Receiving Membership Requests from 19 Countries, Will BRICS Dominate the International Monetary System?
The BRICS organization, comprised of Brazil, Russia, India, China, and South Africa, has been gaining more attention lately, as nineteen additional countries have expressed their interest in joining. This growing interest in the organization signals a desire among nations to be part of an intergovernmental organization that promotes economic growth, combats the rise of protectionism, and strengthens cooperation in the global economy. While the reasons for the interest of these countries remain unclear, it is likely that they recognize the potential benefits of joining BRICS.
The significance of BRICS cannot be understated. The five-member organization collectively represents 30 percent of the world's land mass, 42 percent of the world's population, and 20 percent of the world's GDP. With these impressive statistics, it's no wonder that other countries are eager to join. The large number of nations expressing interest in joining is a clear indication that BRICS remains committed to promoting multilateralism and global economic stability. Among the nations that have expressed interest in joining are Türkiye, Mexico, Indonesia, Argentina, Saudi Arabia, United Arab Emirates, Egypt, and several African countries.
BRICS has also been exploring ways to challenge the dominance of the US dollar in international trade and finance. To this end, the organization has been exploring the possibility of creating a common currency. While the potential impact of such a move on the US dollar remains uncertain, it is clear that BRICS is committed to finding ways to counter the current global financial system. However, despite the potential benefits of a new BRICS currency, it is unlikely that it will replace the US dollar as the dominant reserve currency anytime soon. Regardless, the exploration of new financial options by BRICS is a positive sign of their commitment to promoting economic growth and cooperation.
The US dollar has been the dominant reserve currency for decades, with most countries relying on it for international trade and finance. However, the BRICS countries are seeking to reduce their dependence on the US dollar and increase their economic independence. One potential way to achieve this goal is by creating a common currency, which could weaken the power of the US dollar in the global market.
Despite the potential benefits of a common BRICS currency, some experts warn that it could erode the dominance of the US dollar. This could lead to a decrease in the strength of US sanctions and a further decline in the value of the dollar, potentially changing the balance of power in the global market. However, it remains to be seen whether the new BRICS currency will be successful in challenging the dominance of the US dollar.
Aside from creating a common currency, BRICS has also established a financial organization, the New Development Bank (NDB) or BRICS Development Bank. The countries that joined BRICS, including Brazil, Russia, India, China, and South Africa, did so because they felt that the major financial organizations controlled by the United States, such as the World Bank and IMF, were unfair and operated with different principles. The BRICS countries have been very vocal in expressing their disapproval of the policies of the World Bank and IMF, believing that the dominance of the two institutions benefits countries that capitalize them and harms third world countries by causing inequality in the policy-making process.
The NDB was established in 2013, during the fifth BRICS Summit, and the BRICS member countries signed a $100 Billion establishment document at the next meeting. This multilateral development bank was created as an alternative to the World Bank and IMF, with the aim of redressing the balance of the world economy. Through the NDB, BRICS member countries can finance infrastructure and sustainable development projects in their own countries and other developing countries, without being subject to the same policy conditions and political influences as the World Bank and IMF.
The BRICS NDB is not only aimed at building sustainable infrastructure and development projects in BRICS member countries but also in other developing countries. It was established with the objective of breaking away from the monopolization of money by developed countries and to provide financial assistance without imposing burdensome terms on borrowers. The governance structure of the BRICS NDB ensures that all member countries are equal partners and that their progress is not hindered by superpowers.
The BRICS NDB is seen as a new system of countries with less power than superpowers and aims to limit the influence of organizations such as the IMF. Its potential to replace other financial organizations is recognized by countries around the world. Furthermore, the BRICS organization has been playing an active role in promoting global economic growth, countering protectionism, and addressing outstanding issues such as inequality, unemployment, and poverty levels.
The BRICS organization has also been advocating responsible monetary policies aimed at reducing sovereign debt and increasing international reserves to ensure macroeconomic stability. It has been pushing for reform of the global economic governance system to achieve a balance between fairness and efficiency. The organization is thus proving to be a key player in setting global economic policy and promoting cooperation in the global economy.
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