In the ever-evolving landscape of global economics and politics, two acronyms have been making significant waves: the G20 and BRICS+. These groups, representing major economies worldwide, are redefining international relations and economic strategies.
The G20: A Forum in Flux
The G20, established in 1999, brings together 19 countries and the European Union, accounting for approximately 85% of the world's GDP and over 75% of global trade. It serves as a platform for international economic cooperation, addressing issues ranging from financial stability to climate change. However, recent events have highlighted challenges within the G20 framework.
The recent G20 finance ministers' meeting in South Africa saw significant absences, including U.S. Treasury Secretary Scott Bessent and Japan's Finance Minister Katsunobu Kato. This poor turnout underscores the organisation's waning relevance amid strained global cooperation, exacerbated by US President Donald Trump.
South Africa, holding the G20 presidency for the first time, emphasised pressing issues such as debt relief and climate change. President Cyril Ramaphosa called for collective action towards a resilient and equitable global economy. Yet, the US’s America First stance and limited participation in G20 events highlight internal divisions that challenge the group's effectiveness.
BRICS+: Expansion and Influence
Parallel to the G20's challenges is the rising bloc BRICS, gaining momentum, especially with its recent expansion to BRICS+. The 2024 summit in Kazan, Russia, marked a pivotal moment as the bloc welcomed further countries adding to the bloc’s collective power, with 9 partner states.
This expansion signifies BRICS+'s ambition to amplify the voice of the Global South in international affairs. The inclusion of diverse economies enhances the bloc's economic clout and geopolitical influence, positioning it as a counterbalance to traditional Western-dominated institutions. The establishment of the New Development Bank (NDB) further underscores BRICS+'s commitment to providing alternative financial mechanisms for emerging markets.
Convergence and Divergence
While both the G20 and BRICS+ aim to foster international cooperation, their trajectories highlight differing approaches. The G20's recent struggles with internal cohesion contrast with BRICS+'s proactive expansion and unified stance on reforming global governance. This divergence raises questions about the future effectiveness of the G20 in addressing global challenges collectively with countries from the Global North and Global South. .
Interestingly, the G20 has seen a shift towards greater representation of the Global South. With consecutive presidencies by Indonesia (2022), India (2023), Brazil (2024), and now South Africa. There's a concerted effort to place the Global South's agenda at the forefront of global governance, but is it working.
Implications for the Global Order
The evolving dynamics of the G20 and BRICS+ have profound implications for the global order. BRICS+'s expansion reflects a desire among emerging economies to assert greater influence and challenge the status quo. This shift could lead to a more multipolar world, where power is distributed among various blocs rather than dominated by a few Western nations.
For the G20, the challenge lies in maintaining its relevance amid internal divisions and the rise of alternative groupings like BRICS+. To remain effective, the G20 may need to adapt by embracing reforms that reflect the changing geopolitical landscape and address the concerns of emerging economies.
The G20 and BRICS+ are at pivotal junctures, reflecting broader shifts in global power dynamics. As BRICS+ expands and asserts its influence, the G20 faces the challenge of adapting to a more diverse and multipolar world. The interplay between these groups will undoubtedly shape the future of international relations, economics, and governance.
Written by:
*Dr Iqbal Survé
Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN
*Chloe Maluleke
Associate at BRICS+ Consulting Group
Russian & Middle Eastern Specialist
**The Views expressed do not necessarily reflect the views of Independent Media or IOL.