BRICS - the Pivot to a New, Multi-polar World Order
14:47 05.04.2024 (Updated: 14:48 05.04.2024)
© AP Photo / Ivan Sekretarev
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Dr. Ankit Rameshchandra Shah (@ankitatIIMA), the expert who predicted the Ukraine conflict, the Doklam and Balakot strikes, as well as the Ladakh standoff, explores the end of the unipolar world and the formation of a multipolar world order in his column.
Dedollarisation = Decolonisation = Deradicalisation = Demissionarisation = Decommunism
Bharat for BRICS is the pathway to liberate the World from hegemons.
What does a multi-polar World look like?
China + 10 in Manufacturing;
US $ + 10 in Currencies;
Bharat, Russia, US & China sharing Net security provision with indigenous defense capabilities;
UNSC + 10 = 6 New Permanent members including Bharat with Veto power;
English + 10 languages as a medium of instruction & communication with the help of Technology;
Gold in the formula for a Digital Currency for facilitating an evolved, neo-barter international trade instead of just some investment alternative.
The World is gradually moving out of the Single Country Reserve Currency format after centuries. The 400 years cycle of establishing Pound & then the US dollar as the single country Reserve Currency status is closing in this decade with the decolonisation process in parallel. Be it a new, more democratic reserve currency representing a basket of all participant national currencies or trade in national currencies, the Dedollarisation process is confirmed. This marks the end of the ills which the single country reserve currency format brought in this world with a lopsided unipolar international trade acting to be fair Globalisation.
Following are the notable evils of the Single Country Reserve Currency format in the last 50 years:
1.
Destruction of the correct Valuations of the physical assets, commodities and core sectors of manufacturing, farming, food processing, logistics, defense and precious metals.2.
Destruction of Self-employment and Entrepreneurship model in all societies. Destruction of family as an institution by sponsoring waves of individualism, hyper consumerism, feminism and wokism across countries.3.
Funding of protest and terror finance across the world straight from the printers of the central banks in the West.4.
Funding of Sabotage and Religious conversion activities straight from the printers of the central banks in the West.5.
Luring of talent from other sectors to the Information technology sector, which was born out of the Fiat dollar of 1971, by attracting them to outsourcing projects and very high pay scales while making them do ‘digital coolie’ tasks.6.
Luring of human resources to the West by offering them Fiat dollar- based high incomes.7.
Playing the Diplomacy of ‘Two-Bucket theory’ by telling every economically healthy nation that your neighbor is a rogue nation deserving to be sanctioned, which means you have to continue with the US dollar for trade by default. Arms and dollars go to one nation while sanctions are handed over to its supposedly rogue neighbor. That explains Russia on the border of China, China on border of India, India on the border of Pakistan, Saudi Arabia – Iran, Iran-Israel, North-South Korea and EU-Russia and other such ‘two buckets’?8.
Almost none of the erstwhile English colonies have been able to come out of the slave-churning degree-factories converting entire society into jobbers as part of the colonial agenda.9.
All countries which cannot print their own currencies to purchase energy became financial colonies of the US in every sense of the word. All central banks look at the Federal Reserve while framing monetary and fiscal policies to ensure physical goods are sent to the West against lower and lower payments in return for a currency backed by nothing (Fiat money).10.
While the West enjoyed distributing social benefits, income security, food stamps and what not by endless currency printing, the rest of the world has had to slog overtime to earn US dollars in order to buy any foreign commodities including from the neighbor. The West simply printed the currency endlessly to consume far above its needs while floating paper assets in huge proportions in the market to take down the valuations of what the others export to them.11.
The Single country reserve currency has been deciding the geography where pollution will happen because of its purchasing power & exports-led economics wrongly taught to the world.Instead of the physical asset valuing the derivative, the derivative paper assets are now setting the value of the real physical asset. With a large portion of the population turning to speculative trade and passively investing into others businesses, with the edge the dominating country’s reserve currency, the goods producing nations have ended up with a pittance as payments for their work. The West enjoyed weekends off, multiple vacations through the year, distributed money cheaply to businesses, leading to enormous tech-innovation, weaponised those IPRs and kept buying up the immigrant brains.
12.
