RT.COM – October 23, 2024
Multipolar world order, leading role of emerging economies, and Western debt:
Key takeaways from Putin’s BRICS address
Russian President Vladimir Putin addressed a meeting of leaders at the BRICS Summit in Kazan on Wednesday. In his speech, he focused on the growing role and prospects of the economic group, and warned about the risks to the global economy from Western sanctions and protectionist policies
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Putin also announced Russia’s initiatives within the BRICS framework, including the formation of a grain exchange and a new investment platform.
Here are the key takeaways from the president’s address.
Multipolar world order being formed
World trade and the global economy as a whole are undergoing significant changes, the Russian president told the extended-format BRICS meeting. The center of business activity is gradually shifting towards developing markets, he added. “A multipolar model is being formed, which is launching a new wave of growth, primarily due to the countries of the Global South and East – and, naturally, the BRICS countries.”
Leading role of BRICS
The BRICS economies have been demonstrating “sufficient stability” due to responsible macroeconomic and fiscal government policies, the Russian leader said, noting accelerated growth rates are expected in the medium term. Putin cited preliminary estimates that average BRICS country economic growth in 2024-2025 will be 3.8%, compared to global figure of 3.2-3.3%.
The BRICS countries’ share of global GDP in terms of purchasing power parity (PPP) will amount to 36.7% by the end of 2024 and will continue to expand, Putin predicted. Meanwhile, the share of the Group of Seven (G7) leading Western economies is projected to account for slightly above 30%.
“The trend for the BRICS’ leading role in the global economy will only strengthen,” Putin said, citing population growth, capital accumulation, urbanization, and increased labor productivity, accompanied by technological innovations as key factors.
West’s unilateral sanctions and debt burden
The Russian president warned of a potential new global crisis, citing the growing debt burden in developed countries, unilateral sanctions, and protectionist policies as key threats. “These factors are fragmenting international trade and foreign investment, particularly in developing nations,” Putin said.
He also pointed to high commodity price volatility and rising inflation, which are eroding incomes and corporate profits in many countries. Putin’s remarks also highlighted concerns over escalating geopolitical tensions and their impact on global economic stability.
New BRICS investment platform as a powerful tool
The Russian leader said that to fully realize the potential of the BRICS countries’ growing economies, the member states should intensify cooperation in areas such as technology, education, resources, trade and logistics, finance, and insurance, as well as increasing the volume of capital investment many times over.
“In this regard, we propose creating a new BRICS investment platform, which would become a powerful tool for supporting our national economies and would also provide financial resources to the countries of the Global South and East,” Putin said.
BRICS-based grain exchange
The Russian leader proposed a common BRICS grain exchange to protect trade between members from excessive price volatility. BRICS countries are “among the world’s largest producers of grain, vegetables, and oilseeds,” he noted. Such a bourse could be expanded to trade in other major commodities such as oil, gas and precious metals, Putin said.
The initiative is aimed at protecting national markets from negative external interference, speculation and attempts to cause artificial shortages of food products, according to Putin.
AI alliance of BRICS
Putin also proposed a BRICS AI alliance to regulate the technology and prevent its illegal deployment. “In Russia, the business community has adopted a code of ethics in this area, which our BRICS partners and other countries could join,” Putin noted.
Other proposals
The president also spoke about increasing transport connectivity between BRICS countries, saying this could provide additional opportunities for growth and diversification of mutual trade.
“Such promising projects as the formation of a permanent BRICS logistics platform, preparation of a review of transport routes, opening of an electronic communications platform for transport, and establishment of a reinsurance pool are being discussed,” Putin said.
The issues related to the transition of the global economy to low-emission development models are very important, according to the Russian president. The BRICS contact group on climate and sustainable development is closely involved in this work and will continue to counteract attempts by some countries to use the climate agenda to eliminate competitors from the market, he said. “We consider the initiatives on the BRICS partnership on carbon markets and the climate research platform to be promising,” Putin concluded.
https://www.rt.com/news/606245-brics-integration-putin-address/
Al Mayadeen – October 23, 2024
Putin aide confirms 13 nations eyed for BRICS expansion\
The final BRICS communique is expected to include references to peace proposals from China and Brazil, which have been advocating for a ceasefire at the UN.
