Growing interest among developing nations
The revelation by Minister Jaishankar highlighted a growing trend among developing countries to diversify their alliances and economic dependencies. More than 30 nations have reportedly submitted applications to join the BRICS alliance this year, reflecting their collective aspiration to reduce reliance on the US dollar amidst concerns over spiraling debts, which have become a significant burden for these economies.
Developing countries, burdened by a combined debt of $34 trillion and holding billions in US dollars as reserves, are increasingly looking towards alternative economic blocs like BRICS to mitigate risks associated with their debt and reserve holdings.
This application surge indicates trust in the BRICS alliance as a viable alternative to traditional economic and diplomatic alignments, particularly for countries in Asia, Africa, the global south, and even parts of Europe. The alliance, known for its members’ substantial economic growth and political influence, offers a platform for these nations to foster economic cooperation, trade in local currencies, and collectively address global challenges.
Implications of global trade and diplomacy
The potential expansion of BRICS in 2024 could have implications for global trade and diplomacy, signaling a shift towards a more multipolar world order. The inclusion of new members from diverse geographical regions would not only enhance the alliance’s economic strength but also its political influence on the global stage. By potentially moving away from the US dollar in trade transactions, BRICS could pave the way for a new era of financial transactions that prioritize local currencies, thereby challenging the current dominance of the dollar in international trade.
This development comes when the world increasingly seeks alternatives to traditional economic models and alliances. The expansion of BRICS could offer a new model for international cooperation, one that emphasizes mutual benefit, respect for sovereignty, and the importance of diversified economic partnerships.
As the BRICS summit in Kazan approaches, the moment will represent not just an opportunity for BRICS to solidify its position as a major global bloc but also a challenge to ensure that its expansion strengthens the alliance without diluting its coherence and objectives.
