BRICS now includes ten members with a combined GDP exceeding the US, and 20 more countries plan to abandon the dollar in 2024. The bloc is expanding toward a multipolar world order, though India opposes a common BRICS currency and Iran's membership complicates US relations.
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Hello everyone and welcome to Geopolitical Trends, where the truth matters. As a geopolitical analyst, I ask: is the collective West on its final leg in its hegemony? Did the West reach a point of no return as we are witnessing its final fall? Then what's the alternative? So take a step back and consider the following scenario. Factories in Europe are shutting down their doors. Energy prices are so high. The US dollar is becoming less desirable, and the Global South is embarking on a new journey in the global order. No, this is not a fiction. It's, it's a reality that is becoming more and more evident as the global financial system is on the cusp of a major shift leading to a new global economic order. 20 countries are poised to abandon the US dollar in favor of their native currencies for global trade this year in 2024. This move, spearheaded by the expansion of BRICS, marks a significant departure from the longstanding US dollar-dominated system. But what is BRICS, you may ask? BRICS is an intergovernmental organization comprising of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. Originally identified to highlight investment opportunities, the grouping evolved into a cohesive geopolitical bloc with their governments meeting annually at a formal summit and coordinating multilateral policies since 2009. Bilateral relations among BRICS are conducted mainly based on non-interference, equality, and mutual benefits. The founding countries of BRICS are Brazil, Russia, India, and China, where they held their first summit in Yekaterinburg, Russia, in 2009, with South Africa joining the bloc a year later. Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates joined the organization officially on January 1st this year. Combined, the BRICS members encompass about 30% of the world's land surface and 45% of global population. Brazil, Russia, India, and China are among the world's 10 largest countries by population area, GDP, and PPP. Of note, China has the largest GDP among the BRICS countries at $16.86 trillion US dollars in 2021. In 2022, it was about 70% of BRICS GDP. The combined GDP of BRICS bloc is over $26 trillion in 2022, which is slightly more than the US. The BRICS nations are expected to account for 32% of global gross domestic product in 2023, which just passed last year. With its new members, the BRICS bloc will represent over $30 trillion in GDP or around 29% of the world GDP, according to Niccolo Conti of Visual Capitalist. It's a powerhouse of emerging economies united by vision, economic cooperation, shared developments, and a stronger influence on the global stage. The growing interest in BRICS membership reflects a global trend, a desire to diversify away from the US dollar reliance that has dominated international trade for decades. The stage is set for a major shift in the world currency dynamics. As the grip of the US dollar loosens, BRICS is poised to emerge as a challenging contender. In today's interconnected world, the balance of power is shifting, And as Russia prepares to host the 16th BRICS summit in 2024, in October of this year, a bold new chapter is about to unfold. President Putin has publicly voiced his support for expanding BRICS membership, opening the door for new countries to join this influential alliance. Among the eager contenders Competing for a spot are several nations from Africa and West Asia. Pakistan, Iraq, Turkey, Nigeria— they all are positioning themselves as potential new members of BRICS. These countries recognize the immense strategic advantages that come with aligning themselves with this influential conglomerate. What the world is going to witness is a wave of change as 16 new countries pivot away from the US dollar and align themselves with BRICS. This transformation will reshape the global economic landscape, whether the West likes it or not. It's happening. From securing new trade routes to establishing a more balanced financial system, BRICS expansion holds tremendous potential for creating a multipolar world order. By embracing diversity and fostering stronger ties, BRICS is challenging the status quo. Together, these nations have the power to shape the future of global trade, finance, and economy. Countries are already lined up to apply for membership during the upcoming 16th summit in October 2024 in Russia's Kazan region. These countries are Algeria, Bahrain, Bangladesh, Pakistan, Bolivia, Cuba, Kazakhstan, Kuwait, Palestine, Senegal, Thailand, Nigeria, Venezuela, and Vietnam. Apart from those 14 countries, Afghanistan, Angola, Comoros, DR Congo, Gabon, Guinea-Bissau, Libya, Myanmar, Nicaragua, South Sudan, Sudan, Syria, Tunisia, Turkey, Somalia, Uganda, and Zimbabwe have expressed their interest in joining the BRICS bloc. The fact is this: BRICS is attracting an ever-increasing number of supporters and like-minded countries that share its underlying principles, namely: sovereign equality, respect for the chosen path of development and mutual consideration of interests, in addition to openness, consensus, the aspiration to form a multipolar international order and a fair global financial and trade system. And the pursuit of collective solutions to top challenges facing the world. One thing is sure, what BRICS nations need to do is to coordinate their foreign policy plan. Yet it is easier said than done when you have countries like India that tends to undermine BRICS efforts to move forward. India's strong objection to BRICS currency is a case in point. The need for this coordination vis-à-vis foreign policy is very important for all member countries to work together in crafting collective responses to the challenges and threats to international and regional security and stability in the 21st century. President Putin stated, and I quote, we will contribute to the practical implementation of the Strategy for BRICS Economics Partnership 2025 and the Action Plan for BRICS Innovation Cooperation 2021-24 for ensuring energy and food security, enhancing the role of BRICS in international monetary system and expanding interbank cooperation and expanding the use of national currencies in mutual trades. End of quote. Some analysts have argued that India needs to decide whether it wants to be a team player or not. If it's the latter, it's time for India to leave BRICS. In this article, in his article, India's Influence in BRICS is waning. Muhammad Zishan writes, and I quote, even as India has courted rival geopolitical blocs led by China and Russia in recent years, many in Washington argue that India's presence in those groups is useful to the United States. By being part of those blocs, they argue, India would prevent China and Russia from getting their way. End of quote. One thing is sure, BRICS' decision to invite Iran as a full member does not sit well with the United States, given the failure of the US sanctions on Iran. Iran also has close partnership with both China and Russia, sworn enemies of the United States. Alas, the world has already shifted to to a multipolar order, whether the West likes it or not. Please like, share, and subscribe. As always, remember, geopolitics impacts your daily life in more ways than one. Till next time, thank you.
