Why the focus on BRICS?

In my previous columns, I mentioned the claims in the Western media about China and Russia preparing for a new "reserve currency" within the context of "BRICS." However, it's unlikely that this topic will be addressed at the "BRICS Summit" starting today in Johannesburg, South Africa. BRICS members will likely strive to use their national currencies in trade among themselves, but it seems too early for a new currency. Meanwhile, let's remember that the US is pressuring Gulf countries, especially the "Saudis," to continue selling oil and gas to China in "Dollars."

Reaching a consensus on a "New Currency" within "BRICS," which consists of China, Russia, India, Brazil, and South Africa, is a challenging endeavor. This "New Currency" is seen as a challenge to the global hegemony of the US. Despite being part of "BRICS" and the "Shanghai Cooperation Organization" with China, India has tightened its relationship with the US. Important military, technological, and economic agreements were signed between India and the US last June, which could evolve into a strategic partnership according to the US.

Moreover, India is also part of the "Quad" or the "Quadrilateral Security Dialogue," along with the US, Australia, and Japan. Despite making statements to appease Beijing, for the US, the "Quad" represents a significant element of the "encirclement strategy" against China in the Asia-Pacific region.

India's membership in both the "Shanghai Cooperation Organization" and "BRICS" enhances its significance in Washington. Even India's refusal to participate in sanctions against Russia and its acquisition of the "S-400" missile system from Russia haven't diminished the strategic interest that the Biden Administration has in New Delhi. Other BRICS members, namely Brazil, South Africa, and China, have also refrained from participating in sanctions against Russia. Furthermore, India's growing strategic relationship with the US elevates its importance in Beijing's eyes.

Brazil and South Africa aspire to carve out a significant place for themselves on the global stage through "BRICS." However, neither country wants to align themselves with either China or the US in the midst of the "New Cold War." Thus, they are pursuing a balanced policy. "BRICS" is focused on economics, trade, and finance, but its members aren't always in agreement on all issues. BRICS provides its members with a global platform akin to the "G-7." The "New Development Bank" of BRICS is somewhat a blend of the "World Bank" and the "IMF." BRICS members are also part of the "G-20," representing the top 20 economies.

In essence, the issue revolves around the dissolution of the "world order" controlled by the US and the West. Since the end of the "old Cold War," the US has viewed itself as the sole rule-making hegemon of the world order. However, the US has not effectively utilized this period. As seen in Afghanistan, Iraq, and Libya, the US has become a "destructive" force rather than a "system-building" one. Similarly, the US's purportedly "Counter-Terrorism" focused military policies in Africa have exacerbated problems on the continent. Its actions in West Africa, notably in Niger, reflect its role as a protector of the established interests of the former/neo-colonial power, France.

Over the past 30 years, the world has changed significantly, with new powers emerging. The US, however, is resistant to adapting to these changing conditions. The direction of the new power balance remains uncertain. "Non-Western countries" or the countries on the periphery of the now dysfunctional "international economic-political system" are navigating through this fog of uncertainty to find a reasonable path for themselves. The "BRICS Summit" in Johannesburg gains significance within this context.

The Summit has invited 67 leaders from Africa, Latin America, and Asia. Around 40 countries, including Saudi Arabia, the United Arab Emirates, Argentina, Indonesia, Egypt, and Ethiopia, have expressed their interest in joining BRICS. There is reportedly no consensus among BRICS members regarding "expansion." India is reportedly not in favor of expansion, while Brazil remains undecided.

In the previous Cold War era, the US pursued a strategy of "encircling the Soviet Union." Now, Washington is attempting a similar strategy to isolate China. For the US, a "BRICS expansion" where China gains more prominence goes against the new encirclement strategy. The US believes that any "BRICS expansion" would advance China's geopolitical interests, so it carefully watches any entity in which Beijing is involved or leads. Hence, BRICS is also on the US's radar.