Reuters reported on Wednesday that BRICS leaders are drafting plans to further expand the alliance amid concerns about the geopolitical and economic implications of rapid growth.
During the BRICS summit, chaired by Russian President Vladimir Putin in Kazan, discussions focused on how to manage the growing interest from countries in the Global South and East in joining the bloc.
BRICS, which originally consisted of Brazil, Russia, India, China, and later South Africa, now accounts for 45% of the global population and 35% of the world’s economy. More than 30 states have also expressed interest in becoming members.
However, concerns have arisen among existing members about how such a large and diverse grouping can maintain cohesion while achieving meaningful economic and geopolitical objectives.
"It is necessary to maintain a balance and prevent a decrease in the effectiveness of BRICS," Putin remarked, noting the importance of managing expansion carefully.
Yuri Ushakov, Putin's foreign policy aide, also noted the complexities of further expansion, saying, "We will need to talk to them about their degree of readiness to join either full-fledged membership in BRICS, or in some appropriate form." He further confirmed to Reuters that 13 countries have been identified as potential candidates for expansion.
The BRICS summit also addressed pressing global issues, including the war in Ukraine. Indian Prime Minister Narendra Modi publicly called for peace, while Chinese President Xi Jinping held closed-door talks with Putin about the conflict.
The final BRICS communique is expected to include references to peace proposals from China and Brazil, which have been advocating for a ceasefire at the UN.
While Putin expressed openness to these proposals, he reiterated that Russia would not trade away the territories it has claimed in the Donbass and Crimea.
The summit concluded with Putin asserting that the growing interest in BRICS reflects the failure of Western efforts to isolate Russia, and that BRICS will continue to play a pivotal role in reshaping global alliances.
Russia now controls a fifth of Ukraine
The war in Ukraine, which began in 2022 following years of tension, continues to dominate discussions at international forums like BRICS, even as the bloc explores further enlargement.
Russia annexed Crimea in 2014. In the eastern Donbass region, Russia holds most of the territory, including significant parts of the Donetsk and Luhansk oblasts, areas that have been at the heart of the conflict since 2014.
Additionally, Russia controls major portions of the Zaporizhzhia and Kherson regions in the south, which are strategically important due to their industrial, agricultural, and logistical significance.
Xi and Modi hold talks at BRICS Summit in Russia
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi have held their first bilateral meeting in almost five years on the sidelines of the BRICS Summit in the Russian city of Kazan. The meeting comes days after the two nuclear-armed neighbors announced an agreement on patrolling disputed border areas, which has been a point of contention since Indian and Chinese troops clashed in June 20
20.
During the meeting with Xi, Modi welcomed the “agreement for complete disengagement and resolution of issues” stemming from 2020, New Delhi said in a statement. The Indian leader also underscored the importance of “properly handling differences and disputes and not allowing them to disturb peace and tranquility.”
Xi stated that the two sides should strengthen communication and cooperation, and properly manage differences and disagreements, the Xinhua news agency reported. “It is in the fundamental interests of the two countries and peoples of China and India to correctly grasp the trend of history and the direction of development of their relations,” Xi said, according to Chinese state broadcaster CCTV.
Indian Foreign Secretary Vikram Misri, who briefed the media on the meeting on Wednesday, said the two leaders agreed that special representatives on the India-China border question would meet shortly to “oversee” the implementation of the latest agreements “and to explore a fair, reasonable, and mutually acceptable solution to the boundary question.” New Delhi emphasized that the agreements reached by the two neighbors would “create space to return to the normalization of relationships.”
India’s readout also noted that “stable, predictable, and amicable bilateral relations” between the two neighbors, which are also the two most populous nations in the world, “will have a positive impact on regional and global peace and prosperity” and contribute to “a multi-polar Asia and a multi-polar world.”
The relationship between New Delhi and Beijing has been tense since the 2020 incident at the Line of Actual Control (LAC) – the 3,500-kilometer (around 2,100-mile) disputed frontier – which resulted in casualties on both sides. Over the past four years, the two countries held more than 30 rounds of talks, including at both diplomatic and military levels.
