BRICS Summit in Johannesburg Paves the Way for a New Global Order

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The just-concluded BRICS Summit in Johannesburg has paved the way for a new global order, reminiscent of the historic Bandung Conference in 1955. This summit, which brought together developing countries, has highlighted the growing importance of BRICS on the international stage. With the accession of six new members – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates – BRICS is seeking a new equilibrium and asserting itself as a leading economic force.

BRICS, consisting of Brazil, Russia, India, China, and now South Africa, has steadily gained recognition and momentum since its inception in 2006. The establishment of the New Development Bank and the Contingent Reserve Arrangement in 2014 further solidified its presence. The BRICS Trade and Investment Working Group report in 2022 revealed that BRICS is the world’s most important economic bloc, accounting for over a quarter of global GDP and 42 percent of the world’s population.

One of the key achievements of BRICS is the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB has approved more than 80 projects and disbursed around $30 billion in loans, supporting various developmental initiatives across member states. Unlike traditional financial institutions, the NDB provides infrastructure financing without imposing harsh conditions, making it an attractive alternative for developing countries and giving BRICS a bigger say in global financial governance.

Furthermore, BRICS has been promoting sectoral cooperation in various areas, including science and technology, trade, banking, investment, energy, agriculture, healthcare, and the fight against transnational crime. Brazilian President Luiz Inácio Lula da Silva proposed the creation of a common currency within BRICS to settle trade deals, aiming to reduce reliance on the US dollar. This move reflects BRICS’ efforts to challenge the existing global financial architecture and establish alternative mechanisms.

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The just-concluded summit also emphasized new areas of cooperation, such as the digital economy, green economy, supply chains, artificial intelligence, education, and cultural and people-to-people exchanges. Notably, the expansion of BRICS to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates demonstrates the organization’s commitment to inclusive multilateralism. Despite the differences in geographical location, development stages, and political systems among the member states, BRICS remains dedicated to promoting new possibilities and adopting innovative approaches to tackle global challenges.

While developed countries still dominate global governance mechanisms, BRICS has successfully brought the voice of developing countries to the forefront. By enhancing its economic influence and advocating for reforms within international organizations such as the International Monetary Fund, World Bank, and World Trade Organization, BRICS is striving to make global governance more just and equitable.

In summary, the recent BRICS Summit in Johannesburg has highlighted the organization’s growing significance and its role in shaping a new global order. With the inclusion of six new members, BRICS is seeking a new equilibrium and asserting itself as a leading economic force. The establishment of the NDB and CRA, along with the promotion of sectoral cooperation and the pursuit of alternative mechanisms, further demonstrate BRICS’ commitment to inclusive multilateralism and its efforts to challenge the existing global financial architecture. As BRICS continues to gain momentum, it is set to play an increasingly influential role in shaping the future of global governance.

Frequently Asked Questions (FAQs) Related to the Above News

What is the BRICS Summit?

The BRICS Summit is a meeting of the member countries of BRICS (Brazil, Russia, India, China, and South Africa) along with other invited countries. It provides a platform for discussions and collaborations on various economic, political, and social issues of mutual interest.

When was the most recent BRICS Summit held?

The most recent BRICS Summit was held in Johannesburg.

Which new countries were included in BRICS?

The new members included in BRICS are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.

What is the significance of the BRICS organization?

BRICS is significant because it brings together major emerging economies that collectively account for a significant share of global GDP and population. It aims to establish a new global order that challenges the dominance of developed countries and promotes inclusive multilateralism.

What are the achievements of BRICS so far?

One of the key achievements of BRICS is the establishment of the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB provides infrastructure financing without harsh conditions, supporting developmental initiatives. The CRA provides a financial safety net for member countries facing balance of payment issues. BRICS has also promoted sectoral cooperation in various areas, including science and technology, trade, banking, investment, energy, agriculture, healthcare, and the fight against transnational crime.

How does BRICS challenge the global financial architecture?

BRICS challenges the existing global financial architecture by advocating for reforms within international organizations like the International Monetary Fund, World Bank, and World Trade Organization. It aims to establish alternative mechanisms and reduce reliance on the US dollar by creating a common currency within the organization.

What are the new areas of cooperation emphasized by BRICS?

The recent BRICS Summit emphasized cooperation in new areas such as the digital economy, green economy, supply chains, artificial intelligence, education, and cultural and people-to-people exchanges.

How does BRICS promote inclusive multilateralism?

BRICS promotes inclusive multilateralism by expanding its membership to include countries from different regions and stages of development. This demonstrates a commitment to giving developing countries a voice in global governance and shaping a more just and equitable global order.

What is the future role of BRICS in global governance?

As BRICS continues to gain momentum, it is set to play an increasingly influential role in shaping the future of global governance. With its growing economic significance and efforts to challenge the existing global financial architecture, BRICS aims to create a more balanced and fair international system.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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