South Africa is preparing to host an influential summit of BRICS nations, joined by other participants from the Global South, aiming to counterbalance the dominance of Western powers and navigate their internal differences. The forthcoming gathering, scheduled for August 22-24 in Johannesburg, will bring together more than 40 leaders, including Cyril Ramaphosa of South Africa, China’s Xi Jinping, India’s Narendra Modi, Brazil’s Luiz Inacio Lula da Silva, and Russian Foreign Minister Sergei Lavrov standing in for Vladimir Putin, who will participate virtually due to potential legal concerns.
The meeting carries significant implications, encompassing the following key aspects:
- Membership Expansion: The central agenda of the summit involves deliberations on the potential expansion of the current BRICS lineup. This exclusive club, consisting of Brazil, Russia, India, China, and South Africa, is contemplating the addition of new members among the 23 nations expressing interest, such as Indonesia, Saudi Arabia, and Egypt. While China’s push for enlargement has raised concerns in India about China’s dominance, and Brazil’s apprehensions about straining Western relations, the resistance to expansion has somewhat softened. The nations are now advocating for clear admission rules and criteria.
- Shifting Currency Dynamics: The coalition will revisit the idea of reducing the supremacy of the US dollar in global transactions, prompted by US interest rate increases and geopolitical tensions. Proposals include expanding the use of national currencies among members for trade and establishing a shared payment system. While creating a unified currency remains a long-term aspiration, various BRICS members have already taken steps to employ their local currencies in cross-border commerce, hinting at a gradual shift away from the US dollar.
- New Development Bank and Financial Diplomacy: The New Development Bank, established as an alternative to the IMF and World Bank, is at the centre of the BRICS financial strategy. It’s striving to diversify funding sources and boost lending in local currencies by 2026. The bank’s plans have been influenced by Western sanctions on Russia, a founding member, following its involvement in Ukraine. Efforts are underway to expand the bank’s funding sources, with Middle Eastern and Asian countries expressing interest in contributing capital.
- Addressing Global Conflicts: The ongoing conflict between Russia and Ukraine will feature prominently on the agenda. BRICS nations, while generally aligned on this matter, have diverged in their stance. South Africa is spearheading an African initiative to bring an end to the fighting, reflecting the bloc’s ambitions to influence global peace.
- Food Security and Agricultural Cooperation: Escalating food prices, exacerbated by actions from India and Russia, have detrimental effects on vulnerable populations. India’s protective export measures and Russia’s withdrawal from a grain deal have exacerbated the problem. The summit will address these concerns, considering the significance of rice in the diets of Asians and Africans. Both India and China are expected to discuss agriculture-related matters in dedicated forums during the event.
- As these leaders gather in Johannesburg’s business hub, Sandton, they are poised to navigate a range of critical issues that span economic, geopolitical, and humanitarian domains. The BRICS summit presents an opportunity for these nations to collaboratively shape the global landscape, challenging established Western dominance and striving for a more equitable and balanced world order.