The icing on the cake was kept for the last moment. When President of South Africa, Cyril Ramaphosa, announced the expansion of BRICS to include Argentina, Ethiopia, Iran, Egypt, Saudi Arabia, Iran and UAE, who would become full members of BRICS from January 1, 2024, it brought to end all kinds of speculations surrounding the expansion of BRICS.
Over the last few days, in the run-up to the BRICS Summit in Johannesburg, a whole array of articles could be seen floating around, mostly emanating from Western media houses that were attempting to project the expansion of BRICS as an anathema for global peace and development. In reality, it is most likely that it would be the other way around.
As things stand today, with the new members being added, the combined GDP of BRICS by the End of Year 2023 would stand at 29% of the Global GDP, its combined population would be around 46% of the global population, in terms of oil its share would now stand at 43% of global oil production, while in terms of merchandise exports, it global share would stand at 25%. These figures cannot be ignored by anyone.
What does BRICS Aspire for?
While one can witness different kinds of analysis coming out from different quarters, some being very critical of BRICS, for obvious reasons of feeling insecure to their own domination of the world order till date, it is pertinent to focus on some very critical aspects or dimensions surrounding the BRICS.
The first issue that one should deliberate upon is what are the key areas of focus of BRICS and why it is getting so much traction globally, especially among the Global South Nations.
BRICS Stands for Reforms in Multilateral Institutions
In the first place, BRICS has been demanding reforms in multilateral institutions to make them more equitable and inclusive. In that respect there is no difference between what India has been voicing for Global South and what BRICS want.
In the same league, BRICS members have bene against imposition of unilateral sanctions imposed by anyone, and especially the Western states that have disastrous negative impact so far as the developing, marginalized, and smaller economies are concerned. Such sanctions against major players in the energy and commodities market, invariably leads to rise in international prices of critical commodities resulting in many of the Global South economies finding it difficult to make both ends meet to procure such commodities from international market at higher prices against the backdrop of depleting foreign exchange reserves.
From Dollar to Local Currencies for Trade?
As a resultant consequence is what is stated earlier, BRICS nations aspire to increase trade among the constituent members through local currencies. A gold backed common currency for BRICS still has a long way to travel before it materializes. However, bilateral trade in local currencies can be a major move forward to reduce the stranglehold of certain western currencies in global trade. This issue gained more traction as a result of a trend that has been seen for quite sometime now, as to how unilateral sanctions by Western blocs is followed by freeze on foreign exchange reserves of those countries on whom such sanctions are imposed. It takes years, even decades for countries shore up their forex reserves which they steadily keep so that their international transactions are not hampered during difficult phases.
Most of such forex reserves are generally kept in commonly accepted currencies like Dollar and Euro. However, this gives unprecedented and disproportionate leverage to US or EU to freeze transactions in such currencies and block their access by their owners. This, as also been witnessed in the recent past, when Russia’s massive forex reserves were frozen when Ukraine-Russia war started, did indeed raise alarm bells even in India. Even India’s efforts to engage with several countries through rupee and UPI for business transactions is precisely keeping those concerns in mind. Other countries have been attempting to do so too. It does not mean that end of dollar is nearing but major non-Western countries are now hedging against their dependence on western backed currencies. It is one of the key reasons why one can witness a major rise in interest from countries of Global South for BRICS.
Climate Issues Cannot Allowed to Hamper Growth
On issues of climate change as well, there is a lot of synergy between what India has been advocating in G20 and what BRICS stand for. While climate change is definitely an issue of concern for most of the BRICS members, including the aspiring ones, there is a clear-cut unanimity that setting the rules for dealing with climate change cannot be the sole prerogative of the Western states alone. Each country has its own challenges, aspirations, unique problems and issues to deal with, and they need to be given the broader autonomy to chart their own path in dealing with climate change issues. Global South cannot be expected to share the same burden as Global North on climate issues.
