
BRICS Summit Leaders 2023. Image Source: @MEAIndia
The recently concluded 15th BRICS Summit in Johannesburg, South Africa, was significant in many ways. Most importantly, the summit demonstrated the limits of China’s ability to reshape the framework according to its interests.
Countries such as India and South Africa were keen on strengthening the BRICS framework to promote the interests of developing countries and reform the global institutions to make them more inclusive. On the other hand, China was keen on leveraging the BRICS as a tool in its competition with the United States. The expansion of the BRICS membership, the failure to initiate a genuine conversation on the common currency and the contents of the BRICS declaration demonstrate the limits of Chinese influence in the BRICS framework.
In the recent past, China has been making persistent efforts to expand the membership of the BRICS to position it as a grouping of anti-Western countries. In 2017, the Chinese foreign minister Wang Yi expressed the intent of expanding the BRICS membership by inviting friendly developing countries under the rubric of BRIC Plus. At the 2022 BRICS summit, the Chinese leaders once again reiterated the importance of expanding the membership of the BRICS.
At the recent summit in South Africa, India advocated for a consensus-based process for expanding the BRICS membership. The consensus-based approach was critical to ensure that the grouping was not hijacked by one or two member countries and, more importantly, ensurethat the strategic partners of India also become eligible for membership. It was decided at the summit that Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) would be invited to become new members of the BRICS forum from January 2024. India reiterated that it “has always fully supported the expansion of BRICS membership” and welcomed the new member countries of the grouping.
In recent times, India’s relations with the UAE and Saudi Arabia have greatly improved. Earlier this year, Egyptian President Abdel Fattah El-Sisi was the chief guest at the Republic Day parade. India shares a robust bilateral relationship with other countries, such as Iran and Argentina.
Adding new members and increased political heterogeneity will alter the power dynamic within the BRICS framework. China has recently facilitated the resumption of diplomatic relations between Iran and Saudi Arabia and will be hoping that these countries might share its vision of building an anti-US or anti-western world order. These Gulf countries becoming members of the BRICS indicates that they are increasingly diversifying their global engagement. However, that does not necessarily suggest that the Gulf countries fully share the Chinese outlook on international politics. While relations between the US and Gulf countries have been strained recently, it’s important to note that Saudi Arabia and the UAE currently host American defence personnel on their soil and have robust defence partnerships with the US.
Further, the UAE is also collaborating with India under the rubric of the I2U2 (Israel, India, UAE and US) framework. In May this year, India’s National Security Advisor (NSA) interacted with his counterparts from UAE and the US and Saudi Crown Prince Mohammed bin Salman to strengthen connectivity between India and the Middle East. It needs to be seen how the entry of these Gulf countries, which are also considered close to the US, will impact the functioning of the BRICS. On the other hand, the presence of the oil-rich Middle Eastern countries will add greater economic muscle to BRICS and associated institutions.
At the invitation of South Africa, the Chair of the Summit, many developing countries attended the BRICS-Africa Outreach and BRICS Plus Dialogue. Many developing countries may be hesitant to adopt a confrontational approach with the West. Many African countries also have substantive trade relations with the US and Europe, which may be challenging to disengage. It is not in the interests of many developing countries to approach global politics only through the prism China-US contestation. If the world order becomes bipolar (China vs. the US), it would limit the space for emerging powers.
Further, the Chinese economic engagement in developing economies and its Belt and Road Initiative (BRI) have not always received approbation. In fact, the implementation of BRI projects has left many developing countries with massive debts. Such consequences have convinced many that Beijing is not creating a genuinely equitable world order. So the choice that confronts the global South is not whether to be with China or with the West. Instead, the challenge confronting many developing countries is how to collectively bargain with the big powers to have better economic outcomes. Therefore, it was not surprising that South African President Cyril Ramaphosa, stated: “we still seek to overcome polarity and division…we want a world without barriers between North and South, East and West.”
In the run-up to the summit, there was considerable discussion on common currency, which did not make much headway. While the developing countries may have concerns about the weaponisation of the dollar, they are in no mood to give up financial and monetary policy autonomy. Many economists have suggested the necessity of studying the Euro experience before BRICS moves ahead with the idea of a common currency. Despite considerable similarities in the political systems, the absence of severe territorial conflicts, and the presence of integrated supply chains, managing the Euro has proved to be a very challenging enterprise. On the other hand, the BRICS countries are defined by varied political systems, diverse financial institutional frameworks and territorial conflicts. Therefore, the brief references to the BRICS currency were not translated into a programme of action at the Summit. Instead, the BRICS declaration referred to the need to ‘encourage the use of local currencies in international trade and enabling settlements in local currencies.’
The BRICS declaration referred to the need for fostering inclusive multilateralism and called for a “comprehensive reform of the UN, including its Security Council, with a view to making it more democratic, representative, effective and efficient..” The 94-paragraph-long BRICS declaration also called for addressing the ‘debt vulnerabilities in many countries, effective implementation of the 2030 Agenda for Sustainable Development, advancing the Strategy on Food Security Cooperation and convening the Infrastructure Investment Symposium to promote good practices pertaining to public-private partnership (PPP) in infrastructure development.’
Speaking at the summit, the Indian Prime Minister suggested that the BRICS countries should create a Space Exploration Consortium, cooperate in education and skill-development, and create a repository of traditional medicine. The Indian premier also offered to share with BRICS partners Indian Digital Public Infrastructure, which has played a seminal role in financial inclusion.
The 15th BRICS Summit also provided a platform for bilateral meetings on the sidelines. According to the Indian Ministry of External Affairs, the Indian Prime Minister, in his interaction with Chinese President Xi Jinping, “highlighted India’s concerns on the unresolved issues along the LAC in the Western sector of the India-China border area’ and added that “respecting the LAC are essential for the normalisation of the India-China relationship.” Prime Minister Narendra Modi also interacted with the presidents of Iran, Mozambique, Senegal and Ethiopia’s prime minister.
In BRICS, India is an important player. India is using the BRICS framework to push for reform of multilateral institutions and build stronger ties with other developing countries. The Indian strategy has been to ensure that the agenda-setting in these institutions tends to be consensus-based and there is a persistent focus on the economic needs of the global South.
There is no contradiction in engaging with BRICS and cooperating with US, Australia and Japan in the Quad framework. Promoting India’s economic and political interests should be the only barometer that should guide India’s engagement with multiple global platforms. If India needs to sustain its rapid economic growth, it must engage with various international frameworks and organisations. Sustained international engagement is a critical variable to achieve prosperity at home.
Sanjay Pulipaka is the Chairperson of the Politeia Research Foundation. The views expressed here are his personal views.
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