BRICS signals shift towards global multipolarity

The 2024 BRICS Summit late last month drew attention like no other before. It was an ideal occasion for Russian president Vladimir Putin, Chinese president Xi Jinping and other leaders to promote a vision of a world that the United States does not lead.

Four new countries, UAE, Iran, Ethiopia and Egypt participated for the first time. The central theme that came to unite BRICS members is their disillusionment with the Western led institutions of global governance, especially those dealing with economy. And with 30 countries lined up for membership they seem to be on road towards their goal of setting up an alternate to the American led world.

In the final communique the BRICS found a common ground in areas such as cooperation on the environment, financial reform, and resolving global conflicts. They strongly condemned Israeli attacks over Gaza and now Lebanon.

But in the lead up to the Summit Russia’s interest was (and remains so) an agreement to launch “BRICS Bridge” a payment system free of Western controls allowing Russia and other member states to trade free from strangulation by the US dominated SWIFT system.

An alternate system?

The communique does mention an alternate payment system but the concept is still vague. The fear of launching into an unknown is holding countries back even though they disapprove American control over the payment systems.

Members are still divided over whether to urgently devise an alternate system or continue with the current. They would however, like existing global institutions to be more open, more representative and more effective.

Awaiting further refinement of the proposal the BRICS is focusing on use of national currencies for bilateral trade and to also insulate them from fluctuations and cut their dependence on the US dollar.

Entry of additional members boosts BRICS. Dozens more are knocking at the door. As the BRICS expands the emphasis will more likely be on ‘complementarity.’

To a degree BRICS draws its inspiration from Non-aligned Movement (NAM) that was founded in 1961 largely to resist American pressure during the Cold War years. From 5 states NAM grew to 120 — the largest after the UN, and played a sterling decolonisation role during the Cold War years. As BRICS enlists more members it is likely to follow a similar trajectory. BRICS therefore, considers itself a step towards multipolar world.

A moment of reflection

For the US and its Western partners, it is moment of reflection to examine where they are falling short and what compels such a diverse group of countries to band together and seek an alternate voice in the international arena.

The West should engage with BRICS meaningfully and complement each other in support of the Global South’s aspirations.

By a strange coincidence while BRICS was going on in Kazan the IMF-World Bank Annual Meetings were being held in Washington. They were talking about changing the archaic quota systems that makes the US the largest shareholder into a more equitable future, reflecting the newer economic realities. The US must make room for the emerging economies in the power halls of global financial centres — without that happening BRICS appeal will only grow.

Organisations that challenge the existing order inevitably face resistance from the status quo powers. Notwithstanding their modest start they become harbingers for change over time.

Sajjad Ashraf served as an adjunct professor at the Lee Kuan Yew School of Public Policy, National University of Singapore from 2009 to 2017. He was a member of Pakistan Foreign Service from 1973 to 2008 and served as an ambassador to several countries.