The economies of the BRICS are too different and develop in their own way, so they can hardly be considered economic Union, experts say. While Bloomberg notes that geopolitically it’s a strong Alliance, and it takes into account important current trend — the desire of developing countries for greater influence on policy.
ReutersЕсли before BRICS was considered one of the most powerful ideas in political economy, now it is not quite so, Leonid Bershidsky writes in his article for Bloomberg. However, even economically, the Union did not play a big role in the geopolitical landscape to change he managed, the author notes.
During the generation of the then BRIC idea has served investors as a sign that soon, these four economies will play a big role and they’re not allowed to miss. This idea was seen as a marketing tool: like a big glowing sign hung on it, and so that everyone can see. Now, countries have different trajectories of development, but the original idea has transformed along with the changing world. So now no matter what, the BRICS economies are developing at different paces, most importantly, they still play a key role in the world. The author agrees with experts who say that of the entire Union, India and China are growing faster than expected in forecasts, and the rest worse. Similarly, the differences in the economic models of these countries behave differently and their credit ratings. However, as before, these countries in the financial system remain outsiders. It lead the US and Europe. So, according to the author, instead of Brazil and Russia at the time, it was possible to take Indonesia and Vietnam to get the acronym VICI, which in Latin means “defeated”, or add to Nigeria — and VINCI as Leonardo da Vinci. In this, according to Bershidsky, it would be even more sense. However, the BRICS reflects the geopolitical situation. So, the Creator of the BRICS was submitted to the European members of the “Big seven” to occupy all of one seat in the Union as representatives of the Euro area, freeing up space for developing countries, and then the G7 would more adequately reflect the true state of Affairs. This did not happen, but the current G20 is therefore more efficient than the G7. BRICS countries shall provide each other with support, hold summits once a year, created a New development Bank for infrastructure projects in developing countries, in which members have equal rights, regardless of size. Economic power is essential to international relations, but there are other reasons to consider the country strong. So, according to the author, Russia is considered a global player, thanks to its military power and risky policy. Brazil and South Africa leading the regional players regardless of the economy. So sometimes this Union is called “political terrain”. The authors of the BRICS was right that they guessed right General direction: that the developing countries will seek to play a greater role in decision-making at the global level. And this trend will continue regardless of the economic indicators of the countries of the Union, writes Bloomberg.