Latest news with #DjoomartOtorbaev
IOL News
27-05-2025
- Business
- IOL News
BRICS Plus: The Emerging Alternative to Western Economic Dominance
Officials attend a BRICS Plus plenary session in Kazan, Russia on October 24, 2024. Since its inception, BRICS Plus has transitioned from focusing primarily on economic and trade collaboration to addressing political and security matters, says the writer. Image: AFP Djoomart Otorbaev The US administration's economic decisions have wreaked havoc on world markets. President Donald Trump's approval rating for the first 100 days stood at 44 per cent, lower than all his predecessors and even lower than his rating during the first 100 days of his first term. The anticipated "golden age of America" has yet to materialize, and many US citizens doubt the effectiveness of the trade war supposedly initiated for the nation's future prosperity, instead, they anxiously anticipate and fear inflation. During this period, however, Trump has not overlooked BRICS. At a White House news conference and in his social media posts, he has repeatedly made a startling claim that the BRICS Plus nations would incur 100-percent tariffs if they created a single currency to challenge the dollar, even though no BRICS Plus nation has proposed such an idea. Despite concerns surrounding its organization, the previous BRICS Summit held in Kazan, Russia, in October 2024, proved to be a notable success. Nearly all leaders from the original five BRICS nations — Brazil, Russia, India, China and South Africa — and the presidents of the four new member countries, Egypt, Ethiopia, Iran and the United Arab Emirates, attended. The only exception was Brazilian President Luiz Inácio Lula da Silva, who could not attend due to illness. Following the summit, Indonesia officially joined as the bloc's newest member in January 2025. Additionally, nine more nations, including Kazakhstan and Uzbekistan, were recognized as "partner countries". Many analysts hailed the expansion of the coalition as a significant turning point, signalling the emergence of a post-Western world order where Global South nations collaborate to address their challenges together. Given the participant composition, a more powerful BRICS Plus has the potential to emerge as a central geopolitical and geoeconomic entity. The member states of BRICS Plus represent roughly 45 per cent of the global population and contribute over 35 per cent of the world's GDP based on purchasing power parity. Collaboration within the bloc is swiftly becoming institutionalized, with multinational partnerships and working groups actively addressing shared interests such as energy security, technology advancement, health, climate change and sustainable growth. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The New Development Bank, founded in 2015 with an initial subscribed capital of $50 billion, and the Contingent Reserve Arrangement — a 2014 agreement among BRICS Plus' central banks for mutual support during unexpected currency crises, which has funding of $100 billion — are effectively structured and in operation. Since its inception, BRICS Plus has transitioned from focusing primarily on economic and trade collaboration to addressing political and security matters. The organization operates within a well-defined framework based on three pillars: economics and finance, politics and security, and cultural and people-to-people exchanges. These pillars align with the strategic priorities of the member nations, including economic development, security, narrative and normative influence and with Beijing's three global initiatives concerning security, development and civilization. As BRICS Plus continues to follow its previously established decisions, the new strategies of the US administration and conflicts within the Western world will impact the bloc's actions. With the tensions and disagreements within the G20, the United Nations, and even the G7, the rise of the grouping has triggered President Trump's aggressive approach toward BRICS Plus. The growing tensions between China and the US, along with President Trump's aggressive approach toward BRICS Plus, suggest the possibility of a confrontational dynamic. The future of BRICS Plus is influenced by the actions of the US and Europe. These actions will determine whether the bloc will strive for geopolitical neutrality or seek to establish an alternative political and economic framework, potentially impervious to Western sanctions. BRICS Plus has the potential to serve as a model and a substantial alternative to Western international cooperation, prioritizing equality and consensus-driven decision-making. However, the increasing number of member nations complicates the decision-making process. Under these circumstances, BRICS should make more effort in upholding unity through shared goals and constructive engagement given the varied interests of its members. Several influential BRICS Plus nations are working to lessen the global financial system's and markets' reliance on Western institutions. The US administration's aggressive tariff and sanctions policies have intensified the necessity to enhance instruments such as the NDB and the BRICS Plus national currency pool, which are intended to be immune to sanctions.
