5 countries join BRICS

BRICS, also known as Brazil, Russia, India, China, and South Africa, welcomed five new members on January 1, 2023. Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia. Originally planned to join in August 2023 at the 15th BRICS summit in Johannesburg, Argentina withdrew its invitation in December.

Formed in 2006, BRICS serves as an essential platform for collaboration among emerging markets and developing countries. The expansion of the group aims to enhance its influence on the global stage.

The combined population of the newly expanded BRICS is approximately 3.5 billion, with a collective economy valued at over $28.5tn, representing about 28% of the global economy. While this growth may alter the geopolitical landscape, analysts are uncertain whether it will benefit or hinder BRICS members. Some experts worry that internal differences within the group may weaken decision-making and overall power.

However, the expansion offers an opportunity for greater representation of emerging economies and the chance to reduce reliance on the US dollar. In August 2022, the President of Brazil proposed adopting a common currency for trade and investment among BRICS nations. Russia has assumed the presidency of BRICS, succeeding South Africa. With the theme “Strengthening Multilateralism for Equitable Global Development and Security,” Russia will hold the chair for one year, culminating in the BRICS annual summit in Kazan in October.

Russian President Vladimir Putin aims to elevate BRICS’ role in the international financial system and actively support the smooth integration of new participants into its activities.