BRICS vs. G-7: The battle for global economic supremacy

Georg Wilhelm Friedrich Hegel, a well-known German philosopher, gave rise to a philosophy that one school of thought would gave some extreme viewpoints which would be called as “Thesis”. Contrary to this, people, opposing to the former school of thought, would give some extreme thoughts that would counter the former ones which would be called as “Anti-thesis”. At last, new thoughts would be emerged by compiling these, thesis and anti-thesis, to provide mesial way, and that would be called as

“Synthesis”. If it is observed in today’s scenario, it can easily be examined in the form of G-7/G-20 (developed economic countries) and BRICS (developing economic countries).

BRICS comprising of Brazil, Russia, India, China, and South Africa is an organization that was made in 2009 for assisting each other. This actually come into being right after the economic crisis of 2008. When economic crisis occurs, developed nation like G-7 did not abet other nations which ultimately urge these countries to build an organization to assist each other and do economic collaborations. The actual motive of BRICS is to promote trade and development across the countries in the region. Besides, there is another promise to work collectively on climate issue and honor commitments regarding that.

Today, BRICS has expanded its horizons. It has added 6 new members which are considered significant in their regions. These countries are Iran, Kingdom of Saudi Arabia, Ethiopia, Egypt, United Arab Emirates, and Argentina. All these countries are imperative because of the enrichment of natural resources and geographical locations. Moreover, it is also thought that in near future, this organization would expand further, and it will challenge the incumbent global order. Therefore, it is considered as menace for the west because present world order is more tilted towards West, to be very specific United State of America (USA).

This organization is conspicuously confronting the G-7 countries. It is because currently, G-7 countries are controlling 30% of the global economy whereas BRICS has hold over 31.5% of the world economy. Besides, it is challenging the west in many other ways like investment in developing countries, political

dominancy, and attracting other countries towards them. Reconciliation between Iran and KSA by China is the prominent example of it. Moreover, DEDollarization is one the foremost phenomena that is created by BRICS to face-off west, to be precise USA. It is because all the trade is occurring in dollar that gives a major edge to USA over other countries. However, the way China has introduced its currency, the Yuan, in the international market shows that it will confront dollar in near future. In present time, 8 countries are doing trade in yuan, which covers 2.77% of the global economy. From this it can be said that BRICS is creating hurdles for today’s global order and will challenge world directly soon.

Although, BRICS is confronting G-7 countries yet the important question is still not answered. Is BRICS united internally? This is the most important question which is still looking for a prudent answer. It is because countries in the BRICS has different form of governments; China and Russia have authoritative form of governments whereas India, Brazil and South Africa have democracy. Likewise, China and Russia have precarious relation with west and USA, but India and South Africa have normal ties with western bloc. This shows that BRICS countries have differences in their forms of governments and foreign policies that raise reasonable questions regarding the unity of BRICS internally.

If the addendum of other members of BRICS are considered, it can be asked that why is Pakistan not inculcating in the organizations? To answer this questions, the economy should be examined first. Pakistan is on the brink of default, and it has no foreign reserves to fulfill its basic commodities via imports. If this scenario is taken then Argentina has the same scenario, they are officially declared as default country though. From this, it can be said that economy is not the case. However, the basic reason of in incorporating Pakistan in to BRICS organization is its political tilt towards west. Though BRICS’ addendum countries are facing distinct challenges yet their affairs with west are not deep rooted. Pakistan has a deep political connection USA and West; therefore, commentators are of the opinion that Pakistan has not been included in the BRICS plus.

World is rapidly changing from west to south-south cooperation model. Therefore, it imperative for Pakistan to take some judicious steps to attract BRICS countries, but those actions should not be in a way that antagonize west and USA. The foremost step which Pakistan should take to overcome the political influence of west and USA in domestic politics. This step would be found as cornerstone for Pakistan to grab the attention of rising world. Therefore, Pakistan should promote educated political leadership that promotes neutral policies and do not go for blocs.

Secondly, Pakistan is required to improve its economic ties with BRICS countries. It should improve its economic ties with India because it is its neighboring country. This will not only improve the ties with India, but it will also be found a grave assistance in the economy. Likewise, Pakistan should improve its economic and political ties with Russia. By normalizing ties with these countries, it would be great chance to grab the official invitation of joining the BRICS.

Thirdly, Pakistan is rich with natural resources. It should utilize the concept of win-win situation and entice countries like China and Russia to collaborate and extract these natural resources. This will not only help Pakistan to extract its natural resources, but it will also assist Pakistan to improve its ties with these countries and get economic benefits. Via this, there would be great chance for Pakistan to be inculcated in the BRICS organization.

To conclude, it can be said that BRICS has addendum 6 new numbers which shows that it is now confronting the existing world order. It is challenging the global world order, G-7 countries, in different spheres. Although, they have incorporated new members yet a pertinent question is remained about the unanimity of the BRICS internally. Pakistan is country located in the vicinity of two giant BRICS members, but it is not embodied in the organization. There are many reasons behind it; however, Pakistan can get formal or official invitation from BRICS countries if it follows the aforementioned steps.

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Bilal Khan
Bilal Khan
The writer can be reached at [email protected]

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