What of the BRICS nation is because South

What
does BRICS Plus mean?

 

The Expansion of the BRICS
nation is referred to as BRICS Plus. It means the addition of the new countries
to BRICS. BRICS Plus is considered a necessary initiative to

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·      Expand
BRICS

·      Include
the largest developed countries

·     
Increase approachability to integrate the developing
world (Xuequan, 2017)

 

BRICS
during inception was only BRIC. It included South Africa only in late 2010.
Jacob Zuma, The President of South Africa had visited each of the BRIC nation
to enter into the association. He had to wait for 4 months to enter BRIC. South
Africa entering BRIC was seen as a big surprise. Even Jim O Neil, the man who
coined the word BRIC said that it did not make sense to him. People were
shocked to know how the “economic dwarf” could be part of BRIC when there were
countries like Mexico, South Korea and Turkey left high and dry. The GDP of
South Africa was just a sixteenth of China.

The reason why South Africa was still selected as part of the BRICS nation is
because South Africa represent the African Continent. South Africa also had the
mineral resources the emerging markets needed badly. China was the top trading
partner of South Africa in 2009.

 

BRICS
is now no longer seen as an association of the countries with similar economic
power but as a political club representing the developing nation. (Hervieu, 2011)

 

BRICS
however has not achieved much considerably. It does not have much similarity
and is a very narrow group. Adding in Africa as well BRICS has a geopolitical
and geo-strategic advantages. China is taking up leadership and trying to make
BRICS into a more intimidating group.

 

China’s Role in BRICS Plus

 

In
2017, the 9th BRICS Summit hosted by China, The Chinese President Xi
Jinping said in his opening statements that “We should promote the BRICS Plus
cooperation approach and build an open and diversified network of development
partnerships to get more emerging market and developing countries involved in
our concerted endeavours for cooperation and mutual benefits.”

 

Now
that the global economic dynamics have changed with countries for looking for
new options for trade as America is being rhetoric BRICS Plus could be a way to
support open trade and markets. BRICS Plus could also form more economic
cooperation among developing countries.

China had invited 4 countries as guests – Egypt, Kenya, Tajikistan, Mexico and
Thailand for the 2017 BRICS summit. China claimed that this was not an attempt
to expand the group.

 

The
Chinese foreign minister Wang Yi said, “We need to have some further
explanation about the BRICS Plus to help people better understand the rationale
of this idea.” There is normal practice of inviting other countries as
guests, Wang claimed. In the previous summit, India had invited BIMSTEC
leaders.  The others have also invited
their neighbouring countries.

China
claims that they were also just inviting other countries for the same. The only
difference being they invite countries outside their neighbourhood. This does
not mean that they will be part of the BRICS summits in the future years. The
name given to the practice of inviting non-BRICS countries is known as BRICS
Plus and these countries will be decided by the host countries, China Claims.

 

The
idea of BRICS Plus was first presented in early 2017 when Wang announced that
“Beijing would explore modalities for BRICS-plus, to hold outreach dialogues
with other major developing countries”.

 

Wang
has been working on expanding the BRICS and is trying to maintain a good
relationship with these countries. According to Yaroslav Lissovolik, the Chief
Economist of the Eurasian Development Bank, the idea of expansion would work as
new model for the developing the global economy. The major drawbacks of other
Blocs were that they were formed mainly thorough regionalism. BRICS overcomes
this because position of the country was not important as far as the bases of
the developing countries. (Ashraf, 2017) (First Post, 2017)

 

China forced to Abort permanent BRICS Plus Plan

 

China’s
plan of BRICS Plus had a lot of resistance from other BRICS Nations including
India. They felt that the addition of new member would make them deviate from
their original goal. China has now apparently backed off from this plan to make
BRICS Plus a permanent feature. China was preparing for months to show its
global power with the help of BRICS Summit.

However, this plan did not succeed well enough and Wang Yi stated, “We need to
have some further explanation about the BRICS Plus to help people better
understand the rationale of this idea.”

 

Why China was forced to abort BRICS Plus plan?

 

Even
though China tried hard to make BRICS Plus a reality, there was lots of
resistance from other BRICS members. They felt that their power in the BRICS
would be compromised if BRICS Plus became a reality. The Social, Economic and
Diplomatic priorities of the BRICS country were different from one another. One
of the crack between India and China were witnessed in Doklam Standoff.

These cracks are making economists lose faith in BRICS. BRICS will have to go a
long way for them to be a challenger to the more developed nations. Now China
itself have to gain confidence from its fellow members that it has lost due the
unpredictable leadership ad ambitions of China. (Financial Express, 2017)

 

What
is N11?  Which are the countries in it?

 

N11 also known as the next 11 is the potential emerging countries that
could join BRICS.  The term was coined by
Goldman Sachs and economist Jim O Neil in a research paper in late 2005. These
countries together are seen as a threat to the G7 nations even though these
countries in the present scenario are considerably smaller than both the G7 and
even the BRIC members.

 

The countries noted by Goldman Sachs for G7 are Mexico, Bangladesh,
Indonesia, Egypt, South Korea, Pakistan, Turkey, Nigeria, Philippines, Vietnam,
Iran. Out of these countries the most GDP come from Mexico, Turkey, Indonesia
and South Korea. These countries have successfully shown noteworthy growth over
the past years. (Kuepper, 2016)

 

Features
of these countries

 

 

 

 

 

·      Population: Indonesia has the highest
population with 228.9 million people and South Korea has the lowest with 47.6
million. Large and growing population is one of the similarities of all these
countries. The highest population growth in the group was of Pakistan at 110.8%
and the lowest was South Korea at 28.4% over the period of 1980 to 2008.

 

 

·      Private final consumption expenditure: Mexico tops the list in the
group with a spending of US$567 Billion and Vietnam was the lowest with US$36.8
Billion. (Next-11 Emerging Markets, n.d.) (goldmansachs, 2007)

 

 

 

                                                                 

 

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