BRICS is attracting Southeast Asian countries, with Thailand and Malaysia being the latest to express their interest in joining the bloc.

• The bloc has members from all over the world, but none from Southeast Asia yet.

About BRICS

The acronym “BRIC” was first introduced in 2001 by Jim O’Neill, to denote the group of fastest-growing economies that would dominate the world economy by 2050.

• Refers: It consists of Brazil, Russia, India, China, and South Africa, was previously known as BRIC before South Africa’s inclusion in 2010.
  • The first BRIC Summit was held in 2009 in Russia.
  • BRICS countries are united by their shared economic potential and their desire to play a more prominent role in the global economy. 
  • They are united by their common challenges, such as poverty, inequality and climate change.
• Goal: To highlight the issues of the global South and to challenge the Western hegemony in the global system.
• Expansion: Last year, BRICS decided to expand its membership, inviting Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates to join the bloc.
  • The name for the expanded group has not yet been officially announced, but it could be called “BRICS+.”
  • Other ASEAN Nations: Vietnam, Laos and Cambodia “could be the potential applicants” as they already have good ties with China, India, and Russia — all key players in BRICS.
    • In May, Vietnam said that it is closely monitoring the process of BRICS membership expansion.
    • Last year ahead of the BRICS summit, there had been speculation that Indonesia — the only G20 country in Southeast Asia that hopes to complete the accession process with the OECD within three years — could become a BRICS member.
      • However, still weighing the pros and cons of BRICS membership.
• Significance: Combined, its members account for about 45% of the world’s population — around 3.5 billion people.
  • Economic Significance: According to World Bank data, their economies are worth around $30 trillion (€28 trillion) — about 28% of the global economy.

Enroll now for UPSC Online Classes

Interest of New Members in Joining BRICS

New entrants view BRICS as an alternative to global bodies viewed as dominated by the traditional Western powers and hope membership will unlock benefits including development finance, and increased trade and investment.

• Malaysia: The bloc “can help Malaysia’s digital economy grow faster by allowing it to integrate with countries that have strong digital markets and also take advantage of best practices from other members.
• Thailand: The country would also be able to draw investments in important industries including services, manufacturing, and agriculture.
  • Apart from BRICS, Thailand has also applied to join the Paris-based Organization for Economic Cooperation and Development (OECD), which has 38 mostly Western members.
    • Thailand is doing a balancing act — one foot with the Western liberal democracy and the other foot with the emerging economies.
  • People’s Expectations: As per the various analysts, Thailand’s eagerness to join BRICS is based on domestic justification. 
    • To increase economic growth is their most important foreign policy priority, therefore, joining the regional bloc is relevant to its people’s expectations.
  • Participation in new world order: Thailand expects the membership to enhance its participation in international economic policy and to “create a new world order.

Influence of China

Both these Southeast Asian nations becoming BRICS members “will enhance their relationship with China.

• Influential Trade Ties: Trade ties that Malaysia and Thailand already have with China have influenced their decisions to join BRICS.
  • According to official data, China has been Malaysia’s largest trading partner for the past 15 years and Thailand’s biggest for 11 years.
• Favoring Public Sentiments: As per a recent survey by a Singaporean think tank, in Malaysia, public sentiment is currently more in favor of China, the world’s second-largest economy after the United States.

Need for Expansion

Expansion of the bloc could increase the group’s influence, taking decisions by consensus in BRICS+.

• Changing Realities: Global institutions reflect the power realities of their creation, and as power realities change, their efficacy becomes contested. 
  • Example: Current evolution in global order has challenged the hegemony of the United Nations, the IMF, World Bank etc.
• Rise of Multipolar World: BRICS presented itself as a force for a “rebalancing” of the global order away from Western-dominated institutions. 
  • Member countries and various multilateral groups are attempting to reshape the global order into a multipolar world, with voices from the Global South at the center of the international agenda.
    • Western powers posed a threat to both traditional values in developing countries and to the emergence of a multi-polar world where no one country or bloc dominated.
• Western Hegemony: Currently, Western countries dominate international bodies, such as the United Nations, the International Monetary Fund or the World Bank.
  • Indifference: The five BRICS nations, with a combined GDP larger than the G7 (purchasing power parity terms), currently hold only 15% of the voting power at the IMF.

Check Out UPSC NCERT Textbooks From PW Store