BRICS Vs. G7: The Emergence Of A New International Order? (Exclusive, Never Published Before)

BRICS Vs. G7: The Emergence Of A New International Order? (Exclusive, Never Published Before)

GEW Intelligence Unit

Hichem Karoui (Ed.)

GEW Reports & Analyses

(48309 words)

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BRICS Vs. G7: The Emergence Of A New International Order?

Prologue

The BRICS group of nations, consisting of Brazil, Russia, India, China, and South Africa,  planned to expand its membership to include six additional countries: Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates. This move was announced during the 15th annual BRICS summit held in South Africa. The new grouping will have a combined population of 3.7 billion people and account for 30% of the world’s output.

Many in the West see the expansion of BRICS as a potential threat to the US-led international order due to several factors. Firstly, the increased size and diversity of the group will give it greater political and economic influence on the global stage. With a larger population and a significant share of the world’s output, the BRICS countries will have the ability to challenge the dominance of Western-led forums.

Furthermore, the inclusion of countries like Saudi Arabia, Iran, and Egypt, which have different political systems and perspectives, will bring a wider range of voices and perspectives to the group. This diversity could potentially lead to the formation of a counter-narrative to the US-led international order.

Additionally, the interest expressed by other countries, such as Algeria and Bolivia, in joining the BRICS group further highlights its potential as a rival to the US-led international order. The growing interest in BRICS indicates a desire for alternative platforms and alliances that challenge the existing power dynamics.

Overall, the expansion of BRICS and the interest shown by other countries in joining the group suggest that it poses a real threat to the US-led international order. The increased size, diversity, and influence of BRICS could potentially lead to a shift in the global balance of power and challenge the dominance of Western-led institutions.

In a world shaped by shifting power dynamics and evolving global relationships, a new era is dawning. The once-dominant forces of the G7, a coalition of Western powers, find their influence waning as the rise of the BRICS nations heralds the emergence of a new international order.

1.1 The Evolution of the G7: From Dominance to Uncertainty

The G7, an association of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, came into existence in the 1970s as a forum for the world’s leading industrialized nations to meet and coordinate policies on economic issues. With their shared values, relative economic strength, and military power, the G7 effectively shaped the global agenda for decades.

However, the rapid rise of the BRICS nations has revealed cracks in the G7’s armor. As the BRICS economies started flourishing, their collective GDP exceeded that of the G7 countries in 2010, signaling a significant shift in global economic power.

1.2 The Birth of the BRICS: A New Order Emerges

The acronym BRICS, coined in 2001 by Goldman Sachs economist Jim O’Neill, represents Brazil, Russia, India, China, and later joined by South Africa. O’Neill identified these nations as emerging economies with strong growth potential and significant impact on the global stage.

Together, the BRICS nations have the world’s largest populations, account for nearly a quarter of the global GDP, and possess extensive natural resources. These factors have enabled them to assert themselves as formidable players in the international arena.

1.3 The BRICS Challenge: A Quest for Influence

The BRICS nations aim to challenge the existing power structures and establish a more equitable and multipolar world order. They seek greater representation in global governance institutions such as the United Nations Security Council, International Monetary Fund, and World Bank. The current configuration of these institutions, established after World War II, no longer reflects the true balance of global power.

Collectively, the BRICS nations are pushing for reforms that reflect the changing economic landscape. They advocate for a fairer distribution of voting rights, an increase in quotas, and a more inclusive decision-making process. While the G7 countries have traditionally dominated these institutions, the rise of the BRICS is forcing a reckoning that could reshape the international order.

1.4 The Battle of Ideologies: Democracy, Human Rights, and Environmental Policies

The clash between the G7 and BRICS extends beyond economic power and institutional reforms. There are fundamental differences in their approach to democracy, human rights, and environmental policies.

The G7 nations prioritize liberal democratic values, human rights, and environmental sustainability. They advocate for open societies, free markets, and a rules-based international order. Their commitment to democracy and human rights has shaped their domestic policies and foreign relations, with a strong focus on promoting freedom of speech, equality, and social justice.

In contrast, the BRICS nations emphasize non-interference in internal affairs, national sovereignty, and a more balanced approach to development that does not prioritize political and social liberalization. They argue that progress should be measured by economic development and improving livelihoods. While the BRICS nations recognize the importance of sustainable development, their priorities may differ concerning the pace and implementation of environmental policies.

These ideological differences often lead to friction between the G7 and BRICS, as they clash over issues like censorship, political repression, and human rights abuses. The G7 sees these values as fundamental pillars of the international system, while the BRICS nations argue that historical and cultural contexts must be taken into account when promoting democracy and human rights.

1.5 Sanctions and Responses: Power Plays and Countermeasures

As the BRICS nations rise and challenge the established norms, Western countries, primarily the United States, have used sanctions as a tool to exert pressure and influence. Sanctions have been imposed on countries like Russia, Brazil, and even China, aiming to bring them in line with Western preferences on issues ranging from human rights violations to trade imbalances.

However, these sanctions can often be double-edged swords, stirring nationalist sentiment in the targeted countries and strengthening their resolve to find alternative solutions. The BRICS nations have responded by enhancing their self-sufficiency, establishing alternative financial institutions, and diversifying their trade partners. They recognize the need to reduce dependency on Western systems and have actively pursued cooperation within their own bloc.

For example, in response to the Western-led financial system, BRICS countries established the New Development Bank and the Contingent Reserve Arrangement to provide alternative sources of funding and reduce reliance on Western-dominated institutions like the International Monetary Fund and World Bank. These initiatives aim to foster greater financial autonomy and create a more balanced global economic architecture.

1.6 The U.S. Response: Navigating a Changing Landscape

As the leader of the G7 and the preeminent global power, the United States is faced with the challenge of adapting to this shifting global landscape. It must balance the need to maintain its influence and uphold Western values while acknowledging the rise of the BRICS and their legitimate demands for reform.

The United States must strategize to engage with the BRICS nations effectively. It cannot afford to isolate or antagonize them, as their collective power and influence hold significant implications for global stability and prosperity. Understanding this, the United States has adopted various approaches, including both cooperation and competition.

Cooperatively, the United States has sought common ground with BRICS nations in areas such as climate change, global health, and counterterrorism. Recognizing the need to address urgent global challenges, these issues have provided opportunities to find shared interests and build bridges towards collaborative solutions.

Simultaneously, the United States also competes with the BRICS in areas of economic and technological advancements. For example, the rivalry between the United States and China in the realm of 5G technology has become a focal point in the race for global dominance in the digital economy. The United States aims to protect its technological leadership and prevent potential risks that may arise from perceived competition with the BRICS.

How the United States navigates this evolving landscape will shape its role in the emerging international order. While competition and rivalries persist, finding common ground and avenues for cooperation will be vital for maintaining global stability and addressing shared global challenges.

Epilogue:

As we conclude this chapter, we leave behind the steady shores of the familiar G7-dominated international order and venture into uncharted waters. The rise of the BRICS nations has upended the traditional power balance and introduced a new chapter in global affairs.

In the chapters to come, we will delve deeper into the economic, political, and social implications of this transformative shift. We will explore the potential outcomes for global governance, human rights, and international relations. From regional cooperation to digital innovation, the BRICS-G7 struggle will touch upon all aspects of our interconnected world.

Against an ever-changing backdrop, join us as we continue our exploration of this clash of giants, and let us navigate the stormy seas together in search of a better understanding of our shared future.