Significance of the Kazan BRICS Summit and necessity of an Alternative World Order

Significance of the Kazan BRICS Summit and necessity of an Alternative World Order

The Kazan summit of the BRICS bloc is poised to shape global geopolitics by asserting a collective vision that challenges the current Western-dominated world order. The BRICS alliance, originally comprised of Brazil, Russia, India, China, and South Africa, has expanded its reach by inviting new members, including Egypt, Ethiopia, Iran, and the UAE. This expansion, coupled with the recent geopolitical shifts driven by growing competition between the West and major powers like Russia and China, sets the stage for the summit to become a significant milestone in the ongoing push for an alternative world order.

The BRICS bloc has long been a platform for emerging economies to express dissatisfaction with Western-led global governance structures. With its members representing nearly 40% of the world’s population and around 25% of global GDP, BRICS carries substantial weight in international discussions on economic development, climate change, and multilateral cooperation. However, its expanded membership now introduces new dimensions of influence, particularly in energy markets and developing economies.

The key agenda for the BRICS summit in Kazan is advancing a multipolar world order. This vision seeks to reduce the dominance of the U.S. and the Western-led global financial system by increasing the use of non-dollar currencies in international trade and encouraging reforms in multilateral institutions. The New Development Bank (NDB), created by BRICS in 2015 as an alternative to the World Bank, is one such initiative aimed at offering a non-Western model for development financing. However, the NDB’s lending capacity remains dwarfed by its Western counterparts, indicating that while BRICS has made some progress, it still faces considerable challenges in reshaping the global financial system.

A key theme of the Kazan Summit was the need for reforms in global governance institutions, such as the United Nations (UN), the World Trade Organization (WTO), and the IMF. BRICS nations have consistently argued that these institutions are outdated and do not accurately reflect the current global balance of power. The summit called for a more inclusive and representative international system that gives greater voice to emerging economies and developing nations.

Russia and China, two of the bloc’s most assertive voices, are particularly keen on reducing reliance on the US dollar. This is a strategic goal for both countries, as they face Western sanctions and increasing economic isolation. The inclusion of countries like Iran, which is also heavily sanctioned by the US, reflects the growing identity of BRICS as a counterweight to Western pressure. Iran’s participation, alongside energy giants like the UAE, positions BRICS to challenge the dollar’s dominance in global oil markets, where transactions are predominantly conducted in dollars.

Despite its ambitions, BRICS is not without internal contradictions. While Russia and China aggressively push for an anti-Western agenda, countries like India, Brazil, and South Africa are more cautious. These nations still rely heavily on trade with the US and Europe and are hesitant to fully align themselves with an anti-Western bloc. India, for instance, continues to maintain strong economic relationships with both Western countries and its BRICS counterparts, using the bloc as a forum to advance its interests without burning bridges.

The addition of new members, including those with conflicting geopolitical interests, further complicates the bloc’s cohesion. For example, the UAE and Egypt are key U.S. allies in the Middle East, while Iran has been a longstanding adversary of Washington. This geopolitical diversity raises questions about whether BRICS can maintain a unified agenda while balancing the divergent interests of its members.

The Kazan summit will also highlight tensions within the bloc over how far it should go in expanding its membership. While Russia advocates for further enlargement, others within the bloc are more cautious, wary of diluting its influence or introducing new members with conflicting priorities.

The energy sector will be a focal point of the BRICS summit, especially with the inclusion of major energy producers like Iran and the UAE. By leveraging their collective influence over global energy markets, BRICS could create alternative trading mechanisms that bypass the U.S. dollar, potentially challenging the currency’s dominance in global trade. This goal aligns with Russia and China’s broader ambition to reduce their vulnerability to U.S. sanctions, which often rely on the global financial system’s deep-rooted reliance on the dollar.

However, dethroning the dollar is not without significant hurdles. The U.S. dollar is deeply embedded in global financial systems, with the vast majority of cross-border transactions and reserves held in dollars. While BRICS has made efforts to increase the use of local currencies in trade, progress has been slow, and the global financial architecture remains dominated by Western institutions.

The expansion of BRICS is both an opportunity and a challenge for the Global South. For countries like Brazil, India, and South Africa, the bloc provides a platform to amplify their voices in global governance while maintaining economic relationships with the West. These countries see BRICS as a means to hedge against future uncertainties, allowing them to navigate the geopolitical shifts without having to choose sides in a new Cold War-like rivalry between the U.S. and China.

For Russia and China, however, BRICS is a strategic tool to counterbalance U.S. influence and reshape global governance. Both countries are positioning themselves as champions of a new world order that rejects Western political and economic hegemony. This strategy is particularly important for Russia, which, in the wake of its invasion of Ukraine, is seeking to show that it is not isolated on the global stage.

One of the most significant takeaways from the Kazan Summit was the recognition that the current global order, dominated by the United States and its Western allies, is increasingly ill-equipped to address the complexities of the 21st century. Global challenges such as climate change, pandemics, and economic inequality require a cooperative, multilateral approach that goes beyond the narrow interests of any one region or bloc.

BRICS, with its emphasis on multilateralism, inclusivity, and mutual respect, offers a viable alternative to the existing world order. The group’s vision of a multipolar world, where power is more evenly distributed, contrasts sharply with the dominance of Western powers in global decision-making. As the world becomes more interconnected, BRICS’ model of cooperation and shared responsibility is increasingly relevant in addressing global issues that transcend national borders.

Nevertheless, the expansion of BRICS and its growing influence in global energy markets represent a significant shift in the global balance of power. If the bloc can navigate its internal challenges and present a united front, it could play a pivotal role in reshaping the global order. As the Kazan summit unfolds, the world will be watching to see whether BRICS can translate its vision of an alternative world order into reality.

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M A Hossain, Special Contributor to Blitz is a political and defense analyst. He regularly writes for local and international newspapers.

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