The emergence of BRICS on the world stage is part of the process of de-colonisation
Cocooned in our tiny islands, it is very easy for us to turn our backs to the world and become absorbed in our internal squabbles. We do so at our peril. We cannot afford to remain oblivious to the radical changes emergingย in the stormy uncharted waters of the second quarter of the 21st century.
We are one of the most open and exposed countries in the world. We import and export practically everything. Our peace and prosperity depend on how well we manage our relationship with the rest of the world. We cannot shape what happens in the rest of the world but we can try to mitigate the negative effects of external shocks and grab the opportunities that arise.
It is crucial for us to understand the global consequences of the BRICS summit held in Kazan, Russia, 10 days ago.
Brazil, Russia, India and China (BRIC) created the group in 2006 to act as a multilateral organisation to working for the mutual benefit of the member countries. Since then, they have expanded twice: first in 2010 to become BRICS with the addition of South Africa, and again on January 1, 2024, with the inclusion of Saudi Arabia, Egypt, the UAE, Iran, and Ethiopia when they became BRICS. Another 13 are partner countries.
With more than 40 countries showing interest or formally applying to join this multilateral organisation, BRICS+, rising influence is being widely seen as part of the shape of things to come: a multipolar world.
After World War II, between 1945 and 1989, we lived in a โbipolarโ world with the two great powers, the US and the Soviet Union, competing for global hegemony. At the end of the 1980s, with the collapse of the Soviet Union, we had a โunipolarโ world with the US as the sole superpower dominating the world.
Since 2008 we have seen a โmultipolarโ world struggling to be born with three global superpowers: the US, China and Russia and a number of regional powers like India and Iran.
Changed global economy
In Kazan, the BRICS discussed strengthening their partnership and cooperation across three key areas: politics and security, the economy and finance, and cultural and humanitarian ties. They also discussed how to tackle climate change, enhance energy cooperation, safeguard supply chains, and boost scientific and technological collaboration.
Top of the agenda was how to set up a BRICS payment system, as an alternative to the present system dominated by the US dollar. Currently, the US uses its huge leverage over the global financial and trade system to coerce other countries to follow its diktats using sanctions as a continuation of war by other means.
The global economic landscape has changed since 1992 when the G7 nations accounted for 45.5% of global GDP, while BRICS countries represented only 16.7%. Since 2023, the BRICS bloc now accounts for 37.4% of global GDP, compared to the G7โs 29.3%. BRICS nations contribute over 40% of global GDP growth, with their collective economic growth rate projected to reach 4% this year โ significantly higher than the 1.7% growth forecast for G7 countries and the 3.2% global average. By contrast the voting rights of the BRICS+ countries in the World Bank and the International Monetary Fund are still around 15%.
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