Issue Brief: 12/2024
C3S launched its Issue Brief initiative. An issue brief is a summary of the knowledge surrounding an issue or a problem. It summarizes the issue by giving clear, concise, and complete information describing all facets of a particular issue including a detailed illustration in the form of images, data, and facts. It also includes recommendations for action and predictions on the future course of an issue.
Abstract
The October 2024 BRICS Summit in Kazan marked a significant moment in the bloc’s evolution, expanding its network by adding 13 new partner nations and championing a transformative vision for global finance. With leaders advocating for multipolarity and a reformed financial system, the summit underscored BRICS’ ambitions to reshape global governance. Amid this, China and Russia emphasised reform, while a report by Russia’s central bank outlined a roadmap to alter the international monetary structure, signalling the bloc’s commitment to de-dollarization. India, while supportive, advocated a measured approach, promoting local currency trade over adopting a unified BRICS currency. Brazil’s veto of Venezuela’s partner status, despite broad Latin American criticism, highlighted internal rifts within BRICS. The summit concluded with the Kazan Declaration, calling for UN Security Council reforms, denouncing unilateral sanctions, and emphasising BRICS' role in a balanced, multipolar order.
India’s strategic diplomacy at BRICS aligns with its pursuit of multipolarity, leveraging the platform to strengthen partnerships, especially in Africa and the Middle East, while navigating its relationships with the West. A shared currency within BRICS, though attractive for its potential to reduce transaction costs and financial volatility, faces challenges rooted in the economic and political diversity among members. This brief explores the economic, geopolitical, and practical complexities of a unified BRICS currency, analysing the benefits of trade integration against the risks posed by divergent economic structures and national interests.
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