Notably, BRICS is an economic bloc made up of five countries. Specifically, the countries, Brazil, Russia, India, China, and South Africa are behind its formation. However, prior to 2011, South Africa wasn’t part of Brics. According to Goldman Sachs, who formulated the term, BRICS, these five economies are forecasted to be the dominating economies by the year 2050(Investopedia, 2018).BRICS is a combination of a possible powerful economies than a political affiliation. According to O’Neill, these five countries are a formidable economic powerhouse in the twenty first century. The strengths of these countries lies on the population, abundance in natural resources, bigger supply chains and their ability to integrate their economies with the globalization to their own advantages. Individually, these five countries form part of the world’s largest economies and by forming a trading partnership, they are a formidable force to reckon with. The successes of the countries under BRICS has not gone unnoticed by the global economy and neither have the challenges. Among the notable successes of the bloc is the setting up of the new development bank, equal governance (Presidency of the bloc) is rotational in nature, economic and cultural cooperation among others. On the Challenge front, there is member states economic growth decline, corruption, delayed decision making due to disagreements, political instability in Brazil, recessive phases, drop in commodity prices (oil), sanctions issued on Russia by Western countries, lack of unity in matters of international importance, competition, corruption among other factors that need to be overcome for the Brics reputation to keep standing.
Noteworthy, BRICS contribution to the global GDP between the year 1990 to the year 2014 is estimated to have risen from 11 % to 30%(Bremmer,2017).The economic strengths of these countries stems from the abundance of natural resources for Brazil ,South Africa and Russia. Primarily, South Africa is blessed with precious metals such as Gold, platinum and diamond whose exportation has abundantly grown its economy following the Apartheid period in the 1990’s.The abundance of energy resources such as natural gas, crude oil had propelled the growth of the Russian economy after the Soviet Union regime. For Russia and South Africa, the abundance of natural resources has greatly boosted their economic performance in the global trade arena. These two countries are able to export part of their abundant natural resources into the global economy leading to substantial revenue percentages .Exportation of their unique resources into the global economy has made them enjoy comparative advantages in the global economy. For the countries, China, India, globalization has played a critical role in integrating their supply chains. These two countries are taking advantage of the globalized economy to expand their supply chains. Particularly, China is considered the 2nd largest economy based on its GDP after the United States of America. India is considered a leading exporter of Information Technology services in the world hence a huge revenue contributor to its country. India enjoy comparative advantages in IT.
Economic Performance And Challenges Of Individual Countries
Undoubtedly, individual member states of Brics have been facing unique internal and external economic challenges and China is no exception. These challenges have slowed down the economic growth rate of the individual countries and the economic partnership bloc as a whole. The devaluation of the Chinese currency in the year 2015 slowed down its economic growth rate. Usually, currency devaluation implies the depreciation in value of the currency of a given country. Also, the Indian currency “denotisation “in the year 2016 adversely impacted its economic performance (Kong, 2017). India sought to remove large currency notes from circulation as a measure of dealing with corruption. During this period, the Indian currency circulation stability was impossible to achieve thus the reduced economic activity in the country. In addition, Russia experienced an extensive recessive face towards the end of the year 2015 which reduced the economic activity in the country. The recent recession period seems to be longest since the 1990’s.The recessive phase is based on the seasonally adjusted estimates of the year 2015. However, due to the rising oil prices, the Russian economy is back on a steady recovery face which will in turn affect the trading volume of the Brics. Prior to the recent Russian recessive phase, Russia had always recorded surplus trade and foreign exchange reserve. These economic changes taking place in these countries are exposing Brics to dominance doubts to the rest of the world.
