The World Divide. The new BRICS standard?

When one does research into economic division into todays world standing a scary revelation can come alight. Four concentrated bodies in this world make up 65% of the economy. The world economy. These are EU, China, Japan and US. The remaining 35% is made up from the 157 other nations. Being stand outs from this category can be seen as Brazil, Russia, India, Canada, Australia, Mexico, Korea, Indonesia, Turkey and Saudi Arabia. Most of these contribute between 1 to 3% of global output.

What about the rest? The other 147 nations? Each one with their own flag, anthem and pride? Well most do not each even reach 1% of global output. One of these could not be present tomorrow and the world would not feel its impact. Scary phenomenon or just dark realities of today’s economic world?
Well the wealth concentration among nations is as starkly skewed as it is within nations.

So why is there a formation such as BRICS? Well looking at today’s pretty gloomy outlook with traditionally strong performing economies, it just might make sense and more. Whilst China can be seen “bubbling” away with its shadow financing and poor investments; US being stuck with uninspiring growth reports and QEs; EU struggling with meaningful reform to tackle its record high youth unemployment and struggling economies of super-houses Germany. The Five Horsemen have a good chance to sidestep on the dollar as trade currency and look for alternative, more world embracing trade possibilities. First step has already been taken. The Contingent Reserve Arrangement with initial size of $100 billion. This fund collaborated with such involvement of 41% by China, 18% each by Russia, Brazil, India and 5% from South Africa. This decision which was enacted this year comes as a direct response to the inability by IMF to take a stance to unbiased reform which could include these nations in funding talks.

Does this substantiate a clear move away from the dollar dominated world? Yes. Will it happen over night? No.

The BRICS and their related bodies are a clear and natural formation in response of the existing Western dominated bodies of IMF, UN, World Bank and G20.

They cannot be ignored. With such significant powerful economic, political and even military force the footprint is substantial. Adding to it the size of the territory, population, output, natural resources and financial reserves. The West legacy institution must take note and act accordingly. Acceptance and negotiation to secure a stable world for the future.

The advance of the BRICS from just a analytic bundling acronym to a fully fledged cooperative movement and body is impressive.


One cannot forget the issues that the BRICS gathering has. Most notable that they do not hold much in common between themselves.
The Russian economy is best understood as a natural-resource-extraction racket run by oligarchs granted to them by their comrade KGB trained leader and other blessed politicians which cut significant amounts off the top and reinvest just enough to keep the game in play.
India has amazing growth and expansion prospects however it is limited by its world-class red-tape “raj” which stalls innovation.

We can therefore see that only Brazil and the latecomer South Africa come close to being classified as modern economies in the sense where growth is sustainable, corruption is not out of hand and innovation and young business are encouraged to expand.

Album to listen to whilst reading: Nine Inch Nails - Pretty Hate Machine


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