BRICS is expanding its horizons as nearly 60 percent of the world’s oil reserves seek to join its ranks.
The upcoming BRICS Summit, scheduled from August 22 to 24, 2023, is poised to be a pivotal event on the global stage. Leaders from India, Brazil, China, and South Africa will gather in person, while Russian President Vladimir Putin joins virtually and Foreign Minister Sergei Lavrov represents Russia on-site. The summit comes at a time of significant changes within BRICS, hinting at potential shifts in global economic and geopolitical dynamics.
Expansion and New Members: Redefining the BRICS Landscape
BRICS is expanding its horizons as nearly 60 percent of the world’s oil reserves seek to join its ranks. Countries such as Saudi Arabia, Iran, the United Arab Emirates, Egypt, Algeria, Argentina, Mexico, Nigeria, Venezuela, Bolivia, and Uruguay have expressed interest in becoming part of this influential consortium. The recent BRICS Foreign Ministers’ meeting, which saw attendance from African nations, Iran, Saudi Arabia, and the UAE, further underlines the growing global interest in the BRICS framework.
Elevating Economic Heft and Geopolitical Influence
The forthcoming BRICS summit is expected to mark the inclusion of Argentina, Egypt, Saudi Arabia, and Iran, a move that holds the potential to significantly enhance the group’s economic power and geopolitical significance. This expansion promises to reshape the dynamics of international cooperation and collaboration, reflecting the emergence of these nations as major players on the world stage.
Challenging the Dominance of the US Dollar
Brazil’s President Luiz Inácio Lula da Silva has been a vocal proponent of challenging the supremacy of the US dollar. This sentiment gained traction as President Lula, alongside South African counterpart Cyril Ramaphosa, questioned the role of the US dollar as the world’s primary reserve currency for global trade. Ramaphosa’s endorsement of this perspective underscores the growing momentum within BRICS to address the issue of currency and its implications for the global economic landscape.
Russia’s Push for De-Dollarisation and Digital Currencies
The ongoing Ukraine conflict has prompted Russia to intensify efforts toward de-dollarisation. This movement gained momentum following Russia’s confrontation with the West, which led to currency freezes and restrictions. Moscow has aligned itself with China and other neutral nations in advocating for the gradual transition away from the US dollar in transactions. A possible future step includes the introduction of digital or alternative forms of currency, reshaping the way nations conduct trade and financial transactions.
BRICS: From Inception to Global Influence
Founded in 2009 by Brazil, Russia, India, and China, the BRIC consortium expanded to include South Africa a year later, solidifying its position as a formidable bloc. The collective represents a substantial portion of the world’s land surface and population, holding a significant share in global trade. Over the years, BRICS nations have played a pivotal role in driving global economic growth, further cementing their importance on the world stage.
Bilateral Meetings and Emerging Partnerships
Prime Minister Narendra Modi’s visit to South Africa for the BRICS summit provides a platform for numerous bilateral meetings. These discussions will involve leaders from both BRICS nations and potential new members like Saudi Arabia, Iran, Bolivia, Argentina, and the UAE. The presence of Bolivian President Luis Arce at the summit highlights the nation’s quest for stronger partnerships and investments, particularly in the realm of commodities exports and the burgeoning lithium industry.
Lithium, Geopolitics, and Economic Collaborations
Bolivia’s increasing engagement with Iran and its rich lithium deposits adds a layer of complexity to the BRICS dynamics. Both nations hold substantial lithium deposits, a crucial resource for emerging technologies. Iran’s recent discovery and Bolivia’s known reserves present opportunities for collaboration and shared interests within the consortium. Furthermore, the increasing number of countries expressing interest in joining BRICS emphasizes the growing relevance of this partnership.
Towards Financial Independence and Diversification
Several nations, including Bolivia, have begun exploring alternatives to the US dollar in their financial transactions. Echoing the sentiments of BRICS leaders, Bolivia’s shift towards completing more financial transactions in Chinese yuan reflects a broader desire to reduce dependency on the dollar. China and Russia’s investments in Bolivia’s lithium resources underscore the evolving economic and strategic relationships within the consortium.
As BRICS continues to evolve and expand, its influence on the international stage grows, shaping the future of economic collaboration and geopolitical dynamics.
https://www.financialexpress.com/business/defence-the-shifting-landscape-of-brics-emerging-dynamics-and-prospects-3205860/