IOL News
27-05-2025
- Business
- IOL News
BRICS Plus: The Emerging Alternative to Western Economic Dominance
Officials attend a BRICS Plus plenary session in Kazan, Russia on October 24, 2024. Since its inception, BRICS Plus has transitioned from focusing primarily on economic and trade collaboration to addressing political and security matters, says the writer. Image: AFP Djoomart Otorbaev The US administration's economic decisions have wreaked havoc on world markets. President Donald Trump's approval rating for the first 100 days stood at 44 per cent, lower than all his predecessors and even lower than his rating during the first 100 days of his first term. The anticipated "golden age of America" has yet to materialize, and many US citizens doubt the effectiveness of the trade war supposedly initiated for the nation's future prosperity, instead, they anxiously anticipate and fear inflation. During this period, however, Trump has not overlooked BRICS. At a White House news conference and in his social media posts, he has repeatedly made a startling claim that the BRICS Plus nations would incur 100-percent tariffs if they created a single currency to challenge the dollar, even though no BRICS Plus nation has proposed such an idea. Despite concerns surrounding its organization, the previous BRICS Summit held in Kazan, Russia, in October 2024, proved to be a notable success. Nearly all leaders from the original five BRICS nations — Brazil, Russia, India, China and South Africa — and the presidents of the four new member countries, Egypt, Ethiopia, Iran and the United Arab Emirates, attended. The only exception was Brazilian President Luiz Inácio Lula da Silva, who could not attend due to illness. Following the summit, Indonesia officially joined as the bloc's newest member in January 2025. Additionally, nine more nations, including Kazakhstan and Uzbekistan, were recognized as "partner countries". Many analysts hailed the expansion of the coalition as a significant turning point, signalling the emergence of a post-Western world order where Global South nations collaborate to address their challenges together. Given the participant composition, a more powerful BRICS Plus has the potential to emerge as a central geopolitical and geoeconomic entity. The member states of BRICS Plus represent roughly 45 per cent of the global population and contribute over 35 per cent of the world's GDP based on purchasing power parity. Collaboration within the bloc is swiftly becoming institutionalized, with multinational partnerships and working groups actively addressing shared interests such as energy security, technology advancement, health, climate change and sustainable growth. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The New Development Bank, founded in 2015 with an initial subscribed capital of $50 billion, and the Contingent Reserve Arrangement — a 2014 agreement among BRICS Plus' central banks for mutual support during unexpected currency crises, which has funding of $100 billion — are effectively structured and in operation. Since its inception, BRICS Plus has transitioned from focusing primarily on economic and trade collaboration to addressing political and security matters. The organization operates within a well-defined framework based on three pillars: economics and finance, politics and security, and cultural and people-to-people exchanges. These pillars align with the strategic priorities of the member nations, including economic development, security, narrative and normative influence and with Beijing's three global initiatives concerning security, development and civilization. As BRICS Plus continues to follow its previously established decisions, the new strategies of the US administration and conflicts within the Western world will impact the bloc's actions. With the tensions and disagreements within the G20, the United Nations, and even the G7, the rise of the grouping has triggered President Trump's aggressive approach toward BRICS Plus. The growing tensions between China and the US, along with President Trump's aggressive approach toward BRICS Plus, suggest the possibility of a confrontational dynamic. The future of BRICS Plus is influenced by the actions of the US and Europe. These actions will determine whether the bloc will strive for geopolitical neutrality or seek to establish an alternative political and economic framework, potentially impervious to Western sanctions. BRICS Plus has the potential to serve as a model and a substantial alternative to Western international cooperation, prioritizing equality and consensus-driven decision-making. However, the increasing number of member nations complicates the decision-making process. Under these circumstances, BRICS should make more effort in upholding unity through shared goals and constructive engagement given the varied interests of its members. Several influential BRICS Plus nations are working to lessen the global financial system's and markets' reliance on Western institutions. The US administration's aggressive tariff and sanctions policies have intensified the necessity to enhance instruments such as the NDB and the BRICS Plus national currency pool, which are intended to be immune to sanctions.