In September, Indian External Affairs Minister S. Jaishankar revealed that there had been “some progress” on the border dispute, with around 75% of the “disengagement issues” having been resolved. However, he and army officials clarified later that no agreement had yet been reached on the deployment of troops and weapons and patrolling the zone.
New Delhi announced a breakthrough on the latter issue on Monday, on the eve of Modi's departure to Russia for the BRICS Summit. Beijing confirmed the development on Tuesday.
Despite Xi and Modi holding brief encounters on the sidelines of international events in 2022 and 2023, their meeting in Kazan was the first bilateral engagement that also included their delegations, diplomats emphasized.
Responding to a question from RT on whether choosing the Russia-hosted BRICS Summit for such a meeting carried any symbolism, Misri said, “We can thank Russia for providing the venue.
https://www.rt.com/india/606280-xi-and-modi-hold-talks-brics/
Why does a NATO member suddenly want to join BRICS?
ByﾠMurad Sadygzade
At the beginning of this month, news of Türkiye’s desire to join BRICS drew global media attention. The announcement was made by Turkish Foreign Minister Hakan Fidan during his visit to China. “Of course, we would like to become a member of BRICS. Let’s see what we can achieve this year,” said the minister, as quoted by the South China Morning Post.
This issue was also discussed at the BRICS foreign ministers’ meeting in Nizhny Novgorod, attended by Türkiye’s chief diplomat, Hakan Fidan. Türkiye’s desire to join is not entirely new – during the BRICS summit of 2018, where Turkish leader Recep Tayyip Erdoğan was a participant, Russian President Vladimir Putin said Ankara could join in 2022. However, subsequent events on the world stage apparently delayed that ambition, and Ankara is only now showing renewed interest.
What is BRICS?
BRICS is an international association initially comprising five major developing economies: Brazil, Russia, India, China, and South Africa. Established to enhance cooperation and strengthen global positions, its name comes from the initial letters of member states’ names.
The concept began in 2001 when Goldman Sachs analyst Jim O’Neill coined “BRIC” for the fastest-growing major economies at the time: Brazil, Russia, India, and China. The first formal meeting occurred in 2006 at the UN General Assembly. The first BRIC summit was held in Yekaterinburg in 2009. South Africa joined in 2011, making it BRICS. As of January 1, 2024, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE have also joined.
BRICS aims to promote economic growth, strengthen trade and investment, develop infrastructure, and maintain financial stability through mechanisms like the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA). It seeks greater roles in international institutions such as the IMF and World Bank. BRICS also focuses on scientific and technical cooperation in energy, medicine, and agriculture.
The association strengthens economic ties, contributing to mutual development and trade. By providing alternative funding sources, it reduces dependence on Western financial institutions. BRICS countries work together to defend their interests and promote a more equitable global order. They also address global challenges like climate change and pandemics.
BRICS is unique due to its diverse membership spanning different continents and cultures. Without rigid legal frameworks, it allows flexible action focused on practical cooperation and specific projects to improve citizens’ lives. This attracts more non-Western countries to join the association.
BRICS vs G7
With the confrontation between the countries of the global majority and the West growing, BRICS is considered to be emerging as an alternative to the G7. This is determined by several key reasons related to economic, political, and social aspects. The G7, comprising leading economically developed countries – the US, Canada, the UK, France, Germany, Italy, and Japan – has traditionally dominated the international arena, shaping the global economic and political agenda. However, the emergence and development of BRICS have changed this balance, offering an alternative view on global governance and cooperation.
BRICS unites the largest developing economies in the world, which together account for a significant share of global GDP and population. Collectively, BRICS countries possess vast resources and potential for economic growth, making them important players on the global stage.
To provide a clearer understanding, let’s compare some indicators. With its five new members, BRICS now accounts for almost 34% of the world’s land area, while the G7 accounts for 16%. BRICS countries are home to 45.2% of the world’s population, compared to just 9.7% in the G7. The combined GDP based on purchasing power parity in BRICS countries is 36.7% of the global total as of 2024, compared to 29.6% for the G7. Data on oil reserves show that BRICS countries now hold 45.8% of global volumes, while the G7 holds only 3.7%.
