Rise of BRICS

Fleeting moments

The waning influence of the United States as a superpower and mounting influence of China and Russia are giving rise to a new currency – BRICS. The US for many decades has been the centre of both political and financial stability. That status is on the decline because of the developments in the Middle East and emerging new economies, China and Russia.

American foreign policy was based on the Sunni-Shia divide in the Middle East – Saudis vs Iranians. The US made hay by pushing its military weapons worth billions of dollars to Saudi Arabia; America has been the main military hardware supplier to the Saudi Kingdom, followed by Britain and France.

But the situation in the Middle East has changed because of China’s singular efforts at reconciliation between Saudi Arabia and Iran. As a result, both countries decided to mend fences with each other, denying the US the opportunity to pitch one Muslim country against the other and promote its economy, which is essentially war-based. Between 2015 and 2020, the US sold over $64.1 billion worth of weapons to Riyadh, according to the Stockholm International Peace Research Institute.

Barack Obama intended to end the Saudi war in Yemen but his successor Donald Trump encouraged it. Trouble in many countries brews where the likes of Trump are active. We have one too. However, the main reason for keeping the dollar in a dominating position so far is by pegging the Saudi oil price and trading in US dollars. Not anymore.

Since the US put sanctions against Russia from using the SWIFT facility – the Society for Worldwide Interbank Financial Telecommunications system managed by the superpower – Russia decided to export its oil and gas to China in Chinese Yuan. Even Saudi Arabia intends to sell its oil to China in Yuan.

Some countries have decided to free themselves from the yoke of the dollar and adopt a new currency BRICS, conceived by Brazil, Russia, India, China and South Africa. Reportedly, more than two dozen countries are interested in a BRICS currency, thus getting rid of the supremacy of the US dollar as a global reserve currency. Most significantly, it’s time to consider forming a regional economic bloc led by China and Russia and encourage many developing countries in the region to form part of it.

It is an undeniable reality that China has become an economic power and the US has turned into a shrinking empire. There is a diabolical difference in the foreign policies of two countries. China promotes peace and development in other countries; the US imposes war, death and destruction to safeguard the interests of the weapon manufacturers. A powerful lobby represents the armament manufacturers who understandably contribute to the election campaigns of quite a few US senators and congressmen. To return the favour, these men when elected make policies to launch wars on weak countries and plunder their resources, Iraq and Libya for instance.

However, Pakistan’s predicament is different. We are an undeveloped and poor country where every citizen, including children, bear the burden of loan to the extent of nearly Rs1, 80,000 per head. To curtail the poverty line from going up and provide job opportunities within the country, it’s in our paramount national interest to assist develop CPEC, which has been termed as a game-changer for the region.

The project severely suffered during the PTI's rule but has been given a new life by the visit of the COAS to China, later followed by his meeting with China’s Foreign Minister Qin Gang. While Gang emphasized upon the long-standing strategic relationship between the two countries, the COAS promised full support for the CPEC project, which is in great interest of many countries of the region.

Imagine China importing oil and gas from the Middle East through South China Sea traversing about 12,000kms, according to a search report. Compare it with transporting the same materials from Gwadar to China’s border with Xinjiang province, which is only 3,000kms. With such an arrangement in place, and so many countries anxious to join BRICS currency to conduct their mutual trading, the new currency has a profitable and bright future. And on top of it grants freedom from the superpower’s control and exploitation.

The writer is a freelance columnist based in Lahore. He can be reached at: pinecity@gmail.com