Indonesia's formal application to join BRICS, confirmed recently by Indonesia's Ministry of Foreign Affairs spokesperson Roy Soemirat, highlights the bloc's increasing appeal among emerging economies.
In the 15 years since its first summit in Yekaterinburg, Russia, BRICS has overcome huge internal differences and external challenges to play a vital role in global trade, development, investment and financing. It has become a significant force for promoting good global governance, improving the world order, and uniting the countries of the Global South to address common global challenges.
As such, BRICS has a huge appeal among ASEAN member states. While Indonesia, Thailand and Malaysia have officially applied to join BRICS, Cambodia and Myanmar have expressed their desire to become observer states, with Vietnam and Laos showing varying degrees of interest in joining the grouping.
But how will the member states of the Association of Southeast Asian Nations benefit by becoming "BRICS Plus" members?
First, their trade volumes will expand, and they can increase their trade with African and Latin American countries by joining BRICS.
According to a World Trade Organization report, BRICS members' share in world trade had increased to 21.6 percent, and the intra — and inter-BRICS trade volume added up to $10.4 trillion by the end of 2023, putting them in second place globally — after the European Union ($14.5 trillion). BRICS' trade volume is also higher than that of the US-Mexico-Canada Agreement ($7.6 trillion).
Second, ASEAN members can also attract more foreign capital after joining BRICS by, for example, taking loans from the New Development Bank, which the original BRICS member states established in 2015. ASEAN members can also promote the reform of the global financial system and meet their infrastructure needs. As an effective alternative to the World Bank and the International Monetary Fund, which are dominated by the West, the NDB has been helping developing countries to compete with their Western counterparts despite its relatively small scale.
China has been providing significant support to BRICS because it regards the grouping as an important force shaping the global landscape. China has also set up the Global Development and South-South Cooperation Fund of $4 billion, and has said that its financial institutions will establish a special fund of $10 billion for the implementation of the Global Development Initiative.
In addition, a couple of the new BRICS members are rich in capital, which countries such as Thailand can use to improve their infrastructure and boost their economic growth.
Third, ASEAN members can develop their industries, too, by joining BRICS. While China has complete industry chains, each of the BRICS' member states has its unique industrial advantage. Not to mention some BRICS Plus member states have huge energy, mineral and agricultural resources, which can benefit the ASEAN members that have applied (or are likely to apply) to join the grouping.
Besides, BRICS can help develop the digital sector, as well as the manufacturing and agricultural industries in ASEAN member states through technology transfer.
Fourth, ASEAN members can benefit by establishing a financial cooperation mechanism with BRICS. In fact, BRICS already has in place a contingent reserve arrangement to respond to any economic or financial crisis.
As tensions between the major powers keep rising, the United States is increasingly using the SWIFT global trade settlement system, an international financial public good, as a hegemonic tool to target other countries. As a matter of fact, secondary sanctions are becoming the preferred tool of Washington to implement its geopolitical strategies.
It is against this background that BRICS has established two alternative global trade settlement systems — "BRICS Bridge" and "BRICS Pay" — to help end the US' financial hegemony. The two new systems will introduce blockchain technology to let BRICS members make and receive payments in their respective currency, while reducing transaction costs.
Fifth, ASEAN members can also expand their global influence by joining BRICS. Thailand and Malaysia, for example, can leverage the mechanisms of BRICS Plus to amplify their voice at global forums and seek the help of two of the BRICS member states which are also permanent members of the United Nations Security Council to increase their global influence.
Sixth, ASEAN members can strengthen their relations with China, as well as attract more Chinese capital, by becoming part of BRICS. China, which is the largest economy within BRICS, has been ASEAN's largest trading partner since 2009, with the two-way trade volume reaching $911.7 billion in 2023. ASEAN members can also deepen South-South cooperation while contributing to global governance. Plus, they can make full use of the facilities provided by China to boost their own development.
And seventh, ASEAN members can promote regional development by becoming BRICS members. They can also learn from BRICS' experience to alleviate poverty at home and improve their infrastructure.
It is therefore clear that ASEAN members can boost their economy, and attract more investment by becoming part of BRICS. This is the exact reason why Thailand and Malaysia have applied to join the grouping. But they are also likely to face some challenges including internal competition, and intense pressure from the US and its allies which regard BRICS as a serious competitor. This could eventually prevent some ASEAN members from joining the grouping.
The author is an associate professor at the School of International Studies, Nanjing University. The views don't necessarily reflect those of China Daily.
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