This week, Russian President Vladimir Putin convened more than two dozen countries to discuss a 'new world order' free from Western hegemony and the global dominance of the U.S. dollar. The summit, held in Kazan, Russia, brought together members of the BRICS alliance, which includes Brazil, Russia, India, China, and South Africa.
One of the key objectives of the summit was to reduce reliance on the U.S. dollar in order to evade sanctions imposed by the U.S. and the West. Putin emphasized that the use of the dollar as a weapon was a mistake by those who employ such tactics.
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi used the summit to showcase hopes for a more harmonious relationship, following decades of cross-border strife. The summit also highlighted Russia-China cooperation as a stabilizing factor in international affairs.
The BRICS alliance, initially conceptualized by Goldman Sachs analysts to describe the economic rise of emerging markets, has seen significant growth. Iran, Egypt, Ethiopia, the United Arab Emirates, and Saudi Arabia joined in January, with Turkey, Azerbaijan, and Malaysia expressing formal interest in membership.
The alliance now represents half of the world's population and 35% of global output. While Russia is pushing an anti-Western agenda, other members like Brazil, India, and South Africa advocate for a more cooperative approach to tailor international institutions to meet the needs of the Global South.
Iranian President Masoud Pezeshkian urged BRICS to move beyond being a 'dialogue club' and criticized the West's frequent use of sanctions. The alliance aims to reform institutions like the World Bank and the International Monetary Fund to better serve the developing world.
Despite the discussions, there is no clear plan yet to replace the dollar with a BRICS-based currency for international transactions. Former President Donald Trump's warnings of imposing '100% tariffs' on nations that abandon the dollar underscore the significance of the ongoing debate surrounding global currency dominance.
