issatisfaction with the world order, and the growing tensions between rich countries and poor ones, are making the BRICS (Brazil, Russia, India, China, South Africa as well as Egypt, Ethiopia, Iran, United Arab Emirates, and Saudi Arabia) all the more attractive to nations. Over 40 countries have shown interest in joining the group, taking a seat on the table and having their say in the forum.
South Africa’s latest stance against Israel in the ongoing Israel–Gaza war put the BRICS at the forefront of every discussion again. South Africa brought a case against Israel to the International Court of Justice in January 2024, accusing it of genocide against the Palestinians in Gaza. It continued to urge the ICJ to protect Palestinians against an Israeli attack on the densely populated city of Rafah.
The BRICS members haven’t sanctioned Russia for the Russia-Ukraine war, indicating the bloc is a welcome home for those wishing to counter the West’s position. "Diplomatically, the war in Ukraine appears to have drawn a stark dividing line between an eastern–backed Russia and the West," political scientist Matthew Bishop wrote for the Economics Observatory.
From an economic perspective, the BRICS bloc is set to become the wealthiest—in investable wealth. The richest of the group are set to become even richer according to a report published by Henley & Partners. Worldwide, there are “1.6 million individuals with investable assets, of more than a million in the group.” Andrew Amoils, wealth analyst at New World Wealth, told CNBC, “The 85% forecast for BRICS will be the highest wealth growth of any bloc or region globally.”
Today, the new BRICS, or potentially BRICS+, represents 3.5 billion of the world’s population, which is about 45% of the world. Their economies are worth more than $28.5 trillion, equivalent to 28% of the global economy. The bloc’s economic weight does not only reside in the trillions of dollars that their cumulative GDPs represent but that “BRICS countries produce about 44% of the world’s crude oil,” which is to this day a Western national security priority.
Aiming to counter the West politically and economically, the BRICS countries set up a bank in direct competition with the International Monetary Fund and the World Bank—both controlled by the West. The New Development Bank aims to lend money to developing countries and boost infrastructure.
To move away from dependence on the power and influence of the U.S. dollar, the group decided to develop a blockchain–based payment. De–dollarizing the financial system in which these countries operate is the only way to avoid repercussions and limitations set by sanctions and regulations. Yury Ushakov, foreign policy aide to the Russian President Vladimir Putin, clarified that “creating an independent BRICS payment system is an important goal for the future, which would be based on state–of–the–art tools such as digital technologies and blockchain.” The establishment of this independent payment system could heavily impact the dollar as the international reserve currency and have significant ramifications on the global financial system, resulting in broad geopolitical implications.
The BRICS bloc is now focusing on trade as a plan to strengthen its alliance. Grain, the flow of which was drastically hindered at the start of the Russia–Ukraine war, is now the runner–up to be traded among the BRICS countries. According to Eduard Zernin, chairman of the Russian Union of Grain Exporters, consultations revolving around the grain exchange among member countries have been completed, with Putin’s support. According to news reports, Russia's share in the world grain market is approaching 25%. As of January 2024, with the addition of the new members, BRICS members accounted for 1.24 billion metric tons of grain production per year.
It will require time for the BRICS bloc to fully integrate itself into a world order that has been built around the dollarization of the global financial system, has looked up to the United States for guidance and protection, and has relied on the known military institutions and historic alliances. However, dissatisfaction around events like Russia–Ukraine, Israel–Hamas, and Cold War tactics in the Gulf and Middle East will fast–forward the process and reshape the policies of countries that usually rely on the West but may now be aiming for self–defense and greater independence.
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Is BRICS the new superpower?
Cape Town, South Africa. Photo by Zander Janzen van Rensburg on Unsplash.
March 27, 2024
The BRICS bloc is a growing home for nations eager to counter the West's position, or at least hedge their bets when it comes to international trade, development support, and conflicts including Russia-Ukraine and Israel-Palestine, writes Marita Kassis.
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issatisfaction with the world order, and the growing tensions between rich countries and poor ones, are making the BRICS (Brazil, Russia, India, China, South Africa as well as Egypt, Ethiopia, Iran, United Arab Emirates, and Saudi Arabia) all the more attractive to nations. Over 40 countries have shown interest in joining the group, taking a seat on the table and having their say in the forum.
South Africa’s latest stance against Israel in the ongoing Israel–Gaza war put the BRICS at the forefront of every discussion again. South Africa brought a case against Israel to the International Court of Justice in January 2024, accusing it of genocide against the Palestinians in Gaza. It continued to urge the ICJ to protect Palestinians against an Israeli attack on the densely populated city of Rafah.
The BRICS members haven’t sanctioned Russia for the Russia-Ukraine war, indicating the bloc is a welcome home for those wishing to counter the West’s position. "Diplomatically, the war in Ukraine appears to have drawn a stark dividing line between an eastern–backed Russia and the West," political scientist Matthew Bishop wrote for the Economics Observatory.
From an economic perspective, the BRICS bloc is set to become the wealthiest—in investable wealth. The richest of the group are set to become even richer according to a report published by Henley & Partners. Worldwide, there are “1.6 million individuals with investable assets, of more than a million in the group.” Andrew Amoils, wealth analyst at New World Wealth, told CNBC, “The 85% forecast for BRICS will be the highest wealth growth of any bloc or region globally.”
Today, the new BRICS, or potentially BRICS+, represents 3.5 billion of the world’s population, which is about 45% of the world. Their economies are worth more than $28.5 trillion, equivalent to 28% of the global economy. The bloc’s economic weight does not only reside in the trillions of dollars that their cumulative GDPs represent but that “BRICS countries produce about 44% of the world’s crude oil,” which is to this day a Western national security priority.
Aiming to counter the West politically and economically, the BRICS countries set up a bank in direct competition with the International Monetary Fund and the World Bank—both controlled by the West. The New Development Bank aims to lend money to developing countries and boost infrastructure.
To move away from dependence on the power and influence of the U.S. dollar, the group decided to develop a blockchain–based payment. De–dollarizing the financial system in which these countries operate is the only way to avoid repercussions and limitations set by sanctions and regulations. Yury Ushakov, foreign policy aide to the Russian President Vladimir Putin, clarified that “creating an independent BRICS payment system is an important goal for the future, which would be based on state–of–the–art tools such as digital technologies and blockchain.” The establishment of this independent payment system could heavily impact the dollar as the international reserve currency and have significant ramifications on the global financial system, resulting in broad geopolitical implications.
The BRICS bloc is now focusing on trade as a plan to strengthen its alliance. Grain, the flow of which was drastically hindered at the start of the Russia–Ukraine war, is now the runner–up to be traded among the BRICS countries. According to Eduard Zernin, chairman of the Russian Union of Grain Exporters, consultations revolving around the grain exchange among member countries have been completed, with Putin’s support. According to news reports, Russia's share in the world grain market is approaching 25%. As of January 2024, with the addition of the new members, BRICS members accounted for 1.24 billion metric tons of grain production per year.
It will require time for the BRICS bloc to fully integrate itself into a world order that has been built around the dollarization of the global financial system, has looked up to the United States for guidance and protection, and has relied on the known military institutions and historic alliances. However, dissatisfaction around events like Russia–Ukraine, Israel–Hamas, and Cold War tactics in the Gulf and Middle East will fast–forward the process and reshape the policies of countries that usually rely on the West but may now be aiming for self–defense and greater independence.
