Challenges for BRICS+ group

THE EDITOR: The BRICS+ group has undeniably emerged as a formidable bloc on the global economic stage, signalling a significant shift in the world's financial and trade dynamics.

Originally comprising five nations – Brazil, Russia, India, China, and South Africa – the recent inclusion of Iran, Egypt, Ethiopia, Saudi Arabia, and the United Arab Emirates has expanded both its geographical reach and its influence.

This evolution not only underscores the growing economic clout of emerging markets, but also positions BRICS+ as a potential counterbalance to traditional Western-led alliances like the G7.

Over the past two decades, the BRICS+ nations have demonstrated impressive growth, particularly in trade and GDP contributions.

The group's share of global merchandise exports has more than doubled, climbing from 10.7 per cent in 2000 to 23.3 per cent in 2023.

This surge highlights the bloc's increasing role in global supply chains and international commerce.

In contrast, the G7's share of exports has significantly declined, reflecting the shifting centre of gravity in global trade from the established economies of the West to emerging markets.

On the GDP front, the numbers paint an equally compelling picture. In nominal terms, BRICS+ nations now account for 36 per cent of global GDP, surpassing the G7's 29 per cent.

When viewed through the lens of purchasing power parity, the group's influence becomes even more pronounced, with an estimated 37.3 per cent share of global GDP.

This is largely driven by the economic heavyweights of China and India, which contribute 19.05 per cent and 8.23 per cent, respectively.

These figures stand in stark contrast to the US and the European Union, each representing around 14.5 per cent.

This growing influence is not just about numbers; it reflects a broader shift in global power dynamics.

For decades, the G7 economies dominated the global economic order, setting the rules for international trade, finance, and governance.

However, the rise of BRICS+ signals the emergence of a multipolar world where diverse voices and perspectives are gaining prominence.

By offering an alternative to the G7, the BRICS+ bloc is challenging traditional power structures and advocating for a more inclusive and representative global order.

Yet, challenges remain. While the economic potential of BRICS+ is undeniable, the bloc must navigate significant internal differences – including varying political systems, economic priorities, and regional interests – to fully capitalise on its collective strength.

Co-operation and cohesion will be key if BRICS+ intends to transform its economic weight into tangible geopolitical influence.

In summary, the rise of BRICS+ marks a pivotal moment in global economic history.

As the bloc continues to grow and assert itself, it has the potential to reshape the global landscape, fostering a more balanced and multipolar world.

Whether it can maintain momentum and unity in the face of internal and external challenges will be critical to its long-term success.

KENNY PERSAD

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