BRICS is an acronym that stands for five emerging world economies. Brazil, Russia, India, China, and South Africa make up the BRICS economic system, and that system is growing.
It might seem easy to brush off countries the world sees as ‘third-world’ or ‘emerging,’ but ignoring this coalition of countries could be disastrous for the western global market. Just how much influence does this cohort of BRICS have? With a combined population of 3.23 billion people, the BRICS countries make up 41% of the world’s population.
They also claim 24% of global GDP. GDP or gross domestic product measures all the goods and services a country provides over a 12-month period. This coalition also holds 16% of the value of global trade.
Argentina Wants In
As the BRICS nations become more cohesive, cooperating on economic issues that affect food and oil supplies, other countries are taking notice. Argentina, for instance, has shown an interest in joining the BRICS coalition, and it isn’t the only one. Iran has also shown an interest in joining this conglomerate of countries, and China is open to several more joining a ‘BRICS Plus’ cooperation.
Among those mentioned are Kazakhstan, Uzbekistan, Argentina, Egypt, Thailand, Indonesia, Nigeria, Senegal, and Saudi Arabia. Russian President Vladimir Put has also personally invited Iran and Turkey to join the BRICS coalition.
China’s foreign minister and state counselor, Wang Yi, had this to say about global governance and inclusivity. “The ‘BRICS Plus’ cooperation, as a platform for emerging markets and developing countries, is built for cooperation and development.
More countries are welcome to join us in promoting democracy in international relations, making the world economy more inclusive and rationalizing global governance so as to jointly create a bright and better future.”
US-EU Global Dominance at Stake
For the last seventy years or so, at least since WWII, the United States has been the world’s superpower. Like a menacing big brother, the world stage has played second fiddle to the demands and dictates of US policy. However, the emergence of BRICS puts the US and EU on notice that things will change, with or without US consent.
In July 2022, China announced that Shanghai would be the central headquarters of the new NDB or the New Development Bank. This $100 billion investment by the BRICS countries is the first step in challenging the totalitarian rule of the World Bank and the IMF or International Monetary Fund. And with a $100 billion reserve currency, the BRICS countries are showing that they mean business.
With this alternative international payments option available to these countries and others who join the BRICS nations, the west will lose much of its world dominance in the financial market and could see the dollar slide in popularity as the world’s reserve currency.
For years the BRICS countries have been biding their time, working to strengthen each economy in turn and effectively giving Russia everything it needs to keep moving forward despite heavy and expanding US sanctions concerning the Ukraine war.
Russian President Vladimir Putin had this to say about his country’s cooperation with the BRICS nations: “Contacts between Russian business circles and the business community of the BRICS countries are being activated. For example, negotiations are underway to open Indian supermarket chains in Russia to increase the share of Chinese cars, equipment, and machinery in our market.
“In turn, the Russian presence in the countries of the five is expanding. Volumes of Russian oil deliveries to China and India are growing noticeably. Cooperation in the field of agriculture is developing dynamically. Russia exports significant volumes of fertilizers to the BRICS countries. Russian IT companies are expanding activities in India and South Africa, and our satellites are already providing cable TV broadcasts to 40 million people in Brazil.”
Us or Them
While US dominance in the world is at stake, world leaders are looking for solutions that bring nations together instead of dividing us further. Chinese President Xi Jinping said this about cooperation and inclusion.
“China stands ready to work with other countries, including other Brics members, to step up implementation of the United Nations’ 2030 Agenda for Sustainable Development and advance the Global Development Initiative to jointly build a community for global development.”
The US may staunchly want to maintain control as the supreme leader of the western world. Still, the BRICS nations cannot be ignored, and refusing to engage in constructive dialogue with these emerging nations may turn out to be a serious misstep on the world stage for the United States. Only time will tell if the US and the BRICS nations can create the stability the world is seeking.
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This article was produced and syndicated by Wealth of Geeks.