BRICS Five New Members

BRICS Five New Members

Source: News On Air
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Overview

1. News in Brief
2. How it helps
3. What is the significance?
4. About BRICS

Why in the News?

The upcoming BRICS summit in Russia this October is set to undergo a significant transformation as it expands its membership to include five new nations

News in Brief (BRICS Five New Members)

• The original founding five – Brazil, Russia, India, China, and South Africa.
• Expansion, features Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.
• Notably, Argentina, under its new President Javier Milei, has decided to withdraw from its planned entry into the expanding BRICS club of nations.
• The last expansion of the BRICS took place in 2010 when South Africa joined, adding an “S” to the acronym a year after the bloc’s inception.

What is the significance?

• This signifies a notable shift in the global landscape, characterized by increasing multipolarity and assertive middle powers challenging the established Western-led order.
• Strategic effort to reshape the global order into a multipolar world, with voices from the Global South taking a more prominent role on the international stage.
• The inclusion of Saudi Arabia and the UAE further emphasizes the changing dynamics of international relations, highlighting a trend towards a more multipolar world and the growing assertiveness of middle powers challenging the established Western-led order.
• Expected to create new investment opportunities for the Arab world’s two largest economies – Saudi Arabia and the UAE.

What are the challenges?

• Underscores the inherent challenges of achieving unified goals within a diverse “global south.”

About BRICS

• BRICS is an acronym that refers to an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa.
• The group was originally known as “BRIC” before the inclusion of South Africa in 2010.
• The BRICS countries are known for their significant influence on regional and global affairs.
• They collaborate on various political, economic, and strategic issues.
• The group aims to promote cooperation and mutual development, as well as to challenge the existing global economic order dominated by Western nations.
• The BRICS nations hold annual summits to discuss and coordinate their positions on matters such as economic development, global governance, and international security.

The formation of BRICS is often seen as a response to the increasing economic power and influence of these countries on the world stage.

Unique characteristics and strengths of member country

1. Brazil: Known for its vast natural resources and agriculture.
2. Russia: A major player in energy resources, particularly oil and natural gas.
3. India: A rapidly growing economy with a large and diverse population.
4. China: The world’s most populous country and a global economic powerhouse.
5. South Africa: The most industrialized country in Africa, contributing to the continent’s economic growth.

Mechanisms for cooperation

• The BRICS countries have established various mechanisms for cooperation.
• This includes the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), designed to provide financial assistance and support to member countries in times of economic need.

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