The world watched closely last month as the BRICS consortium, a coalition of emerging economies, announced a transformational expansion, ushering in a potential global economic power dynamics shift. Established initially in 2006 as the BRIC nations – Brazil, Russia, India, and China – the group expanded in 2010 to welcome South Africa, becoming BRICS. Now, as 2024 fast approaches, the association has grown to encompass 11 countries with the addition of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. Henceforth, we usher in the era of the “BRICS 11.”
The Conception of BRICS 11
The birth of BRICS was seen as a symbol of the rising might of emerging economies. Today, with its expanded membership, BRICS 11 commands significant economic muscle. When juxtaposed with the G7, BRICS 11 surpasses it in terms of population, GDP, and control over pivotal energy resources such as oil and natural gas. Notably, it now encompasses the world’s two leading natural gas producers, Russia and Iran. Such collective strength raises intriguing questions about future global economic dynamics.
Perhaps one of the most significant undercurrents of this transformation is the potential challenge to the US Petrodollar. With BRICS 11 nations resolved to cease US dollar transactions amongst themselves starting in 2024, opting instead for local currencies, the hegemony of the dollar in international trade may face unprecedented challenges. Rumors even circulate of a potential new currency, possibly anchored in commodities like gold or digital assets like Bitcoin.
Such a move could reshape global trade systems. For over half a century, the US dollar’s role as the world’s primary reserve currency has granted the US an array of economic benefits and influence. However, the ascendance of BRICS 11, combined with their intention to sidestep the dollar, could erode this longstanding dominance.
Moreover, if rumors are to be believed, BRICS 11 may soon not be an exclusive club of eleven. Almost 40 countries have reportedly either applied or signaled their interest in joining. Such a potential influx could further recalibrate global power dynamics, posing challenges and opportunities, especially to Western powers.
So, What Does This Mean for Geopolitics?
The emergence of BRICS 11 marks more than just an economic bloc; it represents the collective aspirations and strategic maneuverings of nations once deemed “emerging” but are now claiming a more assertive role on the global stage.
For the West, the development might be viewed through a lens of caution, if not concern. BRICS 11, in its avowed commitment to reshaping global economic rules and norms, challenges the traditional Western-dominated economic order. How the West responds through engagement, competition, or collaboration will be pivotal in defining the global global economic landscape in the coming decades.
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