Ukraine Crises Acceleratees Economic Polarization- BRICS as a Model

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Samson:  Ukraine crisis accelerates economic polarization... BRICS is a model

28th August, 2022

The international community is in a state of anticipation and waiting for the outcomes of the important developments it is witnessing, especially in the post-"Korna pandemic" and "Ukrainian crisis" phases.

An impression has been established since the outbreak of the Covid-19 virus less than three years ago that the conditions of this pandemic will generate a new phase in relations between countries and peoples, but as soon as the Ukrainian crisis erupted, six months ago, international interest in the pandemic declined. The question has become when and how will the Ukrainian crisis end, not when we will witness the end of the Corona pandemic?

Most experts talk about a new world order that will be born after many struggles experienced by the international community, whether in the economy, politics or security, each in his field of interest, but they point out that we are heading towards a new world order in which the rules of coexistence and relations will be different, whether they were in most decades of the millennium the second or in the first and second decades of the third millennium.

Much has been written about the political dimensions of this system, but it is useful to focus on the economic frameworks, which are the focus of attention of many countries, especially the countries of the “third” world. These political dimensions may constitute the new foundations on which the new world order is based, which is trying to build new bases of economic, political and security relations. We are talking about the Shanghai Economic Cooperation Organization; About the BRICS group; For the Association of Southeast Asian Nations “ASEAN” and others.

Perhaps the “BRICS” group constitutes the most promising framework that makes many mouth-watering countries under the domination of the dollar, the International Monetary Fund, economic sanctions, monopoly on science and technology, human ignorance and human arrogance.

“BRICS” is an abbreviation of the Latin BRICS initials that make up the names of the countries with the fastest economic growth in the world, namely; Brazil, Russia, India, China and South Africa. The first BRICS leaders' meeting was held in July 2008 on the Japanese island of Hokkaido, where the G8 Summit met. 

The BRICS summit was attended by Russian President Vladimir Putin, Chinese President Hu Jintao, Indian Prime Minister Manmohan Singh and Brazilian President Lula da Silva. 

The heads of these countries agreed to continue coordination in the most immediate global economic issues, including cooperation in the financial field and solving the food issue.. In 2009, the first summit between the heads of the four founding countries was held in Yekaterinburg, the fourth city of Russia, during which the announcement of the establishment of a “bipolar world order”. As soon as the country of South Africa joined the group in 2010, it became called "BRICS" instead of "BRIC" previously.

The area of ​​these countries constitutes a quarter of the land area, and their population is approximately 40% of the Earth's population.

 By the year 2050, the economies of these countries are expected to compete with the economies of the richest countries in the world, and it is expected that these countries will form an alliance or a political club among themselves in the future. 

This group has economic priorities.

Therefore, at the summit held in Russia in 2015, it discussed the BRICS payment system, where ministers and experts from the countries of the group began to discuss the alternative payment system to the “SWIFT” system controlled by the United States; To the development of payment systems and transfers in national currencies.

This strategy is, in fact, trying to stand up to the dominance of the dollar in international financial settlements in the interest of “a multilateral and multinational payment system that would provide greater independence.”

The BRICS countries are not included in a political alliance, but they coordinate with each other to influence basic trade agreements. They have the ability to form a strong economic bloc outside the framework of the Group of Seven (G7), because the BRICS countries are more developed in the economic field globally.

And this matter is supported by a number of strengths, including Brazil, the giant of Latin America, which is one of the most supplier countries of raw materials, Russia, the global exporter of potential energy and gas, and India, which exports information technology, while China has an advanced and developed production and demographic position, and finally South Africa, which is an important mining region globally. It has a very important global strategic position by overseeing the Indian Ocean and the Atlantic Ocean together, and these are, in short, the most prominent pillars of the “BRICS” countries.

The United States is considered one of the main opponents of this group and calls it a group of “corrupt countries”, but most economic analysts believe that this group, which was formed far from European countries and the United States, can constitute a very big challenge to the current world order.

At the last meeting of this group, which was held in China, Algeria was invited; Egypt; Indonesia; Kyrgyzstan; Senegal; Uzbekistan; Cambodia; Ethiopia; Fiji; Malaysia and Thailand while Pakistan failed to attend due to opposition from India. Iran has applied to join this group.

There is a belief that the Ukrainian crisis will push this group to speed up the economic coordination process due to its diversified economic and human potential in light of the economic problems that the economies of the entire world suffer from, especially Europe and America.

In short, our current world is being reshaped, and the post-Ukrainian crisis is not the same as it was before it. The economic component will be a determining element for the new world order that will be born on the ruins of unipolarity.  LINK