The 2024 BRICS Summit in Kazan (Russia) stands out as the world observes the most recent shifts in alliances.
This is not just another meeting of world leaders and diplomats. It shows the frustration of many nations with an Western-dominated system which they feel does no longer serve their best interests.
BRICS represents almost half the global population with new members such as Iran, Egypt and Ethiopia.
The summit provided a chance for Russian President Vladimir Putin to show that Russia is still connected with key players in the world despite geopolitical tensions and sanctions.
For the other BRICS countries, this is an opportunity to find alternatives to the Western economic system, and to strengthen their positions in the world.
The growing number of BRICS members and their ambitions reveal a strong desire for change even though the road to achieving this goal remains unclear.
The 2024 BRICS Summit is important
BRICS was formed in 2009 and originally brought together Brazil, Russia India China and South Africa to form a group of developing economies that aimed to counter the influence of Western institutions such as the IMF or World Bank.
This is the first BRICS summit since five new countries were added. More than 30 nations have reportedly expressed interest in attending.
This gathering in Kazan brought leaders and representatives of 36 different countries together. It was a signal to the world that Russia is still connected despite Western economic sanctions and Western sanction.
Hosting the summit gave Russia a chance counteract the story of its isolation after the 2022 invasion in Ukraine.
Vladimir Putin took the chance to highlight BRICS’ role in creating a “new world order” that will challenge Western hegemony.
He criticised the West for its “perverse” methods, including economic coercion and sanctions. According to him, these have led to global conflict.
The summit was a great opportunity for Russia to show that they still have key allies despite being cut off from most Western forums, such as the G20.
The BRICS group accounts for 35% of the global economy, but its ability to provide a counterbalance is still in doubt.
Kazan Declaration was a summary of the Summit’s results in 134 points. It addressed a number of issues, but only mentioned the Ukraine War once. The document called for the adherence to UN Principles rather than echoing Russia’s viewpoint.
The group’s divisions within the organization prevent them from taking a united stance in one of the biggest geopolitical disputes of today.
Are BRICS able to break away from the Dollar?
The Kazan Summit was dominated by the struggle for financial independence, a movement that aims to free the country from Western systems such as the US Dollar and SWIFT.
After being banned from SWIFT by 2022, Russia is eager to find alternatives to SWIFT that will allow them to continue trading with their partners and bypass Western sanctions.
BRICS have not, despite their rhetoric, offered a plan that would replace the US dollar as the global trading currency.
The future of BRICS payment systems is uncertain, despite the fact that China and Russia have pushed for the use of local currencies in bilateral trade.
Mario Holzner, an expert at the Vienna Institute for International Economic Studies notes that such systems will likely operate on a lower level than they would like and won’t be able to change anything.
As of 1999, 59% (down from 70%) of the global reserves were still in dollars.
It raises the question of how realistic BRICS ambitions really are. Brazil’s Luiz inacio Lula da So proposed a BRICS common currency last year. But skepticism is still high.
S. Jaishankar, India’s Minister of External Affairs has publicly questioned the viability of such a new currency.
The group appears to be more interested in using national currencies as a way to limit exposure to dollar fluctuation–a tactic that might offer some short-term benefits, but does not have the power to transform the world’s reserve currency.
What is the difference between a diplomatic victory and a missed chance?
The Kazan Summit was not devoid of diplomatic success despite these difficulties.
The growing popularity of BRICS outside its usual sphere was highlighted by the presence of Turkish president Recep Erdogan.
In the meantime, UN Secretary General Antonio Guterres also attended and met with Putin despite Ukraine’s criticism.
The level of participation indicates that BRICS has become a major platform for dialogue on the international stage, allowing countries to diversify their risks in a multipolar environment.
The summit revealed internal contradictions. While Russia, China, South Africa, Brazil and India are more confrontational, they all have a similar anti-Western agenda.
Even as these countries explore cooperation in economics with Russia and China, they have kept strong links with Europe and the US.
India, for example, has purchased discounted Russian crude oil. It benefits from the lower price while not aligning itself with Moscow’s narrative of war.
The tensions within BRICS make it difficult to create a united front.
Mo Ibrahim, a Sudanese/British entrepreneur, said during the summit that many countries view BRICS’s as a means to have a say in world affairs, traditionally dominated post-World War II by institutions such as the IMF or World Bank.
The lack of agreement on important issues such as the conflict in Ukraine highlights the difficulty in developing a cohesive strategy.
What’s worse, more bark or bite?
While the 2024 BRICS Summit may be a diplomatic success in terms of its participation, it’s true impact is a matter of substance and not style.
The alliance appears to be a result of global change. Countries that previously had to choose between Washington and Beijing can now forge their path.
The appeal of BRICS is its promise to create a global environment where the emerging economies will have greater control over rules and norms.
BRICS is a group that has aspirations, not revolutionary goals.
Kazan’s summit was full of ambitions, but it lacked structural reforms that would have reshaped global finance meaningfully.
The alternatives to the US dollar are still largely a matter of discussion.
The expansion of the bloc is impressive but it means that a wider range of interests must be managed, and this could slow down progress towards real economic integration.
The Kazan Summit was an opportunity for Russia to demonstrate that it is not alone, but this does not mean they are winning.
Moscow’s limitations are highlighted by the same sanctions which made BRICS more attractive to new potential members.
It is important to note that the summit was a symbolic success, but it masks a more fundamental truth. Even as BRICS grows in membership, it still remains a place where Western grievances are expressed more often than concrete solutions are offered.
Bottom line: BRICS are a force that is growing, but it is not yet a major player.
The desire to create a better world is evident in its expansion, yet the necessary tools are lacking.
For the moment, it is only a pressure valve that can be used by countries who are wary of Western influences. It does not replace them.
It will be a test to see if BRICS can transform its wide membership and lofty rhetoric into a true alternative which shifts global power balance. It is still a force to be reckoned with, though not the global powerhouse it wants to become.
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