In addition, the Russian economy has been battling its own challenges. The consecutive contraction rate of the Brazilian economy for eight quarters hasn’t been good for the Brazilian economy. There has been reduced economic activity in Russia due to the fall in commodity prices. The fall of commodity prices has made it expensive for the Russian economy to maintain a competitive edge over its competitors. Also, the recent political instabilities following the impeachment of its president has negatively affected the economic output of the country. This is because in the case of political instability, investor confidence is adversely affected, the flow of capital is affected by the change in government and without peace which is achieved through political stability, and it is difficult to conduct any fruitful economic activity. This temporary political crisis is curtailing the Russian economic growth rate and affecting the Russian duties to the economic partnership of Brics hence a challenge for the Brics as an economic partner. (Kong, 2017).In addition, high inflationary pressure in Brazil is also responsible for the slow economic activity in the country hence it is not contributing much to the global economy. For economic growth to prevail, there is need for political stability and will otherwise the economic potential of the affected country cannot be attained. Peace is very vital to the conduct of global and national economic development. Without a stable political environment, economic activity does not flourish.
Primarily, Brazil gross domestic product growth rate has gone down .Specifically, between the months of January and March 2017, the Brazilian gross domestic growth rate was estimated to have grown by 1% from the previous year. Also, prior to the year 2017, the Brazilian economy growth rate had negative growth levels which is putting into doubt the relevance of Brazil (FP Staff, 2017).In addition, the Russian recessive phases hasn’t made the relevance of the economic partnership any memorable. Mainly, the Russian economic contraction phase is due to the fall in global oil pricing. With the low prices in oil, the Russian revenue is reducing substantially due to its huge dependence on its energy sector. Alongside the dwindling oil prices, Russian economy is facing sanctions from western countries thereby limiting its economic activity and revenue from partaking in global trade. The various individual challenges wrecking the Brics member states is making the world challenge their emerging economy growth and relevance to the international global economy. The South African economy faced dismal economic growth levels in the year 2017 which fact hasn’t done much to uphold the economic dominance concept of the Brics.These challenge are casting a cloud on the economic supremacy of Brics according to an article by the Business day. These macroeconomic and micro-economic changes in the Brics nations is making the world doubt as to the whether these countries will be able to live up to the hype that has been created among them .It is imperative that the five emerging countries address their internal problems quickly and effectively to keep growing and developing in order to maintain relevance.
Achievement Of Brics As A Bloc
Undeniably ,Brics role in addressing global economy challenges cannot be sidelined thus the assertion that the emerging economies are important to globalization(O’Neill,2016).Noteworthy, Brics representatives are defending the economic interest of growing market economies at the global level. Through the formation of the development bank, the trading bloc is expanding its influence of global financial matters which is an encouraging move for other emerging global economies. Brics has played a vital role in boosting governance, cooperation at the global economic level (Lei, 2017).Collective voicing of international and regional challenges to the economic and political challenges facing the world goes to show how important the bloc is to the global governance and tacking global challenges. Through Brics, the voice of emerging economies is heard at the global level owing to the fact that some of Brics members have an important vote in the global financial framework. Following the economic partnering of the five countries, the economic output has increased from 12% to 23% of the global GDP (Lei, 2017).Particularly, Brics export trade volume has risen from 11% to 16 % of the global output by the year 2017.Additionally, the five countries enjoy a 13.24% voting stake in the World Bank operations which goes to show the emerging economies participation in global financial matters. Through the formation of Brics, cultural and educational cooperation has improved through the implementation of collective athletic, film and cultural events for its member states thus enhancing the relationship between the five countries. Cultural events grow unity.
Notably, Brics is reputable for introducing a new international economic order (Ingram & Poon, 2013). With the establishing of the development bank with the same status and features of international financial institutions, the five countries have made its mark into the way international finance institutions at the international framework work. Owing to this development, the decisions of the Brics on the global economy carry as much weight as other reputable international economic institutions and order .The Brics has made substantial changes to the Bretton Woods systems which for a long time has been responsible for a given way of economic international order.Brics economical decisions on global issues receives global recognition due to their rising economic supremacy. Prior to the Brics, Western countries have dominated the international economic order.However,the Brics is now a major player in the global economy due to its massive contribution to the global trade volume hence its direct policy impact on international economic order of conducting business at the international level. In addition, Brics has pushed for various reforms of the international economic order. The Brics have succeeded in reforming the Bretton Woods system and the International Monetary fund. The fact that the Brics is responsible for setting up the New Development as an alternative for its member states to enjoy financial services similar to the World Bank and the International Monetary Fund, is remarkable (Goodman, 2014).
