- BRICS Summit 2024 in Kazan marks the first meeting with new members like Egypt, Saudi Arabia, and the UAE.
- Leaders will focus on de-dollarization, promoting local currencies, and enhancing intra-BRICS trade.
- Over 30 countries, including Turkey and Indonesia, have expressed interest in joining the BRICS bloc.
- The summit highlights a growing challenge to Western-dominated financial and security systems, pushing for a multipolar world order.
Next week, global attention will turn to Kazan, Russia, where leaders from Brazil, Russia, India, China, and South Africa (BRICS) will gather for their annual summit from October 22 to 24. This year’s meeting is particularly significant, as it marks the first BRICS summit since the inclusion of new members Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. The summit, which will also see the participation of over two dozen other countries, reflects the growing interest in expanding BRICS as a counterbalance to Western-led global structures.
Chinese President Xi Jinping, Indian Prime Minister Narendra Modi, and Russian President Vladimir Putin are among the prominent world leaders attending the 16th BRICS summit. According to China’s foreign ministry, the leaders will engage in high-level dialogues on pressing global issues, including the evolving international landscape.
The BRICS+ Expansion
With Russia holding the BRICS presidency this year, the Kazan summit will feature the first “BRICS+” event, a platform designed to explore the possibilities of further expansion. More than 30 countries have either formally applied or shown interest in joining the bloc. These countries span continents, including Southeast Asian nations such as Thailand, Malaysia, and Vietnam, NATO member Turkey, and major oil producers like Algeria. The potential new members also include Indonesia, the world’s largest Muslim-majority country, and Nigeria, Africa’s most populous nation. Bangladesh, the world’s eighth most populous country, has also expressed interest in joining BRICS.
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The expanded group, which now includes 10 countries, represents about 45% of the world’s population, accounts for 28% of global economic output, and controls 47% of global crude oil production.
For many prospective members, the economic benefits of joining BRICS are evident, particularly in terms of increased trade and investment opportunities.
BRICS’ Economic Agenda: Local Currencies and Trade
One area where BRICS has made strides is in promoting intra-group trade. A statement from the June 2024 BRICS foreign ministers’ meeting encouraged the increased use of local currencies in trade and financial transactions among members. Between 2017 and 2022, intra-BRICS trade rose by 56%, a trend that accelerated after Western sanctions were imposed on Russia following its invasion of Ukraine. According to the Boston Consulting Group, BRICS trade has now outpaced trade between the BRICS countries and the G7 nations.
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For many BRICS members and countries aspiring to join, the group represents an opportunity to escape the dominance of the U.S. dollar in international trade. The dollar’s role as the global reserve currency gives the U.S. significant leverage over the global financial system, particularly in imposing sanctions. As a result, countries like Russia, China, and Iran are eager to develop alternatives to reduce the U.S. dollar’s influence.
BRICS: China and the De-Dollarization Push
China, in particular, has been at the forefront of efforts to de-dollarize global trade. The Chinese renminbi has overtaken the U.S. dollar in Chinese-Russian trade, and Beijing is working with Middle Eastern oil producers to use the yuan for settling oil transactions. While the use of local currencies in intra-BRICS trade is growing, the idea of creating a common BRICS currency remains a distant possibility. For now, Russia is expected to propose new measures for an alternative payment system that would further reduce reliance on the U.S. dollar.
The Quest for Strategic Autonomy
BRICS is not merely about building an anti-Western coalition. Countries like India and Malaysia aim to maintain balanced relations across the globe. For these nations, joining BRICS is about enhancing their strategic autonomy rather than aligning themselves against the West. Membership offers them a platform to amplify their voices in international politics and assert greater influence in global decision-making processes.
As BRICS expands, it seeks to carve out a multipolar world where no single power dominates. The summit comes at a time when the United States’ global influence appears to be waning. The shift from a unipolar to a multipolar world is expected to have significant implications for global peace, security, and international governance.
BRICS : Challenges Ahead: Reforming Global Institutions
The push toward a multipolar world is also tied to growing dissatisfaction with the current international system. The United Nations, particularly the Security Council, has faced increasing criticism for its failure to reflect contemporary global realities. The Security Council’s structure, rooted in the post-World War II era, has made it difficult for emerging powers to secure representation. Although there have been calls for reform, progress has been slow, as the great powers are reluctant to relinquish their vetoes.
The expansion of BRICS could potentially increase the group’s influence, not just economically but also politically, as its members push for reforms in multilateral institutions. According to Islamabad-based international relations expert Mustansar Klasra, “BRICS expansion will increase the power of the group, which is good for both the group and the world.”
BRICS: A New Global Order?
As BRICS nations challenge Western-led global governance structures, the world faces a critical moment of transformation. The trends highlighted in this year’s summit point to the rise of multipolarity, the declining effectiveness of multilateral institutions, and the increasing influence of authoritarian states like China and Russia. This shift away from democratic norms could have profound consequences for the future of international relations.
The 2024 BRICS summit will likely be remembered as a defining moment in the global power structure, marking a significant step toward a multipolar world order. While challenges remain, the expansion of BRICS signals a new era in global politics, one in which emerging economies are determined to reshape the international system to better reflect their interests.