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The BRICS group is about to get bigger. The new members will include Argentina, Iran and Saudi Arabia

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It is a reshuffling of the economic map of the world, which we have not witnessed for a long time. The BRICS group, which has existed for over 20 years, is to be joined by more countries – with considerable potential. The bloc, which currently includes Brazil, Russia, India, South Africa and China, has invited 6 more countries.

History is happening before our eyes. The map of global alliances is changing. The BRICS – a group whose name comes from the first letters of the member countries – Brazil, Russia, India, China and South Africa – will expand from January 1. Argentina, Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates will become new members. China will continue to be the informal leader of the new bloc.

“Let’s work together to write a new chapter of solidarity and cooperation for development between emerging markets and developing countries,” said Xi Jinping, the Chinese president. The extended BRICS group in numbers is a real powerhouse. It represents 46 percent of the world’s population, 29 percent of global GDP, 43 percent of oil production, and 25 percent of global exports. In total, 40 countries have expressed their willingness to join the bloc, and more than 20 have submitted formal applications – including Kuwait, Thailand and Venezuela. It is not known what criteria the group should follow when accepting new members. “The willingness of other countries to join the BRICS bloc proves how important it is,” said Luiz Inácio Lula da Silva, Brazil’s president.

China and Russia would like the BRICS to gradually become a counterbalance to the G7 group and the West in general. The Kremlin sees the broad alliance as a potential platform for circumventing sanctions. BRICS is for now only an economic alliance whose members have divergent political goals. Jim O’Neill, the man who coined the name BRIC in 2001, when South Africa was not yet part of the group, says that if China and India joined forces, they would become a superpower together.

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– China is today the second largest economy in the world, in fact, the first in terms of purchasing power. India is fifth and is likely to be fourth this decade, overtaking Germany and very close to Japan. If these two countries sat in the same room and actually worked together on issues related to trade, infectious diseases and climate change, it would have a huge impact on the entire world, said Jim O’Neill, chief economist at Goldman Sachs.

Sergey Lavrov spoke about Moscow’s view on the war in Ukraine. He was laughed atTVN24/ORF DELHI

Dictators Club?

It is significant that its current allies, such as the United Arab Emirates and Saudi Arabia, are moving away from the West. According to the Secretary General of the UN BRICS is an illustration of the world changing before our eyes. – Today’s global governance structures are a reflection of yesterday’s world. They arose largely after World War II, when many African countries were still ruled by colonial powers. These countries were not allowed at the negotiating table, which is particularly evident in the case of the UN Security Council and the Bretton Woods institutions, stresses António Guterres.

In 1944, in the American Bretton Woods, the creation of a currency system was agreed. The institutions of this system are the International Monetary Fund and the World Bank. The BRICS group is trying to create their equivalents. The dream of mainly China and Russia is to create a common currency, a counterbalance to the global dominance of the dollar. Beijing, Moscow and other capitals were particularly impressed by Russia’s cut-off from the SWIFT global settlement system as part of the sanctions for its aggression against Ukraine. – Global financial and payment systems are increasingly used as instruments of geopolitical struggle. The global economy should be based on predictable global payment systems and the smooth functioning of banking, supply chains, trade and financial flows, explains Cyril Ramaphosa, President of South Africa.

The expanding group is slowly becoming a global club of dictatorships. For authoritarian countries, Chinese capital is the magnet for the BRICS. For them, it is better than the Western one, because Beijing does not require respect for democracy or human rights.

Facts about the world TVN24 BiS

Main photo source: Reuters

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