Five key aspects on BRICS, the emerging economies bloc that Argentina will join in 2024  

At the summit held in Johannesburg last month, the bloc formed by Brazil, Russia, India, China and South Africa invited Argentina, Saudi Arabia, the United Arab Emirates, Iran and Ethiopia to join its alliance of emerging countries. Five key facts about the network that unites the most important nations of the Global South

Fact 1: the geopolitical agenda

With the invitation of new members, the bloc is further distancing itself from American and European alliances to give emerging economies a voice. For some analysts, the countries are seeking to differentiate themselves from the G7, the main organization of Western powers. An example of this stance is their position on Russia’s war in Ukraine, as none of the alliance’s member countries applied sanctions against Moscow. Other experts see certain similarities between the BRICS and the Non-Aligned Movement (NAM), which brought together nations that were neutral to the Cold War in the 20th century.

Fact 2: Economy and global importance

The five BRICS members account for 25.7% of the world’s GDP, according to the World Bank, with more than 40% of the world’s population. In addition, their exports exceeded 16% worldwide in 2022, according to the World Trade Organization. In terms of purchasing power parity (PPP), the BRICS recently surpassed the G7 countries (United States, Japan, Germany, United Kingdom, France, Italy and Canada).

Additionally, the BRICS nations jointly promoted the New Development Bank, created in 2014 and headquartered in Shanghai.

Fact 3: Uncertain financial integration

Brazilian President Luiz Inácio Lula da Silva proposed that BRICS countries share their currency, and the Chinese yuan could prove to be strongest alternative. However, this is not the first time that Lula has sought to challenge the supremacy of the dollar and put the issue of a common currency on the table: the president made the same proposal within Mercosur, formed by Brazil, Argentina, Uruguay and Paraguay. There are no indications that the other BRICS countries are pushing the same plan.

Fact 4: Asian and African potential

Saudi Arabia, the largest economy in the Middle East, could provide significant financing for the BRICS. The same applies to the United Arab Emirates, the second largest economy in the Arab world and one of the most open economies in the world. In the African continent, rich in minerals and arable land, Egypt ranks above South Africa in terms of GDP, while Ethiopia exhibits rapid growth.

Fact 5: Implications for Latin America

The eventual accession of Argentina to the BRICS, with Brazil as a key ally, would give Latin America more weight in the global debate. Venezuela, Uruguay, Nicaragua and Mexico are the other countries in the region that want to join the bloc. Argentina’s presence could pave the way for them. At the same time, this common space could further strengthen regional ties with China, Brazil’s largest trading partner.

Author: Marina Vanni