Following the establishment this bank, the expansion of its member states will be supported from the inside without the hustles and challenges of other international financial institutions. The Development Bank has borrowed its features from the World Bank and the International Monetary Fund (Godharn, 2013).The DB is likely to bring about the expansion of global development in the case of proper management by the member states. The implementation of the bank is meant to supplement the financial option for other emerging and developing economies to access financial infrastructure thereby boosting international trade (South China Morning Post, 2015).Owing to the dominance of International Monetary Fund by western countries, some emerging and developing economies are having challenges accessing financial facilities from these global institutions thereby derailing their respective economic development and performance However with the development bank in place, emerging economies and developing economies chances of accessing financial services are increased thereby boosting global development in those emerging economies. The existence of alternative international financial credit institutions, more developing countries are likely to acquire funding to boost their economic development. The Development Bank is a substitute for the international monetary fund and the World Bank thus giving Brics control over international economic order of doing things thus its importance.
As an avenue for new global economic order, Brics provides a grievance and coordination plat-form for non-members of the Organization for economic cooperation and development to chart the way forward on their challenges and ambitions (Guriev, 2015).The Brics has been successful in quelling the western countries dominance on economic matters(Sidhu,2015). The fact that Brics meetings do not comprise of western economies which are advanced, provides the perfect avenue for developing and emerging economies representatives to present and address global challenges that are specific to their countries thereby boosting the economic performance of developing and emerging countries. Due to the fact that most western countries are in charge of top leadership and management position of international order institutions means that emerging economies challenges are not properly addressed thus making the Brics meetings and summit the best avenue for such leaders to address and advocate for specific changes and projects that will boost their economic performance and development. There is need for more international forums to advocate and implement the specific challenges facing developing countries so as to boost international trade and in the process improve the economic livelihoods of the inhabitants of these developing and emerging economies .Brics is an example of such a forum for emerging countries to address their challenges and propose solutions. Brics meetings are a safe discussion net for them.
Further, there is some level of equal governance status in the matters of the Brics. For most international governance institutions, the head management positions are held by certain group of countries which denies other developing countries the chance for active leadership and management of the operations that directly affect their economic performance and development. With the rotational, presidential position (chairmanship of the Brics), all countries get to hold that position which is a real example of equal governance participation. Not only is the system a show of equality but also it gives its member states an equal chance to spearhead the objectives of the economic bloc. This form of governance is very ideal for international economic and political partnerships due to the opportunities it present to all its member states through their representatives(Hui,2017).There is a rotational presidency of the member status which is a remarkable example for global governance. In addition, the Brics framework enjoys inclusivity (Wang, 2018).The inclusivity is based on the plus mechanism which advocates for member countries to empower and expand economic development in their respective regions. The fact that Brics has been quite successful in implementing the inclusivity concept in its dealings makes it a much better international economic partnership bloc as compared to other. The inclusivity concept is meant to boost equal representation and management in the group so all countries feel equal.
Moreover, the economic partnership bloc is responsible for implementing the Contingent Reserve Arrangement (CRA) (Peters, 2017).The arrangement was finalized using a treaty. The fund is expected to provide financial services to member states when they require it such as to address shortage in balance of payments( The Economic Times,2016).The arrangement has been operational since the year 2015.The CRA is a cushion against liquidation of the member countries. The fact that Brics has this financial precautionary framework in place is admirable because not many international institutions have successfully implemented this framework (Stuenkel, 2017). .Particularly, Brics is responsible for being in control of 43% of foreign exchange reserves (Agtmael, 2012).Due to the expanded global economic operations of the economic partnerships, the consumption levels among the Brics countries has grown tremendously (Agtmael, 2012).This means the consumers within Brics boundaries are increasing their purchasing power which is an economically empowering tool in reducing poverty levels and improving the living standards of the Brics inhabitants. For five years preceding 2007, there was massive foreign and domestic investment in the Brics region which led to increased revenue and improved economic livelihoods. Specifically, there was a 52% returns on the investment rate among the first four countries of Brics (Agtmael, 2012).Through economic partnerships, FDI grows.
