South Africa's role as host of the BRICS summit is fraught with dangers. A guide to who is in the group, and why it exists
South Africa will host the BRICS summit in August 2023.
- South Africa will host the BRICS summit in August 2023.
- South Africa could face the wrath of its BRICS partners if it fulfils its international obligation and arrests him.
- Hosting the 2023 BRICS summit is therefore fraught with dangers.
Who are the BRICS?
- These countries decided that Goldman Sachs had a point and that they could enhance their global influence if they cooperated.
- They first met at a ministerial level in 2006 and at a leaders’ summit in 2009.
- The group has also sought, through groups like its business forum, to promote greater economic cooperation between the participating countries.
What has the BRICS grouping achieved?
- They contend that it is a “new” multilateral development bank which offers its members an alternative to institutions like the World Bank.
- It claims that its governance is fairer than the World Bank because its five original members all have equal votes.
- It has provided US$32.8 billion to 96 projects in the 5 BRICS countries and it has begun looking to expand the scope of its operations.
- But another important reason is that the BRICS are not unified in their demands for reform.
- Similarly, not all the other BRICS have supported South Africa’s call for a third African seat on the IMF’s board of directors.
Are there any downsides to BRICS membership?
- These changes have created both opportunities and challenges for the BRICS.
- One opportunity arises from the fact that approximately 19 countries in the Global South, including Argentina, Cuba, Iran and Saudi Arabia, have expressed an interest in joining the BRICS.
- It is expected that the BRICS will consider the issue of membership at their upcoming August 2023 summit.
- However, given the complex economic and political relations between the BRICS member states, there is considerable scepticism about the feasibility of the BRICS developing a new global currency in the near term.
What hangs on the summit?
- The G20, which brings together the 20 leading economic powers in the world, has called itself the “premier forum” for global economic governance.
- Planning for this G20 event must begin soon because in 2024 South Africa will join India, the current G20 host, and Brazil, the 2024 G20 host in the troika that manages the G20 process.