The American lifestyle has been sponsored by the rest of the World since 1971 as Dollar-inflation was passed on to the rest of the World by transactions referenced in the US currency.13.
Sponsoring Start-ups and particularly e-commerce, directly funded by the central banks of the West at the lowest rates of interest to undermine entrepreneurship, offline trade by small and medium enterprises in all countries by selling products online much below the cost of the products. Not surprisingly, most of these online giant distributors have never been profitable.Underlying Principles for BRICS to form a Multi-polar World Order:
Agreement to disagree
This is to say no country will poke its nose into others’ internal affairs, no country will be bossing others, no country will have sanctioning privilege, no country will have to face any kind of political compulsions, no country will give any kind of lectures on human rights, no country can seize assets or curb multilateral participation of others and any country can freely exit the format, if they choose to.
Agreement to Decolonise
This is to say many of the BRICS nations will now revisit their understanding of history, scientific discoveries, performance indicators, indexes and ranking criteria from finance to trade to health to education to languages and all walks of life. The ‘natives’ will resurrect from the colonial conformism imposed through centuries of western domination.
The core theme & strength of BRICS of non-commonality is currently being portrayed by many experts as the reason for the futility of such a grouping. Only time will tell, if such truly democratic grouping can produce outcomes or not, compared to the contemporary unidirectional, standardised associations promoted and inspired by Western models. My view is that BRICS was formed exactly in order to escape from Western standardisation. Many of the ‘developing’ economies suffer from internal chaos and reduced valuations of their productivity because of dollarization process in invoicing, payments and referencing their international trade.
Large nations like China, Russia and Bharat do not need assistance for dedollarising their bilateral trade, but smaller nations need an established framework to shift their trade as in kind of a blanket security.
Indian Prime Minister Narendra Modi, center, Russian President Vladimir Putin, right, and Chinese President Xi Jinping stand for photographs prior to dinner hosted by Modi for leaders of BRICS nations in Goa, India, Oct.15, 2016
© AP Photo / AP Photo/Manish Swarup, File
The Rupee has some of a reserve currency features, but does not carry enough trade volume to become a trading currency. The Yuan has many trading currency features, but very less savings currency features. It does not have the trust and transparency factor to become a Reserve currency. The Ruble has very few of the trading or savings currency features, but has massive natural resources to be pegged to for valuations. It is very clear that none of the four – Russia, Bharat, US and China can bring about a unipolar single country Reserve currency. All nations must compromise to arrive at a multipolar BRICS format of trade.
While the invoicing and payments can be easily transitioned outside the US Dollar or Euro currency, the referencing for putting a price tag for the valuation of products or services is the difficult part. One of the easiest ways to do so could be making Gold the reference point for valuations to move trade. For example, a particular weight of Gold value can be fixed for say, one barrel of crude oil. Gradually the price resetting can be done for each of the commodities and production traded among nations. This will require tweaks to the commodities and stock exchanges and banking systems as well. The GIFT city of Gujarat which hosts the New Development Bank regional office for BRICS can be offered as a mini–World Bank, a nodal agency handling the transactions. Each country can maintain its national currencies for internal trade and shift its foreign trade to BRICS digital tokens issued by the New Development Bank. The issue of BRICS digital tokens can be based on a net gap adjustment of international trade for each member country, with periodic settlements on Gold value terms. There will also be a need for a new trans-national, secured Payments system to operationalise and carry out these transactions.
Will Asia show this political maturity to bring back power to the East after 400 years?
The re-election of leadership of Vladimir Putin & Narendra Modi looks promising.
Author - Dr Ankit Shah is a Fellow Chartered Accountant, a Qualified Company Secretary, an author, and a keen observer of foreign policy and security for the Bhartiya Upmahadwip. As the concept man of the upcoming Sanatan Economics Model, his primary interest lies in geo-economics, multipolarity, and geo-political projections for the world. His predictions include timing of many major global events like Doklam, 370-35 A removal, LAC standoff, Balakot, Ukraine, Israel conflicts, the de-dollarization process, and so on. He argues in his Youtube talks that Dedollarization = Deradicalisation + Decommunism + Demissionarization + Decolonization for the World.
