The days of the US dollar being the nexus of all trade in the world is coming closer to ending. The leaders of the world’s emerging economies, BRICS, have called for multipolarity in trade relations.
While not an alliance in the sense of NATO, these countries have been pushing for a greater place in the decision making of international politics. Institutions like the IMG have centered on the US since 1944. Fox News reports:
The BRICS bloc of countries led by China and Russia want to upend the U.S. dollar. Indeed, South Africa’s ambassador to the group could not have been clearer last month when she said, “The days of a dollar-centric world is over. That’s a reality. We have a multipolar global trading system today.”
BRICS is an acronym coined in 2001 by Jim O’Neill, former managing director of Goldman Sachs’ Global Investment Management division, in his seminal paper in which he predicted that the budding economies of Brazil, Russia, India and China (and now includes South Africa) would surpass the world’s top economic superpowers of the G-7 in the years ahead.
BRICS could have more major economies join, who have been unhappy with the West’s dominant economic role. Western adversaries such as Iran are expected to push for their acceptance, but so are major US allies such as Egypt, Saudi Arabia, and Argentina. The Guardian explains why Putin will not be present:
Dozens of leaders of other countries in Africa, Asia and the Middle East will also attend, many hoping to be invited to join the bloc.
Russia will be represented by its foreign minister, Sergei Lavrov, after Vladimir Putin decided not travel to Johannesburg to avoid forcing South Africa to choose between fulfilling conflicting obligations as hosts of the summit and as a member of the international criminal court.
On paper, BRICS look like a decisive counterweight to the West’s institutions. Apart from wanting to replace the dollar as the sole currency for trading, the countries have varying policies. China is engaged in fierce competition with Russia and India. Brazil and South Africa share many social values with the West, including a close adherence to international norms such as the International Criminal Court.
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