With 6 new countries including Iran and Saudia Arabia being invited to join, BRICS has been in the news headlines for quite a while. Let's start our discussion by first understanding what BRICS is and deeply analyzing the role Brazil played in it. Other countries will be discussed in separate articles.
BRICS is an acronym standing for countries including Brazil, India, China, Russia and South Africa. The term was first coined by Goldman Sachs economist, Jim O' Neill, in 2001 who believed that the above economies would emerge and dominate the global markets by 2050. BRICS was initially known as BRIC until 2010 in which South Africa was added to the list. BRICS is an informal association between the participating countries fostering economic co-operations among each other. They discuss strategies in order to increase their dominance in the global trade. BRICS gives a platform to the emerging economies to engage in high-level political dialogues. They are able to discuss issues like international security, climate change and political stability. BRICS shifts the global power dynamics giving these emerging economies a voice in International Affairs.
Brazil holds significance in Latin America due to its size, location and political influence. Brazil is the largest country in South America covering a vast land area in the region. Its vast natural reserves including minerals and energy, have their impacts on its economy. With a GDP of 1,920 Billion USD, Brazil's economy stands at number 11 making it one of the world's largest
economies.
But how did a nation with nearly 175 Million people at the time manage to become a member of BRICS? When the idea of establishing a forum for discussion and co-operation among emerging economies began to take shape in the early 2000s, Brazil wasn't a part of it. Brazils President, Lula de Silva, played a crucial role in Brazil's involvement in BRICS. He was a strong advocate for the creation of BRIC, emphasizing the economic potential and influence of the member countries. Lula's vision was to bring together economic powerhouses. BRICS first formal summit took place at Yekaterinburg, Russia in 2009 marking the official establishment of the BRIC grouping. Brazil played a pivotal rule in the summit. Brazil used the platform to emphasize the importance of South-South cooperation. The term refers to cooperation and partnership between countries of the Global South, particularly emerging economies. Brazil saw BRIC as an opportunity to strengthen this form of cooperation and advocate the interests of developing countries globally.
Brazil's decision to join the forum was driven by a lot of strategic factors. In the early 2000s, Brazil was experiencing major economic growth encouraging them to join BRICS in order to align themselves with other emerging economies and becoming a key player in global trade. Brazil found BRICS as an investment opportunity as other member nations provided a potential for increased exports of its commodities and manufactured goods. Brazil saw BRICS not only as an opportunity for increased global trade but also for more political influence. Aligning with other emerging economies, Brazil aimed to have a strong collective voice on international issues such as global governance reform, climate change, and trade negotiations. In summary, Brazil saw the group as a means to diversify its economic partnerships, enhance its global influence and address common challenges with other emerging economies.
Brazil has made significant economic contributions within the BRICS group, including economic growth, trade, investment, and collaboration on various economic initiatives. Brazil plays a vital role in intra-BRICS trade exporting a wide range of products to other BRICS countries. This trade contributes to economic growth and stability within the group. Brazil is a major exporter of commodities which are essential to the industry-focused BRICS economies such as China. Brazil has a significant energy sector. Cooperation on energy security, including discussions on renewable energy and cooperation in oil and gas exploration, contributes to energy stability within the group.
Brazil not only contributes to BRICS but also derives benefits from other BRICS nations. The country attracts Foreign Direct Investment from other members of the group. Investments in sectors such as energy, infrastructure and technology have the potential to generate economic growth and employment opportunities in Brazil. BRICS membership has provided Brazil with an access to a significant and growing market. Rise in Brazil's exports has generated a lot of revenue for the country. Brazils transport and telecommunication networks have improved as a result of infrastructure development projects in Brazil funded by BRICS-backed institutions.
Brazil's political history and its diplomatic experience has played a pivotal role in shaping BRICS' political agenda. Brazil often assumes a leadership role within the group frequently hosting BRICS meetings and using its diplomatic influence in setting the group's priorities and agendas. Brazil actively advocates for specific global issues within BRICS. It aligns with other member states to collectively address issues of international importance, including reforming international institutions such as the United Nations and the World Trade Organization. Brazil often aligns itself with other BRICS nations on global issues influencing international decisions and increasing the group's impact. Brazil's political role extends beyond BRICS due to its role as a regional power in Latin America. It leverages its position to engage with other Latin American countries, enhancing the group's influence in the region.
However, Brazil has also faced challenges while being part of the group. For instance, Brazil had a trade imbalance with China. While Brazil exported commodities like soybean it imported manufactured goods from China resulting in trade imbalance. Brazil's history is full of political instability and corruption scandals characterized by frequent changes in leadership affecting its ability to maintain a stance in BRICS.
Brazil can use a few strategies in order to overcome these challenges and make its position stronger in the group. Brazil can reduce its dependence on a few key commodities by diversifying exports. Encouraging development of value added industries can help Brazil increase its trade and increase its global position. The trade imbalance with China can be sorted out by negotiating trade agreements promoting balanced trade and exporting higher-value goods.
In summary, Brazil's emerging role within BRICS reflects its desire to increase global influence and recognizes the importance of cooperation among emerging economies. It has allowed the country to diversify its economic partnerships and increase its influence on global political and economic matters.
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