MSN News | Financial Express | 26/08/2010
The powerful grouping of Brazil, Russia, India and China (BRIC) nations is slated to expand further and emerge as a serious counterweight to the G-8 club of developed nations. BRIC nations are planning to bring three more countries South Africa, Indonesia and México within its ambit to add more muscle to its negotiation skills at international forums like the G-20, a senior official told FE. Finance ministers’ of BRIC countries will discuss this proposal at a meeting in London next month, sources said. BRIC nations already enjoy a significant weight at the G-20 forum while India’s standing has improved by leaps and bounds, especially after the global economic crisis.
G-20 countries’ finance ministers will later meet in October in Gyeongju, South Korea. This will be followed by meeting of the leaders in November in Seoul, South Korea. India’s deft handling of the financial markets, before and after the global economic crises, has won it accolades globally. "South Africa had expressed interest to join the BRIC. While India is not opposed to the expansion of BRIC, Brazil is not ready for the expansion of the grouping,” a senior diplomat said. Officials said India is not opposed to further expansion of BRIC but its wants continuation of Ibsa—a grouping of India, Brazil and South Africa.
"BRIC is more vocal and influential than Ibsa. Both groupings have lot of common interests, common problems and challenges. So if BRIC is expanded, the group would be much more powerful and influential," said Arun Mohanty, director, Eurasian Foundation. "They can have a bigger say in world affairs, contribute more to the emerging global financial infrastructure, can challenge the diktats and some of the unfavourable decisions of G-8. In this context, BRIC expansion with South Africa, Mexico, Indonesia is more meaningful," he added.
According to experts, the inclusion of South Africa into the fold of BRIC is only logical as all these countries are large emerging market economies. BRIC today accounts for 25% land mass, 40% of population and 35% of total world GDP. South Africa’s inclusion would represent the interests of huge African continent with which India, China, Brazil have intensive interactions.