Notably, the formation of Brics has brought the much anticipated change to the global economic order. Alongside changing the global economic directions ,Brics is responsible for boosting international trade due to the huge percentage it contributes in terms of trade volume to the global development(Xing,2017).Not only has Brics promoted international trade but it has contributed to the global politics and diplomatic relations among its member nations and the outside world(Bazbauers,2016). Also, Brics framework are a challenge to the western economic order. Under its own framework, Brics countries have adopted environmentally sustainable practices through the ratification of various international instruments such as the Paris agreement which advocates for the reduction of carbon emissions into the atmosphere as an environmental friendly initiative. Brics participation in some matters of international significance has been voiced though in not all circumstances .However, Brics countries are not completely out of the grip of western politics and diplomacy. Particularly, Russia is under sanctions from the United States of America owing to the part it allegedly played in the Crisis that took place in Ukraine. As much as Brics is a formidable force on its own, it is slightly affected by the actions of western advanced countries and institutions thus making it vulnerable in attempting to fulfill its objectives from the western countries and institutions influence. It is imperative that Brics breaks free from the ambit of western countries (Russian Sanctions) in the future.
The successful implementation of the New development bank is a sure defiance and alternative to the western countries financial frameworks(East Asia Forum,2014).The financial framework of the Brics is aimed at empowering and accommodating the economic ambitions of developing and emerging economies unlike the Western international financial framework which is dominated by the ambitions and objections of already developed countries (Editorial Board, 2014).The involvement of Bric on global challenges carries weight in international affairs due to the economic potential and achievement the group has established over the years. Two years after the establishment of the development Bank, it can be said that the financial services are being offered from the international financial institution for propelling the goals and ambitions of the economic partnership (Maasdorp, 2017).The financial institution is based in Shanghai but it is supported by the African Regional Center in Johannesburg. This is a great achievement for the economic partnership bloc to have successfully established two international financial frameworks .In addition ,the bank has made out a green bond worth 3bn(RMB) in China.
Challenges Facing Brics
Undoubtedly, every economic bloc has its own share of setbacks .For the BRICs, the formation of the current development bank (DB).was not a smooth ride. The negotiations phase brought out various grievances owing to China’s desire to have massive control of the bank. The other countries were not prepared to grant China such control over the bank. After further deliberations, India, Brazil managed to equalize the capital obligations of the five countries (Reuters, 2017).However, there is still tension as to what extent the Chinese want to exercise their dominance over the other countries. With the Chinese economy being dominant in the economic and political scene at a global level, this might deny the other BRIC members an equal participation ration in the matters of the bloc. Compromise and dominance among the countries in the operation of the trading bloc is likely to stall down economic progress due to the delayed decision making process and also the desire to exercise dominance over the other member states by one country. There were challenges in deciding the location of the development bank between India and China, to which Brazil withdrew. In the end, the Bank ‘s location was decided as China hence the assertion that there are difficulties being encountered in the decision making process owing to longer negotiations periods and the desire to reach a compromise .It is difficult to equalize participation among countries dominating the global economic environment from the current international economic framework. However with Brics, the reality of equal governance and participation of nations in international economic governance is becoming a reality rather than a dream. The fact that the five countries each get a chance to be in the presidency is good.
The individual country economic challenges have directly impacted on the performance of the Brics. The economic decline experienced in Russia, Brazil and China have changed the economic prospects of the bloc. Russia alongside Brazil is battling recession effects whereas China’s is experiencing economic contraction (Tisdall, 2016).These individual member state challenges are going to indirectly reduce the global trade volume previously produced by the collective member states(Peters,2017). In all these countries, corruption is a serious challenge as it is globally. The corruption allegations facing South Africa and Brazil, are likely to slow down the economic activities in these two powerful countries. Russia had to face low oil prices during exportation thereby leading to a reduced exportation revenue for the country. Also, due to the economic sanctions placed on Russia, its economic performance has not been up to its bests. Such individual and global challenges have directed curtailed the economic potential of the individual countries and Brics as an economic bloc. Also, various projects are yet to be completed by the group due to challenges in reaching a consensus .For instance, the five countries had meant to establish submarine cable system as a cushion against spyware from European states and the United States of America .However, the same is yet to be attained due to various challenges. In addition, the establishment of the New Development Bank was aimed at reducing the countries reliance on the World Bank to which it is still to be fully realized (DW, 2018).It can be said that the is still slight reliance on other international institutions.
