Voice of the Global South

The expansion of BRICS at its Kazan summit in Russia in 2024 offered an explanation as to why more countries have applied to join the bloc. Saudi Arabia, Iran and the United Arab Emirates are major energy producers, while Egypt and Ethiopia are two of Africa's largest developing countries with huge potential, investing heavily to upgrade their networks of infrastructure, industry, as well as land and maritime trade routes. The expanded partnerships forged among these countries with the founding members of the bloc, in particular China, during the past decade has resulted in significant milestones being reached on their paths for development and economic growth, offering a model for South-South cooperation. But the different natures and development stages of the BRICS members reflect that most developing countries are also looking beyond economic gains to align themselves with like-minded countries seeking reform of the international governance bodies to make them more balanced and representative.

BRICS has been misperceived in so many ways. Western media and think tanks have occasionally described the political/economic grouping as a counterbalance to the G7, an anti-Western alliance in the making, a core group of countries acting against the post-World War II global and financial order, or even a grouping conspiring to undermine Western influence and policies, and lastly actors intent on undercutting the supremacy of US dollar as the principal reserve currency that is used in some 75 percent of global trade transactions.

It was a Goldman Sachs economist who suggested back in 2003 that the combined economic potential of China, India, Brazil and Russia would become a much larger force in the world economy by 2050. That prediction seems prescient.

The Western views and perceptions of BRICS are overly mistaken and refutable. The bloc is a platform to give voice to the Global South, to formulate common positions — whenever possible — on global issues, working together to boost trade and economic growth, advancing an agenda to reform and strengthen global institutions, and finally promoting a practical approach to achieve better world relations based on the principles of mutual respect, parity and multipolarity and fairer international global governance.

The de-dollarization fears are equally misplaced and run contrary to BRICS' longstanding and solid commitment to globalized trade, and to the objectives of the Belt and Road Initiative. Moreover, the BRICS countries continue to hold significant reserves in US dollars. Limited currency swaps are meant to ease the debt burden on developing countries. The funding provided by the group's New Development Bank and Contingent Reserve Arrangement are not meant to mimic the World Bank and the International Monetary Fund, but rather to provide additional lending sources which can invigorate South-South cooperation, and reduce dependence on the traditional funding institutions. It is worth mentioning that to date, the NDB has approved more than $32 billion for 96 projects since operations began in 2016.

Similarly, the claim of a BRICS common currency is also exaggerated; such a move would require major political compromises, including a banking union, a fiscal union and general macroeconomic convergence among other prerequisites, which are unlikely and extremely difficult to reach among the BRICS members. Additionally, BRICS does not aim to weaken the post-World War II international and financial order, but rather reform and strengthen them in a way that render them more credible and fair.

The contradictory narrative on BRICS' future and positions deserves an objective analysis. Western researchers and politicians are increasingly realizing that the demands of the Global South for more equitable global governance cannot be answered by offering a "valued-based partnership" and rules-based multilateralism when BRICS is focused on changing those rules in global finance, trade and other standard-setting procedures, and ignoring those demands is counterproductive.

BRICS' visibility and political sway have certainly been on the rise, and the primary driver for that is China's peaceful yet phenomenal rise as a global economic powerhouse. The advancements of China in science, technology, engineering and math, and high-tech industries along with its model for sustainable socioeconomic growth, will further propel the future expansion of the bloc and its dynamism. Above all, the mere fact that BRICS represents the voice and aspirations of some 40 percent of humanity can't be overlooked.

The author is an ambassador member of Egyptian Council for Foreign Affairs and a member of Egyptian-Chinese Friendship Association. The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.