Link to article: https://www.bbc.com/news/articles/cly3ylwg4eqo
Later this week in Russia, Vladimir Putin has gathered multiple heads of state in what the Kremlin called one of the “largest-scale foreign policy events ever” to occur in Russia. Brics is a grouping of Brazil, Russia, India, China, and South Africa, often acting as the counter to the Western-dominated world and economy. According to the Kremlin, there over 30 additional countries that wish to join Brics, some of which will be present at the summit in the town of Kazan. Russia’s large scale economic goals include diminishing the influence of the US dollar as well as facilitating the development or use of new cross-trade mechanism without the use of the dollar, euro, or any currency from the G7 countries. By breaking the dominance of the US dollar, Russia will be less affected by sanctions such as the ones placed upon them as caused by the invasion of Ukraine. However, a major issue within the unity of Brics lies in the lack of unity between countries such as China and India, or Iran and Saudi Arabia. The influence of Brics could be greatly enlarged by shared fundamental belief, unlikely due to country’s ideological differences.
Russia is demonstrating its geopolitical influence by hosting the Brics summit in the midst of international outrage towards Putin. By hosting Brics and interested countries, Putin exhibits that NATO and the West’s efforts to isolate Russia are failing. Moreover, Russia’s efforts to decrease the influence of the US dollar will have lasting effects on the global economy; shifting away from G7 currencies will benefit Russia, weakening the economies of countries trading with Russia forced to shift away from the US dollar. Historically, countries such as China have continued the use of the dollar in order to maintain trade relations with G7 countries regardless of ideological differences.
During the Brics summit, I imagine that Putin will encourage more countries to join Brics and further create an economic alliance against the West. However, I doubt that China and India will fully move away from the US dollar, due to the prevalence of trade between themselves and the US and allies. An increase in the influence of Brics over time due to UAE and Saudi Arabia, rich and resourceful countries, many shift economic power towards Brics and away from the US and allies, but not completely.
In class, we have discussed ideologies of international relations and types of power. One thing that we discussed in class that is prevalent in this situation is the security dilemma. Russia is fearful of the economic power of the US (as seen in sanctions and the global acceptance of the US dollar) and is taking steps to increase its own economic influence by hosting a Brics summit, attempting to add countries, and moving away from the dollar. In the future, I am predicting the US and NATO to take steps to immortalize and increase the power of the dollar and G7 currencies through hard economic power (further sanctions or tariffs).