BRICS PLUS
BRICS Plus - Financial and Monetary Rejuvenation of the World
By Kirtan Bhana
21 October 2024
The year is 2024, and the BRICS Plus Summit in Kazan, Russia, begins tomorrow. As the world gears up for this significant event, there’s a palpable sense of excitement in the air. After all, this summit isn't just another high-profile gathering of world leaders, it has the potential to reshape the global landscape in ways we’ve never seen before. With China at the forefront of modernization, and the inclusion of dynamic nations like Egypt, Ethiopia, and Saudi Arabia, Iran and the United Arab Emirates, BRICS is ushering in a fresh era, one that could finally shift us away from the exhausted "War Economy" mentality towards something far more fruitful.
It’s refreshing to think that, instead of competitive chest-thumping, we’re starting to see a cooperative world order emerge, a system that could lift all boats, not just those already floating comfortably. BRICS has always stood for the promise of transformation, and this time, they might just deliver.
The BRICS Backstory: From Crisis to Cohesion
BRICS was born out of crisis. The 2008 global financial meltdown rocked the foundations of the Western-dominated financial systems, exposing vulnerabilities and deep-seated inequalities. For too long, the world economy had been dictated by the rules of a few, leaving emerging economies to play catch-up in an unfair game.
In 2009, Brazil, Russia, India, China, and South Africa - five powerhouse emerging markets - came together with a clear mission: to create a more balanced, fair, and inclusive global economy. Now, fifteen years later, the vision is growing with BRICS Plus, welcoming new members eager to partake in this redefined global collaboration.
At last year’s summit in Johannesburg, we saw a shift as Egypt, Ethiopia, the UAE, Iran, and Saudi Arabia knocked on the door. This year, in Kazan, the stage is set for their debut in a big way. It’s like watching the world’s most ambitious club expand its membership, only here, the stakes are global. And let’s face it, with so many strong-willed, resource-rich nations finding common ground, this is no ordinary club.
Modernizing Financial Systems: Enter the New Players
The world’s financial system has long been overdue for an overhaul. The dominance of the US dollar, for one, has been a double-edged sword. While it’s been a convenient standard, it’s also led to some reckless financial behaviour, like unfettered quantitative easing, that’s destabilized markets, and left many countries feeling the pinch of inflation, rising interest rates, and unsustainable debt.
Cue BRICS. As the bloc looks to revamp outdated systems, the promise of new, fairer financial models has never been more pressing. Expect banking to get a serious makeover at Kazan. With a younger, more tech-savvy population across the BRICS nations, it’s clear that the way we transact, save, and invest will need to evolve to meet the demands of a new generation. Banking apps and cryptocurrency wallets are becoming the norm, and BRICS nations are eager to get ahead of the curve.
For instance, the proactive steps taken by China, whose National Financial Regulatory Administration led recent talks in South Africa, show that BRICS is preparing for a financial future that prioritizes inclusivity and sustainability. As financial systems modernize, we’ll likely see a move towards more decentralized currencies, national payment systems, and a reduced reliance on the US dollar.
Imagine a world where trade between BRICS countries is conducted in their own currencies, slashing transaction costs and boosting mutual trade. That’s a world that’s already taking shape.
China: The Modernization Masterclass
If there’s one BRICS nation that stands out for its economic transformation, it’s China. Over the past few decades, China’s meteoric rise from a relatively underdeveloped nation to a global powerhouse has been nothing short of extraordinary. The stats are staggering: in 1952, China’s GDP stood at 67.9 billion yuan. By 2023, it had skyrocketed to 126 trillion yuan, with an annual growth rate of 7.9%. China now accounts for 17% of the global economy - talk about catching up.
As President Xi Jinping once quipped, “Blowing out the lamp of others will not make one’s own shine any brighter.” Instead, China has embraced a cooperative, inclusive approach to development. And other nations are paying attention. From its ambitious Belt and Road Initiative to its Global Development Initiative (GDI), China is positioning itself as a leader of modernization, one that values mutual respect and shared progress over zero-sum games.
In fact, many nations, particularly those in BRICS Plus, are looking to China as a model for how rapid, sustained development can be achieved, without the need for imperialism or destructive competition. Whether it’s poverty alleviation, technological innovation, or industrialization, China’s example shows that modernization, when done right, can uplift millions and create lasting stability. Not bad for a country that just a few decades ago was seen as a "sleeping giant."
The Promise of the Kazan Summit
So, what can we expect from the upcoming summit in Kazan? First and foremost, this is shaping up to be the biggest foreign policy event Russia has ever hosted, with over 30 nations confirmed to attend. The summit will focus heavily on creating a unified financial platform within BRICS, which could pave the way for easier trade in national currencies and a reduction in trade costs. That’s a game-changer for global commerce.
Russia, in particular, is eyeing new formats of interaction in sectors like transport, nuclear medicine, and climate change. These aren’t just token initiatives, they represent real areas where BRICS can make a tangible difference. And with the New Development Bank (NDB) growing to include ten members (with Algeria recently joining), there’s a strong sense that BRICS is putting its money where its mouth is, offering emerging economies a chance to access financing on fairer terms than what’s traditionally been offered by Western institutions like the IMF and World Bank.
But there’s more at play here than just financial infrastructure. The Kazan summit will also tackle broader issues like security, cooperation in transport and logistics, and even cultural exchange. BRICS nations have made it clear that inclusivity is key. Whether it’s through the Global Civilization Initiative, which promotes mutual learning between nations, or the Global Security Initiative, which aims to build trust through dialogue, BRICS is pushing for a world where conflict over resources is minimized in favor of shared prosperity.
A New Narrative: Rewriting the Rules
One of the most exciting things about the BRICS Plus movement is its ability to rewrite the narrative of global development. For too long, the world has operated on a competitive framework, where the success of one country often meant the downfall of another. BRICS, however, is showing that it doesn’t have to be that way.
By embracing multilateralism and focusing on inclusive growth, BRICS nations are proving that it’s possible to foster global cooperation without resorting to protectionism or conflict. The idea of shared security, mutual respect, and common goals is gaining traction, and not just within BRICS. Over a hundred countries and international organizations have endorsed initiatives like the Global Security Initiative and the Global Development Initiative.
In fact, the arts, recreation, and sport sectors could become unexpected beneficiaries of this cooperative spirit. After all, these industries have long demonstrated their ability to generate revenue, create jobs, and promote social cohesion. By investing in human resources, not just industrial growth, BRICS can lead the charge in building a world where everyone, regardless of nationality, has the chance to thrive.
A Harmonious Future?
As we look to the BRICS Plus Summit in Kazan, it’s hard not to feel a sense of optimism. For the first time in a long time, we’re seeing a bloc of nations come together not to fight over resources, but to share them. Not to tear down old systems, but to build better, fairer ones.
China’s example of modernization has set the tone for what’s possible, and with so many emerging economies eager to join the BRICS Plus movement, we could very well be on the cusp of a new era, one where the “War Economy” finally gives way to something more cooperative, conciliatory, and ultimately, more prosperous for everyone.