Thus, in many respects, BRICS surpasses the G7. The economic power of BRICS allows these countries to propose alternative models of development and economic cooperation, differing from the Western approaches represented by the G7.
Due to international contradictions and the destructive hegemony of Western countries led by Washington, questions about the need to transform the world order are actively arising. BRICS advocates for a multipolar world, where the balance of power is more evenly distributed among various regions and countries. While the G7 represents the interests of economically developed Western powers, BRICS focuses on the issues and interests of developing nations, which are often marginalized in global politics. This makes BRICS an important platform for countries seeking greater autonomy and independence from Western influence.
Moreover, the creation of the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) demonstrates the BRICS countries’ desire to establish alternative financial institutions capable of competing with traditional Western institutions, particularly the IMF and the World Bank. These new mechanisms allow BRICS countries and other developing nations to obtain financing on more equitable terms and with fewer political conditions.
BRICS actively develops cooperation in fields such as science and technology, education, healthcare, and the environment. These initiatives aim to improve the quality of life for citizens of member countries and address global challenges such as climate change and poverty. Unlike the G7, which focuses on issues relevant to developed countries, BRICS places particular importance on the problems faced by developing nations.
BRICS represents a broader spectrum of cultures and regions than the G7, making it a more inclusive and representative organization on the global stage. This diversity allows BRICS countries to consider different perspectives and needs, promoting a fairer and more balanced approach to solving global issues.
This explains the interest of many countries in becoming part of the association. To date, almost 30 countries have expressed a desire to become full members of the association or to gain partner status. These include Azerbaijan, Algeria, Bangladesh, Bahrain, Belarus, Bolivia, Venezuela, Vietnam, Honduras, Zimbabwe, Indonesia, Kazakhstan, Cuba, Kuwait, Morocco, Nigeria, Nicaragua, Pakistan, Senegal, Syria, Thailand, Türkiye, Uganda, Chad, Sri Lanka, Equatorial Guinea, Eritrea, and South Sudan. However, only some countries from this list have officially applied for membership: Algeria, Bangladesh, Belarus, Bolivia, Venezuela, Zimbabwe, Pakistan, and Thailand.
Thus, BRICS plays a significant role in modern global politics and economics, contributing to the development of multilateral cooperation and strengthening the positions of developing countries on the global stage.
Why Does Türkiye Want to Join BRICS?
Türkiye shows significant interest in joining BRICS, seeing it as an important step toward enhancing its international influence and economic potential. This aspiration is driven by several key factors related to economic, political, and geostrategic aspects.
Possessing one of the largest economies in the region, Türkiye aims to diversify its economic ties and strengthen cooperation with rapidly developing countries. Joining BRICS would give Ankara access to a vast market and opportunities to increase trade and investment with the leading economies of the developing world. This is especially important in the context of global economic challenges and uncertainties, where diversifying partners becomes a key factor for sustainable growth.
Türkiye has repeatedly faced financial difficulties and restrictions imposed by Western financial institutions such as the International Monetary Fund (IMF) and the World Bank. Joining BRICS would provide Türkiye with access to the New Development Bank and the Contingent Reserve Arrangement, allowing it to secure funding on more favorable terms and with fewer political commitments. This is particularly relevant for Türkiye, which seeks to maintain its economic independence and minimize external pressure.
Türkiye actively supports the idea of a multipolar world, where the balance of power is more evenly distributed among various regions and countries. BRICS, advocating for multipolarity and fair global governance, represents an attractive platform for Türkiye, which strives to enhance its political independence from Western countries and blocs such as the European Union and NATO.
In this context, it is also worth noting that Ankara views its desire to join BRICS as a gesture towards the EU, a bloc it once sought to join. This is confirmed by the words of Turkish Foreign Minister Hakan Fidan. During his visit to China, he noted that some European countries oppose Türkiye’s accession to the EU, and thus Turkish authorities see BRICS as an alternative platform for integration. “We cannot ignore the fact that BRICS, as an important cooperation platform, offers some other countries a good alternative. ... We see potential in BRICS,” he explained.
