The international economic system had been dominated for decades by the United States, but this financial architecture is rapidly fracturing with the creation of new institutions in the Global South. The BRICS bloc of Brazil, Russia, India, China, and South Africa is working “to develop a fairer system of monetary exchange”, to challenge the “dominance of the dollar”, South Africa’s foreign minister has revealed. Saudi Arabia publicly confirmed that it is considering selling its oil in other currencies. China’s President Xi Jinping said Beijing will buy energy from the Persian Gulf states in its own currency, the renminbi. Prominent economist Zoltan Pozsar, of the Swiss investment bank Credit Suisse, has observed that the “unipolar era” of US hegemony is quickly being replaced with a new “multipolar” order of “one world, two systems”.
As part of an ambitious initiative to build climate resilience in the aftermath of disastrous floods, Pakistan has, with Chinese assistance, put up a high-tech environmental observation station to anticipate weather and research climate change. Disasters such as floods, droughts, and cyclones have struck Pakistan in recent years, causing widespread destruction. Since the monsoon season started in mid-June, Pakistan has seen extremely heavy rains—about three times higher than the country’s 30-year average. As a result, Pakistan is facing its worst floods this century, with rivers spilling their banks, flash flooding, and bursting glacial lakes. The climate minister of Pakistan has declared that floodwaters have spread across one-third of the country, making this the worst flooding event in the country’s history.
President Joe Biden kept a promise to Lula da Silva by congratulating him for “free, fair and credible” elections minutes after Sunday’s results declared Lula the winner over incumbent Jair Bolsonaro. Pundits have interpreted the Biden administration’s words on the Brazilian election as a demonstration that it was rooting for Lula over his opponent, known as “Tropical Trump.” This reasoning is at best misleading, if not completely faulty. What has Washington actually most worried about Lula is the reemergence of a powerful non-aligned movement and the prospect that a progressive like Lula would be at the helm. During his previous two presidencies, Lula cast himself as a spokesman for the Global South. Times have changed since then. There is a growing number of ideologically diverse governments, which were formerly subservient to the U.S. and are now boldly defying Washington’s dictates, creating fertile ground for the expansion of a bloc of non-aligned nations that has been reinvigorated by opposition to NATO’s stance on Ukraine.
In the past two decades, the U.S. grip on global power has been slipping, and new nations and organizations have begun to emerge that challenge American dominance. One of these is the BRICS, an economic and increasingly political bloc of emerging economies: Brazil, Russia, India, China and South Africa. Argentina, Iran and others have expressed an interest in joining this alliance, which has now laid out plans for its own bank and international currency, two moves strike at the heart of American economic hegemony.
Last week the 14th BRICS Summit took place virtually, chaired by Chinese President Xi Jinping. The BRICS bloc (Brasil, Russia, India, China and South Africa) represents a key political, economic, and scientific force in the international arena. These nations represent half of the world’s population and their collective GDP is greater that $20 trillion. In today’s context, the significance of the BRICS summit is increased to the extent that the bloc represents an alternative to the unipolar world of the decaying West. What follows are some of the key points from the Summit’s in Beijing: Multilateral compromise in the defense of international law, which includes being more inclusive with less developed countries. Promote peace and international security without compromising the environment. Support for a an open, multilateral, transparent, inclusive, rules-based, non-discriminatory commercial system.
Can the Brazil-Russia-India-China-South Africa (BRICS) bloc rise to the occasion, as Donald Trump jerks Western imperialism out of traditional alignments? With war-talk against Iran blowing through Trump’s tweets, and with Washington’s trade wars raging against both China and traditional allies, there was talk here in Johannesburg about counter-hegemonic prospects during the last week of July. Chatter about reforming multilateral economic power structures, launching a new BRICS credit ratings agency and prospects for leapfrog technology within the ‘4th Industrial Revolution’ (4IR) also filled the air. The most vainglorious elements of South Africa’s ruling elite were thrilled that BRICS leaders descended for several days of pageantry.
