Where will the BRICS nations go next, and what effect will they have on the world economy?
The informal organization of the early 2000s top rising economies that included Brazil, Russia, India, China, and South Africa has since seen drastically distinct growth paths. It is still unclear how important they are to the global financial system at a time of great geopolitical unpredictability.
World economic power has undergone an extraordinary reconfiguration over the last 20 years. This has been principally fueled by the expansion of China and, to a smaller extent, the BRICS nations in general, which also include Brazil, Russia, India, and South Africa in addition to the East Asian behemoth.
Many spectators have been concerned that this firm’s growing influence may be preceded by the regularisation of authoritarian aspects of “state capitalism,” as well as the unraveling of the liberal order, as it becomes more systematized and legitimized, hosting regular international conferences and creating collective bodies.
Others hold a more upbeat perspective, contending that Eastern models of state-led development are superior to Anglo-American systems of politics and economics in many ways, and that this is compatible with – and, in fact, depends on – an open world market.
Regardless, many European liberals’ worries have returned in the wake of Russia’s invasion of Ukraine. Western governments are especially alarmed by recent reports that Egypt, Iran, Saudi Arabia, Turkey, and Argentina are either considering joining the BRICS or have already applied to do so. These countries are primarily non-democratic.
How do the BRICS Countries Affect the Global Economy?
What potential effects might the BRICS’ growth have on the world economy?
The concern stems from the fact that the BRICS have, to varying degrees, grown increasingly nationalist and autocratic over the previous ten years, with the possible exception of South Africa (Reddy, 2022).
In China, Xi Jinping has solidified his power. Both Brazil under Jair Bolsonaro, who will soon compete in a run-off for the presidency against Lula da Silva, have seen a dramatic move toward populism (de Souza, 2020; Sinha, 2021). The pariah state of Vladimir Putin’s Russia raises a number of difficult geopolitical issues that go far beyond the current Ukraine crisis (Burns, 2019; d’Eramo, 2022). Minorities are harassed and have their civil rights constrained in all four.
But the BRICS is a Force to Reckon With.
The BRICS nations have established a significant force that simply cannot be disregarded in the world economy, making up 25% of foreign direct investment, 18% of goods trade, and 23% of the global economy.
BRICS is an important organization, and its efforts would be necessary for reducing tensions between the east and the west. It can also affect the global economy if its nations indulge in any kind of war like Russia. So, the platform can pressure Russia to withdraw war in Ukraine, and help in increasing the economic development in all its member groups.
In order for the organization to fulfill its vital responsibility of “steering” the world economy in the upcoming years and ensuring that tensions between the West and the East are reduced rather than exacerbated, it will be required to overcome this.