Syria's BRICS bid could shift global economic alliances. Explore BRICS' de-dollarization efforts, membership criteria, and geopolitical implications.
With BRICS expanding its reach, Syria has thrown its hat into the ring, officially applying for membership. This move seems to align perfectly with BRICS' goal of reducing U.S. dollar dependence and increasing its geopolitical clout. In this post, I'm diving into what this all means, looking at the criteria for joining BRICS, and considering the broader implications for global trade and finance.
If you're not familiar, BRICS stands for Brazil, Russia, India, China, and South Africa—essentially a group of emerging economies looking to reshape the global financial order. Recently, Bashar Jaafari, Syria’s ambassador to Russia, announced during a conference that his country is keen on joining this bloc as an alternative to Western institutions like the IMF and World Bank.
In August 2023, BRICS welcomed six new members: Argentina (which later declined), Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. As of January 1st this year, those countries are full members. Russia is currently hosting a summit in Kazan where further expansion discussions are on the agenda. The bloc now accounts for about 46% of the world's population and around 36% of global GDP—impressive numbers that give it significant leverage.
One of BRICS' primary goals appears to be de-dollarization—reducing reliance on the U.S. dollar in international trade. Russian President Vladimir Putin claims that three-quarters of trade within BRICS is now conducted without using dollars. To facilitate this shift away from dollar dominance, alternative payment systems are being explored—including central bank digital currencies (CBDCs) and other blockchain technologies.
However, there are hurdles to overcome. Non-dollar currencies can often be less efficient for cross-border transactions; plus most commodities are still priced in dollars—a fact that keeps it firmly entrenched as the dominant currency even in commodity-dependent economies.
Syria's potential entry into BRICS could have significant economic and political ramifications. Economically speaking, it's hard to see how a war-torn nation meets the bloc's criteria—but membership could attract much-needed investment and aid for reconstruction efforts.
Politically speaking? It would solidify ties with nations like Russia and China that have been supportive throughout its civil conflict—essentially further isolating Syria from Western influence.
The expansion of BRICS—including a potential Syrian membership—could enhance its collective influence in organizations like the United Nations. This might lead to a more unified stance on issues where there is divergence from Western perspectives.
As more countries look towards BRICS as an alternative to Western-led multilateralism—especially those in the Global South—the effectiveness of Western sanctions may diminish further.
In summary: Syria's application for membership in BRICS coincides perfectly with the bloc's strategic goals aimed at diminishing U.S. dollar dominance and increasing geopolitical influence.
While challenges abound—from economic viability to internal consensus—the movement towards a multipolar world seems increasingly evident.
The upcoming summit in Kazan will likely shed more light on these dynamics as well as on how far BRICS intends to go in reshaping today's global landscape.
