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Tuesday, June 25, 2024

Bloomberg: BRICS expansion is a “failure” for America

Pak Sahafat – The Bloomberg news website assessed the expansion of BRICS by joining new members including Iran to this group as a failure for America’s role as world economic leader and wrote that Institutions such as the World Trade Organization have lost their effectiveness and the World Bank and the International Monetary Fund no longer serve the interests of the members of this group.

According to Pak Sahafat News Agency’s report on Wednesday, in the article of this American media, it is stated: The governments of the five BRICS countries, including Brazil, Russia, India, China and South Africa, invited 6 other countries to join this group in their recent meeting.

The BRICS group has said that the addition of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates is not the end of the development of this group and is the first stage of its further expansion with the aim of increasing the power of developing countries in global governance.

Bloomberg described the greater desire to find an alternative to the prevailing international order as important in itself and considered it a failure for American leadership.

This media named China as the main architect and long-term supporter of BRICS expansion and wrote: Beijing seeks to exercise its leadership role in economic and geopolitical issues. Russia is also interested in finding new economic partners and reducing the costs of the war in Ukraine, and hence is interested in the expansion of BRICS.

Read more:

Analysis of the Bloomberg on BRICS meeting; America’s allies in China and Russia

This report adds that the original BRICS member countries agree with their new members that international regulations and institutions do not serve their interests sufficiently.

This media called the BRICS lending system to its members as an alternative to the International Monetary Fund and noted: In 2016, a common liquidity facility was created by the members of this group, which allows its member countries to lend to each other in emergency situations. The group also established a new development bank modeled after the World Bank, and China financed infrastructure projects as part of the Belt and Road Initiative.

The BRICS group hopes to expand the new current agreements outside the scope of the World Trade Organization. They have even talked about a new currency that could protect them from the dominance of the US dollar.

Bloomberg described the American policy as the cause of this country’s deviation from its economic leadership role in the world and wrote that such a policy was accelerated in the administration of Donald Trump, the former president of this country, and was approved in the administration of Joe Biden. The formation of BRICS occurred following this turning away of America from playing its economic role in the world, and the International Monetary Fund and the World Bank have increasingly lost their rudder.

Pointing out that the World Trade Organization has completely lost its effectiveness, this report acknowledges that the US policy is not in the service of the world’s welfare and emerging economic countries have the right to seek an alternative to the world order.

This media assessed the increase in interest rates as the cause of expanding financial pressures in low-income or low-income countries and warned that if a new global debt crisis is coming, its damage will not be limited.

At the end of his report, Bloomberg said: The costs of climate change are increasing and the efforts of BRICS are important in curbing them. Such challenges are inevitably global and require global cooperation.

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