Turkey’s bid to join BRICS

General Studies Paper-3

Context: Turkey’s bid to join BRICS could be a political move to gain leverage in its stalled EU accession process or signal frustration with the EU.

Benefits:

1. Increases Turkey’s global influence.
2. Provides economic cooperation with emerging markets.
3. Strengthens Turkey’s political leverage in EU negotiations.

Concerns:

1. Strains relations with the EU and NATO.
2. Undermines Turkey’s credibility within Western alliances.
3. Risks diplomatic isolation from Western powers.

India’s stance on expansion:

India welcomed the consensus-based expansion of the BRICS grouping during the 15th BRICS summit in Johannesburg.

• The move strengthens BRICS as a representative of developing countries
• India has proposed creating a BRICS space consortium, investing in skill mapping, technology, and education, and emphasising cooperation for conservation efforts.
• The expansion is aimed at making BRICS future-ready by enhancing cooperation, digital solutions, and development initiatives.

Significance for India:

• The addition of new members to BRICS holds significance for India in terms of expanding partnerships and geopolitical influence, while also raising concerns about potential pro-China dominance within the alliance.

About BRICS:

• BRICS (founded: 2009; HQ: Shanghai) is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China, and South Africa (included in 2010)
• Origin: The term “BRIC” was coined by the British Economist Jim O’Neill in 2001 to describe the four emerging economies of Brazil, Russia, India, and China.
• Share of BRICS: BRICS brings together five of the largest developing countries, representing 41% of the global population, 24% of the global GDP, and 16% of the global trade (By 2028, BRICS is expected to make up 35 per cent of the global economy)
• Chairmanship: The chairmanship of the forum is rotated annually among the members, in accordance with the acronym B-R-I-C-S. South Africa is the chair for 2023.

Initiatives of BRICS        

1. New Development Bank (NDB)
2. Contingent Reserve Arrangement (CRA)
3. BRICS Payment System
4. Customs Agreements
5. Remote Sensing Satellite

• New Initiative: BRICS is planning to launch its own “new currency” system, a major step towards de-dollarization (reducing dependence on the US dollar for trade)

Challenges for BRICS:

• Economic Divergence; Brazil and Russia have been experiencing economic recessions in recent years, while China and India have sustained high growth rates. South Africa’s economy has been performing poorly, with high levels of unemployment and inequality.
• Political Differences; Russia’s annexation of Crimea and involvement in conflicts in Ukraine and Syria have strained its relations with other BRICS members. China’s territorial claims in the South China Sea have been a source of tension with other BRICS countries that have competing claims in the region.
• Institutional Constraints; The New Development Bank (NDB), established by BRICS in 2014 to provide development financing, has faced challenges in disbursing loans and identifying viable projects. The Contingent Reserve Arrangement (CRA), a pool of foreign exchange reserves, has not been tested yet.
• Coordination Difficulties; Disagreements over the governance structure of the NDB and the CRA, as well as differing priorities in areas such as trade, investment, and climate change, have made it difficult for BRICS to present a unified front on many issues.
• External Pressures; The rise of protectionism, nationalism, and populism in some advanced economies has posed challenges for BRICS in terms of trade, investment, and access to capital.

Way forward for BRICS:

• Reform of Multilateral Institutions: BRICS countries could jointly advocate for the reform of the UN Security Council, calling for the inclusion of more developing countries as permanent members.
• Resolve to Combat Terrorism: BRICS countries could share best practices and intelligence to combat terrorism, as well as work together to cut off funding and resources for terrorist groups.
• Promoting Technological and Digital Solutions for the SDGs: BRICS countries could share their experiences in adopting and implementing digital solutions in these sectors
• Expanding People-to-People Cooperation: BRICS countries could organize joint cultural events and exhibitions, establish more student exchange programs and scholarships, and encourage more tourism and business visits to each other’s countries.

Conclusion:

• While BRICS membership might strengthen Turkey’s global presence, it could strain relations with the EU, which expects alignment with its values and foreign policy. Turkey’s balancing act between the West and non-Western alliances could backfire, further diminishing its credibility within transatlantic circles. However, Turkey remains crucial due to its strategic location, making its foreign policy a complex balancing act.