Latin America Advisor

Tara Hariharan, managing director of global macro research at NWI Management LP: “Arce courts Bolivia’s inclusion in the BRICS bloc to strengthen economic partnerships and develop Bolivia’s large lithium reserves (in which China and Russia already invest). He also seeks the decreased use of the U.S. dollar in the Bolivian economy in an increasingly multipolar world. Appropriately, the summit will focus on membership expansion. Bolivia aside, Argentina, Cuba, Honduras, Mexico and Venezuela all have shown interest in joining the BRICS, seeking closer trade ties with China and infrastructure funding from BRICS’ New Development Bank (NDB). However, existing BRICS members disagree on the pace and extent of enlargement. China and Russia endorse rapid expansion to challenge the U.S.-led economic order. South Africa supports expansion while staying neutral vis-à-vis the West. But Brazil and India are less keen on increasing membership. Brazil fears dilution of its influence in a larger pool; India is wary of…”