Can BRICS plus offer better platform to developing nations?

By Shahid Hussain

The United Nations has 193 member states and they can be broadly labeled into two categories, “developed or developing countries.” The former are very limited in number but decide on major global issues, from economics to politics and plenty more.

The latter group, though very large in numbers, have very little power to chalk out their future. The best testimony is the current Ukraine crisis which has brought high inflation in almost all markets.

We also have so many regional and multilateral blocs, and the very existence of such groups demonstrates that the United Nations alone cannot effectively tackle the challenges of seven billion people. The EU and G8 are examples of strong blocs and since their inceptions, they have become successful in catering to their members' needs.

BRICS (Brazil, Russia, India, China and South Africa) is the most promising body for developing nations. The BRICS nations represent 40 percent of the world's population and account for 24 percent of global GDP with 25 percent of foreign investment. This year, China hosted the BRICS Summit under the theme, Foster High-Quality BRICS Partnership, Usher in a New Era for Global Development.

The needs and aspirations of developing countries are not only different, but the challenges faced by them are quite distinct from Western countries too. Energy and food security are the twin issues which have arisen due to the events in Ukraine and the sanctions on Russia. When India put a temporary export ban on wheat, Western nations started criticizing the move while China wholeheartedly supported India.

Crude oil prices have skyrocketed and to meet the energy demands, countries like China and India are purchasing it from Russia at cheaper prices. They do not want to further risk matters with the current rate of inflation, especially when considering how that might impact all major sectors of their economies. Although the West expects countries to limit their energy dependence on Russia, yet at the same time, they purchase gas and fertilizers.

The best example of the BRICS nations is Brazil. China's bilateral trade relations with Brazil reached $164 billion in 2021, which is the highest among all of the BRICS member states. Brazil is an example of how developing countries have more in common with countries like China since their challenges and aspirations are similar.

The virtual meeting on May 20th of the foreign ministers of BRICS members was also joined by their counterparts from Argentina, Egypt, Indonesia, Kazakhstan, Nigeria, UAE, Saudi Arabia, Senegal, and Thailand. The New Development Bank already included Bangladesh, UAE, Uruguay and Egypt as its fellow members, which sets the stage for their future likelihood of becoming part of BRICS plus.

The Russian foreign minister recently stated that Saudi Arabia and Argentina have expressed a desire to join BRICS plus. The singularity between the interested countries is not political but economic as they are looking to safeguard themselves from the ripple effects of the Western nations' policies which very often do not meet the expectations of developing countries.

The world needs stability and prosperity, not wars and financial crises; it's high time to understand and respect the voice of developing countries. BRICS has shown that political ambitions should not decide policies and pressure politics should not dictate the fate of other countries.

BRICS plus has the potential to solve 21st century challenges more than any other group because it gives the developing countries a more diverse and inclusive platform in order to make policies that meet their expectations and needs.

Shahid Hussain is the founder and CEO of UAE-based consulting firm Green Proposition and writes about matters which shape trade and business in the global Market.