BRICS’s Unsettling Relevance in a Shifting Global Landscape

The 18th annual BRICS Summit is being held in India amidst a tumultuous global backdrop. Wars in Ukraine and Iran, economic challenges, and energy market chaos have created an environment of growing unease among Western nations. Meanwhile, the question remains: can BRICS overcome its internal differences to challenge the status quo?

The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, has long been seen as a counterweight to Western-dominated economic alliances. Formed in 2006, its purpose is to strengthen member economies through trade, energy cooperation, and knowledge-sharing on cutting-edge technologies like artificial intelligence. However, this year’s summit will be overshadowed by the pressing concern of shielding its members from the effects of Western sanctions.

The BRICS agenda has evolved significantly since its inception. Initially focused on promoting economic growth and cooperation among member nations, today’s theme, “Building for Resilience, Innovation, Cooperation, and Sustainability,” is more nuanced. In this context, resilience refers to navigating the treacherous waters of Western sanctions.

Leaders from around 30 countries will attend the summit, including Russia’s President Vladimir Putin, China’s President Xi Jinping, and India’s Prime Minister Narendra Modi. Brazil’s leader, President Luiz Inacio Lula da Silva, is notably absent due to local elections. The participation of newer members like Iran, Egypt, and Indonesia reflects a growing desire for economic cooperation outside the traditional Western sphere.

Alicia García-Herrero, chief economist for Asia Pacific at Natixis, pointed out that BRICS leaders will not attempt to substitute the dollar – at least, not yet. Instead, they’ll focus on strengthening economies through trade, energy cooperation, and AI knowledge-sharing. Russia’s discussion with other BRICS partners on conducting trade settlements in digital currencies is a step in this direction.

However, a significant challenge lies ahead: can BRICS genuinely challenge Western dominance when its members are increasingly reliant on dollar-based transactions? The answer is far from clear-cut. While the bloc has shown remarkable resilience in the face of adversity, internal differences and external pressures threaten to derail its momentum.

In recent years, BRICS has struggled to find common ground on key issues like Iran’s nuclear program and ongoing border disputes between India and China. This year’s summit promises no respite from these challenges. The real question is not whether BRICS can overcome its differences – but how it will survive the growing weight of Western sanctions.

The importance of regional economic cooperation in a world where traditional alliances are crumbling cannot be overstated. The West’s increasing isolationism has created a power vacuum that BRICS is eager to fill. While it may not be a game-changer just yet, the bloc’s relevance in a shifting global landscape cannot be denied.

As the summit concludes on September 13, we’ll get a glimpse into the future of international economic cooperation. Will BRICS rise to the challenge and redefine the global order? Or will it succumb to internal divisions and external pressures? The answer remains uncertain – but one thing is clear: this year’s summit will be remembered as a defining moment in the bloc’s history, marking either a bold step towards multipolarity or a desperate attempt to cling to relevance.