BRICS can neutralize US sanctions, says Jeffrey Sachs

“The BRICS countries are resisting Western sanctions, which is very important,” noted the North American economist. Sanctions are “not very powerful when most or most of the world opposes them.”

The BRICS group (Brazil, Russia, India, China and South Africa) is capable of neutralizing Western sanctions, emphasized Jeffrey Sachs, economist, senior UN adviser and former director of Columbia University’s Earth Institute. .

“Western sanctions are not very powerful when most of the world or most of the world opposes them. The BRICS countries resist Western sanctions, which is very important,” Sachs pointed out.

For the respected economist, these violate international law, as these types of restrictions can only be introduced by a decision of the United Nations.

Regarding demonetization, according to Sachs, “the BRICS could create alternative alternatives to the dollar”. In this sense – he predicts – “yes, the dollar will be largely eliminated as the dominant global currency”.

According to Sachs, devaluation is inevitable in the long run as “the United States’ participation in the global economy and trade declines.” In his words, as BRICS accelerates the transition to a multi-currency system, the role of the US dollar will decline.

The economist asserted that BRICS expansion would give the group a key role in the strategic minerals sector. “Investments in minerals will be very important in the coming industrial and energy transitions. (…) BRICS countries will play an important role in the global production and trade of strategic minerals,” Sachs said.

Sachs concluded that future expansion of BRICS would give the group “greater influence in negotiations in international forums” and “strengthen OPEC+”.

The 15th BRICS summit held in the South African city of Johannesburg from August 22 to 24 approved the addition of Saudi Arabia, Argentina, Egypt, the United Arab Emirates, Ethiopia and Iran as new members from January 1, 2024.

The BRICS currently represent 31% of global gross domestic product (GDP) in purchasing power parity and 42% of the world’s population. With BRICS expansion, the percentages increase to 37% of world GDP and 46% of world population.