A Major Shift: How BRICS Is Redefining Global Economic Power

The rapid expansion of BRICS has sparked debates over the relevance of the G20, according to Andrey Koshkin, head of the Department of Political Science and Sociology at the Plekhanov Russian Economic University.

The rapid economic growth of BRICS (Brazil, Russia, India, China, and South Africa) is posing a challenge to the relevance of the G20 (Group of 20) as a global platform, especially considering that BRICS nations are now surpassing the G7 (Group of 7) in economic output when measured by purchasing power parity (PPP).

As BRICS gains influence, there are increasing discussions about reforming major international organizations, including the G20, the IMF (International Monetary Fund), and the UN (United Nations). According to Andrey Koshkin, head of the Department of Political Science and Sociology at the Plekhanov Russian Economic University, the future of the G20 is becoming uncertain as BRICS unites marginalized regions and shifts global economic dynamics.

In an interview with the Tass publication, Koshkin shared his views on the matter, highlighting that BRICS is rapidly expanding and shifting the global economic landscape.

“The G20 is in decline. It is going obsolete as a platform that has absorbed everything it was able to,” Koshkin said, adding that the G20 can continue to function in some capacity, but its relevance is being questioned by the emergence of BRICS.

He further explained that many countries agree on the need to reform international organizations like the WTO, IMF, and UN, but no single nation, not even China or Russia, can manage these changes independently. However, Koshkin believes that BRICS can succeed in meeting global expectations for institutional reform.

Moreover, Koshkin emphasizes that BRICS is uniting regions that have often been sidelined by the G7. He notes that the economic output of BRICS members is now overtaking that of the G7, which once accounted for 50% of global production in the 1980s but now contributes only 30%.

“BRICS in 2023 contributed something like 35%,” Koshkin said, highlighting a significant shift in global economic trends. “BRICS is already overtaking them,” he added, contrasting the declining influence of the G7 with the rise of the economic bloc.

He concludes by stating that BRICS is a rapidly developing platform that unites the East and the global South, which the G7 tends to disregard.