It is expected that with the operation of the bank for two years now, Brics and other developing economies should rely less on other international financial facilities such as the World Bank. This fact goes to show that the financial freedom form international financial institutions is yet to be fully realized .Further, the individual countries need to maintain its national supremacy has led to friction in the operations of the Brics .India’s supremacy was threatened with the a certain project initiated by the Brics .Apart from national interests being threatened by Bric Objectives (Jianping,2017).The diverse cultural, ideological, religious and cultural practices of the Brics has created various factions within the operation of the economic partnership(Huang,2017).The most notable governance structure in the Brics is autocracy and democracy which present different ideologies that might be considered conflicting to one nation over the other. Such differences have the potential to derail the implementation of Brics projects due to delayed decision making, tension and misunderstandings. These differences have led to indecisiveness as to the Brics stance on various issues of international importance (Tsaurai, 2017). Particularly, the Brics stance on Maritime, nuclear and security in current global predicaments is unknown due to the incoherence taking place within the economic partnership bloc (PTI, 2016). It is very imperative that the Brics work through their differences and incoherence so as they can speak in one voice on international matters of importance. The lack of one voice is likely to spark disunity and mistrust rumors.
In addition to speaking on matters of importance, coherence is important in assuring the global economy of their steady contribution to global economic and political environment. Particularly, in the year 2016, the economic performance of Russia and Brazil hasn’t been encouraging .China is struggling with deflationary risks(downside) and high debt rates thereby leading to less than optimal economic activity. Overall, Brics are facing other global challenges such as education, AMR, fewer representation slots in governance institutions at the global level and other cyclical challenges (O’Neill, 2016).According to Professor Beeson, the Brics operations are marred wit allegations of corruption and inequality. Also, tension is alleged to mar the trading bloc negotiations (Beeson, 2017).Arguably, China being the biggest economy among the Brics is considered problematic due to the fact that most of the funding for the new development bank stems from it. This raises the likelihood of unequal power in decision making of the bloc and undue influence. Also the political and economic significance of the Chinese to global economics and politics cannot be compared to the rest of the bloc members thereby raising the likelihood of greater influence over the operations of the economic partnership. Also, it is argued that the different national priorities of countries can overshadow the economic priorities of the bloc thereby curtailing the cooperation among the member states.
Moreover, the management and operations of the economic partnerships is alleged to suffer from corruption just like any other governance and trading partnership thereby undermining the economic cooperation and output of the economic bloc to the global economy and individual countries. Despite the expansion of global trade among Brics countries, they still face development challenges (Branco, 2015).For the Chinese economy is characterized by low pace of productivity levels. However, China is addressing this through various reform initiatives. Specifically, the slow rate of development in South Africa and the high poverty levels in India and other member states is still a challenge to the economic partnership. Also, South Africa as a country is faced with labor and infrastructure challenges. In addressing its infrastructure dilemma, South Africa is into investment initiatives on generating energy and transport(Branco,2015).In South Africa, there are high percentages of youth unemployment, real wage disputes ,workers unrest(protracted) which have contributed to the slow pace of economic growth in the country. According to some opinion, South Africa doesn’t have what it takes to be in the Big league be it population, land coverage or economic potential like its co-member states (Atgmael,2012).There are various disparities between the member states .Primarily, Russia ,Brazil have higher Per Capita income that the other member countries according to the International Monetary Fund Data(2011).
