Iran, local currencies, UN reform: Jeffrey Sachs lays out priorities for a successful BRICS Summit

A successful BRICS Summit in India should deliver clear positions on the war in Iran, greater financial cooperation and support for the multilateral system, according to economist and Columbia University Professor Jeffrey Sachs.

In an interview to CNBC-TV18 Sachs said the 10 BRICS countries should aim to reach agreement on practical areas of cooperation, while also using the summit to send a strong message on international peace and the role of the United Nations.

His first priority is Iran, which is a member of BRICS and has become central to the geopolitical backdrop surrounding the summit.

“I would hope that the BRICS countries say clearly to the United States the war needs to stop. It’s damaging the whole world,” Sachs said.

He called for an end to hostilities and the reopening of the Strait of Hormuz

, arguing that the conflict was having consequences well beyond the region.

“Let’s get back to decency and international law,” Sachs said.

Sachs also linked the conflict to the global economic impact of higher oil prices. He said the war had pushed oil prices above $100 a barrel, adding to the economic risks facing countries around the world.

For Sachs, a clear BRICS position on the conflict would therefore be one of the key indicators of whether the summit had delivered meaningful political outcomes.

His second priority is greater monetary and financial cooperation among BRICS members.

Sachs said the grouping should move ahead with local-currency payments and deepen its financial cooperation. He described this as an important practical step that could benefit the wider international system.

“I hope that the BRICS say that they are moving forward, practically speaking, on monetary and on financial cooperation and on moving to local currency payments,” he said.

The third area identified by Sachs is the United Nations and the future of multilateralism.

The BRICS Summit comes as the international community is also involved in selecting the next UN Secretary-General. Sachs said BRICS should use its collective influence to reinforce support for the UN Charter and a multilateral global order.

He said the grouping could go beyond statements and become a source of major UN-led initiatives in areas where its member countries have significant expertise.

Sachs suggested that India could host a major UN initiative focused on ICT for economic development, China could lead an initiative on green transformation, while Brazil could take a leading role in rainforest protection.

“I see the BRICS as being hosts of major new UN initiatives in the coming years,” Sachs said.

The comments come as India prepares to host the 18th BRICS Summit from September 12, with the meeting taking place against heightened tensions in West Asia.

For Sachs, the summit's success would therefore not be measured only by the number of agreements announced. He wants BRICS to use its collective weight to push for an end to the Iran conflict, advance financial cooperation and strengthen the UN-centred multilateral system.