By Kestér Kenn Klomegâh
Russia hosted the BRICS+ Business Council Forum 2024 which primarily seeks to build an alternative economic world. The BRICS association comprises Brazil, Russia, India, China and South Africa, and now has enlarged to include Egypt, Ethiopia, Iran and the United Arab Emirates. It is therefore strongly considered a powerful counterweight to the West in global politics, economics and trade.
As Russia holds the rotating chairmanship this 2024, President Vladimir Putin addressed the plenary session of the BRICS+ Business Council which attracted over 1,000 representatives of the business community, including heads of companies, associations, unions of entrepreneurs, and chambers of commerce and industry from the BRICS countries.
Central Theme
The theme of Russia’s BRICS Chairmanship is Strengthening Multilateralism for Just Global Development and Security. This means advancing partnerships on three major tracks: politics and security, economy and finance, and cultural and humanitarian ties.
BRICS Role in Global Economy
BRICS’ role in the global economy is expected to grow and become the driver of global GDP growth in the future. The BRICS member states make up about a fourth of world exports of goods.
The association’s members dominate on many key markets, including energy, metals and food. BRICS+ has a combined GDP which is more than $60 trillion, and the joint share in the gross world product confidently exceeds the corresponding figure of the so-called Group of Seven and continues growing.
The BRICS member states account for over 40% of the growth of the global GDP in the past few decades. BRICS’ average economic growth rate is estimated at 4% this year. It is higher than in the G7 countries. It’s only 1.7% there. And the global rate will be 3.2%.
BRICS Single Currency
BRICS currency is not under consideration now due to differences in the structure and quality of the economies of the member states, but now one should focus on the use of national currencies, new financial instruments and the creation of an analogue of SWIFT.
In particular, the BRICS states are considering the possibility of using electronic instruments. There is a necessity to establish relations between the central banks and ensure a reliable exchange of financial information that is independent of those international instruments of international information exchange that introduce certain restrictions for political reasons and violate the principles of the global economy.
New Development Bank
It was established in 2015, as a development bank to operate as an alternative to a vast number of Western financial mechanisms. With a solid, powerful and efficient structure, it boasts a substantial capital base as well as a team of experienced professionals. Its start-up capital was $100 billion.
As far as developing countries are concerned, the NDB is supposed to support investment in several projects comparable to the IMF and the World Bank. It is envisioned to become a major investor in the largest technology and infrastructure projects in the BRICS space as well as the entire Global South.
Future Pathways
Moving forward, BRICS+ needs to focus on creating a seamless digital infrastructure among the association’s members. To this end, it is crucial to establish coordinated approaches among businesses, the public, and the relevant authorities regarding the use of biometrics and ensuring information security.
The primary focus is on developing and strengthening its platforms that ensure economic growth. In the near future, it is supposed to provide technological solutions, financial and investment mechanisms, the expansion of logistics, and so on.
BRICS+ Policy
The BRICS’ activities are not spearheaded against anyone. They are aimed at attaining the common goal of sustainable development and prosperity for our members. Supporting business activity and enterprise is a priority for the leaders of all BRICS countries.
Attaining the main goals includes ensuring progressive development, security and, ultimately, the well-being of member countries’ citizens. It is necessary to cooperate rather than to confront and take advantage of BRICS’ impressive capabilities – in particular, its large population and wealth of natural resources – which will bring maximum benefits to businesses and all citizens.
Conclusion
The association is building upon relevant development platforms, including communication channels, technological and educational standards, financial systems, payment tools and, of course, mechanisms for sustainable and long-term investment. In a nutshell, BRICS+ is consistently playing a significant role in the global economy, and its influence will undoubtedly increase in the future.