10 Ways BRICS can Dominate Future World Economy
The BRICS countries (Brazil, Russia, India, China, and South Africa) collectively represent 42% of the world’s population, 26.7% of landmass, 18% international trade and 31.67% GDP becoming a strong economic power group.
History – Goldman in 2006 launched an investment fund focused on BRICS, however it was shut down in 2015 and merged with a larger emerging markets fund. That was perceived as the end of the entire BRICS period. Major developing markets were struggling. Russia and Brazil were in recessions, while China, a long-time global economic powerhouse, was about to embark on its slowest expansion since 1990. According to Bloomberg, the collapse of the BRIC fund, which had lost 88% of its assets since its peak in 2010, also demonstrated how the tactic of grouping many nations under one investing theme, were alienating investors. The four nations nonetheless of BRICS accounted for more than a quarter of the world GDP.
Fast forward 2022, BRICS over took G7 countries in total GDP shifting economic balance in the world from west to east. Slightly.
G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union.
The BRICS is also expanding – Bangladesh, Egypt and the UAE have tied with the BRICS New Development Bank, with numerous other countries poised to do the same.
While “dominating” the world economy might not be the most realistic goal, these countries can certainly enhance their influence and contribution to the global economic landscape.
Find more statistics at Statista
Here are 10 ways they could work towards that:
1. Infrastructure Investment:
BRICS countries can collectively invest in large-scale infrastructure projects, such as transportation networks, energy systems, and digital connectivity, which could enhance trade and connectivity between member nations and beyond.
2. Trade Bloc Formation:
By promoting intra-BRICS trade, reducing trade barriers, and collaborating on trade policies, these nations can create a powerful economic bloc that attracts international investment and boosts their own economies.
3. Commodity Exports Coordination:
As many BRICS countries are rich in natural resources, they can coordinate their commodity exports to maximize leverage in global markets and stabilize prices.
4. Innovation and Technology Sharing:
Encouraging joint research, innovation, and technology transfer can help BRICS nations stay at the forefront of technological advancements and foster economic growth.
5. Financial Cooperation:
Establishing a BRICS development bank or strengthening existing financial institutions can provide a source of funding for member countries’ development projects, reducing dependence on external financial institutions.
6. Currency Cooperation:
Promoting the use of national currencies in trade settlements among BRICS members can reduce dependency on the US dollar and enhance economic sovereignty.
7. Skills Development:
Join forces on educational and skills development programs can ensure a well-trained workforce that meets the demands of the modern economy, thus enhancing productivity and competitiveness.
8. Climate Action Collaboration:
Coordinating efforts to address climate change can lead to sustainable development strategies that not only benefit member nations but also position them as global leaders in green technologies and practices.
9. Cultural Exchange and Tourism:
Promoting cultural exchange and tourism between BRICS countries can foster people-to-people connections, boost economic activities in the tourism sector, and deepen diplomatic ties.
10. Diversified Investments with more members joining it:
Encouraging cross-border investments between member nations plus encourage more countries to join it can diversify economic interests and promote stability in the event of economic fluctuations in any one country.
It’s important to note that while these strategies can enhance the influence of BRICS countries, global economic dynamics are complex and subject to a multitude of factors beyond their control. Collaboration and long-term commitment to shared goals would be crucial for the successful implementation of these strategies.
