With the potential for a new reserve currency and investment without political strings attached, the group can present an alternative to a world choked by Western dominance Bradley Blankenship is an American journalist, columnist and political commentator. He has a syndicated column at CGTN and is a freelance reporter for international news agencies including Xinhua News Agency. Bradley Blankenship is an American journalist, columnist and political commentator. He has a syndicated column at CGTN and is a freelance reporter for international news agencies including Xinhua News Agency. @BradBlank_(L to R) Brazil’s President Michel Temer, Russia’s President Vladimir Putin, China’s President Xi Jinping, South Africa’s President Jacob Zuma and India’s Prime Minister Narendra Modi. © WU HONG / POOL / AFP
The 14th BRICS Summit in Beijing is just wrapping up amid a turbulent international geopolitical landscape, which highlights the importance of the organization in general. Given the combined challenges of the ongoing Covid-19 pandemic, global conflict, a looming economic crash and climate change – the current international system is failing and a new, multi-polar alternative must take its place.
It’s worth noting the context of the BRICS (Brazil, Russia, India, China and South Africa) format. Started in 2009 amid a financial crisis, the main goal of that year’s first BRICS (or BRIC as it was then) summit in Yekaterinburg was to improve the global economic situation and reform financial institutions.
Although these countries are not joined by any particular ideology, each saw the need to democratize the global economic system that had been crashed pretty much single-handedly by the United States in an extraordinarily irresponsible – even illegal by US law, in some instances – manner. The head of China’s Central Bank bluntly called for abandoning the dollar as the global reserve currency in 2009 because of a lack of faith in US monetary leadership.
BRICS developing new global reserve currency – Putin
That was 13 years ago, yet the necessity of a new reserve currency could not be more relevant these days. In fact, Russian President Vladimir Putin announced on June 22 just ahead of the latest BRICS summit that the group was indeed developing its own reserve currency based on a basket of their currencies. With this, Putin said the group is hoping to develop alternatives to the existing international payment scheme.
While this could be seen as provocative in the West, it is actually for the betterment of mankind and is not aimed strictly at one country or one coalition of countries. To note, India pushed back against any “anti-US” rhetoric in the group’s joint statement, being a country that is considered part of the Global South, e.g., a developing country, and also has strong relations with the West.
Yet, at the same time, it’s clear that all BRICS states, including India, would benefit from a democratized global economic and financial system. That is why New Delhi has not joined Western-led sanctions against Russia over the ongoing conflict in Ukraine, because doing so does not serve India’s economic interests – and it would also establish a bad precedent where countries could essentially be excluded from the international community over political disagreements. (RT)
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