BRICS Emerges as Serious Contender to G7: Experts

BRICS Emerges as Serious Contender to G7: Experts 

The challenge posed by BRICS to the world's established economic order can no more be underestimated, according to experts in international relations.  With this bloc, comprising leading emerging economies, now contributing over a quarter of the global GDP, it has the potential to stand shoulder-to-shoulder with the G7 group of developed nations.

Potential to Shape Global Economics and Relations

With 23 countries vying for access to the BRICS economic bloc, which currently consists of Brazil, Russia, India, China, and South Africa, the efforts to reform the economic and financial system should be considered seriously, believes Anthony Rowley, a seasoned journalist, and expert in Asian economic and financial affairs. 

Considering the importance of the BRICS members, which already represent more than a quarter of the global GDP, “no one can dismiss lightheartedly now their challenge to the established economic order,” Rowley asserts in a recent article published on Saturday by the South China Morning Post (SCMP).

As the upcoming BRICS summit in Johannesburg scheduled from August 22-24 approaches, leaders are gearing up to explore the organization's expansion. South Africa's top diplomat, responsible for BRICS relations, revealed that over 40 nations have either formally applied or expressed interest in joining the union.

“But it is not so much size that matters as the diverse areas into which BRICS members are projecting their influence,” Rowley remarked. The diverse spheres in which BRICS members exert their influence have propelled the bloc toward a broader global perspective than other regional formats typically exhibit.

Rowley further highlights BRICS' uniqueness in its pursuit of alternative financial resources for its members. Through mechanisms such as the New Development Bank (NDB), local currency settlements, and central bank digital currencies (CBDCs), BRICS seeks to foster multilateralism and global governance, particularly in economics and finance. He also said:

"BRICS is a natural pole of attraction because its chief focus is to promote multilateralism and global governance, not least in the areas of economics and finance."

China-India Rivalry and Acceptance of "New World Order" 

Despite these ambitions, the rivalry between China and India casts a shadow over BRICS' future expansion. The differing viewpoints of these two powerhouses, with China favoring rapid expansion and India advocating for broader association without full membership, could potentially hinder the bloc's evolution.

BRICS “could evolve to become a counterpart to the Group of Seven (G7) in world affairs, resulting in a profound impact on international relations,” said Hung Tran, a non-resident senior fellow at the Atlantic Council think tank. 

He believes that BRICS could mature into a global counterpart to the G7, significantly shaping international relations. The outcome, Tran suggests, hinges on whether China's or India's approach prevails.

Tran explained that India “has tried to resist China’s efforts to turn the BRICS group into a support organization for China’s geopolitical agenda…and explicit anti-US rhetoric.”

He delves into India's resistance to China's dominance within BRICS. India seeks to prioritize Global-South economic and financial cooperation, reduce reliance on the US dollar, and reform international financial institutions to amplify the voices of developing nations.

In alignment with these perspectives, Mohamed El Yattioui, a professor of international affairs and strategy, recently proposed that BRICS' expansion could compel Western nations to embrace changes in global relations, marking what he terms the "new world order."

Do you think BRICS can emerge as a formidable rival to established intergovernmental forums like the G7? Please share your thoughts and opinions on the subject in the comments section below.