Argentina and Iran, joining BRICS

Argentina and Iran had shown their interest in joining BRICS. The decision was made after the 14th BRICS summit, hosted by China.

We will understand the repercussions of Argentina and Iran joining BRICS through a fine-tooth comb; will this be the formation of a new G7? Why did Iran and Argentina choose BRICS? Will the BRICS grouping benefit from letting the new nations join? How will it help India?.

Let's begin with BRICS itself,

This grouping of five developing economies includes Brazil, Russia, India, China and South Africa. BRIC was officially formed in 2009 with just Brazil, Russia, India and China as its permanent members. South Africa joined BRIC in the year 2010 forming the BRICS known today.

For the year 2022, the 14th BRICS summit presidency is with China. Along with the five permanent members, 13 countries took part as observer nations. 

Observer nations: Algeria, Argentina, Cambodia, Egypt, Ethiopia, Fiji, Indonesia, Irna, Kazakhastan, Senegal, Uzbekistan, Malaysia and Thailand.

IRAN AND ARGENTINA JOINING BRICS, FORMATION OF NEW G7?

G7 is a grouping of the world's seven most advanced economies, the US, UK, Germany, Japan, Italy, Canada, France and the European Union; at present amounts to $34 trillion, 10% of the world's population and 43% of the global economy. The annual G7 summit, over the years, developed into an international platform to unravel multilateral disputes and shape responses to global challenges.

While, BRICS(present) amounts to $27.5 trillion, 40% of the world's population and 26% of the global economy. The BRICS mechanism aims to promote peace, security, cooperation, and development by contributing to the development of humanity and establishing an equitable and fair world.

Both G7 and BRICS have similar fundamentals and goals, both work for the global benefit and member nations' benefit and development. Therefore, even before Argentina and Iran had decided to join the BRICS grouping, BRICS was already preparing to establish itself as an international platform equal to G7 or any other group. With Argentina and Iran joining BRICS, the aforementioned goal will be achieved at a faster pace.

WHY DOES IRAN WANT TO JOIN BRICS?

Before getting into why Iran wants to join, understand Iran's present economy and its condition. Iran's relations with the US deteriorated after the 1979 Iranian Revolution during Shah Mohammad Reza Pahlavi's secular monarchy was replaced with Ayatollah Khamenei's Shia rule. 

Wherever secularism is introduced, the west's involvement is evident, therefore, after the Iranian revolution, the US grew wary of Iran's development, especially its nuclear technology development, thus, the US deep state policy tried to nip the issue in bud. The US declared Iran state-sponsored terrorism and put sanctions on Iran's nuclear technology development. In the year 2020, Iran was put on FATF's Black list which restricted all imports and exports from Iran creating a virtual space with no air for Iran to breathe in.

But Iran survived cause of its abundance of natural resources. Iran has 2nd largest gas reserves and 4th the largest oil reserves, and exporting these resources to India, China, Turkey and other nations sharing a land boundary with Iran; Iraq, Syria and Pakistan, Iran kept its economy afloat.

Thus, by joining BRICS Iran gets access to address its regional and economic issues on an international platform along with access to a powerful emerging market that is about 40% of the world's population, which could very well be the key to unlocking Iran's luck and reviving its economy.

WHY DOES ARGENTINA WANT TO JOIN BRICS?

Argentina is one of the largest economies in Latin America with a $490 Billion GDP. Argentina had been able to develop its economy for quite some time now due to its trade with the US, China and European Union. 

Recently, Argentina's currency hit its all-time low, 127 Argentine Peso/per Dollar. Inflation is on the rise, and diesel shortage is causing truck divers to protest against the current ruling party, "Frente de Todos" (Everyone's front) under the presidentship of Alberto Fernandez. Argentina's economy is not in a good condition. The US is not in any condition to provide aid to Argentina. The US itself is taxed and going through an Individuality crisis, a Baby formula shortage, Human rights violations, Gun violence and high inflation. Resulting in Argentina shifting its focus to the east and looking for solutions to its economic crisis with China's aid. China had increased its influence in Argentina. So much so that Argentina participated in the BRICS summit at the invite of China.

WILL BRICS BENEFIT FROM ARGENTINA AND IRAN JOINING?

At present, the entire global economy is suffering from an energy crisis, with Iran joining BRICS all the member nations can benefit and overcome this energy crisis and establish a stable fuel supply route. Iran could also open up multiple land trade routes from its territory giving access to the middle eastern market.

With Argentina joining BRICS, the grouping can establish a strong foothold in the Latin American market and a trade route. Thus increasing the market coverage and promoting the domestic market of the member nations and resulting in the growth of the member nations and  BRICS grouping.

WILL INDIA BENEFIT FROM ARGENTINA AND IRAN JOINING?

For India in particular, Argentina may not bring much, other than access to Latin American markets, but on the other hand, Iran does bring solutions to many problems that India is facing at the moment. 

1. Counter to China's One Belt One Road Initiative, with access to the middle east and Russia through Iran's territory, India can finally start working towards the "Asia-Africa Growth Corridor" and "Arab Mediterranean Route" which will connect India, South Africa, Middle East and Europen markets giving a boost to Indian traders.
2. With India gaining access to Iran, Pakistan shares a large land boundary with Iran through its Balochistan province, thus India can gain substantial leverage.

This was my take on Argentina and Iran joining BRICS, do share and comment!