At summit in Russia today, the BRICs countries’ leaders met to discuss opportunities to strengthen industrial and financial cooperation between them. Russian, Chinese, Brazilian, Indian and representatives from South Africa also convened to discuss the launching of a new development bank. Plans for the countries to implement a strategy of economic partnership until 2020 are being formulated.
In fact, this means the forming of new 21st century financial and economic architecture. The decisions which are being taken currently by the BRICs will map out the economic environment for the next decade. If 25 years ago, the dominating role in the capitalization of the world was held by the West, now this role is being fought for by Asian countries, especially China.
Certainly, for the meanwhile, the US reserve system has nothing to fear. These economic changes are slow, but are plain to see. We won’t be surprised to see the world split into separate currency zones in the next 20-30 years. These zones could shape up to be continental, with North America, South America, Europe, China (and the country’s Asian partners), along with the countries of the Russian led Eurasian economic union constituting the makeup.
Russia and its partners, Belarus and Kazakhstan, are attempting to play a bigger role in the newly forming world. However, it’s not worth forgetting that, at the moment, Russia’s share of the world economy is pretty small. This means that Russia is fundamentally weaker than the other forming centres.