BRICS Summit 2024: Why BRICS

We are living through a century of unprecedented challenges, opportunities, and changes. The global order has been fractured, and international institutions are losing their value and influence. Hegemonic aspirations and the “my interest is prime” mentality have accelerated the process of global disorder. This is happening at a time when absolute unity is necessary to combat multifaceted and multiple challenges. The world is struggling to find solutions for the persistent challenges of food security, poverty, access to safe drinking water, access to sustainable energy sources, etc. Financial instability, low economic growth and rising protectionism have further exacerbated the challenges.

The emergence of climate change as an existential threat, technology as a no man's land, and COVID-19-imposed restrictions on mobility have no precedent in human history and have added to the complexity of the situation. Humans have no experience dealing with these challenges, and each country's dynamics and vulnerability level make combating them difficult. Therefore, the world needs a cooperative policy framework and collaborative and coordinated efforts to address these challenges.

Unfortunately, it is not happening, and powerful players in the existing global order have refused to recognise the changes and the need for cooperation. They are more interested in preserving their hegemony, advancing their values, and asking other countries to imitate their models of governance, economy, and democracy. Regrettably, they have unsubscribed from their own idea of globalization and are pursuing protectionism in the name of national interest and security. They have unleashed sanctions and trade barriers.

Besides, the Global North uses global institutions such as the UN and Bretton Wood Institutes to pursue its objectives. The global system's embedded flaws and structural imbalances allow them to use these institutions to fulfil their goals. Owing to these factors, the world is experiencing multiple and multifaceted problems, including poverty, food insecurity, financial crises, and the existential threat of climate change. 712 million people are poor, 3.1 billion cannot afford healthy food, 675 million do not have access to electricity, 2 billion cannot access safe drinking water, and 250 million kids are out of school.

Therefore, the existing model is neither fair nor sustainable. Against this backdrop, the Global South, including sane voices from the Global North, asked to reform global systems and institutions, including the United Nations, the UN Security Council, the World Bank, the International Monetary Fund, etc. Unfortunately, existing powers did not listen to them. Hence, the Global South started searching for ways to stabilise the global system and erect new institutions and mechanisms, such as the BRICS.

Since its creation, the BRICS has acquired a prominent place on the global power chessboard. Multiple factors make it a prominent player.

Photo brics-russia2024.ru

First, according to IMF statistics, the BRICS countries will be the hub of economic growth, contributing more than 55% to global growth. China will be the biggest contributor, with 34.9%, followed by India with a 15.2% share. With the inclusion of Saudi Arabia, UAE, Egypt, Iran and Ethiopia, the share must have increased, as these estimates were made before these countries were joined.

Second, the BRICS region is emerging as one of the biggest consumer markets and economic groups. With 3.5 billion people, the BRICS constitutes 45% of the world population and 28% of the global GDP, with a combined GDP of US$28.5 trillion. Third, with its expansion, the BRICS has become home to six leading oil producers worldwide, producing 44% of the world's crude oil.

Fourth, BRICS has taken many initiatives, including the Initiative on Enhancing Cooperation on Supply Chains, the Initiative on Trade and Investment for Sustainable Development, the adoption of the Agreement on Cooperation and Mutual Administrative Assistance in Customs Matters, the Strategy on Food Security Cooperation, and many others. These initiatives have further enhanced the importance of BRICS.

These factors make the BRICS an important organisation and a strong voice of the Global South. Some experts consider it a counterweight to Western hegemonic institutions and an emerging G-7 of the Global South. However, the BRICS is different from the G-7. The G-7 thrives on polarization and an alliance-building mentality. My interest is prime; its guiding ideology. Meanwhile, the BRICS subscribes to the win-win cooperation and partnership ideology. It strives to create harmony among nations and between humans and nature.

Therefore, many countries want to join the BRICS. It’s apparent from the ongoing debate on the future structure and status of BRICS. The Global South and members of BRICS are still pondering whether BRICS should become G-7, G-20 or G-77+China. The developing world expects that BRICS should follow the G-77+China path. It is a justified expectation, as poor countries are sharply losing their say in the global system, and rich countries are exploiting them in the name of openness and trade linkages. They are looking for new economic growth and governance mechanisms that can focus on the needs of the poor.

Against this backdrop, the coming BRICS Summit in Kazan, Russia, has gained immense importance. The summit is happening at a critical juncture in history, as hegemonic forces have expedited their efforts to keep their hegemony intact and continue exploiting the world. On the other hand, the US dollar is facing severe challenges, and its use is on the decline due to misuse by the USA and its allies. For example, during COVID-19, the USA printed dollars freely. Later, a sudden change in interest rates in the USA attracted US$10 trillion from the global market. These actions spurred inflation worldwide and shook economies worldwide.

Russia is cognizant of these facts and has drafted the theme and agenda of the summit accordingly. The theme “Strengthening Multilateralism for Just Global Development and Security” completely captures the contemporary dynamics and challenges. Moreover, it is expected that the major focus will be on 1) enhancing the role of BRICS currency for trade, 2) expanding cooperation among customs and tax authorities, 3) cooperation among banks, and 4) looking for a more prominent role of BRICS in global financial affairs and 5) a push for alternative currencies.

Besides, Russia is a great proponent of the expansion of BRICS and has had a constructive role in opening the BRICS for new countries. This year, Russia has received 34 requests to join the BRICS. Moreover, 22 heads of state will be attending the Summit to pursue their objective to join the BRICS.

Therefore, it is expected that a vast majority of experts, policymakers and common people will follow it. Moreover, the West will also be watching it closely due to the agenda and discussion points.

In conclusion, the BRICS can follow whatever path it chooses. However, it must be cautious and try to avoid an alliance mentality and Western mistakes. For example, many experts believe that Russia’s suspension from the G-8 in 2014 sharpened the divide between the Global South and North. It also intensified the crisis in the Eurasia region. Second, if the BRICS decides on an alternative currency, then the currency must not be the national currency of any member country. The world has already been facing the worst consequences of such a decision.

Lastly, it should create linkages with SCO to strengthen the role and standing of BRICS.