In addition competition from other international players is likely to bring challenges for the Brics .Particularly, there is abundant energy investment taking place in the United States of America which could be competitive for Russia’s energy industry. The possible competition is likely to push the energy product prices in Russia upwards thus losing its competitive edge in the energy industry (Agtmael, 2012).Also, it is argued that Brics is losing labor cost merits due to the soaring prices in India and the stagnation of wages in the United States of America .In the event that the labor advantages are lost then the member states will be faced with trained labor force shortages which isn’t good for economic growth. In addition, most opinion suggest that the Brics cooperation has failed to reach consensus on international economic and financial matters(FP staff 2017).It is argued that the member states have failed to maintain a common stand when it comes to international challenges which is seen as a weakness for the cooperation. The lack of common census is considered a show of disunity among the member countries of Brics thereby challenging its ability to effect change at the international level. The relevance of the Brics is also being questioned based on the fact that two of its countries have undergone recessive periods in recent years. The disunity and recessive economic phases are reducing the relevancy of the bloc to global economy.
Brics is likely to get pushed out of the spotlight by other emerging economies(Bremmer,2015).Equally, Other economies are strongly emerging .Particularly, the Sub-Saharan African countries due to the oil reserves ,metals, gas and minerals are pulling foreign investments and high penetration of newer markets thus speeding up the economic activity in these countries. The fact that Brics Countries have been experiencing low economic growth levels is further aiding the development of newer stronger economies. Alongside the other emerging economies, Brics countries are facing stiff competition from Western countries such as the United States of America and Japan. All these factors are contributing to possible irrelevance of Brics at the global economic environment. Other economic partnerships such as the ASEAN, OECD offer competitive features to the Brics economic partnership framework. Competition can be a good motivation for innovation and technological advancement in the production of goods and offering of services. However, in the event that the emerging economies do not stay ahead of the current technological trends will make the countries irrelevant and less competitive in global trade. This is a challenge that the Brics have to overcome to maintain their competitive edge over international and regional economic alliances (Huang, 2017).
Undisputedly, corruption is a menace in economic growth and development. There are various corruption allegations among the Brics Countries. For Brazil, Under Rousseff ,there have been massive reports on corruption allegations(BCC,2018).Alongside corruption, there are incompetence allegations in the individual countries and the economic partnership bloc(Beeeson,2017).These corruption and incompetence in management opinions are casting the Brics in a negative light and also curtailing economic development in the countries and Brics as a whole. Alongside, Brazil massive corruption incidents, South Africa is also suffering the same fate(Burke,2018).Massive corruption allegations have been made under the former South African president to which some might argue contributed to his leaving the office. The economic performance and development of countries can be easily curtailed by corruption and incompetent management of Bric and country resources (CCTV.Com 2016). For the five countries, corruption and improper management of resources is among the major challenges thereby casting doubt about the glory of the BRICS an international economic force in changing global economic and political order. Under the Corruption Perceptions Index of the year 2013, South Africa was named 72 of 177 countries based on public sector transparency levels (Vollmer, 2013).Corruption leads to mismanagement of resources thereby curtailing economic growth. It is important that these five countries eradicate corruption due to the potential it has in destroying economic progress, its reputation and development.
Moreover, the economic and political instability of Brics isn’t doing much to uphold it rising reputation (Mukizze & Gossel, 2017).The internal wrangle within Brics is not a show of strength to the world as to its existence and long –term survival. Specifically, India failed to attend, One Belt and Road Summit as a retaliation for infringed national supremacy was viewed by the outside world as a show of disunity (Mukizze & Gossel, 2017).Further, it is alleged that the Chinese are pushing for other Asian countries to partake in projects that are likely to bankrupt these nations due to the expensive interest rates thereby exposing China as a self-centered economy capable of undue –influence on global economic environment. Also, the rising government debts of China is painting a very negative picture of the country thereby leading to doubts about its economic supremacy .Of all the Brics countries, China has the best credit rating which could soon change if the public debt levels keep rising. It is important that the Brics economic challenges be addressed promptly and effectively to restore the faith of outsiders.With the high government debt experienced in China ,the ability to proper international trade development is likely to be questioned. In the event that China is unable to settle its public debt could mean a substantial reduction in its economic contribution to the global market. China needs to reduce its public debt figures because this might hinder further economic growth which might interfere with its current reputation of economic supremacy.
