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BRICS under fire: The criticisms that make sense

TL;DR

  • Despite BRICS’ economic prominence, it’s plagued with criticisms like lack of tangible achievements and internal discord.
  • The alliance is exploring strategies to reduce US dollar dependence, like currency integration and considering a Tobin tax.
  • BRICS needs to move beyond mere summits, address valid critiques, and harness its potential for global impact.

Despite the rosy optics of its economic might, BRICS remains under scrutiny from its skeptics. The expanding alliance, now 11-strong post its 15th summit, boasts significant clout in GDP, oil exports, and commodities.

These impressive figures have thrown a gauntlet to the Western financial sector. Yet, beneath the shimmer lies a reality riddled with discrepancies and unfulfilled promises. Today, we cast a critical lens over some of the most biting critiques this powerhouse has attracted.

All Bark, No Bite

It’s frustrating, to say the least. For nearly ten years, BRICS has mastered the art of political theatre. Grand speeches at summits, determined leaders vowing for change, and yet, the aftermath is a barren wasteland of unfulfilled promises.

It’s an age-old song and dance. Like a mirage in the desert, we’re shown a vision of progress that evaporates upon closer inspection. These leaders, most from developing nations, regale us with tales of change, but the ground reality stays stubbornly static.

The annual gatherings end up being mere talk shops, offering a lot of noise but not much else.

A Trophy Cabinet, Empty of Trophies

What has BRICS truly achieved? It’s a question that’s been echoing in the hallways of global finance. On paper, they band together annually, showing unity and intent. But tangible results? They’re sparse. Key challenges, even those limited to the BRICS bloc, remain untouched.

The summits, lauded by attendees, largely end up being redundant gabfests. A coalition of such magnitude ought to have groundbreaking feats to showcase. Alas, the resume is threadbare.

Friendship in Public, Frenemies Behind Closed Doors

Sun shines on the BRICS summit, where leaders play nice and show unity. But once the curtains fall and the spotlight dims, the mudslinging begins. India and China, two titans of the group, never miss a chance to take jabs at each other, thanks to their everlasting border and trade disputes.

On one hand, China and Russia are itching for global dominance. Meanwhile, India, South Africa, and Brazil are treading more cautiously, aiming for a balanced stance. It’s a motley crew with discordant visions, often resorting to brute force or cold silences to resolve disputes.

Yet, amidst this cacophony, there’s a glimmer of strategy. As the movement to move away from the US dollar gains traction, the BRICS conglomerate could be instrumental.

The idea? Integrate their currency and fixed-income markets, laying the foundation for better liquidity and efficient pricing. One could argue that the dominance of the dollar, accounting for an impressive slice of global trade and foreign exchange reserves, is a mere outcome of market efficiency.

But BRICS nations are contemplating options that stray from this dollar dependence. More transactions within the BRICS community are now settled in local currencies, a logical response to, among other factors, the US’s swift ban on Russia.

However, the notion of a new currency for the bloc seems far-fetched. A currency, devoid of any economic foundation, could face liquidity challenges and might end up resembling the volatility of cryptocurrencies.

A smarter move? Improve local currency trading liquidity. Creating common settlement mechanisms, integrating bond markets, and even pushing integration at the retail level are tangible solutions.

Another strategy to consider is imposing a Tobin tax on currency trades involving the dollar or other major global currencies. By creating this slight headwind for the dominant currencies, the playing field could become more balanced.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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