Expansion of BRICS | 14 Jun 2024

Source: TH

Why in News?

Recently, BRICS foreign ministers held their first meeting since the BRICS was expanded to add Egypt, Iran, UAE, Saudi Arabia and Ethiopia in 2023.

• They have joined the BRICS with effect from 1st January 2024.

What is BRICS?

• About: 
  • BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.
  • The BRICS Leaders’ Summit is convened annually.
  • The 15^th BRICS Summit was hosted by South Africa in 2023, and Russia will host the 16^th Brics summit in October 2024.
• Formation of BRICS:
  • The grouping was first informally formed during a meeting of the leaders of  Brazil, Russia, India, and China (BRIC) on the sidelines of the G8 (now G7) Outreach Summit in St.Petersburg, Russia, in 2006, this was later formalised during the 1st BRIC Foreign Ministers' Meeting in New York in 2006.
  • In 2009, the inaugural BRIC summit took place in Yekaterinburg, Russia. The following year (2010), South Africa joined to form the group known as BRICS. 

• Significance:
  • The group (enlarged) consists of approximately 3.5 billion people, representing 45% of the world's population. 
  • Collectively, the economies of its members exceed USD 28.5 trillion, accounting for around 28% of the global economy.
  • Iran, Saudi Arabia, and UAE, as part of the grouping, collectively contribute to approximately 44% of the global crude oil production.

What is the Geopolitical Importance of the Recently Included BRICS Members?

• The inclusion of Saudi Arabia and Iran boosts BRICS access to significant energy reserves, with Saudi oil increasingly directed to China and India, and Iran expanding its oil exports to China despite sanctions, highlighting the importance of energy cooperation within BRICS.
• Russia's exploration of new markets within BRICS for its energy exports diversifies the group's energy supply, reducing Russia's reliance on traditional markets and bolstering the coalition's energy security.
• The strategic inclusion of Egypt and Ethiopia enhances BRICS' geopolitical significance by providing greater influence and access to the crucial maritime trade routes in the Horn of Africa and the Red Sea region.

Read More: BRICS Expansion: Challenging Western Dominance