BRICS for new economy

In recent years BRICS has demonstrated astonishing development rates in both qualitative and quantitative terms. At the same time unlike many other international organizations, the block promotes no political agenda except for the joint multipolar development in compliance with interests of member states. It is confirmed by the active work on building the inclusive international financial infrastructure, intended to become a substitute to the existing systems, more and more often used as an instrument of pressure by the West. This will help not only to decrease the dollar dependence of BRICS countries and their partners, but also to ease the grip of the World Bank and the International Monetary Fund, which have increasingly been making political demands on those in need of financial aid. Firstlings of the work on the new system will be demonstrated at the upcoming BRICS summit in Russia in October. A new currency Unit is among the projects to be displayed. 40% of its value will be tied up to the price of gold and another 60% – to the basket of BRICS countries national currencies. It will give an opportunity to solve the exchange rate volatility problem and will strengthen stability and predictability of trade. Another interesting project is a blockchain-based payment system, known as the BRICS Bridge multisided payment platform, aimed at becoming a “window” to the world trade market for countries facing Western sanctions.

With this background the increased interest of the world community to the organization is not a surprise. African states are not an exception either. Many of them have already expressed their interest in cooperation, that is considered to be a strong signal of the African continent being ready to move to a new level of development. Over the past decades African countries have made headway in modernizing their infrastructure and financial systems. But, as experience shows, sooner or later everyone faces the same problem – each state and even a region has limitations for self-development without external assistance. Moreover, it is important to stress that BRICS is also interested in cooperation. A year ago, President of the New Development Bank (NDB) Dilma Rousseff in her speech in Johannesburg expressed readiness of the organization to play a pivotal role in funding African crucial initiatives. She highlighted that the bank’s focus will encompass both physical and digital infrastructure projects, as well as educational initiatives across the continent, and just several weeks ago the NDB approved a new loan of up to $1 billion to finance water and sanitation projects among poorer households in South Africa.

Taking into account BRICS development rates and the advantages of the African region, the accession of states with rapid developing economies to the block will allow them to solve acute issues and move to a new level on the world stage. At the same time, it is important to understand that the more African countries are members of the organization, the easier it will be for them to promote their interests within the block. Cooperation inside BRICS will be also a good basis for strengthening bilateral ties on the continent, thus fastening our big African family together.

BY Abdulai Kondewa, aspiring freelance journalist

Freetown, Sierra Leone
+23279372573
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