{"id":49868,"date":"2023-07-23T17:10:47","date_gmt":"2023-07-23T17:10:47","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/what-is-brics-bloc-and-how-does-it-stack-up-against-g7-goliath"},"modified":"2023-07-23T18:40:54","modified_gmt":"2023-07-23T18:40:54","slug":"what-is-brics-bloc-and-how-does-it-stack-up-against-g7-goliath","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/what-is-brics-bloc-and-how-does-it-stack-up-against-g7-goliath","title":{"rendered":"What is BRICS Bloc and How Does It Stack Up Against G7 Goliath?"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>BRICS leaders are gearing up for their much-anticipated South Africa summit. Since the bloc\u2019s creation at a forum in St. Petersburg in 2006, BRICS has come to represent the aspirations of the developing world to challenge the economic hegemony of the collective West. How does it plan to achieve this goal? Check out Sputnik\u2019s explainer to find out.<\/p>\n

The summit of the leaders of Brazil, Russia, India, China, and South Africa (together, BRICS) is set to kick off on August 22 in Johannesburg, and will be the first face-to-face meeting the group has had since 2019.<\/p>\n

Front and center at this year\u2019s forum will be the possible creation of a common BRICS currency \u2013 an eventuality which could dramatically strengthen the bloc\u2019s positions in global affairs. But more on this below. First, some basic answers to some basic questions.<\/p>\n

How Did BRICS Come About and What is Its Purpose?<\/b><\/p>\n

The association of Brazil, Russia, India, and China (or BRIC \u2013 South Africa would join in December 2010) came to fruition at the St. Petersburg Economic Forum in June 2006, when the economy ministers of the four founding members created the group to facilitate economic growth. The first official meeting of BRIC members took place on the sidelines of a session of the UN General Assembly in September 2006, with the first summit meeting occurring in Yekaterinburg, Russia in June 2009.<\/p>\n

From the outset, the group of countries proposed and hammered out a variety of mostly economy-related goals, from joint investment opportunities and economic cooperation, to dealing with the 2008 financial crisis, global development, UN reform, and ensuring that \u201cemerging and developing economies\u201d have a \u201cgreater voice and representation in international financial institutions.\u201d<\/p>\n

The communique of the June 2009 Yekaterinburg summit summarized the parties\u2019 goals and interests: promoting \u201cdialogue and cooperation among our countries in an incremental, proactive, pragmatic, open and transparent way,\u201d with the goal of \u201cnot only serving common interests of emerging market economies and developing countries, but also building a harmonious world of lasting peace and common prosperity.\u201d<\/p>\n

How Does BRICS Stack Up Against the G7?<\/b><\/p>\n

Less than a decade-and-a-half on since its foundation, BRICS countries have demonstrated how far they have come, surpassing the G7 wealthy industrialized nations in GDP in 2022 (and in PPP in 2018), and setting up cooperative pathways and institutions to ensure members\u2019 ability to withstand pressure by third parties aimed at harming their economies. Seven years from now, by 2030, the BRICS countries are expected to account for over 50 percent of the world\u2019s nominal GDP, thus further strengthening their positions as the economically most powerful economic bloc in the world.<\/p>\n

Where is BRICS Headquartered?<\/b><\/p>\n

Unlike many Western-led economic and political institutions, BRICS doesn\u2019t have a single headquarters. Instead, its institutions are spread across its member countries, with the New Development Bank headquartered in Shanghai, China, while the BRICS Business Council is situated in Johannesburg, South Africa, and the Contingent Reserve Arrangement short-term financial assistance framework is based in Moscow, Russia. Summits move from country to country, further solidifying the image of an equality-based partnership in the bloc.<\/p>\n

Which Countries Want to Join BRICS?<\/b><\/p>\n

The BRICS group\u2019s growing economic and political capital, combined with its proposed alternative to Western economic hegemony, has proven highly attractive to many countries in the developing world and the Global South. Algeria, Argentina, Bangladesh, Belarus, Egypt, Ethiopia, and Iran are formal candidates to the organization, and nearly three dozen other nations across Africa, Asia, the Middle East, and Latin America from Nigeria and Turkiye to Afghanistan, Indonesia, Mexico, Venezuela, and Saudi Arabia have either applied to join or expressed an interest in doing so.<\/p>\n

Is the BRICS Group a Superpower?<\/b><\/p>\n

Not in the traditional sense. Unlike the geopolitical power blocs of the 20th and early 21st centuries, BRICS members have emphasized openness, pragmatism, and non-bloc status as keystones to cooperation between them. This, incidentally, has helped tremendously in allowing countries which might otherwise see themselves as potential rivals (China and India, for example) work harmoniously within the organization despite their differences.<\/p>\n

That said, the bloc\u2019s members together enjoy a combined GDP of over $26 trillion, account for over 3.27 billion people (41 percent of the world\u2019s population), and 26.7 percent of the world\u2019s land area (39.7 million square km). The BRICS nations are also home to some of the world\u2019s top economic and technological powers (China) and military powers (Russia).<\/p>\n

What is the Proposed BRICS Currency?<\/b><\/p>\n

The much-talked about BRICS currency \u2013 i.e. the push to create a new trade and reserve currency that could serve as an alternative to the US dollar, has been one of the most talked about topics of the upcoming summit in South Africa \u2013 and compared in terms of global significance to the 1971 US decision to go off the gold standard.<\/p>\n

The details of the new currency have yet to be worked out, with BRICS economic heavyweights China and India undoubtedly needing to work out its fine points before an agreement can be reached which accommodates the interests of all parties. Such discussions are undoubtedly underway. Observers predict that the currency might be pegged to a basket of commodities, and operate as a digital currency for inter-state trade.<\/p>\n

How Will BRICS’ Rise Affect the US Economy?<\/b><\/p>\n

The continued integration of BRICS, and in particular the possible creation of an alternative to the US dollar, threatens to knock Washington down a peg in terms of its global economic might and ability to bully other countries through sanctions, other restrictions, unfair competition, and naked military force. If BRICS members can set aside their differences and come up with the right combination that accounts for all members\u2019 interests, the fairer and more inclusive world order their members have discussed at length can come one step closer to reality.<\/p>\n

That said, it has never been the BRICS group\u2019s stated goal to artificially damage or ruin the US or other Western countries economically or politically. Rather, the goal is to replace unipolarity with genuine multipolarity.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. BRICS leaders are gearing up for their much-anticipated South Africa summit. Since the bloc\u2019s creation at a forum in St. Petersburg in 2006, BRICS has come to represent the aspirations of the developing world to challenge the economic hegemony of the collective West. How does it plan to achieve this goal? Check […]<\/p>\n","protected":false},"author":84,"featured_media":49867,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[234,236,233],"class_list":["post-49868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nWhat is BRICS Bloc and How Does It Stack Up Against G7 Goliath? - Namibia<\/title>\n<meta name=\"description\" content=\"BRICS leaders are gearing up for their much-anticipated South Africa summit. 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