At the BRICS Summit held in Kazan, Chinese President Xi Jinping underscored the commitment of Russia and China to strengthen their coordination within multilateral platforms to enhance global security and create a more equitable world order. He characterized their strategic partnership as a stabilizing element amid the unprecedented transformations of the past century.
Western analysts point out that China contributes approximately 60% of the BRICS group’s economic output, positioning it to provide significant investments and loans to its fellow members. As the largest economy in the bloc, China plays a crucial role, and both it and Russia have called for substantial reforms to the global financial system.
From the viewpoint of the Global South, economic sanctions have undermined national sovereignty and disrupted international economic relations. Protectionist measures and trade barriers have further weakened the multilateral trading system, obstructing sustainable global development. Analyst Aqdas Afzal emphasizes that the prevailing global economic mindset, especially in developed Western nations, has shifted from a focus on free trade to strategic trade, where state power increasingly influences competitive advantages. Countries impacted by these shifts are facing numerous challenges.
While the United States has attempted to downplay the idea that BRICS could pose a “geopolitical rival,” it remains wary of Russia’s growing diplomatic assertiveness amid the ongoing Ukraine conflict. Former Goldman Sachs economist Jim O’Neill remarked, “I would take BRICS seriously when I see signs that the two countries that matter, China and India, are actually trying to agree on things, rather than confronting each other constantly.”
During the summit, key topics included President Vladimir Putin’s proposal for a BRICS-led payment system to challenge SWIFT, the international financial network that banned Russian banks in 2022, alongside discussions surrounding the escalating conflict in the Middle East. The final communiqué outlined various initiatives aimed at bolstering trade among BRICS nations, although media reports highlighted a lack of specific details or timelines.
Putin announced that member states are collaborating on a financial messaging system similar to SWIFT, designed to withstand Western sanctions. He also claimed that BRICS countries have accounted for over 40% of global GDP growth over the past decade, asserting, “BRICS is steadily building a foundation—step by step—toward a more democratic and equitable global order.”
Moreover, Putin emphasized that the economic progress of BRICS nations will increasingly become independent of external influences, reinforcing the idea of “economic sovereignty.”
In efforts to reduce reliance on the US dollar and other foreign currencies, the Shanghai Cooperation Organisation (SCO) has advocated for the use of national currencies in mutual transactions. Several SCO members, including Pakistan, have initiated bilateral currency swap agreements to facilitate direct trade in their local currencies.
The State Bank of Pakistan recently announced a significant development by enabling payments in rupees between Pakistan and Arab countries through the integration of its instant payment system, Raast, with the Arab Monetary Fund’s Buna platform.
The SCO Summit also resolved to expedite discussions on establishing financial institutions aimed at enhancing economic integration, trade facilitation, and regional connectivity, including the SCO Development Bank, the SCO Development Fund, and the SCO Investment Fund.
Russian political scientist Evgenia Makhmutova highlighted that the Shanghai spirit ensures that all member states have an equal voice, regardless of their economic size, military power, or international influence, serving as a model for effective multilateral cooperation.
