The Fascinating Story Of How BRICS Began

It all began when Sergei Lavrov, the very capable Foreign Minister of the Russian Federation, while attending the UN General Assembly in 2006, suggested that a Regional Conference between five significant Countries would strengthen a growing sense of Global Multi-Polarity. Lavrov saw the dominance of the United States and European Union in dominating Global Geo-Politics. He aimed to encourage those countries in the Global South to have their own international organization.

Thus an ad hoc invitation by the Russian Foreign Minister began what is rapidly becoming one of the most influential Confabs of Nations worldwide. The 15th BRICS Summit, which began with just Brazil, Russia, India, China, and South Africa, had nearly 50 countries in attendance yesterday. Including the man who started it all, Sergei Lavrov, who will represent the Russian Federation.

When it all began, most in the Global “North,” which includes the United States and European Union principally, ignored BRICS, considering it little more than Lavrov’s coffee klatsch. To continue to ignore the BRICS nations is a major strategic misstep. Yet I fear that many in the current EU and US Administrations are doing just that, underestimating BRICS.

So, just what is BRICS? And who do they represent? By population, India and China represent over one-third of the World’s population or about ten times the people of the US and EU. Russia has the largest geographic area in the World, rich with natural resources and agricultural production. In the latest report, China and India have the fastest-growing major economies in the World, with both countries exceeding 6% GDP Growth last quarter. Both the EU and the USA had a GDP Growth rate previous quarter of less than half that.

In its latest economic projections, Goldman Sachs estimates that China’s economy will surpass the United States economy by 2030 and that by 2050 China will have a GDP of nearly double the US.

All of this should give us in the United States a different perspective on this week’s meeting in Johannesburg. Compared to the Global North, BRICS has a vastly more population, more significant natural resources (especially petroleum now that BRICS includes Iran and Saudi Arabia), and faster-growing economies. The BRICS is a considerable challenge to American Global financial and economic dominance.

And make no mistake, that’s precisely how those attending this conference see it.

The number of country’s interest in joining the BRICS is exploding. At last count, it is estimated that nearly 40 countries are anxious to join. And it’s no accident that the desire to join corresponds to Russia’s Special Military Operation in Ukraine. It may surprise you to realize that most of the Global South identifies with Russia, not Ukraine.

For instance, despite the best efforts of the US State Department, the entire continent of Africa has elected to remain neutral over the War. To not actively support Ukraine. It is reported that Ukraine has sent representatives to this Summit, and it will be interesting to see if they will achieve any support from the BRICS members. Don’t forget that the “R” is a founding member of this group.

However, one has the sense that the Global South’s lack of support for Ukraine stems mainly from a deep-seated reaction to the Biden Administration’s actions. There is a deep resentment toward what is perceived as this President’s heavy-handed actions. There is a feeling that the United States will not adhere to international laws and treaties when they get in its way. Removing Russia from the SWIFT Settlements System was seen as going beyond the international treaty. SWIFT was seen as merely a global banking function, a service open to all its member nations. That the United States could summarily cut one country off from that service threatened all the other countries that use SWIFT for their trade settlements.

Later this view of the US as a country that would disregard international conventions was reinforced when it seized $300 Billion in Russian Central Bank deposits held in US Financial Institutions. For the members of BRICS, this appeared as outright theft.

The Ukrainian conflict has reinforced the picture of the United States as a country that plays outside the rules. Almost every time the US has promised to limit the scope of the War by refraining from supplying Ukraine with more deadly weapons, it has returned to its original pledge. The US vowed to refrain from providing missiles and drones that could reach inside Russia. The US would not supply “cluster” munitions or F16 Fighter Jets. All of those offers to limit the conflict have been overturned. It did not play well in the Global South.

In considerable measure, what we’re seeing in Johannesburg this week is a reaction to the recent policies and actions of the United States. Bluntly put the reputation and perceived intentions of the United States have been greatly diminished over the past two years. You can see in the BRICS agenda that many of the countries assembled no longer trust the US to manage the global financial system. There are calls for a replacement of the Dollar’s reserve status. It would be replaced with, perhaps, the Chinese Yuan, a new BRICS currency, or even Bitcoin.

Additionally, it is apparent from recent statements by both Chairman Xi and President Putin that they do not trust the United States militarily. Both have expressed concern over America’s penchant to enter a conflict via either Ukraine or Taiwan.

Unfortunately, there are few in America who recognize just how unhappy half of the World is from the recent actions of our country. Notice how few American news bureaus are reporting on this significant BRICS Summit. Yet this is one of the most consequential political events in years. Yes, these countries disagree with us. In many cases, they view the World today exactly the opposite of how we do. And it’s precisely for that reason that we need to listen to them.

We ignore them at our peril.