Reform BRICS to play global role

The world has been bogged down by multifaceted challenges. Economic recovery is still a challenging task. The states are struggling to overcome the COVID-19 shock. Debt crisis is deepening with every passing day - it has crossed psychological limit of $300 trillion and stands at $305 trillion. The Russia-Ukraine crisis is bad news for the world. The US and Nato’s push for continuity of conflict is further aggravating the situation, threatening the peace and global development agenda. On top of all these, climate change is threatening very existence of planet Earth. Moreover, non-seriousness or deliberate attempts to shift the burden of action on development is complicating the situation. The world is desperately looking for avenues and options, which can help combat these challenges. In a nutshell, the world is looking for stability.

Against this backdrop, the upcoming BRICS is getting much attention. The group being home to major contributors to global growth has inflated the importance of the summit. However, the most important aspect of the upcoming summit would be BRICS’s policy for expansion and desire to play a more prominent role at the global level. To play a global role, BRICS will have to bring a few fundamental changes in its structure and working.

First, there is a need for expansion of BRICS. It will be an easier task, as a good of countries already have shown interest to join the BRICS. South Africa shared that more than 20 countries have shown interest. Unfortunately, India is resisting the expansion on the basis of self-assumed assumptions. Many experts believe India’s resistance is based on narrow vision and self-interests. Delhi feels the exclusivity of BRICS will boost the status of India and put it in a place to negotiate a better deal with the West. It seems to be a continuity of Indian policy to keep the West happy and intact its presence in Southern bodies. It is not a good omen for the BRICS.

It is perceived the delay in the expansion will dilute the charm of BRICS among the Southern countries. The global South will consider BRICS as an exclusive and elite club of big economies of the South. The Indian attitude will further consolidate the fears of Southern countries. They will start considering BRICS like the G-7 of the global South.

It is not a good sign for the group as BRICS claims to be the voice of the global South. The continuity with the existing structure can create resistance against BRICS. It will weaken the organisation and degrade its status as a Southern voice. Thus, there is a need to expand the membership of the group. It will make BRICS more inclusiveness and strengthen its credential as a Southern voice. It is good to note China and Russia are cognizant of this reality and the need of expansion. Therefore, both the countries are asking for expansion of BRICS. Second, BRICS will have to create some mechanisms to create harmony among the members. It is extremely important because BRICS is home to multiple civilisations. Moreover, member countries also practice different economic and governance models. Though, the multiplicity of civilisations and different models make it a diverse body, it can create problems. Thus, there is a need to create mechanisms to sort out such problems.

Third, BRICS will have to look for alternative currency which can be used as a reference currency for future transactions. The dependency on the US dollar is not a good option. It will create problems for BRICS. Rather, it has started creating problems. Right now, 2/3 loans were sanctioned in US dollars by the New Development Bank.

After the introduction of sanctions against Russia, loan disbursement has become extremely difficult. Thus, BRICS will have to look for an alternative currency and a new financial system to avoid such a situation in the future. Apart from that, a new currency and financial system is also required, as the US and the West have weaponised the US dollar, and the West is dominating the financial system. We have seen the US and the West using the dollar and financial system to punish countries which do not bow in front of them. Fourth, BRICS needs to create formal mechanisms and avenues to share their fortune with others. It is suggested BRICS should look for opportunities after expansion to negotiate a free trade agreement. The organisation can also discuss possibility of establishment of special economic zones for the member countries. BRICS can learn from the China-SCO special economic zone.

Lastly, after expansion, there would be a need to change the name of BRICS. It would be required to make it more inclusive and kill any sign of confusion. It is advised member countries should start deliberating on the possible new name of the organisation. These reforms will strengthen the status, voice and role of BRICS at the global level for a better and equitable world. It will help members to pursue the agenda of global reform by adhering to the principles of respect, values, dignity, justice and people-centric governance. It will also help member countries acquire legitimate space at the global level and end hegemony of a few states.