G7 Vs Brics: What You Should Know

Regarding international diplomacy, economic cooperation, and global influence, two prominent acronyms often take centre stage: G7 and BRICS.

These groups represent some of the world's most powerful and influential nations, but they serve different purposes and have distinct characteristics. In this article, we'll delve into the Big 5 and Group of 7, exploring their origins, compositions, objectives, areas of influence and GDP. By the end, you'll have a comprehensive understanding of how these two groups shape the world stage.

G7: The Group of Seven

[caption id="attachment_9336" align="aligncenter" width="800"] G7 summit or meeting concept. Row from flags of members of G7 group of seven and list of countries, 3D illustration[/caption] The Group of Seven, commonly known as G7, emerged during the 1970s as an informal forum for advanced industrialized nations to discuss economic policies and global financial stability. The original members included the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom. These countries shared common economic interests and wanted to foster cooperation on monetary matters, especially in light of the 1973 oil crisis.

Composition and Objectives

As of September 2023, the Group of seven member countries are: 1. United States: A global economic and political powerhouse. 2. Canada: Known for its vast natural resources and strong economy. 3. United Kingdom: A significant financial centre and influential diplomatic player. 4. France: A major European economy with global political influence. 5. Germany: A strong European economic and industrial leader. 6. Italy: Renowned for its cultural heritage and a significant European economy. 7. Japan: A leading Asian economic and technological powerhouse.

The primary objectives of the G7 include:

Economic Coordination: Discussing and coordinating economic policies to ensure global financial stability. Trade and Investment: Promoting open markets, free trade, and international investment. Global Challenges: Addressing global issues such as climate change, health crises, and security concerns. Currency Exchange Rates: Monitoring and managing currency exchange rates to prevent destabilization.

Influence and Impact

The G7 wields significant economic and political influence on the global stage. Its member countries collectively represent a substantial portion of the world's economic output and trade. Group of Seven meetings typically occur annually and serve as crucial platforms for addressing pressing global challenges.

BRICS: The Emerging Powerhouses

[caption id="attachment_8512" align="aligncenter" width="1200"] BRICS Leaders, L-R: Luiz Inácio Lula da Silva, Droupadi Murmu, Xi Jinping, Vladimir Putin, Cyril Ramaphosa | Credit: Wikipedia Commons | Source: Watcher Guru[/caption] BRICS, on the other hand, represents a different dynamic in global affairs. This acronym was coined in 2001 by Jim O'Neill, an economist at Goldman Sachs, to refer to a group of five emerging economies with substantial growth potential. The original countries were Brazil, Russia, India, and China. In 2010, South Africa joined the group, expanding it to BRICS or Big 5.

Composition and Objectives

The Big 5 member countries are: 1. Brazil: A large country in South America known for its diverse culture, natural resources, and growing economy. 2. Russia: A vast nation spanning Eastern Europe and northern Asia, known for its rich history, resources, and political influence. 3. India: A populous country in South Asia with a fast-growing economy, a diverse culture, and a prominent role in information technology and services. 4. China: The most populous country in the world, located in East Asia, is known for its rapid economic growth, manufacturing prowess, and global trade influence. 5. South Africa: Located at the southern tip of the African continent, it is known for its mineral resources, diverse population, and emerging economy. However, in its recently concluded summit in August 2023, the Big 5, 6 other nations were inducted into the bloc. Namely;

Saudi Arabia

The UAE

Argentina

Egypt

Iran

Ethiopia

The main objectives of BRICS include:

Economic Cooperation: Enhancing economic ties, trade, and investment among member countries. Political Influence: Promoting multipolarity and a more equitable world order in international politics. Development Initiatives: Collaborating on development projects, particularly in infrastructure and sustainable growth. Cultural Exchange: Fostering cultural and people-to-people exchanges to deepen understanding and cooperation.

Influence and Impact

The Big 5 countries collectively represent a substantial portion of the world's population and landmass, making them a significant geopolitical force. While their economies vary in size and scope, each member plays a crucial role in regional and global affairs. Big 5 summits provide a platform for these nations to discuss pressing issues and explore opportunities for cooperation.

Comparing G7 and BRICS

[caption id="attachment_9337" align="aligncenter" width="686"] G7 vs BRICS: What you Need to Know | Credit: Statista Racing Bar Animation | Source: Google[/caption]

1. Economic Development

The Group of 7 consists of established, advanced economies that collectively contribute a substantial share of global GDP. These countries have well-developed financial systems, strong industrial bases, and high income levels. The Big 5 comprises emerging economies with significant growth potential. While their economies are diverse, they collectively represent a growing force in the global economy. China, in particular, stands out as the world's second-largest economy.

2. Political Influence

Group of Seven countries have historically held significant political influence in international organizations and global diplomacy. They often advocate for democratic values and human rights. The Big 5 nations seek to challenge the dominance of Western powers in international politics. They promote multipolarity and advocate for a more equitable global order.

3. Global Challenges

Group of Seven countries focus on addressing a wide range of global challenges, including climate change, health crises, and security concerns. They often lead in providing humanitarian aid and disaster relief. The Big 5 nations prioritize issues such as economic development, infrastructure, and South-South cooperation. They also discuss global challenges but from the perspective of emerging economies.

4. Trade and Investment

Group of Seven countries champion open markets, free trade, and international investment. They have established trade agreements and economic partnerships worldwide. The Big 5 nations aim to boost intra-BRICS trade and reduce dependency on Western markets. They also collaborate on initiatives like the New Development Bank (NDB) to fund infrastructure projects.

5. Cultural and People-to-People Exchange

Group of Seven cultural exchange is promoted within G7 nations, it is not a primary focus of the group. People-to-people interactions occur through various channels, such as tourism and education. The Big 5 nations actively encourage cultural exchange and people-to-people interactions. They organize cultural festivals, academic exchanges, and youth forums to deepen ties. In the complex landscape of international relations, both play vital roles. The G7, comprising advanced industrialized nations, focuses on economic coordination, political influence, and addressing global challenges. Meanwhile, BRICS, composed of emerging economies, seeks to challenge existing power structures, promote economic cooperation, and foster a more equitable world order. As the world evolves, these groups may adapt to new challenges and opportunities. To stay informed about the latest developments and their impact on global affairs, it's essential to keep a close eye on the activities and initiatives of the international powerhouse member countries. By understanding their objectives and areas of influence, individuals and businesses can navigate the ever-changing international landscape more effectively.