August 04, 2018 "Information Clearing House" - The key take away from the BRICS summit in Johannesburg is that Brazil, Russia, India, China and South Africa – important Global South players – strongly condemn unilateralism and protectionism. The Johannesburg Declaration is unmistakable: “We recognize that the multilateral trading system is facing unprecedented challenges. We underscore the importance of an open world economy.” Closer examination of Chinese President Xi Jinping’s speech unlocks some poignant details. Xi, crucially, emphasizes delving further into “our strategic partnership.” That implies increased BRICS and Beyond BRICS multilateral trade, investment and economic and financial connectivity.
By Patrick Bond for Borderless HK. The Brazil-Russia-India-China-South Africa summit in Xiamen from September 3-5 is already inscribed with high tension thanks to Sino-Indian border conflicts. But regardless of a new peace deal, centrifugal forces within the fast-whirling world economy threaten to divide the BRICS. 1brics Beijing’s logo designers for this summit, perhaps unconsciously subversive, illustrated how the formerly overlapping, interlocking BRICS are now thin and flimsy, wedging themselves apart. Such a prospect was predictable earlier this year as a result of Donald Trump’s ascendance. Both Washington’s neo-conservative ‘Deep State‘ and the (fast-disappearing) paleo-conservatives were intent on ramping up conflict with China – though early on, BRICS splintering towards the US included not only proto-fascist India, for elites in Russia and Brazil also sought friendly relations.
By Mnar Muhawesh for Mint Press News - MINNEAPOLIS — NATO, the International Monetary Fund, and the World Bank are all touted as global organizations, in which every member is deserving of dignity, progress and support. Yet these organizations and others like them are dominated by economic and political heavyweights in Washington, Wall Street, London and Brussels, who are working to preserve the ideals of Empire that exploit, dominate or wholly ignore the Global South.
By Eric Draitser for Mint Press News - NEW YORK — (Analysis) The last decade has seen a remarkable coalescing of non-Western nations in both economic and political partnerships. These multilateral institutions have been championed as alternatives to Western organs of political and economic power such as NATO, the International Monetary Fund, and the World Bank. From the growth of the Shanghai Cooperation Organization to the establishment of the Eurasian Economic Union, China’s “One Belt, One Road” strategy to link much of the Eurasian landmass...
By Danielle Ryan for RT - “Generating information is the most important source of power today. When you generate information, you generate perception.” Those are the words of Roberto Jaguaribe, Brazil’s Ambassador to China. He was speaking at the first BRICS Media Summit which took place in Beijing on December 1. The one-day summit was proposed by the Xinhua News Agency, China’s official press agency, and was jointly organized by media agencies from the other BRICS nations, including RT.
By Mike Whitney in Counterpunch - Let’s cut to the chase: Leaders of the BRICS (Brazil, Russia, India, China and South Africa) realize that global security cannot be entrusted to a country that sees war as a acceptable means for achieving its geopolitical objectives. They also realize that they won’t be able to achieve financial stability as long as Washington dictates the rules, issues the de facto “international” currency, and controls the main levers of global financial power. This is why the BRICS have decided to chart a different course, to gradually break free from the existing Bretton Woods system, and to create parallel system that better serves their own interests. Logically, they have focused on the foundation blocks which support the current US-led system, that is, the institutions from which the United States derives its extraordinary power; the dollar, the US Treasury market, and the IMF.
On the day following the end of the World Cup in Brazil, the Sixth Summit of BRICS (Brazil, Russia, India, China and South Africa) will be held in Fortaleza and Brasilia, on the 14th, 15th and 16th of July, to establish a financial architecture under the slogan: “Inclusive growth and sustainable solutions”. In contrast to the initiatives of financial regionalization in Asia and South America, the BRICS countries, since they do not have a common geographical space, at a time when they are less exposed to simultaneous financial turbulence, can increase the effectiveness of their defensive instruments. A monetary stabilization fund called Contingent Reserve Arrangement (CRA) and a development bank called BRICS Bank will operate as a multilateral mechanism in support of balance of payments and investment financing. De facto, the BRICS will distance themselves from the International Monetary Fund (IMF) and the World Bank, institutions created some seven decades ago under the orbit of the US Treasury Department. In the midst of the crisis, both of these initiatives open space for financial cooperation in the face of the volatility of the dollar, and financial alternatives for countries in critical situations without subjecting themselves to structural adjustment programmes or economic reconversion. As a consequence of the growing economic slowdown on a world level, it has become more complicated for BRICS countries to reach growth rates above five per cent.