The BRICS grouping — made up of the five emerging markets powers China, Russia, India, Brazil and South Africa — will rewrite many a political and strategic relationship on its head.
This change of emphasis will also apply in equal measure on economic and financial alliances.
This would also eliminate the unipolar world as is manifested in politics and military affairs. The bold decisions, taken by BRICS leaders during the summit in the Brazilian city of Fortaleza last week, prove that.
The Group agreed to establish a development bank with a capital of $50 billion (Dh183.5 billion) and a $100 billion emergency reserve fund, after years of delay due to a disagreement between India and China on the host country for the bank’s headquarters. Finally, both reached a compromise by selecting Shanghai to be host city, while India will be in the chair, followed by Brazil and the other countries.
What does all this mean? With the passage of time, this will end the US and that of global financial institutions such as the International Monetary Fund (IMF) and the World Bank, which means a restructuring of the global financial system.
In another sign of a change in status quo in international relations, Chinese President Xi Jinping said: “We seek together to build a more just and stable global financial system and adopt more rational approaches.”
China has also decided to inject investments of $7 billion (Dh25.7 billion) in Argentina. This coincides with the gradual shift of the global economy’s centre of gravity from West to East, which will cast a shadow over the relations of various countries between these two poles.
Aggressive steps
For example, GCC’s oil sales and foreign trade are moving eastwards at record speeds, which has prompted the US to take aggressive steps through its support of the regime of Iraqi Prime Minister Nouri Al Maliki.
Recently, it was clearly noticeable that US’ interference in the internal affairs of nations in the region, especially Bahrain, was on the increase. This is despite the facilities the Gulf state has provided to Washington over six decades and which have contributed to the protection of American interests in the region.
Due to this, Bahrain had come under criticism from many parties, including the opposition in the Gulf state. It was this that prompted Bahrain to expel Tom Malinowski, US assistant secretary of state for Democracy, Human Rights and Labour, for meddling in Bahrain’s internal affairs.
The redrawing of the global map based on the strategic interests of regional countries has become a top priority, especially with the emergence of alternatives to political, military and economic alliances that are available now thanks to the recent crises in the US and the West in general.
Consequently, the next few years will see a new balance in international economic relations that will end the unipolar economic power. Alongside the IMF and the World Bank, there will be the Brics Bank and its reserve fund, which will be of great benefit to other countries.
Financial potential
This is why Argentina has submitted a request to the Brics group, offering its co-operation with the new institutions, so as to make the best use of their financial potential.
Although a portion of the US financial domination will remain — through credit financing organisations that are dominated by the US entities — there are European efforts along with that of BRICS to break this.
This extends to the internet and e-commerce endeavours, especially after the infamous US spying on German Chancellor Angela Merkel and other world leaders.
The BRICS move also means an end to economic sanctions regime controlled by Washington, which led to the record $9 billion fine on the French bank BNP Paribas despite the intense efforts made by the French President Hollande to reduce it.
It has become ever more important for Middle East countries to make the best use of changes to enhance their political and economic clout and form new alliances as well as benefit from the multi-polarity regime coming into being at all levels.
