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Addressing the leaders session of the BRICS Business Forum held at ‘Bharat Mandapam’ in New Delhi, Russian President Vladimir Putin criticized organizations under the influence of Western countries. G-7 But made a sharp attack. Underscoring the declining influence of Western countries in the global economy and the rapidly increasing dominance of developing countries, Putin said that now the real economic power of the world lies not with the Western Bloc, but with the BRICS countries.
Putin quipped that the group of US and its allies are the ‘so-called G7’ and said that he does not understand why they are still called the ‘Group of Seven’, when their contribution to global development is continuously shrinking. He clarified that on the basis of unbiased economic facts and figures, BRICS has achieved purchasing power parity i.e. Purchasing Power Parity (PPP) Western economies have long been left behind in terms of
The Russian President presented comparative figures of global gross domestic product (GDP) and explained how the global balance has completely changed in the last five years:
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40% share in global GDP: Putin said that in the last five years, BRICS countries have contributed more than 40 percent to the global GDP, while the share of the so-called G-7 has come down to only around 29 percent.
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Huge difference in growth rates: In the last 5 years, more than 50 percent of global economic growth has been recorded in the account of BRICS countries alone, whereas G-7 countries have been able to contribute only 18 percent to this growth.
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Future Growth Projection: Putin predicted that in the coming time, while the average growth rate of G-7 countries is expected to be barely 1.1 to 1.2 percent per year, the average economy of BRICS countries will grow at a rate of more than 3.8 to 4 percent.
Explaining the reason behind this rapid economic leap of BRICS countries, Putin said that the answer is very simple and clear. He said that the expanded BRICS countries have more than half of the world’s population. With this huge population, we have a strong, dynamic and domestic market full of immense potential. Urbanization is happening rapidly in our countries and the scope of the middle class is increasing.
During his speech, Putin specifically mentioned the global success of domestic companies of BRICS countries. He founded India’s leading automobile and tech company MahindraTaking the names of China’s Huawei, Brazil’s Embraer, UAE’s DPO and Russia’s Rosatom, he said that these companies are proving that they are fully capable of leading the world by defeating western companies. He also praised the leadership of Prime Minister Narendra Modi, calling India a global powerhouse of the IT and software industry.
Putin also strongly attacked unilateral economic sanctions imposed by Western countries. He said that no sovereign country can be dictated as to whom it should buy from and with whom it should do business. Giving the example of India, he said that India always takes decisions keeping its national interests paramount and any threat of sanctions directly proves to be a boomerang.
The Russian President reiterated that BRICS countries are now moving rapidly towards settling mutual trade in their respective national currencies (Rupee, Ruble, Yuan and Dirham) instead of US dollars. This initiative to strengthen the BRICS financial system and cross-border payment mechanism in New Delhi is establishing a multipolar balance in the global financial system, which has forever challenged the monopoly of the G-7 countries.