South Africans should embrace the BRICS bloc that is turning into a force on the international stage.
Economic researcher Dr Rasigan Maharajh explains that South Africa is not outside of this grouping but is part of it. He says it’s important for South Africa to draw closer not only in terms of the dynamics within BRICS but the role it’s currently playing in the global political economy.
BRICS was founded 14 years ago and is made up of five regional economies. They are Brazil, Russia, India, China, and South Africa. BRICS is considered as the foremost geopolitical rival to the western G7 bloc which comprises of leading advanced economies.
Maharajh explained the reasons for why there is deep contestation related the BRICS bloc.
BRICS has now surpassed the G7 in purchasing power parity. PPP is not real money, it’s a comparison economist use where we basically put all the prices into USA cost. If we use that comparative perspective, the BRICS now hold 31.5% and the G7 as of the end of 2022 was down to 30%. That indicates that BRICS has grown by approximately 2.75% since 1982 whereas the G7 over that long-term has grown negatively by 1.26%.