Iran Joins BRICS to Reduce Reliance on Western Economic Systems - Blockchain.News

Iran Joins BRICS to Reduce Reliance on Western Economic Systems

Rebeca Moen Jan 08, 2024 05:42

Iran joins BRICS, aiming to mitigate US sanctions and challenge Western economic dominance, amidst mixed reactions and uncertain benefits.

Iran Joins BRICS to Reduce Reliance on Western Economic Systems

Iran's recent accession to the BRICS economic organization, a coalition led primarily by China, marks a significant development in international geopolitics, particularly in the context of the country's ongoing economic challenges and diplomatic isolation. This move, officially commencing on January 1, 2024, represents Tehran's attempt to navigate the impacts of U.S. sanctions and its broader strategic goal of reducing reliance on Western economic systems.

Iran's inclusion in BRICS, alongside other new members such as Saudi Arabia, Ethiopia, Egypt, Argentina, and the UAE, adds considerable weight to the bloc, which already comprises Brazil, Russia, India, China, and South Africa. This expansion reflects the group's aspiration to reshape the global order, perceived as outdated by its members. The enlargement process, first of its kind in 13 years, underscores the bloc's intent to challenge the existing global hierarchy and increase its influence in the Global South​​​​.

President Ebrahim Raisi of Iran views this membership as a critical achievement, linking it to the nation's economic and diplomatic aspirations. By aligning with BRICS, Iran aims to challenge the dominance of the U.S. dollar in global trade and mitigate the effects of U.S. sanctions. However, there's skepticism regarding the practical benefits of this membership, especially given the geopolitical tensions involving key BRICS members like Russia and China, and their complicated relations with the West​​​​.

Iran's engagement with BRICS is part of President Raisi's broader strategy of strengthening ties with Asian powers and neighboring countries. This approach is seen as a counterbalance to Western isolation efforts, particularly in light of the stalemate over Iran's nuclear program. However, the effectiveness of this strategy remains uncertain, as trade relations with BRICS nations, including China, continue to be hampered by U.S. secondary sanctions. Furthermore, Iran's recent restoration of diplomatic ties with Saudi Arabia, another new BRICS member, indicates a shift in regional dynamics, potentially impacting its engagement within the bloc​​.

The expansion of BRICS has been met with varied reactions internationally. While Chinese and Russian leaders have hailed it as a historic step towards strengthening global peace and development, the United States has downplayed its significance, not viewing BRICS as a major geopolitical competitor. This mixed reception highlights the complexities and diverse perspectives within the international community regarding the bloc's evolving role​​.

In summary, Iran's BRICS membership represents a strategic move aimed at diversifying its economic partnerships and reducing dependency on Western financial systems. However, the actual impact of this membership on Iran's economy and its global standing remains to be seen, given the internal divisions within BRICS and the ongoing geopolitical tensions.

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