The likelihood of success for the BRICS economic alliance is a subject of debate among analysts and experts. Here are some key points regarding the prospects of the BRICS:
Potential for Success
- The BRICS collectively account for a significant share of the global economy (around 37% of world GDP in PPP terms) and population, giving them substantial economic heft.
- The recent expansion to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE has further increased the economic weight and resource base of the grouping.
- Initiatives like the New Development Bank and efforts to reduce reliance on the U.S. dollar could provide alternative financing and payment systems for developing nations.
- Growing trade and investment ties among BRICS nations, especially between China, India, and resource-rich members, could drive economic integration and development.
Challenges and Skepticism
- The BRICS nations are highly heterogeneous, with diverse economic structures, political systems, and strategic interests, making consensus and coordination difficult.
- Apart from China and India, the other BRICS members have underperformed economically compared to initial projections.
- The BRICS have struggled to achieve substantive structural reforms, policy coordination, and meaningful impact on global governance so far.
- Critics argue that the BRICS' embrace of neoliberal capitalism hinders their ability to achieve social and human development goals.
- Skeptics contend that the BRICS may not fundamentally challenge the existing global economic order but rather seek to gain more influence within it.
July 15, 2024
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