BRICS Aim To Increase Influence

Economic and political rivals met this week to improve partnerships as a counterweight to Western economies.

The economic grouping known as BRICS- Brazil, Russia, India, China and South Africa - invited 31 other developing nations to Kazan, Russia, to discuss working together on the world stage. 

Representing 45 percent of the world's population and 35 percent of the global economy, the group seeks ways to turn expected economic growth into financial and political leverage. Egypt, Ethiopia, Iran and the United Arab Emirates have become members of the coalition; Turkey and Saudi Arabia are seeking entry.

Although the group is informal, one discussed goal is moving away from the dollar as their primary trade currency, reducing the influence of the United States on international trade. 

Yet some observers believe that regional rivalries will limit the potential of a BRICS economic bloc as they attempt to supplant the leadership of the G7. China and India, the group’s two most populous countries, also share a contested border. However, trade between the world’s 2nd and 5th largest economies is small at nearly $115 billion in 2023, mostly on Chinese imports. China and Russia maintain a lukewarm relationship. Total trade between the two world superpowers is at $240  billion in 2023 with a larger amount of exports heading to Russia. As a point of comparison, trade between the U.S. and China hit $575 billion in 2023.

For Market to Market, I’m Peter Tubbs