BRICS Summit Takes on New Importance Amid Great Power Competition
Leaders from Brazil, Russia, India, China, and South Africa are gathering for the annual BRICS summit this week. The meeting comes at a time of intensifying great power competition and amid the context of Russia’s invasion of Ukraine and the West’s aggressive sanctions campaign against Russia and China. These events will undoubtedly shape the discussions and decisions made at the summit in Johannesburg.
Russian President Vladimir Putin’s attendance at the summit will be virtual to avoid any embarrassment for South Africa. The country is a member of the International Criminal Court, which has issued an arrest warrant for Putin related to the conflict in Ukraine. South Africa would be legally obligated to take the Russian leader into custody if he were to visit the country.
Two key developments will take center stage at the summit. China and Russia have expressed interest in expanding the BRICS group to grant it greater weight in international affairs. Over 40 countries, including Arab allies of the United States such as Saudi Arabia and the United Arab Emirates, as well as rivals like Iran, have expressed interest in joining BRICS. The second issue is de-dollarization. China and Russia are seeking to reduce their dependence on the US currency and establish alternative methods of transacting between member states.
De-dollarization has become increasingly important for Russia and China as they face sanctions from the West. Both countries fear the economic and national security implications of American financial statecraft. However, even countries like South Africa, Brazil, and India, which have better relations with the West, see the benefits of reducing reliance on the dollar for their economic growth and trade potential.
The success of the de-dollarization effort within BRICS remains uncertain. While China and Russia have reduced their dependence on the dollar, the New Development Bank, established by BRICS to facilitate de-dollarization, is still largely dependent on the dollar and is struggling to raise the currency due to Russia’s membership. The existing dollar hegemony is supported by a network effect and convenience factor that will not easily be replaced by a new BRICS currency.
There is also a significant imbalance in resolve regarding de-dollarization within the BRICS grouping. Countries like Russia and China, as well as prospective members like Iran, are eager to reduce the US’s ability to impose financial sanctions. However, other BRICS countries may be less inclined to bear the cost of such a transition.
Another challenge for BRICS is the complex nature of relations between its member nations and their differing approaches towards the West. While they all oppose Western sanctions, many of them have strong relations with Western countries that they do not want to jeopardize. India, for example, has aligned itself with Western interests against China and is cautious about empowering a counterbalance to the G7.
Furthermore, Brazil is wary of alienating the US as a business partner, and South Africa is concerned about enhancing BRICS membership at the cost of its own influence in the bloc. These differing perspectives have made it difficult for BRICS to reach a clear consensus on important issues.
In conclusion, the BRICS summit is taking on new importance against the backdrop of intensifying great power competition. The expansion of the group and the push for de-dollarization reflect the changing dynamics in global affairs. However, the challenges of maintaining coherence and consensus within the group, as well as the complex relations between its member nations, pose significant obstacles to the success of BRICS as a united bloc.
Original Story at www.aljazeera.com – 2023-08-22 07:33:33
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