Comparing economic indicators for countries associated with BRICS and the G7

Comparing economic indicators for countries associated with BRICS and the G7

    Saturday, May 20, 2023   No comments

Economic data showed that "the BRICS economy has surpassed that of the Group of Seven."

The data indicated that "the Group of Seven, 30 years ago, was 2.5 times larger than the BRICS group, in terms of gross domestic product," while now, "the BRICS have surpassed the former colonial powers that make up the Group of Seven."

Economic analysts pointed out that this data may "answer what these powers are trying to stop, namely China, because it constitutes the largest part of the BRICS economy," as China is equivalent in terms of gross domestic product in US dollars to 6 countries from the Group of Seven.

In other words, China's GDP is equal to that of Germany, Japan, the United Kingdom, France, Italy and Canada combined.

In other interesting data on the share of international powers in global GDP since 1980, the third chart below shows that the United States has been on its share since 1980: no loss, no gain.

The data also shows that developing countries are also unchanged, while Europe, the Organization for Co-operation and Development and developed countries, except for the United States, are the biggest losers. As for China, its share has grown tenfold, to become the biggest gainer.

Earlier, Joseph W. Sullivan, senior advisor to the "Lindsey Group" and economist at the White House Council of Economic Advisers, said during the administration of former US President Donald Trump, that "the BRICS currency could shake the dominance of the dollar, and the moment of de-dollarization may have arrived." finally".

In his interview with the American newspaper "Foreign Policy", Sullivan added that in New Delhi, Alexander Babakov, deputy speaker of the Russian State Duma, said that "Russia is now leading the development of a new currency, which will be used for cross-border trade by the" BRICS "Brazil, Russia, India and China." and South Africa".

And based on the economy, at least, the prospects for the success of the currency issued by the “BRICS” group are contained, according to “Force Policy”, and although many practical questions remain unanswered, such a currency could expel the US dollar as a reserve currency for its members. "BRICS", and shook the position of the dollar from its throne.

Naldi Pandor, South African Foreign Minister, has said that the creation of a new BRICS currency will be a major item on the agenda of the upcoming "BRICS" summit, in Johannesburg on August 22.

Countries that have applied to join the BRICS:

At the moment, BRICS consists of Brazil, Russia, India, China, and South Africa.

Applications to join came from:

— Algiers,

— Argentina,

— Afghanistan,

— Bangladesh,

— Bahrain,

— Belarus,

— Venezuela,

— Egypt,

— Zimbabwe,

— Indonesia,

— Iran,

— Kazakhstan,

— Mexico,

— Nigeria,

— Nicaragua,

— UAE,

— Pakistan,

— Saudi Arabia,

— Senegal,

— Syria,

— Sudan,

— Thailand,

— Tunisia,

— Türkiye, and

— Uruguay.

*****

 Monetary Fund and the World Bank

Currently, the “BRICS” group occupies an important position in the global scene, as its member states enjoy increasing economic power and international influence. The group enhances cooperation and trade exchange between its member states, and seeks to increase its voice and influence in global affairs.

  The BRICS group is facing challenges in promoting economic and political cooperation among member states, but it is a strong alternative to the traditional global economic system.

According to the latest widespread data, the economic assessment indicates the superiority of the “BRICS” group over the Group of Seven, as the group includes Brazil, Russia, India, China and South Africa, and these member states are emerging economic powers that play a vital role in the global economy. The seven are from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as well as the European Union.

It is known that the “BRICS” group is witnessing continuous expansion, as Bangladesh, Egypt and the United Arab Emirates have joined the New Development Bank of the “BRICS” group, and there are several other countries preparing to join as well. This shift confirms the growth of the strength and influence of the “BRICS” group in the global arena, and may pose a challenge to the Group of Seven in the future.

And indications have emerged portending important developments about the future of the “BRICS”, which is the possibility of Mexico joining it, which constitutes a large part of the North American trade bloc (CUSMA). The United States to fair and equal trade competition with global economies on the American frontier.

Currently, the five BRICS countries contribute about 31.5% of global GDP, while the share of the Group of Seven countries drops to 30%. The BRICS countries are expected to exceed 50% of global GDP by 2030, and the proposed expansion will strongly advance this goal.

