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The BRICS, countering Western centuries-long hegemony

By Ahmad Karakira
Source: Al Mayadeen English
24 Aug 2023 00:38

Accepting French President Emmanuel Macron’s request to attend the BRICS summit would have contradicted the whole idea behind the establishment of the BRICS group.

On August 22, the BRICS group kicked off its 15th summit in Johannesburg, South Africa, eyeing to present a number of world-impacting projects as part of plans to shift the global political scene from Western centuries-long hegemony.

The summit, scheduled from August 22 to 24, brings together the emerging economies of Brazil, Russia, India, China, and South Africa. Collectively, these nations represent over 40% of the world's population and around 23% of its GDP. Around 50 leaders from non-member countries are also attending.

In late June, French Foreign Minister Catherine Colonna said President Emmanuel Macron aspires to be the first Western leader to be invited to a BRICS summit.

In response, Russian Deputy Foreign Minister Sergey Ryabkov said the leaders of states that adopt a hostile stance toward Russia should not be included at the summit.

Later, South Africa's Foreign Minister Naledi Pandor pointed out during a news conference that no invitation had been sent to Macron to attend the August summit.

Perhaps Macron’s request was rejected simply because the French President represents the West that imposes harsh sanctions against defying, sovereign countries; the West that has colonial and imperial aspirations and the same West that imposes diktats on weaker countries. In other words, accepting Macron’s request to attend the BRICS summit would have contradicted the whole idea behind the establishment of the bloc.

The BRICS has emerged as a significant force in global politics and economics. The group was initially known as BRIC when it was formed in 2009, with South Africa joining in 2010 to become BRICS. The main objectives of this bloc were to promote mutual cooperation, economic growth, and political influence among its member nations. The core idea was to challenge the traditional hegemony of Western powers in global affairs.

BRICS members collectively represent a substantial portion of the world's population, landmass, and economic output. China, as the world's second-largest economy, plays a pivotal role in the group. Together, member nations have become engines of global economic growth, contributing significantly to international trade and investment.

Beyond economics, the group seeks to reform international institutions to better reflect the changing global power structure. Intra-BRICS economic cooperation has led to initiatives like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). These institutions aim to provide an alternative to the Western-controlled World Bank and International Monetary Fund (IMF) by offering loans and financial support to member nations.

The most compelling aspect of BRICS is its collective economic might. The combined GDP of BRICS countries makes up a substantial portion of the global economy.

BRICS plays a pivotal role in international trade. The group's sheer size and economic prowess make it a vital trading partner for many countries. Intra-BRICS trade has surged in recent years, leading to greater economic integration among member states. Additionally, BRICS has advocated for trade in local currencies, reducing dependence on the US dollar in international transactions.

In his Tuesday video address to the BRICS Business Forum, Russian President Vladimir Putin stressed that the de-dollarization process among BRICS members is irreversible and that the share of the US dollar in trade is decreasing.

During the BRICS summit, South Africa's ambassador-at-large for Asia and the BRICS, Anil Sooklal, revealed that the five emerging economies eye strengthening trade using their respective local currencies, aiming for reduced dependence on the US dollar rather than pursuing a common currency.

However, Sooklal clarified that the discussions do not pertain to establishing a BRICS currency and emphasized the objective of fostering greater financial inclusion in global transactions and payments.

"The currency is being discussed but let me correct: It’s not about a BRICS currency. It is too early to talk about a BRICS currency," Sooklal said.

"What we are talking about is creating more financial inclusion in terms of global financial transactions, global financial trade, and how we conduct our payment," he added.

BRICS has established financial institutions to bolster its economic influence. The New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) provide financial support to member nations and act as alternatives to traditional Western-dominated financial institutions like the IMF and World Bank. These institutions empower BRICS nations to address economic challenges independently.

Dilma Rousseff, former Brazilian President and head of the NDB, emphasized the bank's goal to establish a more multipolar global financial system by implementing lending in local currencies.

Rousseff stated that around 30% of the bank's lending would be conducted in local currencies, particularly the South African rand and Brazilian real. Loans would be provided in the respective national currencies.

Headquartered in Shanghai, the NDB was founded in 2014. It was subsequently joined by Bangladesh, the United Arab Emirates, and Egypt, with Uruguay currently in the process of becoming a member.

The NDB's primary objective is to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing nations. The bank has approved financing estimated at $30 billion, with 40% of the funds allocated to initiatives contributing to climate change mitigation, adaptation, and energy transition.

Learn more about the bloc that countries in the Global South are applying to join.#BRICS pic.twitter.com/at0aKzzBEq
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While the BRICS group has gained significant prominence in recent years, another term has started to surface in discussions of global cooperation: BRICS+.

BRICS+ is an extension of the BRICS alliance that seeks to broaden its scope by engaging with other emerging and developing economies worldwide. It envisions the inclusion of additional countries and regions to promote greater economic and political cooperation.

BRICS+ aims to create a more interconnected global economy by bringing together a diverse group of nations. This can lead to expanded trade opportunities, investment, and economic growth for both BRICS and participating nations.

By inviting countries from different regions, BRICS+ seeks to rebalance the geopolitical landscape. It strives to offer an alternative to the traditional Western-centric world order by creating a more multipolar system.

Enlarging BRICS has been one of the top priorities of the bloc summit.

So far, over 40 countries expressed interest in joining and 22 have formally asked to be admitted. "Twenty-two countries have formally approached the BRICS countries to become full members of the group, and there is the same number of countries that have informally enquired about becoming BRICS members," highlighted South Africa's ambassador-at-large for Asia and the BRICS, Anil Sooklal.

Countries such as Saudi Arabia and Iran submitted applications to join BRICS, and countries that showed interest include Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, and Bangladesh.

It is noteworthy that aiming to stir sedition between member nations, Western media recently suggested that Brazil and India may be hesitant to allow new member countries to join BRICS, raising concerns of potential disagreement over the admission criteria during the summit.

Reuters claimed that "Brazil has resisted gathering momentum in the Brics group of major emerging economies to add more member countries," adding that "India has reservations about the expansion." However, both Brazil and India refuted these claims.

Brazilian President Luiz Inacio Lula da Silva emphasized the importance of admitting countries like Saudi Arabia, Argentina, and other developing nations to the group, pointing out that such a step would not only bolster BRICS but also counter Western narratives and their attempts to undermine the bloc.

Similarly, the Indian Foreign Ministry rejected reports suggesting India's opposition to BRICS expansion. "We've observed some unfounded speculations... that India is hesitant about [BRICS] expansion. This is simply untrue," the ministry's spokesperson Shri Arindam Bagchi underlined.

In a major blow dealt to Western aspirations of division, South Africa confirmed during the BRICS summit on Wednesday that the bloc leaders have indeed agreed on mechanisms for considering new members.

South African Foreign Minister Naledi Pandor stated on Ubuntu Radio, "We have agreed on the matter of expansion," adding, "We have a document that we've adopted which sets out guidelines and principles, processes for considering countries that wish to become members of BRICS...That's very positive."

All that is left are the details highlighting the criteria for considering candidates, which the members are expected to make an announcement about before the summit ends on Thursday.