Elena Panina, Director of the RUSSTRAT Institute – Machine Translated and cleaned up from the Russian original.
MOSCOW, June 29, 2022, RUSSTRAT Institute.
BRICS expansion has been discussed for a long time. It is significant that the last summit on June 24 in the BRICS Plus format was attended by such countries as Algeria, Argentina, Cambodia, Egypt, Fiji, Ethiopia, Indonesia, Iran, Kazakhstan, Malaysia, Senegal, Thailand and Uzbekistan.
At the same time, the fact that the first applications for membership were submitted by Argentina and Iran, which did not take part in the BRICS Plus meeting, does not seem accidental.
Initially, the BRICS group was created as an association of the largest developing economies in the world. However, in the modern world, it is political decisions that determine the nature of the development of economic ties. It is quite logical that the first countries with a pronounced geopolitical sovereignty and having their own geopolitical scores with the collective West are preparing to join the expanded BRICS.
Iran is already almost two and a half thousand years old, since the time of Cyrus the Great is a powerful historical power, and its geopolitical significance cannot be overestimated. The geography itself determines the potential of its influence on the countries of the Arab world up to the coast of the Mediterranean Sea and the Persian Gulf, in the Transcaucasus, Central Asia, as well as on the Afpak region (Afghanistan and Pakistan). Since the 1979 Islamic Revolution, Iran’s state ideology has been anti-Western. Tehran is engaged in an intense struggle with the US-British coalition for influence in Iraq, and is helping Syria in the fight against terrorism.
From an economic point of view, Iran’s potential is also great. The Iranian economy is in the world’s top 20 in terms of purchasing power parity, the country is third in the world after Saudi Arabia and Venezuela in terms of proven oil resources, and has 16 percent of the world’s proven gas reserves.
Argentina, since the time of General Juan Domingo Peron, has also clearly felt its geopolitical role, being one of the regional leaders in Latin America. This role is recognized all over the world. Argentina, while not one of the world’s largest economies, is nevertheless a full member of the G20. Having survived the failed war with Great Britain over the Falkland Islands (Malvinas), as well as the collapse of liberal reforms according to the IMF recipes, the country has an obvious request to find an independent path of development. Today, Argentina is in a difficult economic situation, it has a huge external debt. However, the potential of Argentina as one of the global food exporters has significantly increased in recent years.
For various reasons, both Iran and Argentina are extremely interested in BRICS projects to create new international settlement systems that are alternative to the global hegemony of the dollar. Iran, which is under sanctions, life itself has forced to go to “de-dollarization”, the country practically does not use the US currency. For Argentina, the transition to a hypothetical new monetary and financial zone would mean an escape from the stranglehold of the IMF, from the pressure of American creditors, which today have an extremely destructive impact on the national economy.
In any case, against the background of aggressive pressure from the United States and its allies on potential new BRICS members, the desire of Iran and Argentina to join the community requires a certain amount of foreign policy courage. There is reason to assume that the process of their joining the BRICS will be successful, since both countries do not cause rejection even in India, which until recently was the main opponent of expansion. We can confidently predict that in the near future the process of adding new members to the BRICS will continue due to the entry of a number of Asian and African countries.
But even now, the BRICS expansion at the expense of Iran and Argentina is the final departure of the community from the idea of Goldman Sachs analyst Jim O’Neill, who coined this abbreviation twenty years ago, who decided to designate such a term as “emerging economies” that are “catching up” with the developed West.
We can say that BRICS is confidently turning into a “collective Non-West”, from a community of emerging markets it is finally transformed into a community of world powers with a pronounced geopolitical sovereignty.