Previously, 30 years ago, the G7 was 2.5 times larger than the BRICS countries in terms of GDP. However, current data indicates that the BRICS countries have outperformed the former colonial powers of the Group of Seven.

Indeed, China's GDP surpassed that of the United States in 2015 when the economies were compared against a purchasing parity benchmark.

On the other hand, the interests of the BRICS countries are not only limited to trade, but are also rooted in the political belief that the world should be multipolar.

The BRICS group encourages the idea of a global system that includes several political and economic poles, in which its interests are better guaranteed through a balance of power and a multiplicity of partners, rather than a unipolar system in which the United States dominates.

And in 2021, the BRICS countries played an effective role in strengthening and reforming the global multilateral system, as they adopted a joint statement aimed at strengthening and reforming the global system.

  Among the aspects called for in this statement was the need to reform the current Security Council system in the United Nations to be more representative and in line with current global realities. The statement also dealt with many other issues of common concern to the BRICS countries.

According to economic data, China is particularly outperforming in its GDP. China's GDP is equal to a group of countries in the Group of Seven, including Germany, Japan, the United Kingdom, France, Italy, and Canada.

These data reflect the remarkable economic success of the “BRICS” countries, and indicate that China has a major role in achieving this success thanks to the large size of its economy within the BRICS group. China's strong economy enhances the position of the BRICS" as a powerful group and its influence on the global economy is increasing significantly.

However, it should be noted that China's economic supremacy does not necessarily mean that it has completely surpassed the G7 in all economic and political aspects. The Group of Seven still maintains its influence and its important role in international relations and world trade.

China's trade value with three of the four potential BRICS countries exceeds 100 billion US dollars, and its sales reach 416 billion US dollars. Indeed, China's trade alone accounts for more than 90% of the BRICS countries' total trade value in dollar terms. This is attributed to China's economic dominance and its impressive rate of growth.

According to the Chinese government, foreign trade between China and BRICS countries registered a year-on-year growth of 12.1% in the first five months of this year, amounting to about 195.71 billion US dollars. This rate is 3.8 percentage points higher than China's overall growth rate in foreign trade over the same period.

Russia also plays an important and active role inside and outside the BRICS group, with a turnover of about $164 billion. This can be explained by the fact that the BRICS countries are a group that is highly dependent on energy, as their population constitutes more than 40% of the world's population. Thus, net power exporters have a strong position. Russia's strength is based in particular as an energy producer for the "BRICS" countries.

As for India, its trade has recorded a value of 142 billion US dollars among the “BRICS” countries. India enjoys a more balanced trade outcome among the member states, trading equally with all members except China and South Africa, and especially for members with a large Indian diaspora.

And Brazil, it is noticeable that its intra-trade is directed towards Asia, especially China and India, instead of trade with Africa or Russia. This shift may indicate the importance of Asia in Brazil's economic relations and reflects the important role played by China in particular. This means that Asia is an important market for Brazilian products, and may also reflect the shift in Brazil's economic and trade orientation towards emerging markets and the rising economic powers of Asia.

It is noted that there is active trade between South Africa and other "BRICS" countries. Although the South African economy is considered the smallest in size among the “BRICS” partners, trade between India, South Africa, China and South Africa exceeds the trade between India and Russia or Russia and Brazil, and this indicates the existence of important economic relations between South Africa and the rest of the “BRICS” partners . This strong direction of trade reflects South Africa's preference to strengthen relations with the "BRICS" countries and take advantage of the trade and investment opportunities available in these countries.

Ultimately, according to Joseph W. Sullivan, former economist in the administration of US President Donald Trump, the creation of a new BRICS currency is a threat to the dominance of the US dollar and may contribute to the transformation of the world order. He also referred to Russia's efforts to develop a new currency that will be used for trade between the BRICS countries, which include Brazil, Russia, India, China and South Africa.

It is believed that the creation of a new BRICS currency may challenge the US dollar as a reserve currency and may shake its position as a strong global currency. This topic is expected to be part of the agenda of the upcoming BRICS summit in Johannesburg. This step may reflect the desire of some countries to achieve independence and abandon the heavy dependence on the US dollar in international trade and financial relations.

In conclusion, the BRICS countries are superior to the Group of Seven in many important economic indicators. This superiority raises questions about the transformation of economic and geopolitical power in the world? Are we about to see massive shifts in the global economic system? Will the hegemony of traditional Western countries recede and emerging countries will regain their global status?

