WHAT IS BRICS?
Every evaluation begins with a small idea, exactly like a huge tree that grows with a small seed. This new world order started with a small seed that went public in 2001, When Goldman Sachs economist and chairman of asset management at that time Jim O’Neil wrote an article about the future of global economic dynamics, Titled; Building Better Global Economy BRICs. In this article, he discussed the world’s top growing economies BRICs which the acronym refers to Brazil, Russia, India, and China. How will these speedy-growing economies rule the global economic system till 2050? And will represent the power of the Global South
BALANCING WORLD DYNAMICS
The BRIC countries had their first session in 2009 and later on added South Africa to the bloc in 2010 and expanded to the BRICS., the world economy is ruled by the Western bloc and the most powerful intergovernmental organization G7, which represents the world’s top economies from global north. The balance in the global economy has been due for decades, but BRICS is the organization that is leading that balance creation and changing the world dynamics.
BRICS EXPANSION
The bloc began to expand further when more than 40 countries showed interest in joining the future of world economics, according to a South African envoy in July 2023. Today BRICS has been expanded to 10 countries after the official addition of Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. Argentina was also committed to joining the bloc but after the election in November, Argentina had a new government that officially withdrew from the organization.
BRICS VS G7; STATISTICAL COMPARISON
After the expansion, BRICS reached new heights and have 29% of the world’s GDP, which equals $30 trillion, and 45% of the world’s population. The G7 has a combined GDP of $46.3 Trillion and alone USA has $25 Trillion worth of GDP.
BRICS INTRODUCES ALTERNATIVE BANKING, PAYMENT SYSTEM, AND CURRENCY
The stats show that BRICS is still quite behind the games as compared to G7 but the organization took some bold steps which is a threat to the G7 hegemony. Those steps include eliminating the dependence on the US dollar. In 2012, BRICS pledged $75 Billion in IMF to increase voting rights but due to the complete control of the Western bloc of international organizations like the World Bank and IMF, BRICS failed to pursue what they sought. Later on, they took some historic steps by introducing the New Development Bank as an Alternative to the World Bank and IMF. Moreover, they introduce a contingent reserve arrangement.
This doesn’t end here, BRICS introduces a new payment system that will replace SWIFT banking controlled by the Western bloc, and help to impose sanctions on countries, such as Iran and Russia. A new banking system will eliminate the disastrous effects of Western sanctions on BRICS nations.
Permit me to control the money of a nation, and I care not who makes its laws”
Mayer Amsheel Rothschild.
This is the very strategy adopted by the USA to have control of global economies, by using the US dollar. USD is the world reserve currency, which means all countries in the world should hold their reserves in USD and be bound to trade in this particular currency, while trading, the SWIFT international payment system is utilized which again is under Western influence, in this way, US dollar always stays in demand and its strength always rises. After BRICS countries started trading in their currencies, they’re planning to have a common currency which helps them to make trading easy and independent from the Western influence. This step is a direct challenge for the US dollar monopoly.
CONCLUSION:
The world dynamics are changing swiftly, and now top oil-producing countries are joining the BRICS which will increase its influence to the next level. It seems like 2024 is very important for BRICS expansion and reaching new heights. This year the world will witness some major changes in power dynamics, that will eventually bring some tremendous opportunities for the nations that seek prosperity, and new opportunities, especially developing nations will probably witness the enlightened path to prosperity.
