BRICS – such a passé

BRICS (Brazil Russia India China & now South Africa) have been the center of attention for many years now, at times also viewed as an alternative which can turn the current worldwide recession. The “Analysts” had pegged high hopes on these nations as the next big thing and had forecasted that these nations will impel the world economy back to the growth trajectory. But it is unrealistic to expect the group can challenge the US hegemony.

One look at these nations and it’s easy to perceive that these economies, the developing economies, are the net suppliers to the world’s developed nations aka economic giants. BRICS are net providers of materials/goods to the big European nations and also to the US. E.g. Brazil provides raw material, China manufactured goods and India is seen for outsourcing hub for IT and ITES. There are only two big cities in Russia, Moscow & Saint Petersburg, which have been much publicized and showcased as symbols from developing nation. One close look and it is apparent that the entire growth in Russia is limited to the perimeters of these two cites.
Outside of this, Russia is only surviving on the high crude oil & natural gas reserves.


South Africa was roped in by BRIC nations only in late 2010 principally to include Africa in its ambit. South Africa, when compared to other BRIC nations, is by far the smallest in the economic output. South Africa's economy is less than a quarter of Russia's, the smallest of the BRIC nations. But what South Africa may lack in GDP, it makes up in clout by representing Africa at the BRICS table. The country accounts for about a third of domestic product in sub-saharan Africa and it stands to provide access to Africa's 800 million consumers, as well as its minerals and other resources.

But it is unrealistic to expect that the member nations to challenge US hegemony as the member nations face many hurdles, including territorial disputes, preventing from deeper cooperation.


It is unrealistic to expect BRICS to become a centre of power that can break the existing world order, which is marked by Western dominance and US hegemony, Chu Zhaogen, a Chinese scholar specialising in China's public policy and international issues, wrote in state-run newspaper

BRICS member states lack a common direction, common interest and a centripetal force that would facilitate total cooperation, he said in the article titles, "BRICS a force despite ifs and buts".

"All the five countries are regional powers, but history has left almost all of them to deal with territorial disputes and/or internal problems. E.g. Russia is battling with Chechnya problem and trying to find ways to deal with its pro-US neighbours. China has territorial disputes with Japan, India and some Southeast Asian countries; India has territorial disputes with China and Pakistan; and Brazil is wary of Argentina. These energy sapping disputes and problems can easily be used by their regional rivals and the US to contain their rise," he said.

"Moreover, China shares its borders with Russia and India both, which is matter of constant concern for it. Tensions rose on both sides of China-India recently, and China has opposed India's nuclear programme."

"Also, Brazil and India have joined hands with the US to call for the Yuan's revaluation. These problems are not favourable for BRICS to a concerted effort to coutnerbalance the West's supremacy and reform the world order", he said.

As the sole superpower, the US is the foounder of numerous international mechanisms and the largest exporter of many important products and services including UN, GAAT, WTO, IMF, & the World Bank.

Besides BRICS owe their rise to the existing world super powers. If the world Superpower goes into recession, the BRICS find it very difficult to find that very consumer market back in their home turfs. Under the current circumstances that the BRICS can not end the US hegemony.

The BRICS idea is well past it sell-by date. New nations have replaced the BRICS which have a more dynamic economy such as TIPS (turkey, Indonesia, Philippines & South Korea). These economies have a young work force(Philippines), less number of retired pensioners (Turkey) and a very high GDP per capita (South Korea). The call center business is slowly drifting to English speaking Philippines, the new raw material supplier is Indonesia.