A unipolar world, or what once was, has been dictating policies it deems fit for nations with different cultural and economic mindsets. Liberal economic nations have imposed policies on under-developed nations that do not apply to their framework of institutions and market behaviors. Joseph Stiglitz put it best, that the most ignorant machinery to exist is the International Monetary Fund (IMF) and World Bank. In the past IMF has imposed policies on nations such as Indonesia and Argentina, leading them to a certain collapse, the only time those nations survived was when they understood their own nations behaviors’ and market needs. Pakistan is now suffering a similar fate, as regulations disallow changes to local energy and development projects, leading them to suffer at the hands of a bad IMF deal.
BRICS is the face of the rebellion against the IMF and Western philosophies. The Western philosophy is to work in accordance to their mature markets and developed segments. Unfortunately, a hint of arrogance and ignorance is shown, by which much has been ignored on the market economics of third-world countries and undemocratic nations. Russia and China played their cards on exactly this sentiment.
Nations operate on sentiment, especially southern and eastern nations on any sphere, will always be more sentimental, than they would be logical. Ideologies shape economic growth. A realist would say external factors dictate economic growth, an idealist would say that the growth of a nation is based on it’s own aims and goals. Liberals believe individuals should be empowered, conservatives believe a father-figure Government should lead the market. All these theories and conflicting mindsets, all have resulted in nothing but a simple answer to most problems, which is the understanding of local market behaviour and sentiments.
African nations have taken a stand for the left-over colonial economic practices, where they negotiate and pay in currencies that do not exist within their continent. 54 African nations, and most of the deals are done in either Francs or Dollars. This in itself is detrimental to the local economies whereby their own currencies thus lose value in the grand economic stage. Another sentiment that has been triggered over the past few decades is the utilization of African resources being utilized for first-world nations to become over-developed, whilst African nations constantly suffer from corrupt politicians and unfair practices. The numerous coups that have occurred only in the past week is a result of sentiments of the people suffering at the hands of a few making deals for their benefits for other nations, whilst their own countries suffer.
Turkey was the first to capitalize on this sentiment, shifting its investments and projects to Ethiopia. Although stirring an unnecessary battle with Egpyt, Erdogan understood that right now Africa is a gold mine that will give if treated fairly and supported. The United Nations has had a presence in those areas but none have ever supported the nation in growth, only prolonged the conflicts that have taken a massive toll on local economies.
The Ukraine war is the greatest curse upon European and American nationalists. The behaviour of all of European leaders, the Americans, has pushed the wave of the entire national narrative towards Russia and China. China invests openly in training, consulting, and building nations, a feat Modi of India has adopted as well. Russia has been sidelined by all European leaders for his “cruelty” in Ukraine. This triggered the most sensitive opinion of world leaders that, when they were under fire, scrutiny, agony and war, no one batted an eye. However, after hearing that Ukraine is not the Middle East or Africa, the East assembled.
Russia saw the shift in sentiment within nations that have trade deals with Europe and America, and took advantage of this situation. All nations now are operating to destroy the hegemony of the World Bank and IMF. The dollar is now the vicious criminal, whilst the nations of the East are awarded trade deals within their own local currencies.
BRICS did not play a policy game of words and rules like the West does. BRICS capitalized on the sentiment of nations, a core principle most economists ignore whence imposing deals and negotiations. Nations are dictated by external economic factors, but an internal strengthened economy is the source of growth for third-world countries and truly a new financial mechanism that strays from the “racist white nationalists” to a strengthened East. China, Russia, India, and South Africa have just successfully ascertained members into the BRICS narrative from all their neighbors.
BRICS is now surely on its way to beat unipolarity with a multipolar world.
