BRICS Summit 2024: A Turning Point for Global Governance?
The BRICS Summit 2024, held in Kazan, Russia, from October 22 to 24, was significant for the bloc's future as it sought to redefine the global geopolitical order. Against escalating international tensions, the summit emphasized expanding membership, reforming global financial systems, and promoting alternatives to Western hegemony.
Key Themes and Agenda
The summit revolved around the following major themes:
Expansion of Membership: To enhance global South-South cooperation, new countries like Egypt, Ethiopia, Iran, and the UAE formally joined the bloc, increasing the BRICS membership to nine nations. Saudi Arabia and Argentina were also invited, though Saudi Arabia would join in January 2024, and Argentina opted out under new political leadership.
Reform of Global Financial Architecture: A major focus was on reducing reliance on the U.S. dollar by fostering trade in local currencies and exploring long-term options for a common BRICS currency. The members sought to further the goals of “de-dollarization” to challenge the dominance of Western financial institutions like the International Monetary Fund (IMF) and World Bank.
Challenging Western Hegemony: Russia, with the support of China, reiterated its intention to develop an alternative global governance system. President Vladimir Putin emphasized the need to create a "fair world order" based on the bloc's principles of equality and sovereignty, countering Western dominance in political and economic affairs.
Geopolitical Dynamics and Challenges
While the summit aimed for greater unity, internal geopolitical dynamics posed challenges:
Differing Political Orientations: BRICS consists of both democracies like India, South Africa, and Brazil, and authoritarian regimes like Russia and China. This ideological diversity complicates alignment on sensitive global issues, particularly human rights and conflicts.
India's Multi-alignment Strategy: India demonstrated caution, balancing its participation in BRICS while maintaining ties with Western partners. This reflects its broader strategic approach of engaging with multiple alliances without becoming entangled in exclusive blocs.
China and Russia's Influence: China and Russia are strong proponents of shifting global power away from the West. Yet, they face hurdles such as the lack of global financial infrastructure to support their alternatives and many BRICS nations' continued reliance on the dollar.
Economic Integration and Institutional Progress
The summit also assessed the progress of existing BRICS institutions:
New Development Bank (NDB): The NDB, initially aimed at rivaling the World Bank, has struggled with limited capital and has disbursed only modest loans so far. Despite here ambitions, its effectiveness has been limited by governance issues and the complexities of balancing national interests.
Contingent Reserve Arrangement (CRA): This financial safety net, designed to help members manage short-term liquidity crises, has also had limited utilization, underscoring the difficulties BRICS faces in establishing robust financial frameworks independent of Western-dominated institutions.
Expansion and Strategic Outlook
The addition of new members, particularly energy-rich nations like the UAE and potentially Saudi Arabia, reflects BRICS' ambitions to enhance its global influence. However, geopolitical complexities will shape the bloc's future trajectory:
North-South Cooperation Focus: BRICS expansion signals an emphasis on fostering relationships across the global South. This approach aims to challenge the dominance of Western alliances, particularly the G7 and G20, by presenting an alternative platform for global engagement.
BRICS vs. G20: Although BRICS members actively participate in other multilateral fora like the G20, the summit highlighted their desire for a parallel framework that offers greater autonomy and influence in setting global policies.