Noman Ali
BRICS is an acronym that stands for the association of five major emerging economies: Brazil, Russia, India, China, and South Africa. The primary objectives of BRICS are to enhance cooperation and collaboration between its member countries in various areas such as economics, politics, and culture. The organization aims to promote mutual understanding, support each other’s development, and work together to address global challenges. BRICS also seeks to reform and improve global governance structures to better reflect the current economic and geopolitical realities. Additionally, the group aims to facilitate trade and investment among its members and strengthen their collective voice on the international stage. Overall, BRICS represents a significant force in global politics and economics, with a focus on mutual benefit and shared prosperity.
In 2006, the emerging economies of Brazil, Russia, India, and China formed BRIC, later joined by South Africa in 2010, becoming BRICS. The primary goal of this alliance was to strengthen economic ties among member countries and improve their global political and economic influence. This move was a response to the dominance of the United States and other G-7 nations in the post-World War II world order, which has largely excluded emerging economies.
Currently, major multilateral banks, such as the World Bank and the International Monetary Fund, are led by G-7 countries, and their terms and conditions have been criticized by debtor nations as overly burdensome. The economic dominance of the United States has also declined significantly since the mid-1940s, while China has emerged as the second-largest economy globally.
Many experts argue that the current international financial system, which is dominated by the US dollar, is skewed in favor of the United States and is unsustainable. This advantage allows the US to import goods and services at lower rates and earn substantial returns on its capital exports. The concentration of power in one country, particularly the US, has raised concerns among other nations.
The US’s use of economic sanctions against various countries has fueled the movement towards de-dollarization. This “weaponization of the dollar” has prompted BRICS member countries to explore alternatives to the current global financial system, including the possibility of trading in their own currencies and establishing a new global financial network.
Despite efforts by countries like Pakistan to join BRICS, membership offers are contingent on the approval of existing member countries. Pakistan’s reliance on external loans and susceptibility to US sanctions pose significant challenges. One proposed solution is to reduce current expenditures to alleviate the need for further borrowing and external assistance.
In conclusion, BRICS represents a growing force challenging the existing global economic order. With its members exploring alternative financial systems and advocating for a more inclusive global economy, BRICS could potentially reshape the international economic landscape.
