CAIRO - 24 August 2023: The Egyptian Cabinet's Information and Decision Support Center (IDSC) has issued a new analysis that sheds light on the recent BRICS summit held in South Africa in August 2023. The summit witnessed the participation of officials from a number of countries, including Egypt. Egypt’s Prime Minister, Mostafa Madbouly, attended the summit on behalf of President Abdel Fattah El-Sisi.
This comes following the announcement by BRICS of inviting Egypt to join the group starting from January 2024.
The IDSC pointed out that BRICS is a global economic bloc whose concept of establishment was initiated in 2006. After a series of meetings, the group's first meeting was held in 2008 in Japan on the sidelines of the G8 summit. Initially composed of Brazil, Russia, India, and China, it was then named BRIC. South Africa joined on December 24, 2010, transforming it into BRICS.
What distinguishes this bloc from others is its unconventional nature, spanning four continents (Asia, Africa, South America, and Europe), sharing neither geographical, cultural, nor historical commonality. However, they share the status of emerging economies seeking to enhance their global influence and development, according to the IDSC.
The analysis continued to elaborate:
Share of Global GDP: The combined GDP of BRICS member states accounted for about $25.9 trillion in 2022, representing 25.6 percent of the $101 trillion global GDP in the same year. These countries have shown rapid economic growth rates, making them among the world's largest economies. China is the world's second-largest economy after the United States.
Contribution to Global Trade: In terms of trade impact in 2022, China led the world with around 15 percent of global exports and ranked second in imports with over 11 percent. Yet, the influence is not limited to China; Russia, the world's second-largest fuel exporter, ranked 15th globally in exports, while India was 21st in exports and 17th in imports.
Human Capital: The BRICS member states cover about 26 percent of the world's land area and account for around 40.9 percent of the global population, with 3.25 billion out of 7.95 billion in 2022. This vast population represents a significant global market for labor, production, distribution, and consumption.
Diverse Production Structure: The structural diversity of BRICS exports in 2022 is reflected in their economic structure. Russia excels in oil and natural gas production, fertilizer exports, and nickel-related industries. China leads in diversified non-oil industrial production, dominating global exports in various heavy and light industries. South Africa's strengths lie in mining, precious stones, particularly pearls, and it ranks fifth globally in mineral exports. Brazil excels in agricultural products, while India is a major exporter of textiles and garments.
The analysis highlighted that one of BRICS' goals is to enhance global status by promoting cooperation among its members in various fields. This facilitates sustainable economic growth, developmental improvement, and encourages economic innovation based on advanced technology and skill development. BRICS aims to improve representation of emerging economies in international financial institutions, trade, and investment environments, all within a multi-polar global system.
The approval of the BRICS New Development Bank in December 2021 to accept Egypt as the fourth new member of the bank after the UAE, Bangladesh, and Uruguay, carries several dimensions.
It reaffirms the robust economic and political relationships between Egypt and the group's members, showcasing Egypt's economic and geopolitical significance in the Middle East and North Africa.
This convergence leverages cooperative opportunities to support sustainable development efforts and promotes recent economic and investment reforms. Furthermore, targeting reduced transactions in USD would ease foreign exchange pressure, particularly as the dollar represents a major share of Egypt's foreign exchange.
Additionally, Egypt's membership in the New Development Bank grants it access to financing for its developmental projects.
Egypt's presence within BRICS allows it to benefit from the achievement of the group's goals and contribute to the creation of a global system that empowers emerging economies.
Comments
Leave a Comment