On the Eve of the BRICS Summit, Vladimir Putin Lays out the Group’s Goals

A delegation of the Schiller Institute is present at the annual BRICS meeting Oct. 22-24 in Kazan, Russia, and will provide us with a first-hand report on that important summit for next week’s issue. Meanwhile, on the eve of the gathering, Vladimir Putin reviewed the progress of the BRICS nations in economic growth, technological development, digital and communication capabilities, as well in expanding transportation and connectivity corridors.

The goal, he told the BRICS Business Forum in Moscow, has been to accelerate socio-economic growth and sustainable development to ensure “tangible results” which “contribute to improving the well being and quality of life of our countries’ citizens”. He went on to present a few statistics to make his point: “The association’s total GDP exceeds $60 trillion, and its overall share in global GDP easily surpasses that of the so-called G7. In 2023, our group of countries accounted for 37.4% while the G7 for 29.3%. The gap is increasing and will continue to grow; this is inevitable. This trend is absolutely logical. In the past decade, BRICS states have accounted for over 40% of the global GDP increment.

“By the end of 2024, BRICS countries are forecasted to post 4% growth, on the average. This exceeds G7 growth rates, which is only 1.7%, and the global average, projected at 3.2%”, Putin added.

How can the BRICS become more independent from negative foreign influences? “Our association is building upon relevant development platforms, including communication channels, technological and educational standards, financial systems, payment tools and, of course, mechanisms for sustainable and long-term investment. As a result, the impact of external influence on the economic growth of BRICS members will diminish steadily. Essentially, this is what economic sovereignty is all about: it amounts to a partnership between self-sufficient economies that expands their potential many times over and opens up new opportunities.”

In this regard, the Russian President explained that the New Development Bank plays a pivotal role in the efforts to boost financial cooperation, and is expected to become a “major investor” in technology and infrastructure projects in the entire Global South.

The issue of “de-dollarization” was taken up in a conference with BRICS journalists later the same day. First, he made definitely clear that the BRICS “are not considering” a common currency such as the euro, explaining that such an enterprise would be a greater fiasco than the European single currency. “To speak about the creation of a common currency, the economies must be highly integrated”, Putin explained, as well as equal in quality and volume, which is impossible. But the economies “should be roughly equivalent in terms of structure and efficiency”, in order to avoid the problems that arose in the EU when the euro was introduced in countries that were not equivalent.

Instead, the BRICS “currently study the possibilities to make wider use of national currencies and create tools which would allow making such work safe”. That is not because the BRICS want to de-dollarize, but because the West “forbid us from using the dollar”.