Putin Touts BRICS as New Global Economic Engine
In preparation for the BRICS Summit, the BRICS Business Forum took place in Moscow on 18 October 2024. Some 1,000 delegates from BRICS member states and other countries participated in the Forum.
During his welcome address, Russian President Vladimir Putin asserted that #BRICS has surpassed G7 in terms of economic size and will remain the top economic bloc in the foreseeable future. President Putin also views BRICS as a counterweight to G7 and a key platform for the ‘economic sovereignty’ of nations.
The current BRICS+ economies now add up to 37.4% of the global #GDP compared to 29.3% for G7. In addition, the BRICS countries are experiencing a robust growth compared to the anemic growth in #G7 countries. Moreover, dozens of countries have expressed interest to join BRICS, thus further increasing its economic weight.
He highlighted some key initiatives in that direction. First, BRICS is working to deploy its own cross-border financial transfer system which is independent of #SWIFT and will be immune to sanctions by the West. In that regard, BRICS will actively promote the use of their national digital currencies for trade and investment within BRICS. However he believes that talks about a single BRICS currency seems ‘premature.’
He went on to briefly describe a few flagship projects which Russia is driving. First is the Arctic Sea Route which will avoid the congested Suez Canal and the risky Red Sea. Second is the North-South Corridor which will link Russia to the Gulf region and Indian Ocean via the Caspian Sea and Iran. The North-South Corridor is key to lower freight costs and boost trade between Eurasia and Africa.
On his part, Egyptian President Abdel Fattah el-Sisi promoted Egypt as the gateway to Africa, Europe and Middle-East and introduced the Suez Canal Special Economic Zone (#SEZ). He expressed the wish for more cooperation among BRICS countries in the fields of renewable energy, #digitalization and manufacturing.
Similarly, South African President Cyril Ramaphosa pointed to the ‘massive opportunities in trade, investment and #industrialization’ unlocked by the #AfCFTA. However, the promises of the African Single Market will require huge investments in #connectivity in order to integrate the economies.
The abundant natural resources, digitally connected youth and urbanizing population present many opportunities for investment across Africa. President Ramaphosa also pleaded for special consideration for #SME and women entrepreneurs which make up the bulk of the African economy.
The BRICS is evolving into the grouping of choice of the #GlobalSouth in that it is more sensitive to the issues and challenges of the developing countries. The BRICS Bank or New Development Bank (NDB) will also endeavor to provide financing which is more in tune with the development needs and aspirations of developing states.