-- The world’s leading emerging market powers have complained for years about being sidelined by wealthy nations. Now they are mounting their most ambitious challenge yet to the status quo.
“We want to make the BRICS very strong politically, very strong financially,” said Brazilian President Luiz Inacio Lula da Silva. “These countries have risen economically, they have voiced their concerns, they’re now capable of offering alternatives if their voices are not heard,” said Karin Vazquez, a Shanghai-based associate professor of diplomatic practice at India’s O.P. Jindal Global University.
A market capitalization-weighted measure of the five BRICS nations’ stocks has risen 81% since 2009, compared with a 379% rally in the S&P 500 Index. Factor in the weakness of their currencies during this time and their dollar returns look much worse. While the European Union sees the BRICS as primarily a talk shop – which could be weakened rather than strengthened by expansion – Putin’s ability to use the group as an international platform is a worry, said an EU official who spoke on condition of anonymity because he isn’t authorized to comment publicly.
India is wary that expanding BRICS will transform the group into a mouthpiece for China, while Brazil is also worried about alienating the West, according to officials familiar with the bloc’s internal negotiations. But they are resigned to admitting new members, even as they push for an agreement on the rules and criteria.