JOHANNESBURG, the vibrant heart of South Africa, recently witnessed a gathering of minds that has sent ripples through the global landscape. The Leaders of BRICS nations – Brazil, Russia, India, China and South Africa – converged for their 15th summit, an event that resonated far beyond its host city. What makes this summit distinct from its predecessors is not just the camaraderie among the aforementioned emerging economies but the troubled global narrative of today.
Born in 2009, the BRICS alliance was initially seen as a coming together of developing economies with lofty aspirations. However, this coalition has evolved over the years into a formidable force, capturing the attention of the world’s most powerful nations. The 2023 summit, hosted by South Africa, marks a turning point in the group’s trajectory, owing to the heightened tensions between two pivotal members – China and Russia – and the United States. As the clashes between China, Russia, and the US intensify, the global impact of BRICS is growing stronger.
The Western world watches with a mix of concern and anticipation as these countries under the banner of BRICS seem to be steering toward the establishment of a new global order. With a staggering 40% of the world’s population and a quarter of the global GDP under their combined influence, BRICS is no longer just an acronym, it’s a potential game-changer. The 15th summit wasn’t just a routine gathering; it was a historic moment that marked a new phase for the bloc.
The most significant announcement was the expansion of the alliance to accommodate six new members: Saudi Arabia, the UAE, Iran, Egypt, Ethiopia, and Argentina. This move, set to take effect on January 1, 2024, reflects the growing global interest in aligning with BRICS. With over 40 countries expressing their desire to join in the next round, the bloc’s future appears to be one of inclusivity and diversity. With these new additions, the collective GDP of what is going to be called ‘BRICS-plus’ is estimated to touch a staggering 31 trillion USD, marking an economic juggernaut that cannot be ignored.
Furthermore, over 80% of oil-exporting countries will be a part of this expanding alliance after January 2024, leading it to unparalleled economic influence on the global stage. However, it is important to bear in mind that the growing BRICS alliance isn’t just about economics; it’s a philosophical stance that seeks to challenge the status quo i.e. global dominance and the setting of world order by a select few. At the very heart of this ambition is the New Development Bank, an institution that offers concessional loans to developing nations.
Headquartered in Shanghai, this move signifies a step towards setting up financial structures that can rival the Western-dominated International Monetary Fund (IMF). BRICS envisions an equitable global financial order that doesn’t cater to the interests of the privileged few, as mentioned already, but benefits all nations, irrespective of their development state. China and Russia, two of BRICS’ central pillars, spearheaded this movement for change. Their vision knows no borders and challenges the post-World War-II dominance of the United States. As tensions escalate, the urgency to expand the coalition grows, fuelled further by the Ukraine conflict and the ever-deteriorating relations between the big three namely China, Russia, and the US.
Very interestingly, on the same front, the summit buzzed with discussions on de-dollarization, a concept that ultimately seeks to reduce dependence on the US dollar in global trade. The US Dollar’s stronghold, with 88% of global trade and 58% of global reserves still tied to it, presents both an opportunity and a challenge for BRICS. However, the path to de-dollarize is further complicated by the presence of India, a very close ally to the US, in the block. Ultimately, with the US building robust defence and economic ties with India to counterbalance China’s ambitions, the subcontinent finds itself at a crossroads.
It is imperative to reiterate that the Johannesburg summit of 2023 isn’t just an event; it’s a look into the complexities of global power. As the BRICS expands, wrestles with de-dollarization, and navigates the intricate dance between national interests and global ambitions, the world will watch in anticipation. The summit, however, marks not just a gathering of leaders but the forging of a new era, one that might redefine the world order as we have known it and one that perhaps holds a promising future for the Islamic Republic of Pakistan!
