BRICS Plus, an evolution of the BRICS (Brazil, Russia, India, China, and South Africa) economic alliance, has emerged as a potential challenger to the established global order. With the addition of Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE) in January 2024, the group seeks to broaden its influence and reshape international cooperation.
The objective of BRICS PLUS
Challenge Western Dominance
The block aims to create a multipolar world, reducing reliance on Western-led institutions like the G7. This includes fostering trade using local currencies and establishing alternative financial mechanisms like the National Development Bank (NDM).
Promote Inclusive Growth
BRICS Plus countries, many with large developing economies, seek a more equitable global economic system. They aim to achieve this through cooperation in infrastructure development, technology sharing, and sustainable practices.
Address Global Challenges
The group prioritizes issues like climate change, food security, and energy security. By pooling resources and expertise, they hope to find solutions relevant to the developing world.
Improved Trading Capability
BRICS Plus seeks to create a united front on issues like trade negotiations and global governance reform. This collective voice allows them to negotiate more favorable terms on the international stage.
Impact on the Global Economy
The shifting Power Dynamics of BRICS Plus, representing a significant global population, trade resources and challenges the dominance of established economic blocks like the G7. This could lead to a more multipolar world with more balanced trade negotiations and global governance. The push for trade in local currencies could weaken the US dollar’s hegemony and incentivize the development of alternate reserve currencies and financial institutions with BRICS Plus.
Furthermore, a boost for South-South Cooperation, increased trade, and investment within the block could create new regional value chains and stimulate economic growth in developing economies. Collaboration on infrastructure development, technology transfer, and innovation can further accelerate this process.
Features of BRICS
The addition of new members like Iran and UAE brings fresh perspectives and economic strengths
The BRICS Plus prioritizes the needs of developing economies within the group. This focus could attract other emerging markets seeking a platform for shared challenges.
Emphasis on South-South cooperation which collaboration among developing countries is a core principle. This strengthens the regional value chain within the global South.
BRICS Plus is still evolving its institutional framework and the decision-making process is under development, offering flexibility but also raising questions about long-term effectiveness.
Conclusion
BRICS Plus represents a significant development in the international landscape. Its potential to change global economic dynamics and create a more multipolar world order is undeniable. However, its long-term success will depend on overcoming internal challenges, navigating geopolitical tensions, and delivering tangible benefits for its members. Whether economies will be a story to watch in the coming decades.
Author
Mr. Shakeel Ahmad
M.Phil Scholar
Department of International Relations
Government College University, Faisalabad.
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