BRICS vs G7 is the new debate in 2023, lets discuss both of them in this article, BRICS stands for Brazil, Russia, India, China and South Africa – five major emerging economies identified as having potential to dominate global economic development by 2050 by Goldman Sachs economist Jim O’Neill in 2001.
The BRICS countries account for over 40% of world population and account for 25% of its economy (PPP). They all are also members of G20 – the world’s most powerful economies.
Recently, BRICS countries have collaborated on numerous economic and political initiatives. They established the New Development Bank and a Contingency Reserve Arrangement to stabilize their respective financial systems while working collectively to promote trade and investment among themselves and with other developing nations.
Some see the BRICS group as a counterweight to Western-dominated global order, though it should be remembered that all its countries possess different political and economic systems that do not always agree on all issues.
BRICS countries in 2023 face numerous challenges, such as:
- The global economic slowdown
The COVID-19 pandemic The war in Ukraine Rising inflation and food insecurity.
Despite these challenges, BRICS countries remain an influential player in global economy and should experience growth and development over time.
What is G7?
The Group of Seven (G7) is an intergovernmental political forum comprised of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, with additional participation by the European Union (EU). As of 2020, G7 members were large IMF advanced economies accounting for over half of global net wealth ($200 trillion), 30-43% global gross domestic product and 10-11.1% population.
Beginning as an informal gathering of finance ministers in 1973, the G7 has since grown into an official and high-profile forum for discussing and coordinating solutions to major global issues, particularly trade, security, economics and climate change. Each G7 nation’s head of government or state gathers annually at the G7 Summit; other high-ranking officials of both organizations also hold numerous meetings throughout the year.
The G7 is an important forum for global cooperation and leadership, serving as an effective solution to many global challenges such as oil crises of the 1970s and 2008 as well as efforts to address climate change and foster sustainable development.
For 2023, the G7 will concentrate its attention on several key priorities, including:
- Recovering from the COVID-19 Pandemic
- Ukraine War and its Impact on Global Food and Energy Security
Climate Change / Transition towards Clean Energy Economy Global Health Security/Prevention of Pandemics
Promoting democracy and human rights around the globe.
The G7 is an invaluable forum for global cooperation and leadership, comprising some of the world’s largest economies with shared commitments to democracy, human rights and rule of law. As an organization it plays an essential role in meeting global challenges while encouraging a more peaceful and prosperous global environment.
How BRICS will eclipse G7 is an inexact science;
BRICS vs G7
several factors must come together in order to reach an answer. These include economic growth and development of the BRICS countries; political stability within them as well as their place within global geopolitics; as well as geopolitical trends around them.
On one hand, BRICS countries have experienced rapid development over recent years; their combined GDP now outstrips that of G7 countries measured using purchasing power parity terms. They are home to an expanding middle class which drives demand for goods and services.
On the other hand, BRICS countries face various challenges, such as political instability, corruption and inequality. Furthermore, these countries are especially susceptible to external shocks such as global economic slowdown or war in Ukraine that could quickly impact them negatively.
Global geopolitics is rapidly shifting. Two notable trends include China’s rise and America’s decline; both will likely remain important forums for international cooperation, though it may become clearer whether BRICS countries gain greater sway over time.
Here are a few factors that could make the BRICS eclipse the G7 in BRICS VS G7:
- Continued rapid economic growth and development among BRICS nations * Increased political and security stability for these nations * Decrease of US influence in global affairs
- Shift in geopolitical landscape toward Asia
Here are a few factors that could prevent BRICS from surpassing G7:
- Political Instability, Corruption and Inequality in BRICS countries
Vulnerability to external shocks such as global Economic Slowdown and Ukraine Conflict* The Continued Importance of G7 Forum for Cooperation
Conclusion
Overall, it is too soon to tell whether BRICS will eclipse G7. However, its countries have been making strides in global economy and may play an even bigger role going forward.
My sense is that the BRICS vs G7 countries will more likely coexist and cooperate rather than overshadow one another. Each BRICS nation possesses different strengths and weaknesses; together with G7 nations they can work on global challenges more efficiently.
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Analytical and well concluded