These results may open the door to questions about the future of reserve currencies and the role of the US dollar as a strong global currency. Could a new BRICS currency emerge that would challenge and shake the US dollar? Will the system of global economic relations be radically modified?

These exciting developments call us to carefully follow the developments of the global economy and monitor the shifts in economic forces.

Why and how is Beijing becoming the Mecca of Geopolitics?

Why and how is Beijing becoming the Mecca of Geopolitics?

    Sunday, April 09, 2023   No comments

Brazilian Foreign Minister Mauro Vieira says Brazilian President Luis Inacio Lulu will meet with his Chinese counterpart in a few days, to exchange views on the war in Ukraine in particular.

Brazilian President Luiz Inacio Lula will head to China on Tuesday, after his visit was postponed due to pneumonia, to restore his country to the international arena.

This official visit of the Brazilian president to his country's largest trading partner was scheduled to take place between March 25 and 31, but doctors recommended that it be postponed due to "mild pneumonia" from which he has now recovered.

On Friday, Lula will meet his counterpart Xi Jinping to "exchange views on the war in Ukraine" in particular, Brazilian Foreign Minister Mauro Vieira told AFP and other international news agencies.

This official visit to China is the fourth for the Brazilian president, who began his third term in January, after being president from 2003 to 2010.

The Brazilian president promised to return his country "to the heart of the new global geopolitics", after the isolation it experienced during the rule of his far-right predecessor, Jair Bolsonaro.

In Beijing, Lula hopes to play again the role of mediator who contributed to reaching the nuclear agreement between Iran and the United States during his second term (2007-2010).

Brazil, like China, refused to impose sanctions on Moscow, and at the end of January it had drawn up a still vague proposal regarding the mediation of several countries in the war in Ukraine.

The Brazilian president said at the time that he was "confident" of the chances of success of this proposal, expressing his hope to "establish" the group of countries after his return from China.

On March 25, Celso Amorim, the Brazilian president's senior adviser on international affairs, met in the Kremlin with Russian President Vladimir Putin and his Foreign Minister Sergey Lavrov, who is visiting Brazil on April 17.

"To say that the doors are open (to peace talks) would be an exaggeration, but to say that they are closed is also not true," Amorim told CNN Brasil, on Monday, when asked about the outcome of the meeting with Putin.

However, the Kremlin ruled out "any prospect of a political settlement" mediated by China, despite the consensus expressed by Putin and his counterpart Xi during the latter's visit to Moscow at the end of March.

Before his meeting with Xi on Friday in Beijing, Lula will head to Shanghai on Thursday to attend the inauguration of former leftist President of Brazil Dilma Rousseff (2011-2016) as head of the New Development Bank, also known as the "BRICS Bank".

In 2006, during his first term, the "BRICS" group of emerging economies was created, which includes Brazil, India, China, Russia and South Africa.

Lula's visit to China will mainly deal with international political issues, as the economic aspect was dealt with a week ago, during the date previously set for the visit, when more than 500 Brazilian company heads, from most of the industrial agricultural sector, traveled to the Asian country.

More than 20 cooperation agreements have been signed, one of which allows their trade deals to be conducted directly, exchanging the yuan for the riyal and vice versa instead of relying on the dollar. Bilateral trade volume reached 150 billion dollars last year, with 89.7 billion dollars of Brazilian exports to China.

On his way back to the country, Lula will head to the UAE on Saturday for a one-day official visit.

Is the visit by Iran’s president to China a relation-repair opportunity or a bilateral strategic summit?

Is the visit by Iran’s president to China a relation-repair opportunity or a bilateral strategic summit?

    Monday, February 13, 2023   No comments

In December of 2022, the Chinese president made a visit to Saudi Arabia, and while meeting with representatives of other GCC members states and representatives of some Arab governments, Xi, out of courtesy, signed GCC statement issued at the conclusion of the gathering. The Chinese president also delivered a speech while attending the Arab-China summit.

The statement, however, contained language of support for the UAE in reaching a negotiated and peaceful solution to the issue of the three islands that Iran considers part of its territory, as well as calling on Iran to seriously engage in negotiations to return to the nuclear agreement.

