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The 17th annual BRICS summit, held against a backdrop of global trade conflicts and geopolitical instability, underscores the ongoing effort to establish a viable alternative to the G7, specifically championing the interests of the 'global south' and emerging economies. The summit, however, commenced on a somewhat subdued note, marked by the absence of Chinese President Xi Jinping and the virtual participation of Russian President Vladimir Putin, the latter due to outstanding arrest warrants. Despite these initial setbacks, the event, attended by representatives from various nations, including Indian Prime Minister Narendra Modi, garnered the attention of former US President Donald Trump. Trump responded with a veiled threat, alluding to potential additional tariffs on any nation aligning with what he deemed the 'anti-American policies of BRICS.' While the precise definition of these 'anti-American policies' remained ambiguous, Trump has previously expressed concerns regarding BRICS' ambition to create an alternative currency or a parallel trade payment system. This concept, initially proposed in 2015, resurfaced this year, although substantial progress remains elusive. This endeavor aligns with the bloc's broader objective of coordinating multilateral policies within the global south, positioning itself as an alternative to the G7, representing Western nations. BRICS+, encompassing 11 countries, accounts for approximately 48% of the world's population, whereas the G7 nations represent around 10%. Moreover, BRICS+ is rapidly narrowing the gross domestic product (GDP) gap with the G7 nations, emphasizing the group's significance and the necessity for its existence. In 2024, the G7 nations, comprising the US, Germany, Japan, the UK, France, Canada, and Italy, maintained a dominant position in global GDP contribution, holding a 42% share. However, their share has declined from 49% in 2010. Conversely, BRICS+ accounted for 31% of the global GDP in 2024, a substantial increase fueled by the expansion from the original BRICS bloc, which represented only 19% of the global GDP in 2010. BRICS, initially an informal grouping of Brazil, Russia, India, and China, incorporated South Africa in 2010. The group has since expanded to include Egypt, Ethiopia, Indonesia, Iran, the UAE, and Saudi Arabia (although the final status of Saudi Arabia remains unclear). The GDP contribution of both these blocs is heavily skewed by the presence of the United States within the G7 and China within BRICS+. The US accounts for 56% of the G7's GDP (23% of the world), while China accounts for 62% of the BRICS+ GDP (19% of the world).
India's position within BRICS+ is notable due to its status as the world's fastest-growing major economy and its emerging leadership role in the global south. India is poised to become the world's fourth-largest economy in the near future. However, China's dominance within the group presents a complex dynamic for India, as the two nations often find themselves in competition, with limited common political ground. While India maintains robust trade relations with BRICS+ nations, primarily led by China, the UAE, and Russia, its trade relationships with G7 countries, particularly the US, remain crucial. India also recently finalized a significant free trade agreement with the UK. While Trump's trade policies and persistent tariff threats have generated considerable uncertainty for India (and the global economy), recent trade policies implemented by China, restricting critical minerals and fertilizers, have also caused disruptions in India. Consequently, India must navigate a delicate balance, representing the interests of BRICS+ while avoiding alienation of its partners within the G7. Despite BRICS+'s ambition to forge a unified bloc representing the interests of the global south, its member countries exhibit more differences than similarities. The G7 benefits from relatively homogenous democratic values characteristic of Western liberal democracies, whereas BRICS+ encompasses a range of political systems, from democracies to authoritarian regimes to dictatorial leadership. Furthermore, while all G7 countries score highly on the Economist Intelligence Unit's Democracy Index, only India and South Africa represent strong democratic values among BRICS+ nations. Russia's ongoing conflict with Ukraine places it at odds with countries such as Brazil and South Africa, which are members of the International Criminal Court that has issued an arrest warrant for Putin regarding the war in Ukraine.
India, which maintains a long-standing strategic partnership with Russia, often finds its interests undermined by China, as exemplified during recent India-Pakistan tensions. As a result, despite its growing influence, BRICS+ is frequently hampered by internal divisions. The fundamental challenge lies in bridging the diverse political and economic landscapes of its member states to forge a cohesive and unified front. The pursuit of an alternative currency or trade payment system, while theoretically appealing, faces significant practical hurdles due to the varying economic priorities and political agendas of the member nations. Furthermore, the inherent tension between India and China, the two largest economies within BRICS+, poses a significant obstacle to achieving true multilateral cooperation. The need for India to balance its BRICS+ commitments with its existing trade and strategic partnerships with G7 nations further complicates the equation. The future success of BRICS+ hinges on its ability to overcome these internal divisions and establish a clear and unified vision for the global south. This requires addressing the political and economic disparities among its members, fostering greater trust and cooperation, and developing a cohesive strategy for engaging with the rest of the world. Without such concerted effort, BRICS+ risks remaining a fragmented and ultimately ineffective counterweight to the established global order. The influence of external actors, such as the United States, also plays a critical role in shaping the trajectory of BRICS+. Threats of tariffs or sanctions can potentially disrupt the bloc's economic progress and discourage member states from pursuing alternative trade or financial arrangements. Therefore, BRICS+ must also develop strategies to mitigate external pressures and safeguard its autonomy in the global arena. In conclusion, while BRICS+ presents a promising alternative to the G7 and has the potential to reshape the global geopolitical landscape, its success hinges on its ability to overcome internal divisions, navigate complex political and economic challenges, and effectively represent the diverse interests of the global south.
Source: Brics+ vs G7 in charts: What ails the biggest global south bid to western dominance?