BRICS prospect remains promising amid global headwinds

The current economic hardship detected in some developing countries has dampened confidence in the prospect of BRICS. But it requires wisdom and far-sightedness to see that the emerging-market bloc is still an essential engine driving forward the world economy.

EMBRACE "NEW NORMAL"

Economic slowdown in almost all five BRICS countries in the past year have unfortunately given rise to the "Broken BRICS" rhetoric, which has further gained popularity in the West with the recently-revealed 7.4 growth of the Chinese economy last year, slowest in 24 years.

What have also added to the concerns are the major setback experienced by the Russian economy under Western sanctions, as well as the deceleration or even stagnation registered in India, Brazil and South Africa.

In fact, there is no need to make a fuzz about the cooling-down of the BRICS economies, as it only mirrors a gloomy global landscape.

The world economy is still undergoing profound adjustment as a fallout of the 2008 financial crisis.

With continued structural reforms, the Chinese economy is embracing the "new normal" featured by milder growth but higher quality. Similar efforts are being made in other BRICS economies such as Russia and South Africa.

Russian President Vladimir Putin has voiced confidence to go through economic difficuties, as external restrictions have prompted his country to carry out structural changes to inject vitality into the economy.

The Russian government revealed last month that there were some "visible signs" of stabilization in the country's economy after a month of violent turbulence.

As for India, the World Bank has projected that its economy, expected to grow 6.4 percent this year and even faster in 2016, will be a "bright spot" in an medium global economic outlook.

UPGRAD COOPERQTION

Coined by the Goldman Sachs economist Jim O'Neil in 2001, BRICS is an acronym referring to Brazil, Russia, India, China and South Africa, which happen to be the world's largest and most populous developing countries.

In recent years, there are clear signs that the emerging-market bloc is being upgraded from a mere assembly of economic powerhouses to a community of common destiny and common interests.

William Gumede, BRICS specialist from South Africa, highlighted the huge potential of inter-BRICS trade cooperation, which he said will help its members tide over their respective economic quagmires.

Data showed trade value among the BRICS nations totaled 350 billion dollars in 2013, which was 2.5 times the value six years ago. Currently, China is the largest-trading partner with Brazil, Russia, and and South Africa, and the second-largest trading partner with India.

At the end of last year, China's accumulative investment in the other four countries exceeded 55 billion dollars.

In a major cooperative move last year, BRICS countries announced plans to establish a development bank and a contingent reserve arrangement (CRA) in July, aiming to help the five countries and other developing economies fully tap their market potential while averting global risks.

PUSH FOR NEW ORDER

The BRICS, with roughly one third of the world's total population and more than a quarter of the world's land area, had a combined GDP accounting for almost one fifth of the world total in 2013.

Each member of the bloc is the most powerful emerging economy in its respective region, and their willingness to participate in international affairs has been constantly growing.

With the BRICS countries as pioneers, the emerging economies as a whole, which account for half of the world's economic output, have grown to be a crucial driving force behind the global trend of economic multi-polariation.

The just-concluded trilateral regular meeting for foreign ministers of India, China and Russia has sent the world a clear message that the three BRICS countries are committed to making joint efforts to promote coordination and cooperation among emerging economies.

Noting that the BRICS economies have consolidated their position as the main engines for sustaining the world economy as it recovers from the recent crisis, the ministers called for improved global economic governance so as to magnify the voice and increase representation of developing countries.

The BRICS countries are seeking to make a change to the West-dominated economic order,which no longer meet the demands of the global economic recovery and development, noted Russian BRICS expert Georgy Toloraya.

The BRICS cooperation, analysts say, has emerged to be an exemplary part of South-South cooperation. It is helping push for a more open and fairer international order and rebalance the world economy.