Five threats faced by BRICS

Any person or institution faces opportunities and threats at one and the same time.  Here is my analysis of the five significant threats faced by BRICS in terms of business strategy and geoeconomics:

1. The posture of USA is the first in line in threat perception. Being number one power America is not going to stand down easily without offering a fight overtly and covertly. The perception that any alternative form in geoeconomics where USA is not the lead party is anathema to Americans in general and the White House in particular. In this regard, USA has plethora of counter measures. Trade flow, currency flow investment flow are three avenues where America can checkmate BRICS members in terms of geoeconomics power play.

2. EU is next in importance. As a group EU accounts for 16% of the World GDP and in currency terms USD 20 Trillion nominal and USD 28 Trillion in purchasing Power Parity (PPP). More pertinent is the manufacturing output approximately 22% of global share contributed by employing 28.5 million workers via 2 million enterprises. In addition to trade volume the Euro as a currency   could be effectively used as weapons in a one to one fight.

3. Bretton Wood sisters originally twins i.e., the International Monetary Fund (IMF) and the World Bank (WB) got another adopted sister in the form of Bank for International Settlements (BIS) christened as specialized agencies of the United Nations are out there as wolves in waiting for some easy prey. In hunting the discerning wolf looks for the weak one out of the herd to pounce upon. BRICS may sound as a united front but there are strong as well as weak members. It so happened that Saudis at the final moment declined to join the then proposed 10 member group causing the figure to be one down at nine.

4. Alternate to BRICS could emerge as soon as possible. The former global power centre ‘non-alignment’ can be dusted and brought up to the fore by vested interest which in an earlier occasion rendered it useless. The prompt action by the powers to be, knocking off Argentina from signing off with BRICS is a recent memory. There are enough countries in Africa and Latin America that could be corralled to bite the bait and become members of a new alternate group with blessings from all three interested parties, America, EU and the Bretton Wood sisters.

5. Finally it is the Trojan War to be replayed once gain by the introduction of the new Trojan Horse that might open the gates for the anti-BRICS forces to enter directly and indirectly in subverting the goals and objectives of this group and finally lead to its demise as we have seen happening in the last few decades where every attempt to demolish unipolar world met with similar fate. Which country in the BRICS could be the Trojan Horse? Your guess is as good as mine. In the geoeconomics arena anything could happen. Let’s wait and see how the western business strategy to unseat BRICS play out!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist