20 minus 7: What are the real prospects for BRICS+

One of the main economic News weeks - the association of the BRICS countries may expand by attracting new members - Iran and Argentina. There are very different assessments of this message in the press, from obvious skepticism to delight in the spirit of the fact that the Big Seven and the dollar are finally out. What are the real prospects for BRICS+?

20 minus 7?

First of all, it should be remembered that BRICS as an international organization has not yet been properly formalized. This is an unofficial club of five countries, by the first letters in the name of which it is named (eng. BRICS is an abbreviation for Brazil, Russia, India, China, South Africa). For this reason, it is not entirely clear where exactly, to whose office and at what address the applications for membership from Tehran and Buenos Aires were received, about which Maria Zakharova, special representative of the Russian Foreign Ministry, spoke:

While the White House was thinking about what else in the world would be turned off, banned and spoiled, Argentina and Iran applied to join the BRICS.

The fact that the necessary procedures are simply absent was tactfully hinted at by Yury Ushakov, aide to the President of the Russian Federation:

In principle, we take a positive view of the question of a possible expansion of this association, although we understand that this problem needs to be approached very, very carefully, carefully. What do we offer? First, determine the procedures and requirements for possible candidates for joining the BRICS. The main thing is to develop these rules for a possible expansion, and then consider specific candidates.

However, for several years now there has been a New BRICS Development Bank created jointly by Brazil, Russia, India, China and South Africa, the purpose of which is to finance the development of infrastructure projects. Since 2015, work has been underway to create, through BRICS, its own analogue of the payment system for interbank transfers SWIFT, as well as an alternative payment system BRICS Pay. Moreover, the other day, President Vladimir Putin said that the BRICS countries can create their own reserve currency, which we will discuss in detail told earlier.

How does all this fit together?

It is obvious that this international structure is currently in the stage of active development and rethinking of its role in the world. Initially, it really was an informal club of developing countries that had no place in the Western world. However, after the events of 2014 and especially after February 24, 2022, when Russia was actually extrajudicially robbed by “gentlemen” and crushed by a colossal amount of economic sanctions, the meaning of BRICS has changed. Everyone carefully looked at what was happening and concluded that the same could happen to them at any moment. That is why there was a request for a real alternative to the "Big Seven" and a collective counterbalance to the collective West.

There is no other structure in the world that has the corresponding potential, except for BRICS. Domestic Western liberals are very fond of comparing the economic indicators of Russia and the G26 with a smart look, naturally, not in favor of our country. However, the combined potential of only five BRICS countries represents a significant alternative: it is 43% of the land on Earth and 27% of the world's population, as well as XNUMX% of world GDP. Russia is a recognized pantry of natural resources, China and India are "world workshops". And soon they may be joined by Iran, with its gigantic oil and gas reserves, and Argentina, with its richest agricultural lands.

And after all, this can only be the beginning of integration within the framework of the GXNUMX alternative: Algeria, Egypt, Indonesia, Kazakhstan, Cambodia, Malaysia, Senegal, Thailand, Uzbekistan, Fiji and Ethiopia are also eyeing the BRICS with great interest and participated in an open international conference . In bold dreams, all developing countries gather in the BRICS+ format, create their own analogue of the EU and the NATO bloc, and jointly “declassify” the collective West. The reality is likely to be somewhat different.

It should be taken into account that the integration processes are primarily interested in those countries whose economy is not all right. Iran has been under Western sanctions for decades, and now it has been swiftly overtaken by the Russian Federation. Argentina and South Africa also have a lot of economic problems. China and India are direct regional competitors and have a border conflict, as well as opposing views on the future of Pakistan. There can be no talk of any economic union in the image and likeness of the European Union, much less a military union like the North Atlantic Alliance. Too different countries, too different economies, too different interests. However, there is something that binds them together.

What connects them is the objective need to consolidate against the collective West and establish their own rules of the game in the economy, according to which the BRICS+ countries will be able to interact with each other. We are talking about the ability to trade among themselves directly in national currencies without the mediation of the dollar and the American financial system. As a matter of fact, that is why the topic with an alternative Western payment system and a reserve currency is put at the forefront. BRICS+ has a real future as a business club of developing countries, where they can jointly solve common problems in the format of a conventional GXNUMX without the GXNUMX.

And this is right and useful for the world economy, which needs to be rid of the dictates of the "hegemon".
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  1. Expert_Analyst_Forecaster 1 July 2022 15: 37
    We are talking about the ability to trade among themselves directly in national currencies without the mediation of the dollar and the American financial system.