Predominantly, low economic growth levels have curtailed the economic potential of Brics (Wagstyl & Ft Reporters,2013).The decline in economic growth in Brics is due to currency devaluation, political crisis, corruption and recession phases among other factors. This decline of economic growth levels casts doubt as to the economic supremacy of these emerging economies .Specifically, Brazilian economic activity levels drastically fell in the years preceding 2013.This contractive phases of the economy have casted doubts over the economic potential of these emerging economies.
(Wagstyl & FT reporters, 2013)
The assertion that Chinese economy is very likely to override the United states economy will bring varies challenges for Brics and China specifically .Also, the fact that there is competition from other emerging economies in the Asian region ,Sub –Saharan Africa and other regions challenges the relevance of Brics as an emerging dominant economy hence so much pressure on Brics to retain and defend its position in the global economic environment(Palit,2017).The fact that Brics is a current emerging economic partnerships, there are certain expectations that the rest of the global economy expects from them, productivity, consistency and other expectations.Overall,it is expected that the Brics economies continue to grow and expand but owing to the changing micro and macroeconomic environments ,the performance of Brics and individual member states economic performance might fall short of global expectations thus the need for Brics member states to keep proving their economic supremacy as compared to economic decline ,massive corruption instances and political instability among other challenges. It is important for the Bric countries economic performance to grow rather than dwindle according to the precedent economic trend they have set up at the outset. For Brazil, its political crisis ought to be sorted out permanently so as to grow the Brazilian economy before the political crisis. It is important that the economic and political stability of these five countries be maintained for them to further grow and live up to their emerging economies reputation.
Equally, it is necessary for the five countries to wade off competition by being competitive .In the event that these emerging economies lose their competitive and comparative advantages, they will lose the current emerging economic dominance and independence they are currently enjoying. The fact that other emerging economies and the Western countries have rival capabilities to dispose their comparative and competitive advantages makes it imperative for the Brics goods and services to be highly competitive. It is no doubt that high quality products at affordable prices generates more demand and revenue for a given country or industry over its rivals thus it is very important that the Brics products and services be of top-notch quality and unique. In order for Brics to remain relevant, there is need to resolve internal disagreements quietly between themselves and in the process present a united front to the world .Lack of consensus as to international challenges ought to be overcome through better communication methods. It is important that the groups view on international matters be one and the same .Also, there is need to make better macroeconomic and microeconomic policies to address the respective internal economic challenges facing individual countries to grow their economies domestically. In the event that these challenges are overcome, then the Bric nations will be unstoppable in international trade. The contribution of this group cannot be ignored and neither can the setbacks.
Undeniably, Brics has made its impact in the international economic order. Through the successful establishment of the New development bank and its reforms to the Bretton Wood system, its role in the global economic environment cannot be ignored.Brics is a composition of five emerging global economies whose forecasts are considered dominant by the year 2030.The Brics has made various achievements in its wake, alongside the development bank, the Brics have established the CSA. However, there are various challenges facing the Brics.Competition from other trading blocs(ASEAN),advanced economies such as the United states of America, Japan, and new emerging economies such as Sub-Saharan countries among others, corruption has painted the Brics national in a negative light especially in Brazil and South Africa. In addition, Brics nations have experienced economic recessive phases which has shaken the confidence of the global economy on their ability to live up to the hype that has been created around it. The lack of consensus of international matters of importance and internal wrangles has led to speculation as to the extent of cooperation among the member states. Overall, it can be said that BRICS role in the international economy is relevant. However, there is need for Brics to overcome the corruption, incoherence, competition, political crisis (Brazil), inflationary pressures, and labor challenges for South Africa in order for Brics to reach its full potential.
The setbacks being encountered by Brics are common problems. Most international economic partnerships suffers from mismanagement, corruption, funding challenges among other challenges .In order for the Brics economy to keep relevant and dominating ,it is important that the respective challenges raised herein be promptly addressed. The growing pace of other emerging economic partnerships and other regions might overtake the current achievements and developments experiences by Brics during its glory days. The fact that Brics as an economic partnership is facing such does not mean that the bloc is not economically vibrant or irrelevant. All it means is that the there are various factors slowing down the economic potential of Brics as an emerging economic powerhouse and might have to share the spotlight alongside other upcoming economies in the event that these setbacks are not addressed.
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