BRICS and the creation of a multipolar world 

News: The Russia-Ukraine conflict has brought BRICS grouping at the centre of discussion due to multiple reasons.

The RIC controls 22% of the global GDP, and it accounts for 16% of global exports of goods and services.

Therefore, the current crisis may consolidate BRICS, especially RIC. It has the potential to become a real alternative to the West. It can create a real multipolar world.  

What is the significance of the Ukraine conflict for BRICS?  

Russia is now alienated and has been expelled from the G-8 group. It may now wish to increase its bilateral trade with India and China. It will lead to a strong Russia-India-China (RIC) relationship or a north Eurasian integrationist core within BRICS.  

New alternative arrangements are being developed. For example, India-Russia have agreed Rupee-Ruble cross currency pairing to settle payments in non-dollar currencies.

India is aiming to build a dedicated payment mechanism known as India’s sovereign Financial Messaging Systems (SFMS) like SWIFT. It will enable energy-related payments, and will challenge the dollar’s hegemony.

Such measures may push for internationalisation of the Indian rupee. In fact, Russia has also decided to export discounted crude oil to India to recoil from sanctions. 

How BRICS members have tried to change world economic system in recent years?

In recent years, BRICS members have attempted to change the world economic system, through the following efforts:

– Creation of the BRICS Development Bank.

– Creation of a reserve currency pool ($100 billion) to offer an alternative to countries in the non-Western world to avert serious economic crises.

– BRICS has also demanded an increase in the number of non-Western states in international financial institutes.  

How are the BRICS states different, and how do they disagree with the West?  

Brazil and Latin America: Brazil has strong left socialist tendencies. it disagrees with the West on social issues. In fact, Latin America is sensitive to diktats from the North and recurrences of the Monroe Doctrine.   

South Africa: Some of the local communists belong to the ruling coalition. The West has been accused of abetting the old order.  

In Russia and India, people do not like the moral values of the West. Both are determined to oppose diktats of the West. 

Way Forward 

The present crisis has increased the weight of India. India is at the centre of a diplomatic triangle in the Indo-Pacific.  It is witnessing high-profile visits from the US, Australia, Japan, China and Russia.

Therefore, New Delhi could be looking at a new dawn. 

Source: The post is based on an article “BRICS and the creation of a multipolar world” published in the Indian Express on 8th Apr 22.