICS. The alliance’s ability to challenge the one-sided dominance of the U.S. and the West has been a key factor in attracting new members.
The rise of BRICS is already having a noticeable impact on global power dynamics. The group’s challenge to the Western-dominated world order is reshaping international relations, particularly as it seeks to create a more multipolar world. Since the end of the Cold War, global power has been largely concentrated in the hands of the U.S., but BRICS is providing a counterweight, creating a world where multiple actors influence global peace, economic policies, and governance.
The emergence of BRICS is helping to foster cooperation among its member states and could herald the arrival of a new world order, one characterized by a more balanced distribution of power. This shift opens up opportunities for more inclusive global governance, which is better suited to the diverse realities of the 21st century.
BRICS countries are also playing an important role in strengthening trade and economic exchange across continents. China’s Belt and Road Initiative (BRI), for example, has been instrumental in connecting Africa, Asia, and Latin America through infrastructure development, facilitating trade routes and economic cooperation.
Moreover, BRICS is advocating for reform in global institutions such as the United Nations Security Council (UNSC), the IMF, and the World Bank. These reforms are intended to ensure that the voices of developing countries are heard and that global governance reflects the interests of the broader international community, rather than being dominated by Western powers.
Ethiopia, one of Africa’s largest economies, is participating in the BRICS Summit. Prime Minister Abiy Ahmed, along with his delegation, is attending the summit in Kazan, underscoring Ethiopia’s growing diplomatic engagement with BRICS.
In his visit, Prime Minister Abiy engaged in important discussions with UAE President Mohamed bin Zayed Al Nahyan, South African President Cyril Ramaphosa, and Iranian President Ebrahim Raisi, highlighting Ethiopia’s active role within the BRICS alliance so far.
Ethiopia’s inclusion as one of the first new members of BRICS chosen from over 30 applicants demonstrates the effectiveness of the Ethiopian government’s diplomatic efforts. By joining BRICS, Ethiopia aimed to strengthen its influence in global governance and leverage the economic opportunities that come with BRICS membership.
Moving forward, Ethiopia is expected to play a continuous and significant role within BRICS, shaping policies that benefit not only its own development but also that of other developing nations.
BY ELIAS GETNET
THE ETHIOPIAN HERALD SATURDAY 26 OCTOBER 2024