    Well, they would trade for themselves. Why is BRICS needed here? Why BRICS for Russia and China to trade in rubles and yuan? Need approval from India? Or from South Africa? Until the goals of the organization are formulated and published, until the rules for interaction within the BRICS and with other countries are developed, there will be just a virtual toy that politicians will use according to their own needs.
    For Russia, as I understand it, these are propaganda purposes. Like this is a real force, opposition to the conventional West.
    1. berezinp Offline berezinp
      berezinp (Pavel Berezin) 1 July 2022 18: 05
      For bilateral trade in national currencies, it is necessary to come up with some kind of system and each time different for each state with whom we will and are going to trade without the dollar and the euro. At the same time, we will depend on the desire and unwillingness to trade like this with each new government of these countries ... Therefore, the most ideal idea is to create, on the basis of an economic union of developing countries, a system that will include a currency and instruments that serve this currency, which will be recognized by all countries of association. The next step will be to force other countries to accept this currency, and, last but not least, Western countries should recognize this currency ... That is, deprive the West of an instrument of pressure on developing countries, create a competitor to the Western financial system, you know, no one argues, capitalism in principle a good system and the market too, but there is no competition in the market of global financial systems, and this is bad, it allows the Anglo-Saxons to rule the world.
  2. Bulanov Offline Bulanov
    Bulanov (Vladimir) 1 July 2022 15: 39
    If we take an alternative currency, then maybe it is worth taking 1 kilowatt as a basis? You can, of course, return to the gold standard. In any case, the new currency must be backed by something, unlike the previous reserve currency.
    1. berezinp Offline berezinp
      berezinp (Pavel Berezin) 1 July 2022 18: 10
      Well, if you take the BRICS, then the currency will be backed up by energy, food, human resources, production, technology ... Already in the BRICS, in fact, there is everything to fully provide all the citizens of this association with everything they need and this is unique ... Imagine if BRICS builds an iron curtain now between their countries and the West, who do you think will suffer more?
  3. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 1 July 2022 20: 28
    What are the real prospects for BRICS? None.
    Unlike the EU, which consolidates the internal economic ties of its members, the trade turnover of the Brix members is focused not on each other, but on the US and the EU.
    Therefore, a single currency is the same fantasy as the ultimatum put forward by NATO to return to the 1979 borders.
  4. k7k8 Offline k7k8
    k7k8 (vic) 1 July 2022 23: 19
    What are the real prospects for BRICS+

    The same as just BRICS is nothing more than a protocol of intent (well, or a memorandum). It seems to be, and even something is being discussed there, but in reality no one owes anything to anyone. As long as the main trading partners of China, India and Brazil will be the US and the EU, nothing will shine for BRICS (even with a plus). At best, it can be a kind of alternate airfield in the event of the most fantastic scenario - the total collapse of the US and EU economies and, accordingly, the collapse of the dollar and the euroruble.
  5. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 2 July 2022 00: 05
    There is a lot of water, but in fact, the new leaders of the economy are directly trying to get in touch with raw material appendages.
    Imperialism is neo-colonialism in the yard. And all sorts of anti-West, anti-NATO .... this is secondary, it's just that everyone benefits from the "multi-vector approach", for which all Bateks are scolded ...
    And trade with Omerika, and pump Russian gas ....
    1. guest Offline guest
      guest 2 July 2022 02: 00
      No, really, why are you so stuck on imperialism?
      1. Sergey Latyshev Offline Sergey Latyshev
        Sergey Latyshev (Serge) 2 July 2022 21: 20
        Since an anonymous troll with the wrong English nickname is infuriating, then everything is right ....
        1. k7k8 Offline k7k8
          k7k8 (vic) 2 July 2022 22: 58
          Quote: Sergey Latyshev
          Once anonymous-troll (2) with wrong (1) it infuriates an English-speaking nickname, so everything is right ....

          I'm sorry to interrupt, but:
          1. The English word "guest" is spelled that way.
          2. The Scandinavian word "troll" came to us with two letters L on board.
          And your mumbling about "imperialism in the yard" has already got many here.
          1. Sergey Latyshev Offline Sergey Latyshev
            Sergey Latyshev (Serge) 3 July 2022 19: 15
            2++ . Thank you.
            But even anonymous users with English-language nicknames must, according to the rules, write with a capital letter.
            with a small one - this is a sign of a temporary troll nickname, to curse commentators and dump.

            3. And the truth is often inconvenient. "ships plow the starry expanses" - crap is certainly more spectacular.
            1. k7k8 Offline k7k8
              k7k8 (vic) 4 July 2022 08: 41
              with a small one - this is a sign of a temporary troll nickname

              Why not? My nickname is also with a small letter, but I use it on many resources and it is already 15 years old.
            2. guest Offline guest
              guest 25 November 2022 16: 28
              Quote: Sergey Latyshev
              must be written in capital letters.

              Please provide that rule.
  6. Pat Rick Offline Pat Rick
    Pat Rick 2 July 2022 13: 33
    This BRICS reminds me of the CIS. Lots of chatter, but everyone on their own.
  7. Ingvar7 Offline Ingvar7
    Ingvar7 (Ingvar Miller) 6 July 2022 10: 26
    all politics is done in smoking rooms.