By Bitan Bhadra
BRICS is comprised of many a strong economies yet each of the countries are totally unique in their form of government. Some with promising and some with not so promising futures, yet each of them has a promising present. Many view EU and BRICS to be the next big world economy game changers. They are predicted by many to evolve and grow stronger that soon they could break off from US centered world economy and form parallel economic powers. How much that is feasible, only time will prove. But, unlike EU, BRICS has a huge head start and distinctive advantages. The BRICS nations represent approximately 40% of the world population. China, India and Russia, three huge economies can act as the fulcrum. While Russia is the oil power, china the manufacturing and India both agriculturally and services sound, mutual co-operation can build a unique self sufficient economic power. But again the Indian services market is still hugely made of American firms. US and EU are consumers of Russian energy sectors and china has export ties with US. So the world economy has become intertwined in between countries, all depending on one another. EU has recently seen a chain of downfalls; many currencies also fell in value. There exist problems in each and every part of the world. The BRIC countries cumulatively face problems of high inflation, lack of foreign investment and social and political unrest, corruption and unstable trade ratio. There remains risks that government stimulus may prompt asset bubbles and not a real increase in domestic demand. Domestic demand in India and Brazil has been showing signs of resilience. Despite the commonalities, there remain significant differences between the BRICS in terms of their growth outlook, the channels by which they were affected by the global recession and their future growth models. Although there are differences, BRICS has started providing its constituent countries a platform to engage with the international community more progressively. BRICS can now manipulate the international rules with greater power and seek greater representation in global institutions. All in all, though they may use different models, they depend on each other and make each other stronger. Unlike cold war era and subsequent decades, when Russia or US struggled for power or when US seemed the end of answer for all economic calculations, the world today is no more unipolar. The economies are interdependent and thrive only on co-operation. These traits make the world not only secure but also stronger. The formations of pockets of economic powers like EU, BRICS, KIMT does not guarantee new economic power poles, but do ensure co-operation and improvement of markets. The recent depression has shown how all trade markets take a plunge when any one in any corner of the world does so. These small power pockets will make comprising markets stronger less susceptible to downfall which in turn strengthens world markets.
Bitan Bhadra is a mechanical engineering student from KIIT University. His areas of interest include politics, international affairs, social systems and economics. He is optimistic of India and its future. He has previously written in many platforms on various issues. He is also an avid traveller, trekker and chess player.