The BRICS summit in Russia can claim to be the most relevant and significant international forum in many decades. The value of a gathering of leaders from more than thirty countries will be best assessed by historians in the future. The practical results of the summit will become clear only with time. Here I will try to briefly outline the key moments of the event for today. The summit is important for several reasons. Let’s go from the general to the specific. From the global-systemic to the operational-tactical levels. But the latter will be no less significant.
The international system is in a state of serious erosion. It is not collapsing like an avalanche under a barrage of conflicts and contradictions. But it is under a set of unresolved disagreements and clashes. But something else is important. The current world order is perhaps the most unfair of all that we know. In principle, it did not imply a balance of power. It was not an agreement between great powers. It is not a system of compromise and consensus. It is not a system of consent. The collapse of the Marxist-Leninist experiment led to the formation of a unilateral international order. The American-centric world turned out to be undemocratic. The system was aimed at protecting the interests of a narrow group of elites in the countries of the global West. Thanks to the colossal successes and outstanding talents of the Americans, they managed to establish an unprecedented unipolar world. Their system was unique. But the period of sole and absolute hegemony turned out to be short-lived. American ideologists themselves cleverly called it a “moment.” And it really was a moment.
The current state of the system is not the decline of unipolarity. It has already happened. The current system is timelessness and struggle. It is a transitional stage to something new, broader, and, possibly, coalitional. This does not mean that the conditional “multipolarity” will be more effective, functional, and even more stable. A multipolar world does not automatically mean a “good world.”. Multipolarity is not the absence of wars, inequality, or exploitation. But there is hope that it will be more just and multilateral. It will reflect the realities of the modern complex world.
The absolute hegemony of the Americans was a short-lived moment for two reasons. Despite their enormous resources, they failed to create a just world. The feeling of this fact attracted so many to the BRICS summit. This is what attracts many people to Russia as a force capable of challenging an unjust system. Secondly, the hegemon has failed to fulfill its role. It is not that many countries do not recognize the role of the United States in the global economy, technology, military affairs, or popular culture. It is not even a question of some racism and an arrogant sense of being chosen. The point is that the world no longer needs a hegemon. The world has matured. It has learned a lot. The West is no longer a monopolist in technology. Western science is no longer indisputable and unattainable. The Western city is no longer the cause and showcase of development and enrichment. Western social theories are no longer able to explain complex and intricate scenarios of development and failure. And Western morality often raises questions and some bewilderment.
As for the operational and tactical significance of the forum, here we should say a few words about the financial logistics of the modern world. This problem has become, perhaps, the most discussed in the corridors and on the stands of the summit. The financial order is a derivative of the international system. And it is just as unfair and undemocratic. The monopolistic role of the dollar was associated with the efficiency of the American economy and its financial and industrial aspects. The dollar remained the anchor and dominant currency for a long time, protected by aircraft carriers, military bases, and a powerful army. A similar system is still in effect, which gives the American political system a huge number of trump cards. The hegemony of the dollar is used by the United States as a tool to contain its competitors, enemies, and those who do not succumb to their will and dictate. Sanctions have essentially become one of the main weapons in Washington’s foreign policy strategy, and they are no longer hidden – it is just being called a weapon.
An equally important pillar of the unipolar moment was (and continues to be) the SWIFT interbank transfer system, which is designed to ensure the exchange of information and currency transfers between international banks. Disconnection from this system means financial isolation from the largest markets. And the threat of secondary sanctions for banks is the most severe and dangerous threat. Its essence is that if Chinese, Indian, or Turkish banks enter into business contacts with Russian counterparties, they may come under attack, which can potentially destroy their market positions.
The significance of one event that took place on the sidelines of the summit is hard to overstate. Four years after Chinese and Indian soldiers clashed violently and deadly along a disputed border in the Himalayas, the leaders of the two countries finally met formally. Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met on in Russia. The meeting came days after both sides announced an agreement to “disengage and resolve issues in these areas.” The two nuclear-armed great powers, growing economies and improving their militaries, managed to reduce tensions and engage in meaningful dialogue. Of particular importance is the positive and diplomatic position of India, which seeks to establish constructive relations with its partners in Eurasia. This is important for Delhi for its further and sustainable development towards a great and full-fledged power.
The sanctions war against Russia has led to the complication of economic ties with the BRICS countries. Banks in these countries are afraid to accept payments for their goods and services and, conversely, to make payments on behalf of Russian organizations. A solution to this problem has not yet been developed; experiments and discussions are ongoing. At the summit, despite serious efforts, the parties could not find a strategic solution to this problem. At the moment, there is an increase in settlements in national currencies, but this is not a complete solution to the problem. There is also a gradual integration of various national payment systems, but this does not solve the problem completely. Finally, Russia recently adopted a law allowing the use of cryptocurrencies, in particular stablecoins, in international settlements within the framework of an experimental regime. By the way, Russia became one of the first countries to integrate digital assets into foreign economic activity. This scheme operates quite limitedly – but this is quite understandable. This is a revolution in banking, a deep trench under the dominance of classic Western correspondent banks and the dollar.
The success of BRICS or its failures will largely depend on the ability to continue economic activity. This, in turn, is impossible without a financial component. Whether the key countries will be able to come up with a system outside the system – again, time will tell. Frankly speaking, this is a difficult task.
It would be difficult to imagine such a broad summit without decisive and, frankly, somewhat harsh actions by Russia on the world stage. Moscow, perhaps reluctantly, has become a kind of icebreaker, accelerating the inevitable melting of the glaciers left over from the unipolar moment. While the US is still a leader in finance and technology, its international system is in inevitable decline. The BRICS summit shows that the power of the West is not what can stop the deconstruction of the current order. The United States will remain a great power, but it is no longer the undisputed hegemon. Because a hegemon is no longer needed. And the non-Western world has matured and wants to live independently. Time will show how it would be. And what the new world and the new system will be like, our children will see, and maybe some of us too.