BRICS Summit
BRICS Summit 2024: If we look at the world in recent times, the situation cannot be said to be better at all. In many parts of the world, war is going on or war-like situations are visible. At such a time, India’s role on the world stage also becomes very important. This is the reason why many other countries, including western countries, are keeping an eye on the BRICS summit being held in Russia. The growing role and influence of BRICS makes it clear that this group will play an even more important role on the global stage in the coming years. PM Narendra Modi has arrived in the Russian city of Kazan to participate in this conference. So let us tell you what this organization is, why western countries are eyeing this conference, what impact this conference is going to have on America. So let us first tell you what BRICS is.
What is BRICS?
BRICS is a group of five major emerging economies Brazil, Russia, India, China and South Africa. The word BRICS is made up of the first letters of the English names of these five countries. BRICS began in 2006 when the foreign ministers of Brazil, Russia, India and China met for the first time in New York. South Africa was included in this group in 2010, after which it came to be known as ‘BRICS’.
Purpose of BRICS
The main objective of BRICS is to promote cooperation among the member countries in the economic, political and cultural fields. The group works to improve the global economic system, strengthen the voice of developing countries, and encourage mutual trade and investment among member countries.
BRICS summit
The BRICS summit is an annual meeting of the leaders of member countries, in which economic, political and social issues are discussed. This summit is organized every year in a different member country. In the summit, various issues are discussed to reach consensus and agreements are made on various aspects.
major topics
The following major topics are usually discussed at the BRICS summit.
– Global economic situation: economic growth, financial stability and economic recovery.
– Trade and Investment: To promote mutual trade and encourage investment opportunities.
– Security: terrorism, cyber security and cross-border crime.
– Health and education: cooperation in health services and education systems between member states.
– Environment: Climate change, sustainable development and environmental protection.
BRICS Summit
achievements
The BRICS grouping has made many important achievements in the last few years. Some of the major ones are
New Development Bank (NDB): The BRICS countries established the New Development Bank in 2014, which aims to provide financial assistance for infrastructure and development projects.
Mutual Cooperation: Mutual cooperation has been promoted among the member countries in the fields of science, technology, agriculture and innovation.
Global impact: BRICS countries have strengthened the voice of developing countries at the United Nations, G20 and other international forums.
Till now you have learned what BRICS is, when it was formed, which countries are included in it and what is its objective. Let us now tell you why countries around the world, especially western countries, are keeping an eye on the BRICS summit to be held in Russia.
Why are western countries keeping an eye on BRICS summit?
Countries around the world are keeping an eye on the BRICS summit being held in Russia, but especially the western countries are keeping a close eye on this conference. There are many reasons behind this. Firstly, America and Europe are in support of Ukraine against Russia and have imposed strict sanctions on Russia. Western countries also want to see India standing against Russia, while the friendship between India and Russia remains strong. Similarly, America and other western countries also have tensions with China. In such a situation, it will be interesting to see what is the attitude of western countries regarding the conference.
Keep an eye on India-China relations
Along with strengthening relations with Russia, talks are also expected to take place between India and China in the BRICS summit. PM Modi and Chinese President Xi Jinping may also meet. The world is keeping an eye on this meeting too. Apart from this, India’s relations with the countries of the Middle East are expected to become clearer and stronger. Western countries including America will also keep an eye on what India’s stance could be amid the Israel-Iran conflict.
BRICS Summit In Russia
Why is America worried?
Many big decisions can be implemented in the BRICS Summit being held in Russia, which can have big impacts in the future. One of these is BRICS currency. BRICS countries want to start a reserve currency that can compete with the dominance of the dollar. In such a situation, a big decision can be seen in the BRICS Summit this time. Amidst the US trade war with China and US sanctions on Russia, if the BRICS countries agree on this new currency, then the international financial system can change.
90 percent of business is done in US dollars
At present the US dollar dominates the international financial system. About 90 percent of trade worldwide takes place in US dollars. Due to recent global financial challenges and America’s aggressive foreign policies, BRICS countries are realizing the need for a common new currency. BRICS countries want to start a new common currency for economic interests by reducing global dependence on the US dollar and euro.
Putin had said this
It should also be mentioned here that the need for a new currency was discussed for the first time during the 14th BRICS Summit in 2022. At that time, Russian President Putin had said that the BRICS countries were planning to launch a new global reserve currency. After this, in April 2023, Brazilian President Luiz Inacio Lula da Silva, while supporting the proposal of BRICS currency, said that why should an institution like BRICS Bank have a new currency to trade between Brazil and China or between Brazil or other BRICS countries? Can’t happen.
This is how Americans will be affected
The US dollar has dominated the world. According to the US Federal Reserve, between 1999 and 2019, 96 percent of international trade in the US was in dollars, 74 percent of trade in the Asia Pacific region was in dollars, and 79 percent of trade in the rest of the world was in US dollars. However, the dollar’s reserve currency share has declined in recent years as the popularity of the euro and yen has also increased. Despite this, the dollar is still the most used currency globally. Now in such a situation, if BRICS countries start using the new BRICS currency instead of dollar, then it will not be easy for America to impose sanctions. The value of the dollar will also definitely decrease, it is possible that this may have an impact on the domestic level in America as well.
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