Trade coalitions based on economics rather than politics are becoming the standard in both Asia and Eurasia, with organizations such as the Eurasian Economic Union (EEU), the Shanghai Cooperation Organization (SCO), and the Asean partnerships acting as mediators for countries to once again conduct trade using their own, or dollar alternate currencies.
Ironically, when Goldman Sachs dubbed five emerging markets as the BRICS economies, little did they know that this moniker would not only stick, but become co-opted by the very nations who were part of the label. And this BRICS coalition has been instrumental over the past six years in helping to change the very nature of the global financial system.
Now members within the EEU and Asean groups are seeing an expansion of the original BRICS partners and there are now plans underway to bring about its upgrade that will be known globally as BRICS Plus.
The expansion of BRICS, known as “BRICS Plus”, could become a new model of integration in the global economy, chief economist of the Eurasian Development Bank (EDB) Yaroslav Lissovolik said on Sunday.
“Integration proceeded previously as a rule on a regional basis, and BRICS offers a system of diversified integration that provides for a consistent movement towards rapprochement on different continents and in different regions of the world,” he said in an exclusive interview with Xinhua, adding that the expansion of BRICS would be aimed at increasing the availability of integration processes.
According to Lissovolik, “BRICS Plus” is an important initiative “aimed not at expanding the very core of the association and including the largest developed countries, but at increasing its openness and accessibility to integration for the states of the developing world.”
Earlier last month, Minister of Foreign Affairs of China Wang Yi said that China would explore expansion modalities for “BRICS Plus” and build a wider partnership by holding dialogues with other major developing countries and organizations, so as to turn Brics into the most-influential platform for South-South cooperation in the world.
Currently, the BRICS group has five member countries: Brazil, Russia, India, China and South Africa, and potential new member countries reportedly include Mexico, Pakistan and Sri Lanka. – China Daily
By coming together in large partnerships, individual nations have found a way to avoid the long-standing foreign policies of the United States in which they conducted both economic and military warfare on any nation that sought to bypass dollar hegemony. Yet even this has been a struggle as covert attacks on Brazilian leader Dilma Rouseff, destabilization of South Africa’s economy, and the infusion of Prime Minister Modi into India has sabotaged some of the gains the original BRICS nations had accomplished.
Both Russia and China are finding that the best way to counteract Washington’s domination of the global economy is to isolate them by offering countries an alternative to the financial structures that have ruled the world over the past 70 years. And with the primary work of the BRICS coalition having been complete, the next step appears to be its expansion by bringing in new economies to what is being termed as BRICS Plus.
Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.com, Roguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.