Ambassador Magdy Amer | Former Deputy Foreign Minister of Egypt and Ambassador to China |
As the world embraces a phase of immense geopolitical and economic transformation, the enlarged BRICS stands out as a symbol of the growing confidence, capability and collective voice of emerging economies. The bloc’s evolution from a modest economic grouping into a dynamic and expanding bloc underscores a fundamental shift in the architecture of global governance and development.
Interestingly, Trade in goods among the enlarged BRICS members has clearly outpaced trade between the bloc and the G7 nations, leading to greater intra-BRICS trade intensity. Decades of rapid growth have also given some of the bloc’s members, such as India, China and Brazil, far greater weight in the global economy as producers, exporters and consumers, which adds to the strength of the bloc.
With its huge potential, the enlarged BRICS could serve as a forum for widening intra-bloc market access in several ways. Coupled with the facilities of both the NDB (New Development Bank, the bloc’s affiliated bank) and the Asian Infrastructure Investment Bank (AIIB), the bloc could generate a new model of reform and development for developing countries and the Global South in general, independent of the purely Western model. Hence, the enlarged BRICS could foster and lead a new model focused on South-South cooperation, primarily driven by these institutions, to offer an alternative to Western-led financial institutions by promoting local-currency financing, reducing dependence on the US dollar, and avoiding traditional political and policy conditionalities.
Several members of the bloc have pursued successful and independent paths of reform and development. The Indian, Chinese, Brazilian and Indonesian models, each with its own approach to reform and inclusive growth, are prominent examples of independently designed development models. Such models offer the Global South alternative choices for achieving reform and genuine development without resorting to what the West calls the “Washington Consensus”, dictated by the IMF and the World Bank and now opposed by some of its original proponents. These models demonstrate that the development process of any country depends on its specific political situation, social conditions, cultural traditions and historical background. They confirm that there is neither a standard development model for all nations nor a ready-made roadmap dictated by any institution.
Furthermore, the Indian, Chinese, Brazilian and Indonesian models are highly relevant to other Global South nations, including my country, Egypt.
Combating poverty, transitioning to a new growth model, building a cost-effective healthcare system, modernising agriculture, enhancing industrial productivity and addressing other challenges are issues faced by all Global South nations.
The enlarged BRICS also provides a forum that gives emerging markets the opportunity to coordinate on global issues and open new avenues for promoting mutual economic growth. As it begins building new financial institutions and creating a new payment mechanism for executing transactions, there will be significant implications for international finance, monetary policy, the future of trade and global supply chains. Contrary to some misconceptions, the formation of the enlarged BRICS is not intended to oppose or antagonise existing international institutions or groups.
Rather, its purpose is to offer an alternative within the prevailing global framework. The enlarged BRICS aspires to actively engage the Global South in international decision-making and contribute to shaping global decisions. This approach reflects a commitment to inclusive participation in the international arena, where the voices of developing countries are heard.
On the other hand, judging by Trump’s words, he wants to prevent the bloc from challenging US-led global dominance. Yet, judging by his actions, he is actually helping the bloc pursue its goals. His unilateralist agenda provides a strong rationale for the bloc to advance its agenda of multipolarity. By threatening allies and adversaries alike, Trump has validated the enlarged BRICS narrative that a counterweight to the US-led system is necessary and has pushed some of America’s allies closer to the other camp.
While Western middle powers such as France, Canada, Germany and others continue to maintain their place within the Western system, their economic agendas increasingly align with those of the enlarged BRICS. The ever-increasing economic, financial and energy cooperation between these Western middle powers and the enlarged BRICS economies is born out of necessity and nurtured by shared economic, rather than political, interests.
The policies of the Trump administration are helping the bloc, and the Global South in general, gain further strength to continue on its path, while also bridging the gap between the bloc and Western middle powers. In an age of geopolitical turbulence driven by the aggressive “America First” doctrine, which seeks to preserve US dominance, these policies have catalysed precisely the opposite outcome: a multipolar system in which the Global South and some Western middle powers are moving closer together, rather than drifting apart from BRICS as the US administration may wish.
It is a tacit admission that the future of the global economy lies not predominantly across the Atlantic, but also with and among the nations of the Global South. This growing collaboration will accelerate the reshaping of the global order into one that is more balanced, more diverse and far less dependent on any single superpower. The emerging order will provide countries such as China, India, Russia and Brazil, along with Western middle powers, ample opportunities to reshape the political and economic architecture of the world.
In Egypt, which is a member of the enlarged BRICS, we believe that the future potential of the bloc is promising, even if a certain power, or powers, succeeds temporarily in impeding or derailing its progress. What began in 2006 as a loose economic grouping has evolved into a broader economic bloc and has become a central forum for the Global South, thereby emerging as an increasingly influential political force.
[Opinions expressed personal.]
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