Argentina declines to join BRICS

It is not surprising that the newly-elected Argentinian President Javier Milei took a clear decision that his country would not join BRICS, a group of emerging market economies (EMEs), with two of them – Russia and China – clearly pitted against the United States and the West. Brazil is not too comfortable with the West, which is to be taken as North America and Europe, also considered the rich countries.

President Mei is clear in his mind that Argentina’s economic problems – and there are too many – can only be handled better by going the Western, market way, and with a close alliance – in economic terms – with the United States. Argentina was supposed to have joined the BRICS today – January 1, 2024 – because the previous president, the centre-left Alberto Fernandez, wanted to take Argentina into the group of developing economies. Milei is ideologically opposed to communism, and China for him remains a communist country despite its thriving market economy.

Milei was careful in his wording while declining to join the BRICS. He said that this was an inopportune moment for Argentina to join the group. If pressed to explain he would have perhaps argued that Argentinian economy is on the verge of a collapse, and it would be disadvantageous to join a group whose economies are on the growth path. And the BRICS would not be able to rescue the Argentinian economy which would be possible with aid from an advanced economy like the United States. And Milei emphasised that he would want Argentina to have close economic ties with the BRICS group. He has also made it clear that he would be reversing many of the policy decisions of his predecessor, which is natural in many ways.

It is usually the case that a new government does not always reverse foreign policy decisions because it is believed that foreign policy is based on geopolitics, and Argentina is geographically placed in the camp of developing economies. Milei wants to reverse the proposition.

His hesitation to join the BRICS is also justified because India, China and Russia want to tread their own path and assume leadership of the world economy and challenge the United States hegemony, especially the dominance of the dollar. Milei perhaps felt that Argentina is not in a position to get into the crosshairs of the competition between India and China on the one hand and the United States and Europe on the other.

Milei is also clear in his mind that ideologically he would go with the Western model of democracy and not that of China and Russia. He sees Argentina firmly placed in the democratic camp of the West, and if there is to be a conflict between the United States and China/Russia, he would want Argentina to be in the US camp.

It is a fair question to ask whether this is the right path for Argentina because it is a developing economy and it could soon become an EME, but it would never be the developed economy of the US and European kind. There are various reasons for this, but it does remain that there is a clear division in the economic reality of Argentina and that of the Western developed economies.

But Milei has strong personal convictions which are rooted in his ideological beliefs. And he fought the presidential election by putting forward his ideological perspective and Argentinians have voted for him. So, he is obliged to implement policies and programmes based on his ideological convictions. And in declining to join BRICS he has made a clear ideological statement. It is possible that his right-wing libertarian ideas may not work in Argentina and people will vote on it on the next election.