Introduction

South Africa will host the BRICS summit next Tuesday to strengthen its role in the global economic system, where a range of issues will be discussed in the presence of more than 40 heads of state and government, as well as leaders of the BRICS countries, including Brazil, Russia, India, China and South Africa.

The Formation of BRICS

Since its founding in 2009, the BRICS group of countries has strived to become a global economic power along the lines of the industrialized countries of the G7. Many obstacles stood in the way of realizing this dream, but the countries of the group have made great strides to assert themselves as a world power.

Expansion of Membership

Expanding the group’s membership is on the agenda after being ignored at previous summits, and there are currently 23 countries in line to join the group, including Indonesia, Saudi Arabia and Egypt.

The Single Currency Debate

The second file that is being actively discussed is the single currency, as the bloc will revive the idea of reducing the dollar’s dominance in global trade payments, and the single currency debate has resurfaced since the rise in interest rates and the Russian-Ukrainian war, which led to the strengthening of the US currency, along with the rise in the cost of goods priced in dollars.

Local Currencies and New Development Bank

BRICS members propose to expand the use of local currencies in domestic trade and create a single payment system. Several BRICS countries have already started settling bilateral trade deals in local currencies. With intra-regional trade growing 56% to $422 billion over the past five years, and the BRICS gross domestic product reaching some $26 trillion, more than a quarter of global GDP, serious consideration has begun to strengthen the role of the New Development Bank by expanding funding sources. The bank, created by the BRICS group in 2015 as an alternative to the International Monetary Fund and the World Bank, has reduced its role due to Western sanctions against Russia, which was a source of funding.

Food Security

In addition to development finance, food security will be one of the main issues on the agenda of the BRICS summit in light of the measures taken by India and Russia, which contributed to the growth of world food prices. India imposed restrictions on rice exports to protect its domestic market, and Russia withdrew from an agreement guaranteeing safe passage for Ukrainian grain exports. These measures worsened the food situation in poor countries, which the BRICS group has always praised for supporting and protecting their rights.