In response to Xi’s endorsement of the statement, Tehran summoned the Chinese ambassador to Iran, to protest against the statement of the Gulf-Chinese summit, which touched on the status of the Abu Musa, Greater and Lesser Tunbs islands.

China responded immediately. The Chinese foreign ministry issued a clarification saying that the GCC countries and Iran are all China's friends, and neither China-GCC relations nor China-Iran relations are targeted at any third party, Chinese Foreign Ministry Spokesperson Wang Wenbin said in a press briefing. China supports the GCC countries in improving relations with Iran based on the principle of good-neighborly friendship, conducting win-win cooperation with Iran and jointly promoting the development and stability in the Persian Gulf. China is willing to continue to play a constructive role in this regard, Wang said.

China also sent its Vice Prime Minister Hu Chunhua to Tehran on December 13th to try and contain the situation. From there, Chunhua stressed that "China supports Iran's national sovereignty, territorial integrity and national honor, and combats foreign interference."

When the Vice Premier Hu Chunhua met with Raisi in Iranian capital Tehran during the same December visit, Raisi stressed that no matter how the international and regional landscapes change, Iran will remain firmly committed to deepening the comprehensive strategic partnership between the two countries.

On Sunday February12, 2023, the Chinese government announced that, at the invitation of Chinese President Xi Jinping, Iranian President Ebrahim Raisi will pay a state visit to China from Tuesday to Thursday. Later on the same day, the Iranian government confirmed the visit. IRNA, the official news agency of Iran, reported that delegations from both sides are due to sign "cooperation documents,” and that Raisi will also take part in meetings with Chinese businessmen and Iranians living in China.

Chinese media predict that Raisi’s visit will enhance the two countries relations, especially in the context of the major channels that connect the two countries. "Cooperation under the framework of the Belt and Road Initiative and the Shanghai Cooperation Organization will give China and Iran more space for cooperation. It is foreseeable that after this meeting, China-Iran relations will enter a new and higher stage," report the Chinese daily, GT.

Iran, Argentina’s applications to BRICS will further define this block of nations

Iran, Argentina’s applications to BRICS will further define this block of nations

    Tuesday, June 28, 2022   No comments

Will BRICS become BRICSAI soon?

Iran's application to the BRICS, following a similar move by  Argentina,  are now formal. BRICS nation must decide.

China, this year's BRICS' chairmanship, actively supports the mechanism's expansion. China wants like-minded countries to join BRICS, that made Iran a very strong candidate. 

China also wanted a representative government of Muslims, so it approached Pakistan, mostly given its location and its role in the Road and Belt Initiative. India objected to including Pakistan. This strengethened Iran's position even more. 

Now BRICS nations need to decide on specific rules that will govern the expansion of the block of nations.

Being the host country, China engaged with Pakistan prior to the BRICS meetings, where decisions are taken after consultations with all BRICS members, the foreign ministry statement said. 

"We do hope that future engagement of the organization would be based on the principles of inclusivity keeping in view the overall interests of the developing world and in a manner that is devoid of narrow geopolitical considerations," said the statement.

"Regrettably one member blocked Pakistan's participation," The Hindu reported on Monday, citing Pakistan's Foreign Office. 

Read the story as reported in Chinese media

Russian Foreign Minister Sergey Lavrov meets Iranian President Ibrahim Raisi: Russian President Vladimir Putin is counting on holding new meetings with Raisi

Russian Foreign Minister Sergey Lavrov meets Iranian President Ibrahim Raisi: Russian President Vladimir Putin is counting on holding new meetings with Raisi

    Friday, June 24, 2022   No comments

Russian Foreign Minister Sergei Lavrov said today, Wednesday, that Russian President Vladimir Putin is counting on holding new meetings with his Iranian counterpart, Ibrahim Raisi.

At the start of his meeting with the Iranian president in Tehran this evening, Lavrov said: "President Putin asked me to convey to you his warmest greetings and best wishes. He looks forward to new meetings with you."

He noted that the Russian president holds several meetings every day, and they are "primarily related to adapting the economic, social, banking and financial sphere to the realities that are now emerging as a result of the selfish and aggressive policy of the West."

"All countries that are negatively affected by the selfish approach of the United States and its orbiters have an objective need to reshape their economic relations in a way that does not depend on the whims and whims of our Western partners," Lavrov added.

