It is an undeniable fact that joining BRICS would clear the way for shielding its interest in shaping an all-embracing world order and accelerating Ethiopia’s economy at some time in the future. On a more specific note, Ethiopia’s admission into BRICS, beyond a shadow of a doubt, can assist in forging strong diplomatic collaboration.
There is no doubt that since the onset of joining BRICS, Ethiopians at home and overseas have expressed their contentment on the grounds that it plays a paramount role in taking the country to the next level of accomplishment and new opportunities just around the corner. It is no hyperbole to say that this is the outcome of Ethiopia’s success in its modern diplomacy strides.
As things currently stand, Ethiopia’s BRICS membership plays a huge role serving as a stimulus for the growth of the country’s economy and bolstering noteworthy networks with fellow member nations. All things considered, this momentous milestone is set to get to the bottom of countless economic challenges for Ethiopia for the most part by smoothing the path of its import and export undertakings
It has commonly been assumed that this historic breakthrough will bring about a broad range of benefits for Ethiopia in oiling the wheels of import and export trade activities.
By the same token, the BRICS members would set the scene for accomplishing growth by standing in union and joining efforts. Albeit a lot has been said on the subject of the positive moves of joining the bloc, some groups that hate to see Ethiopia’s development have been moving heaven and earth with a focus on tarnishing the positive strides of the country with barefaced lies and fabricated stories.
No matter how hard they attempted to materialize their dreams, all their efforts went for nothing and turned out to be a wild goose chase. But Ethiopia has sustained moving forward in the right direction giving the cold shoulder to their cooked-up stories.
There are various comments about the new BRICS+. Some Western media called the BRICS+ group as an anti-dollar group in the de-dollarization process. Others say the member states of the group have more disagreements and historical rivalries than harmony and cooperation. In explaining this matter many mentioned the disagreements between Saudi Arabia and Iran for their regional hegemony and religious sect competition; Ethiopia and Egypt on the Nile River; China and India on border issues; Brazil and Argentina on the geopolitical competition, UAE and Iran on the territorial dispute over three islands- Abu Musa, Lesser Tunb and Greater Tunb; the rise of the Muslim Brotherhood in Egypt as a threat to Saudi Arabia and the UAE, according to an article.
It went on to say this has ignited discussions about the political ramifications among member states of BRICS+6. Of course, there are some improvements in the above-mentioned problems. For instance, after China brokered a deal between Iran and Saudi Arabia, the two governments are trying to overcome past hostility and boost cooperation.
Now they agreed to “end a diplomatic rift and re-establish relations following years of hostility that had endangered regional stability in the Gulf, as well as in Yemen, Syria, and Lebanon”. They have also reopened their embassies in one another’s countries to improve diplomatic relations. Egypt and Ethiopia are also negotiating on the use of the River Nile or Abbay. Other member countries are also coming to terms.
Before the enlargement, BRICS covered 30% of the world’s territory and 18% of global trade. As stated in the Declaration, BRICS countries produce “one-third of the world’s food”. Sources show that the additional six nations to BRICS have increased the coverage of the group concerning the world population from 42% to 46%, of global GDP from 23% to 36%.
Institute of Foreign Affairs, Training Director General Melaku Mulualem told The Ethiopian Herald that at the BRICS summit in Russia in 2024, new paper money for the BRICS member countries was proposed. This proposal shows the member countries’ commitment to having their own prominent currency for trading among themselves. This is a good initiative to apply the group’s decision to have a common currency.
He went on to say, this currency has a lot of advantages for Ethiopia and other member countries. To begin with, it will be a good alternative hard currency to USD, EURO, and others. The member countries can also minimize the negative impacts of the dollar. This decision is not to be against the interest of the USA. It is also not to be regarded as anti-dollar actions. However, it promotes the national interests of member countries and enhances trade among themselves.
He elucidated that this currency will increase Ethiopia’s international economic relationships with other countries. Ethiopia can import and export products from member countries using the new currency by minimizing transaction costs. It is also a good opportunity to pay back loans using the new BRICS currency.
The use of BRICS currency will also help to counter inflation in the country. This is to mean that the exchange rate between Birr and USD will be stable. The people of Ethiopia will not suffer from the economic inflations caused by the dollar. Investors from member countries can also get an advantage of alternative currency to invest in Ethiopia. More to the point, the black market for hard currencies will not have room to flourish. Such currency will also minimize the injustices in economic globalization in the world.
The New Development Bank (NDB), aligned with BRICS, aims for a more inclusive, resilient, and sustainable world, presenting member nations with equitable and accessible economic opportunities, Russian Ambassador to Ethiopia, Evgeny Terekhin told local media.
Briefing journalists on the outcomes of the BRICS + 2024 Summit in the recent past, the Ambassador said that with its democratic decision-making structure, BRICS is notably more egalitarian than many established organizations.
“The group’s members are seeking alternative sources of funding. Developing countries are convinced that the New Development Bank, which has issued billions of dollars in loans and allows them to be repaid in national currencies,” he emphasized.
The countries of the Global South are in considerable need of financial resources at present and the conditions for securing such resources are rather challenging, Ambassador Terekhin added.
Therefore, he stressed “it is crucial to provide funding in national currencies and in specialized formats. The New Development Bank (NDB) is dedicated to this endeavor, funding not only sovereign projects but also private initiatives.”
“Since 2018, the Bank has, funded about one hundred projects, amounting to a total of 33 billion USD. The increase in the share of settlements denominated in national currencies helps reduce debt servicing costs, strengthen the financial independence of BRICS states, and minimize geopolitical risks, that is, free economic development, as much as possible in today’s world,” Ambassador Terekhin elaborated.
Ethiopia’s membership in the BRICS, which is the association of countries of like-minded economic aspiration, is of a milestone diplomatic achievement.
Both the expansion of BRICS and NDB emphasis on ensuring the necessary financial resources for projects in the countries of the Global South are of paramount importance.
As joining the BRICS assists the progress of the country’s national economy more than ever before, all pertinent bodies should join hands and form an alliance. In doing so, achieving the desired goal will be as easy as falling off a log and shooting fish in a barrel.
As nothing can prohibit Ethiopia’s growth, the country should unlock all opportunities and possible avenues attaching due importance to BRICS membership.
The bloc will combine the advantages of each member for the success of the members on the grounds that BRICS can turn their dreams into a reality at the earliest possible time. Other than that BRICS+ will bolster a multipolar world that can balance needless pressure from leading superpowers.
The cooperation can expedite access to financial resources, technical expertise among BRICS nations, and other things of a similar kind. The country also strives for effectuating climate-resilient and low-carbon growth approaches in accordance with the objectives of the AU Agenda 2063.
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald
BY ADDISALEM MULAT
THE ETHIOPIAN HERALD TUESDAY 17 DECEMBER 2024
