Perspectives on the Brics factor in the global economy
The last week saw the meeting of the countries forming Brics (Brazil, Russia, India, China and South Africa) taking place in South Africa. This is among forms of cooperation of sovereign countries in the world. Among the leading forms of cooperation include the many and varied forms of regional economic cooperation.
Among the notable examples in this category include the European Union (EU), East African Community (EAC) and Economic Community for West African States (Ecowas). Other groupings are defined by economic status of countries. Among such groups include the Group of 20 richest countries (G20) and its sub-set of G8. Brics saw the light of the day in April 2011 after transforming itself from Bric as a result of admission of South Africa.
There are many issues that are and will arise due to the formation of Brics. Scholars, policy makers and the business community will continue to ask themselves many questions. Key questions touch on the possible impacts and implications of Bricgs to the global economy.
Understanding Brics
Brics forms a political and economic grouping of five emerging market countries. The first summit of Bric was in Russia in 2009. It then grew from Bric to Brics when South Africa got admitted to the club in 2011 in the Sanya summit in China. It is also known as the Big Five or Five States.
The group symbolizes the shift in global economic power away from the developed G7 economies. The economic potential of Brazil, Russia, India and China is said to have the ability of becoming the most dominant powerhouses come 2050. The countries encompass more than 25 per cent of the global land coverage. It hosts 40 per cent of the world’s population. Its combined gross domestic product (GDP) is about $18.486 trillion. They are among the biggest and fastest growing emerging economies. They are seen as the southern engines of global growth.
Admission of an African economy
South Africa’s admission is healthy for Africa in general and Tanzania for that matter. South Africa in Brics adds the presence of the African continent.
This will have meaning for Africa if South Africa puts Africa’s agenda forward in its Brocs engagement. It is also likely to link the rest of Africa to other Brics countries which are said to be the current and future engines of global growth. But for all these potentialities to be realized, the rest of Africa and Tanzania in particular will need to have engagement with South Africa so that the latter becomes a representative of the former in Brics.
Areas of cooperation
There are multitudes of agreements between and within the Brics block. Among them include Trilateral agreements and frameworks including the Shanghai Cooperation Organization which is composed of Russia and China. India has an observer status. The IBSA Trilateral Forum is made of India, Brazil, and South Africa. The trio do have annual dialogues. The G20 coalition of developing states includes all the Brics countries.
Other agendas of the Brics camp have included improving the global economic situation. Among their areas of cooperation have included trade and investments and reforming the global financial institutions including the World Bank and the International Monetary Fund (IMF). Other agendas for Brics include the need for a new, diversified, stable and predictable global reserve currency.
Expanding Bric
After the March 2011 admission of South Africa, Brics indicated that the original BRIC countries can add many ‘appendices’ and ‘annexes’ at the end of its name in its bid to become bigger and influential in various complex economic and geo-political settings. It has a potential of attracting many other emerging economies that subscribe to their thinking. That partly explains why Brics has at times been given various appendices and annexes.
Among the new emerging Bric-based acronyms include BRICK in which case K stands for South Korea; BRIMC (M for Mexico); BRICA (A for Arab countries – including Saudi Arabia, Qatar, Kuwait, Bahrain, Oman and the United Arab Emirates); BRICET (including Eastern Europe and Turkey) and even BRICN where N stands for Nigeria. Whatever the combination BRIC makes by adding appendices after its name, it undoubtedly stands to be a colossal force to be renowned with in the areas of economics, business, politics, security, international relations and beyond.
New dimension in global issues
Brics presents a new model of international collaboration. This will have many and far-reaching implications in a number of areas including in politics, economy, business and security.
It is supposed to be good news for emerging markets and developing countries in general and Africa and Tanzania in particular. Their voices and issues at the United Nations (UN) Security Council, G20, G8, World Trade Organization (WTO) and other places where the Lords of the World will be meeting are likely to be more heard due to the joint weight and strength of Brics.
BRICS stands to make the globe more multi-polar instead of being mono-polar or bipolar. This is very healthy in various arenas including that of major global economic and business decision making. BRICS stands to be an alternative and critical voice in favour of developing countries in such issues as global economic and financial architecture and governance where the developed nations from the West are arguably the current heavy weights.