This is Lavrov's first visit during the era of the new Iranian government that was formed last August. The Russian minister visited Tehran in April 2021 and held talks with his Iranian counterpart at the time, Mohammad Javad Zarif.

In related news; Iranian Foreign Minister Hossein Amir Abdollahian announced that President Ebrahim Raisi will participate in the BRICS summit, which will be held in China.

Amir Abdollahian wrote in a tweet on his Twitter account: "The BRICS group of countries promises their great potential and innovative vision to be an effective engine for global development and peace."

The Iranian minister added, "By accepting the invitation of the Chinese president to attend the BRICS Plus summit, Iranian President Ebrahim Raisi, during his participation in the summit, will explain Iran's views and capabilities," stressing that his country is taking advantage of any opportunity in the form of "dynamic diplomacy" to advance its national goals.

Yesterday, the Chinese Foreign Minister welcomed the Iranian President's attendance at the BRICS meeting, expressing his hope that the course of diplomacy and dialogue would lead to an agreement in the Vienna negotiations.

Iran's ambassador to Beijing, Mohammad Keshavarzzadeh, said that a phone call took place between the Foreign Minister and his Chinese counterpart, Wang Yi, indicating that the two sides discussed bilateral and international issues.

And the "BRICS" group saw the light of day in 2006, to form an international alliance in the face of Western domination of the world, and turned into an integrated political and economic group.

Its first summit was held on June 16, 2009, under the name "BRIC", in the Russian city of Yekaterinburg, with the participation of: Brazil, Russia, India and China first, then joined by South Africa in 2010, becoming the name of the International Alliance. BRICS, a word formed and derived from the initial letters of the name of each member state.

The population of the BRICS countries constitutes about 45% of the world's population, and the area of ​​its member states covers more than 39 million square kilometers, which is equivalent to 27% of the total land area.

The size of the BRICS economies exceeds the GDP of the Group of Seven major industrial countries (the United States, Britain, Germany, Japan, France, Canada and Italy).

According to Iranian media reports, Chinese President Xi Jinping as the host of BRICS Summit 2022, has invited President Rayeesi to attend the meeting and deliver a speech on Friday.

Rayeesi will discuss the Islamic Republic's viewpoints on international issues and the development of trade and economic cooperation with other countries at the event, which will be held on Friday.

The meeting will discuss "high-level talks for global development".  

Iran is the only country in West Asia region that has been invited to attend the BRICS+ summit.

BRICS expansion

China proposed expanding the BRICS grouping during a meeting of the bloc’s foreign ministers in May. Though the suggestion was welcomed by other member countries, there have been no official announcements of who the new members might be.

“We can get a sense of which countries might be invited by looking at their position on Ukraine and their voting behaviour regarding the conflict at the United Nations,” Huang said. “Those developing countries who abstained or supported Russia may be recruited to join.”

BRICS nations have expressed concern about Pakistan-based militant groups

BRICS nations have expressed concern about Pakistan-based militant groups

    Tuesday, September 05, 2017   No comments

Pakistan's foreign policy in a nutshell: As long as China is backing us, we don't have to worry about the United States or the rest of the world. And that was exactly the official reaction after US President Donald Trump announced his Afghanistan policy last month, criticizing safe havens for Islamist terrorists on Pakistani soil.

While the Islamic country's politicians and government officials refuted Trump's claims that Pakistan was supporting militant groups near its border with Afghanistan, they heaved a sigh of relief when Chinese officials came to their support against Trump.

Therefore, it was quite natural for Islamabad to expect that the BRICS nations – Brazil, Russia, India, China and South Africa – would not criticize Pakistan-based militant groups during their recently held summit in the Chinese city of Xiamen.

But after Trump's censure, Xi Jinping's China, too, expressed its worry about the jihadi groups that many experts say are Pakistan's proxies in the region.

"We, in this regard, express concern about the security situation in the region and violence caused by the Taliban, 'Islamic State'(IS)..., al Qaeda and its affiliates, including the Eastern Turkistan Islamic Movement, the Islamic Movement of Uzbekistan, the Haqqani Network, Lashkar-e-Taiba, Jaish-e-Mohammad, TTP and Hizb ut-Tahrir," the BRICS leaders said in a joint declaration. read more...