It is difficult to assess what an expanded Brazil, Russia, India, China and South Africa (Brics) grouping will mean for South African trade fortunes and the broader economy amid the shifting global power dynamics between North and South, East, and West.
However, there are several advantages that could be harnessed, including improving access to funds, and fostering collaboration across the member countries in developing infrastructure and industrialisation.
Several events have accelerated the transition, with the extended membership of Brics grouping serving as the final nail in the coffin.
The Brics alliance aims to promote and strengthen economic cooperation among member countries, while distancing itself from the Western sphere of power.
The Brics alliance has grown significantly, with membership now accounting for 47% of the world’s population and 36% of global gross domestic product (GDP).
The New Development Bank, led by Brazilian economist and former president Dilma Rousseff, is a potentially viable alternative to the World Bank and the International Monetary Fund, explicitly curated for Brics member countries.
The de-dollarisation movement, led by Russia, is gaining traction among the Brics nations and other countries in the Global South.
The 2008 financial crisis prompted increased collaboration among developing countries, culminating in the formation of the Brics platform, which has since become an essential component of global governance.
Cooperation among the Brics countries in international finance has fostered a sense of trust among the nations, allowing for a broader scope of collaboration in other domains.
Argentina and South America have been strategically integrated into the Brics growth strategy to promote the interests of the Global South.
Ethiopia and Egypt are prominent African countries, bolstering Africa’s representation within the Brics framework and, thus, the continent’s influence.
The inclusion of Iran in the Brics framework demonstrates the group’s willingness to engage with nations involved in conflicts with Western countries, demonstrating their lack of concern about such geopolitical dynamics.
The United Arab Emirates and Saudi Arabia wield significant economic and geographical power.
The expansion of the grouping is widely regarded as a significant step towards creating a fair and inclusive global framework that prioritises promoting sustainable development, facilitating economic growth, and implementing necessary reforms within multilateral systems.
Brics also emphasises the importance of peaceful conflict resolution.
The expansion of Brics member countries sparks two debates about South Africa’s future membership in the bloc.
Does adding new member countries reduce market concentration?
If this is the case, the potential for South Africa to diversify away from producers who violate human rights will be enhanced due to member nations’ increased desire for free and fair trade.
South Africa’s Brics membership may result in economic imbalance, resource competition, trade imbalances, political and diplomatic differences, limited influence, alignment pressure, reliance on Brics markets, infrastructure development costs, social inequality and geopolitical tensions.
These challenges require careful consideration and strategic planning to ensure that South Africa’s interests are protected.
The smaller economy and population of South Africa may also limit its ability to shape the group’s agenda and policies.
South Africa needs to actively participate in Brics activities, form alliances, and capitalise on the platform to address its own economic and development concerns successfully.
