IMPORTANCE OF BRICS IN WORLD ECONOMY

IMPORTANCE OF BRICS IN WORLD ECONOMY

The current landscape of global economic and geopolitical activities has witnessed a transformational change with the emergence of BRICS, comprising five major and dynamic economies of Brazil, Russia, India, China and South Africa. Born for the shared voices of growth, development and growth, BRICS represents a unique alliance that transcends geographical boundaries and lead under a common platform across oceans.

International attention has been drawn to the association of this emerging economic power with the potential for a new approach to change the shape of the global economy with new rules, challenging existing standards and encouraging cooperation between diverse cultures and systems. The potential for the development of international relations informs a unique association. This marks the beginning of a new chapter in the story of emerging economic superpowers’ credibility, cooperation and in the perspective of a multi-polar world order, which sets the stage for establishing a new background in the development perspective of international relations and economic interactions.

importance of BRICS in world economy

The BRICS nations have made their mark primarily in economic matters due to their significant influence on regional and global affairs. The importance of BRICS in world economy can be understood through the following points:

1. Economic size and growth potential: Collectively, the BRICS countries represent the bulk of the world’s population, land area and natural resources. They also account for a significant portion of the global GDP. Their combined economic output and growth potential have made them important players in shaping global economic trends.
2. Trade and Investment: BRICS countries have been active in bilateral and multilateral trade agreements and investment initiatives, both among themselves and with other countries. Their economies specialize in diverse markets and investment opportunities, thereby attracting foreign investment and promoting economic cooperation.
3. Diversification of the global economy: BRICS countries contribute to the diversity of the global economy, by professionalizing alternative markets and supply chains. This diversity can promote stability and subsidiary, while reducing dependence on a few major economies.
4. Reform of the global financial system: BRICS countries are dissatisfied with the dominance of the US dollar in the global financial system. They have explored alternative measures, such as the New Development Bank (NDB), also known as the BRICS Bank. It aims to finance knitting and sustainable development projects in major emerging economies.
5. Political Influence: Apart from economic importance, BRICS countries also have significant political influence. Their association within the BRICS framework gives them the ability to voice common interests and concerns in various global fora, which can potentially help shape global policies and standards.
6. Technology and Innovation: Several BRICS countries, especially China and India, have become hubs of technological innovation and research. His contributions make a global impact in areas such as information technology, biotechnology and renewable energy.
7. Weaving Development: BRICS countries often cooperate in knitting development projects. These projects can have a positive impact on neighboring regions as well as facilitating economic development in the member countries.
8. South-South Cooperation: BRICS exemplifies the concept of North-South Cooperation, which involves subsidization and cooperation among developing countries. This approach allows member states to share their experiences, knowledge and resources to address mutual challenges.
9. Global Governance Reforms: BRICS countries have initiated reforms in global governance structures, such as in organizations such as the United Nations, the International Monetary Fund (IMF) and the World Bank. They are of the view that these institutions need to be changed to better represent the changing global economic scene.

It is important to note that the influence and importance of BRICS in the world economy has increased over the time.

Recent Updates about BRICS

In a significant decision, BRICS (Brazil, Russia, India, China and South Africa) members made a significant announcement at the conclusion of the 15th BRICS Summit in Johannesburg on 24 August 2023 that the alliance was being expanded and six new countries(Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates) were welcomed. Prime Minister Narendra Modi announced the decision and said that the addition of new members would strengthen BRICS and instill confidence in the idea of a multipolar world order. Current BRICS chairman South African President Cyril Ramaphosa presented the Johannesburg Declaration as the outcome document of the summit and called for a “peaceful solution” to reforms related to the Ukraine conflict.

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