BRICS arrive in the global economy
With the five-member block of the world's largest emerging economies, the BRICS, gathering in China, Business RT spoke with Aleksandr Morozov, Chief Economist for Russia and the CIS at HSBC group about their impact.
RT: Do you think these BRICS meetings serve a useful, since it is somewhat an artificial grouping?AM: “Well indeed group members have pretty much various interests, and at the same time I believe they have a lot of common interests.I believe the meeting of the BRICS gives them the opportunity to make their voice heard, and also to show what other emerging markets think about financial infrastructure of the world." RT: Do you see BRICS as more of a political entity or economic?AM: “I think both.BRICS, these countries have an opportunity to address economic issues vital for all these countries, and in that sense it’s a political development that we see.”RT: Do you think the block can promote interests of the emerging world as G20 seeks a reshape of the global financial system?AM: “Yes, because these countries are actually leaders, can be called leaders of emerging market world.Their interests to some extent coincide with other emerging market countries.In that respect it can serve these purposes." RT: They did agree to do more trade in local currencies, cutting out dollars and euros, is that part of the bloc asserting its economic independence?AM: “Well I would not call this independence, but that logically arises from the problems that we see in the developed market world.Problems in the Eurozone, problems in the US.And in that respect trading in the local currency – like renminbi, roubles, gives an opportunity for BRICS countries to rely on a fast growing, emerging market worlds, and source of economic growth and their own financial strength and financial infrastructure.To a large extent they will put themselves in a separate position to the developed world.Overall I think that is a very positive development for BRICS countries and that should help them all to mutual trade and economic development of BRICS countries." RT: Are we right to describe BRICS as emerging markets still. Or have they arrived?AM: “Well that depends on the criteria which are used.For some investors, probably sufficient growth rates Russia demonstrates is a reason to exclude Russia from the bloc.But definitely politically if we speak about the group, BRICS as a political structure, Russia should be a part of the BRICS."