BRICS directly challenges US hegemony

- Anil Narendra

The recently concluded BRICS Summit in New Delhi can alter the shape of the world order. BRICS was a successful conference in this regard. Brazil, Russia, China, South Africa and India, for the first time have challenged the US hegemony. Challenging the economic and political supremacy of US and the West, the BRICS countries have taken initiatives to establish a development Bank and trade in their national currencies. These five countries have decided that traders of these countries would no more be required to convert their national currencies into dollars for money transactions amongst them. They would be able to trade in their own currencies. They would be benefitted in the sense that they would not be required to pay the commission earlier charged for exchange in dollars, which means that if you are purchasing goods on credit, then you can have a deal for payment in that currency. This measure would benefit the most to the people who trade with China. They would be able to trade for Chinese goods in local currency of Yuan instead of dollars and Chinese will be able to trade in rupees for Indian goods, which means dollar out and yuan in. The direct challenge to US hegemony has been given by BRICS countries on the issue of Iran. Displaying solidarity on Iran issue, the BRICS countries have asked US to sort out political issues with talks. India has said that no such political measure should be adopted, which may lead to instability in petrol prices. The joint statement issued at the conclusion of the BRICS summit (India, Brazil, Russia, China and South Africa) has opposed the US hegemony with the consensus on issues like Iran and Syria. In the statement, the right to peaceful uses of nuclear energy by Iran has been recognized, thus US attitude in this regard has directly been challenged. In view of unprecedented pressure on India to adopt the sanctions imposed by US and European countries against Iran, the joint statement has
strengthened India's Iran policy. This is the first solid outcome of the BRICS summits over last four years. The Summit, not only challenged US policies on political issues, but it concluded an agreement of far-reaching impact in weakening the dominance of dollar. With their cultural and geographical closeness, this fast emerging group of five countries, BRICS has braced itself for a new role in the global economic and political arena. Alost 40 percent of world population lives in
BRICS countries. The share of these countries in global GDP has also risen to about 25 percent in 2010 from 16 percent in 2000. It is interesting to note that India's attitude has also hardened on global platform and for the first time, India and China have opposed not only policy on Iran, but US and pro-West policies saying that it were India and China who not only maintain their growth rates, but enhance these rates that helped the keeping the world economy on rails. This is also not less important that India and China both have accepted that the WTO policies favour only the interests of developed countries. All ranging from World Bank to IMF favour US. In view of this a development bank is needed. It shows that India has, for the first time opposed US that have been sermonizing about economic reforms under its economic policies through a number of international economic institutions, whereas Brazil, South Africa also restricted their crisis to G-8 to G-20. Russia and China supported it, which means that all powerful countries of Asia, for the first time stood together to stop the US expansion, when an alternative posed itself. China] Russia and India collectively for the first time made a dent in the US penetration that started with Iraq war to Afghanistan in the name of war on terror and countries of the world were forced to follow the US world order. Let us wait for the reaction of US and West to the challenge to their empire from BRICS countries.
Anil Narendra, Brazil, BRICS, China, Daily Pratap, India, Russia, South Africa, Vir Arjun