Türkiye’s geographic location makes it an important link between Europe, Asia, and the Middle East. Joining BRICS would strengthen Türkiye’s geopolitical position and enable it to effectively use its strategic location to advance its interests and strengthen ties with other member countries. This would also contribute to enhancing Türkiye’s role in regional and global security.
Membership in BRICS would significantly strengthen Türkiye’s international influence and prestige. Türkiye would be able to participate in the development of global economic and political strategies, offering its ideas and solutions to address global problems. This would bolster Türkiye’s positions on the world stage and facilitate its more active participation in international organizations and forums.
Türkiye seeks to join BRICS for several reasons, including economic development, access to alternative financial institutions, political independence, geostrategic interests, and the enhancement of international influence. Joining BRICS would open new opportunities for Türkiye, strengthen its positions on the global stage, and ensure more balanced and equitable participation in world affairs. Membership in BRICS would enable Türkiye to play a more active role in international affairs and contribute to the creation of a more balanced global system.
Barriers to Türkiye’s Entry into BRICS
Although Türkiye’s entry into BRICS could bring significant benefits to Ankara, there are serious barriers that complicate this process. These barriers include domestic political realities, economic challenges, and external pressure from the West.
The domestic political situation in Türkiye creates significant obstacles to joining BRICS. The ruling Justice and Development Party (AKP), founded by President Recep Tayyip Erdoğan, for the first time in 22 years lost to the opposition in municipal elections held on March 31 this year. The Republican People’s Party (CHP), which traditionally supports pro-Western positions, gained control over 35 cities, while Erdoğan’s party succeeded in only 24 cities.
The CHP’s victory in the municipal elections indicates a shift in Ankara’s political direction toward the West. Even within the AKP, there are proponents of closer ties with the West, complicating the decision to join BRICS. The deputy chairman of the Turkish party VATAN (“Homeland”), Hakan Topkurulu, noted that Türkiye should join BRICS but also acknowledged the presence of a strong pro-Western group in Türkiye, connected with NATO membership since 1952. These groups are part of all political parties and exert significant influence on the government, creating an internal conflict between Atlanticist and Eurasian-leaning forces.
Türkiye has close military and economic ties with Western countries, making the question of joining BRICS even more complex. Türkiye’s decision to become a BRICS member could provoke strong pressure from Washington and its Western allies, who see BRICS as a threat to their dominance on the international stage. This could manifest as sanctions, economic restrictions, and political pressure, negatively affecting the Turkish economy and its international relations.
The economic situation in Türkiye also presents a serious barrier to joining BRICS. The country’s economy is in a dire state, and high inflation forces economic authorities to seek investments. Currently, Türkiye relies more on the West in this regard, as BRICS countries are mainly developing economies themselves and cannot offer such significant investments.
Although BRICS countries have great economic potential, they face their own internal economic problems and may not always provide the necessary financial support to Türkiye. This makes joining BRICS less attractive to Türkiye from an economic standpoint, especially in the short term.
Thus, despite the potential benefits of joining BRICS, Türkiye faces several serious barriers. Domestic political realities, including the influence of pro-Western forces and internal disagreements, create significant obstacles to the decision to join BRICS. External pressure from the West and close economic ties with Western countries further complicate this process. Finally, the economic challenges Türkiye faces make seeking investments in the West more attractive than the possibility of joining BRICS. All these factors together create a complex and multi-layered picture that hinders Türkiye’s intentions to become part of BRICS.
However, in the long term, BRICS membership opens new opportunities for Türkiye, and considering the transformation of the global order, it could allow Ankara to secure a strong position in the future. Thus, Türkiye will weigh all the pros and cons, striving to extract maximum benefit for itself. It would not be surprising if Turkish authorities decide to join BRICS, as this aligns with Erdoğan’s paradigm of conducting a sovereign foreign policy in the interest of his country.
By Murad Sadygzade is President of the Middle East Studies Center and Visiting Lecturer, HSE University (Moscow).
https://www.rt.com/news/600171-turkiye-nato-brics-membership/