For example, it is a reality that while renewable energy must be given priority, and in which India has set the standards by taking pioneering steps in enhancing the proportion of renewable energy in its overall energy matrix, it is also a reality that renewable energy transition has its own set of challenges and complications. Thus, the transition has to be calibrated and people-centric so that it does not lead to major economic and social disruptions. Equally true is the fact neither crude oil nor coal can be entirely discarded by Global South nations right away, just to keep Wokism inspired Western liberals in good humour. For centuries, the West used fossil fuel to the hilt for their own development. Now, when it is the turn of Global South to do the same, there are bottlenecks being created in the name of environmental concerns. While concern for environment is something no one is against but one must also ask how much the environment get hampered every time wars have triggered and waged by Western blocs in country after country, in the name of bringing democracy, and how much such devastating wars impact the environment.
Why Global South Wants to be Part of BRICS
During the BRICS summit in South Africa, BRICS-Africa outreach and BRICS-plus dialogues also took place in which 67 countries from Latin America, Africa, Asia and Caribbean region were invited. Most perceive BRICS and G20 under presidency of India, as alternates and a most just systems for bringing reforms in global multilateral institutions, for creating just and equitable opportunities for all, for unifying markets across Africa and Asia, and transition from fiat currency based global transactions to one that is dominated by local currencies. And as things stand today, there are major takers for BRICS.
Africa’s Rise Against Neocolonialism
One can also simultaneously witness a new wave of outrage, protests, and civil defiance against what many African countries perceive as relentless interference of their erstwhile European colonizers in their internal affairs even when they have got political freedom long time back. The penchant for putting puppet governments, threats of sanctions, and exploitation of mineral wealth of African states in which people of the incumbent African countries gain little, is now being opposed. Military coups are being welcomed in country after country. Whether those military coups would benefit those states or not, is a question mark. But it certainly is a vindication that Africa is fed by with Western interference, intervention and sheer loot of its wealth. UN too has done little over the years to prevent conflicts and civil wars. It has become a pale shadow of its paymasters.
Africa now wants its legitimate share of pie and place in the global forums. In this context, there is considerable synergy between PM Modi’s advocacy for inclusion of African Union in G20, and Africa’s quest to unshackle from remnants of colonial legacy and jump on to BRICS.
BRICS: A Symbol of Defiance?
It must be remembered that BRICS is not a military alliance. It does not pose any military threat to anyone. BRICS on the contrary is more like a platform for Global South to get its on toehold in affairs of the world that concerns them. BRICS has also become a symbol of defiance against what many perceive as the tendency of Global North to play with sanctions, hijacking of multilateral institutions, terming anyone who speaks against them as a ‘pariah’ and the war economies that allegedly sustain by waging conflicts to sustain military industrial economies.
However, BRICS has its own Challenges
Let us accept that BRIS is not yet perfect. BRICS has its own contradictions and challenges to deal with. On many issues, even BRICS members, particularly India and China do not see eye to eye. While BRICS certainly has shown considerable penchant to emerge as solution provider in many critical areas, with India being a pioneer in many of them, including development of supply chain resilience, skill development for future and space programs, BRICS still has to institutionalize its own agenda and move ahead as block.
But in spite of inherent contradictions, when warring nations like Saudi Arab and Iran are both willing to join BRICS, it only shows the level of frustration that most have developed against the present world order that has been usurped and entirely leveraged by West for its own gains. In spite of challenges, the expansion of BRICS is an indication that the global order is going to change and become more democratic.
As India’s External Affairs Minister S. Jaishankar aptly stated in the recent past “Europe has to grow out of the mindset that Europe’s problems are the world’s problems, but the world’s problems are not Europe’s problems”, if one replaces Europe with the word West, then rise of BRICS is wake up call for Western blocs to mend their ways and be more inclusive. Or else, the writing on the wall is clear for all to see. It does not mean the end of West or declaring war against West. But the fact that BRICS as the first major Non-Western power bloc has emerged and expanding is an indication that the world is looking for alternatives and are not interested any more to pay heed to every sermon and dictum coming from Brussels and Washington.
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