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Source: This post is created based on the article ‘Building BRICS for the future, published in The Hindu on 3rd October, 2023.
Syllabus Topic: GS Paper 2, international Relations
News: The article discusses the evolution and significance of the BRICS grouping, emphasizing its potential to challenge the dominance of established economic blocs like the G7.
BRICS has recently expanded. The GDP of BRICS is projected to account for 36% of the global GDP, and by 2050, its member countries will house 47% of the world’s population.
Read – BRICS expansion
Why countries have been looking for the alternatives of west dominated institutions?
First, The polarized stance of the U.S., especially against China and Russia.
Second, US and many western countries have been neglecting the World Trade Organization rules.
Third, the treatment of Africans in Europe and the increasing visa restrictions have made African nations lean more towards countries like China and India for trade and investment partnerships. Issues like Strait of Gibraltar crossing, intervention of France in Niger are other issues.
What is the significance of BRICS?
Economic Foundations: BRICS was formed out of economic compulsion and does not engage in military or security support, unlike NATO. Its GDP and population metrics highlight its potential to challenge the dominance of groups like the G7.
Main Players: India and China account for one-third of the global population, are among the fastest-growing economies. Despite political and diplomatic challenges, their trade relations have flourished, emphasizing that economic interests often surpass political differences.
Dollar dominance: The U.S. dollar’s dominance might be challenged by digital currencies, with India and China making significant advancements in this field. Both countries aim to promote their currencies as alternatives to the dollar, aligning their long-term interests.
Africa is viewed as the continent promising economic growth in this century.
Unlike west dominated institutions, in BRICS no single country is dominant. China has been counter-balanced by democratic countries such as India, South Africa and Brazil.
