14 Countries have already formally applied for joining BRICS, which will make BRICS a group of 27 Nations soon.
Jakarta, IO – BRICS is an intergovernmental organization comprising Brazil, Russia, India, China, and South Africa. It encompass about 27% of the world’s land surface and 42% of the global population. Brazil, Russia, India, and China are among the world’s ten largest countries by population, area, and GDP (PPP). All five states are members of the G20, with a combined nominal GDP of US$28 trillion (about 27% of the gross world product), a total GDP (PPP) of around US$57 trillion (33% of global GDP PPP), and an estimated US$4.5 trillion in combined foreign reserves as of 2018.
2024 expansion
In August 2023, at the 15th BRICS Summit, South African President Cyril Ramaphosa announced that six emerging market group countries (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates) had been invited to join the bloc. Full membership is scheduled to take effect on 1 January 2024.
Countries that have applied for membership
A total of 14 countries have formally applied to join BRICS, listed as follows:
Algeria, Bahrain, Bangladesh, Belarus, Bolivia, Cuba, Honduras, Kazakhstan, Kuwait, Pakistan, Palestine, Senegal, Thailand, Venezuela, Vietnam.
Potential further expansion
In addition, Afghanistan, Angola, Comoros, DR Congo, Gabon, Guinea-Bissau, Libya, Mexico, Myanmar, Nicaragua, Serbia, South Sudan, Sudan, Syria, Tunisia, Turkey, Uganda, Uruguay and Zimbabwe have expressed interest in membership of BRICS.
BRICS may Emerged the Second Largest Platform just after the UN
Current BRICS will become 13 members group on 01 January 2024, after joining 7 new members. 14 Countries have already formally applied for joining BRICS, which will make BRICS a group of 27 Nations soon. If consider the potential members I the near future, it will be group of around 50 countries. If the same pace of expansion is maintained, soon it will become second largest platform after the UN. As a matter of fact, the victims of unipolar world, find an outlet to escape from hegemony of Western world. BRICS have a potential to emerge as a largest alliance with largest area, population, resources, etc., it might transform the largest economy soon.
BRICS Significant Initiatives
New Development Bank
The New Development Bank (NDB), formally referred to as the BRICS Development Bank, is a multilateral development bank operated by the five BRICS states. The bank’s primary focus of lending is infrastructure projects with authorized lending of up to $34 billion annually. South Africa hosts the African headquarters of the bank. The bank has a starting capital of $50 billion, with wealth increased to $100 billion over time. Brazil, Russia, India, China, and South Africa initially contributed $10 billion each to bring the total to $50 billion. As of 2020, it had 53 projects under way worth around $15 billion. In 2021, Bangladesh, Egypt, the United Arab Emirates and Uruguay joined the NDB. It is not a replacement of existing global financial institutions, like World Bank, IMF, Asian Development Bank, Islamic Development Bank, Asian Infrastructure Investment Bank, etc. but, is supporting the existing financial system and an positive additions to it.
BRICS Contingent Reserve Arrangement
The BRICS Contingent Reserve Arrangement (CRA) is a framework for providing protection against global liquidity pressures. This includes currency issues where members’ national currencies are being adversely affected by global financial pressures. Emerging economies that experienced rapid economic liberalization went through increased economic volatility, bringing an uncertain macroeconomic environment. The CRA competes with the International Monetary Fund (IMF). Along with the New Development Bank, it is an example of increasing SouthSouth cooperation. It was established in 2015 by the BRICS countries. The legal basis is formed by the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement, signed in Fortaleza in July 2014. With its inaugural meetings of the BRICS CRA Governing Council and Standing Committee, held on 4 September 2015, in Ankara, Turkey it entered into force upon ratification by all BRICS states, announced at the 7th BRICS summit in July 2015.
BRICS payment system
At the 2015 BRICS summit in Russia, ministers from BRICS nations initiated consultations for a payment system that would be an alternative to the SWIFT system. The stated goal was to move to settlements in national currencies. The Central Bank of Russia highlighted the main benefits as backup and redundancy in case there were disruptions to the SWIFT system. China also launched its own alternative to SWIFT: the Cross-Border Interbank Payment System, which enables financial institutions worldwide to send and receive information about financial transactions. India also has its alternative Structured Financial Messaging System (SFMS), as do Russia SPFS and Brazil Pix.
Potential common currency
BRICS countries committed to study the feasibility of a new common currency or similar, at the 2023 BRICS summit in South Africa. Fair and easier international trade as well as a major reduction in costs of transactions would be some of the reasons why the countries could forge a currency union. Dependence on US Dollars may be reduced drastically.