BRICS gains new chance to improve global development
A new momentum for BRICS?
After the last BRICS Summit in 2022, hosted by Beijing and held online, the idea of expanding the group was strengthened, and more countries are expected to join this year. Three countries have already officially applied to join the group (Argentina, Algeria and Iran), and several others are publicly considering doing so, including Indonesia, Saudi Arabia, Turkey, Egypt, Nigeria and Mexico. The BRICS countries occupy an increasingly important place in the world economy. In GDP at purchasing power parity (PPP), China is the largest economy, India is third, Russia sixth, and Brazil eighth. BRICS now represents 31.5% of the global GDP PPP, while the Group of Seven’s share has fallen to 30%. The BRICS countries are expected to contribute more than 50% of global GDP by 2030, with the proposed enlargement almost certainly bringing that forward. Bilateral trade among BRICS countries has also grown robustly: Trade between Brazil and China has been breaking records every year and reached US$150 billion in 2022; between Brazil and India, there was a 63% increase from 2020 to 2021, reaching more than $11 billion; Russia tripled exports to India from April to December 2022 compared with the same period the preceding year, expanding to $32.8 billion; while trade between China and Russia jumped from $147 billion in 2021 to $190 billion in 2022, an increase of about 30%.Alternatives to the dollar
The two most important instruments created by BRICS are the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The first has the objective of financing several development projects, with an emphasis on sustainability, and is regarded as a possible alternative to the World Bank. The second could become an alternative fund to the International Monetary Fund (IMF), but the lack of strong leadership since its inauguration in 2015 and the absence of a solid strategy from the five member countries has prevented the CRA from taking off.Like this:
Like Loading...