Should the US worry about BRICS?

By Jin Junda
0 Comment(s)Print E-mail, July 22, 2014
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 [By Zhai Haijun/]

 [By Zhai Haijun/]

The U.S. government may have reasons to be upset by China's recent efforts in building closer ties with the Latin America, which is traditionally regarded as Uncle Sam's "backyard." Besides, Russia and India's growing interest in cooperating with Latin countries also irks the United States.

However, the problem facing the Obama government is its relations with the BRICS (Brazil, Russia, India, China and South Africa) countries, which are not so friendly, considering the political tumult in Ukraine, the territorial disputes in the South and East China Seas, the arrest of a female Indian diplomat and the U.S.' surveillance over the Brazilian government. South Africa is the only BRICS country which has no diplomatic disputes with the United States, although bilateral relations between the two countries are unfortunately distant.

What worries the U.S. political elite most are the concrete measures adopted by the BRICS countries, aiming to change their marginalized positions.

At the latest BRICS summit, the five countries agreed to establish the BRICS Development Bank with a US$100 billion contingency reserve. Initiated in 2012, the plan was implemented quickly. Its fast implementation was not only a result of BRICS countries' capabilities for action, but was also triggered by unjust treatment from the global financial institutions, such as the International Monetary Fund (IMF), Asian Development Bank and World Bank, to developing countries.

The BRICS have also challenged the financial system, which is based on U.S. hegemony and are forcing the international financial community to launch reforms.

In addition, more political issues were discussed in the latest summit, including enhancing the cooperation of the South American Common Market (MERCOSUR).

These aspects all hit a nerve in the United States, which is worried about the looming challenge posed by the BRICS.

Coined by Jim O'Neil, the retiring chairman of Goldman Sachs Asset Management, as an investment concept, BRICS has evolved into a platform for cooperation between developing countries, while an increasing number of emerging economies, including Argentina, Turkey and Indonesia also want to join.

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