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The BRICS summit in Rio de Janeiro occurred at a moment when the freshness of the global order is being tested with trade wars and regional conflict, revealing the limited power of existent institutions. As the U.S. reduces its global engagements, emerging powers are searching for alternative platforms, like BRICS, where they can maintain their interests and amplify their voice globally.
With 11 members, BRICS now represents nearly half of the global population and about 40 percent of global GDP. Unlike the West’s mainly homogeneous G7, BRICS is a highly diverse grouping that lacks shared history and a political model, but is united by a vision to reform the global order and shape the future. BRICS has become an important platform for the Global South which offers members collective status, security and guidance.
The West’s concerns over BRICS’ efforts to develop a rival currency to challenge the dollar’s dominance is misplaced. BRICS is not seeking a common currency, but all members are trading increasingly in local currencies and signaling higher fixed reference rates against a mutual currency, regardless of the dollar. A move toward de-dollarisation will create fraught tensions in the future if it becomes stronger, especially if Donald Trump returns to the American political picture.There are multiple reasons why the summit in Rio is important.
This summit will be the first complete member meeting post-expansion with opportunities for discussion and cooperation established. The declining Israel-Iran relationship will be key to discussions especially since BRICS condemned Israel’s actions in a strongly united statement, which also included India’s involvement in a united stance against Israel’s actions, which they had previously avoided in the international spectrum.
Chinese President Xi Jinping and Russian President Vladimir Putin will not be attending the summit however, which raises tension of member cohesion. However, India’s presence in Brazil at this important event shows India’s strategic thinking in balancing engagement with both the West and maintaining ties with BRICS. Prime Minister Modi is likely to state that the major agenda items are climate change action, ethics in Artificial Intelligence, health, counter-terrorism, etc.
As the United States steps back from its global leadership role, BRICS can better help shape global discussion on prompt issues facing the Global South. This Summit provides India and BRICS the opportunity to define a more representative and multipolar environment.
Courtesy: BRICS.