FX.co ★ Innovation set to propel BRICS to greater global influence

Many analysts believe that BRICS nations are poised to significantly increase their influence on the global stage. This scenario seems likely, especially as this economic group continues to grow and expand. According to Bloomberg, innovation will be critical for BRICS if it hopes to assert its strength and broaden its global impact.

Preliminary forecasts suggest that emerging markets within the BRICS bloc will gain momentum toward greater economic integration. This positive outlook is driven by progress on initiatives such as the creation of a shared payment system and a grain exchange tailored for BRICS members.

By the end of 2024, the BRICS membership is expected to double, with new representatives supporting the group’s ongoing programs. "A key question is whether they can innovate together," Michaela Papa, director of research and chief scientist at the Center for International Studies at MIT, said. Notably, Papa is also the co-author of the 2022 book "Can BRICS De-dollarize the Global Financial System?"

According to Papa, Donald Trump’s "America First" policy is in line with the BRICS vision of a multipolar world. She suggests that the current US policy under President Joe Biden is likely to continue under Vice President Kamala Harris, especially in terms of building security-related economic ties with allies and NATO as well as strengthening the Group of Seven.

In the face of ongoing global challenges and crises, Papa sees the willingness of countries to invest in institutions such as the G7 and BRICS as promising. She believes that this is of crucial importance for fostering international cooperation.

There remains a clear distinction between these organizations in terms of membership and the global norms they promote. Over the past four years, the G7 has become much stronger, experts noted. However, the group has not expanded its membership or introduced new strategic initiatives. In contrast, BRICS is more open to innovation and is actively expanding. Yet, its rapid growth is outpacing BRICS' ability to effectively translate economic power into the political influence needed to reform international institutions, Papa concluded.