23November2017

Home Editorial BRICS OPENS THE NEW WORLD ECONOMIC SECURITY

BRICS OPENS THE NEW WORLD ECONOMIC SECURITY

In the midst of an economic slowdown that afflicts developed countries, there are groups of countries which are developing above 6%. The groups of these countries are spread across Asia, Africa and Latin America known as BRICS, Brazil, Russia, India, China and South Africa. Slowing growth in developed countries has affected developing countries including Indonesia. Why? Because developed countries become the market of developing countries. But the goals of European and US markets reached a saturation point. In addition, the United States market tends to be protectionist since Donald Trump's government came to power. 

Sunday (3/9), thePeople‚Äôs Republic of China (PRC) as chairman of BRICS, held a BRICS Summit in Xiamen. All member states were present plus guests from Mexico and also representatives from Turkey and Tajikistan. BRICS wants to develop stronger cooperation with Mexico. In addition, BRICS also wants to develop closer cooperation with other developing countries that have great natural resource potential. One of the developing countries that want to be involved in BRICS is Indonesia. 

Chinese President Xi Jin Ping says he does not want to take economic rations from other parties. The hope is instead to enlarge the economic cake. This statement seems to respond to criticism of the United States President Donald Trump who declared China take jobs in America. An economist from Goldman Sachs, Jim O'Neill stated, BRICS will be at the forefront of business in the 21st century. The total GDP of this group according to the IMF rose from 12% in 2005 to 22.5% in 2015. BRICS also contributes to 50% world GDP growth of the last 10 years. 

BRICS in the past, limited themselves to only talk about the economy, but at the summit in Xiamen the issues of global politics and security were discussed. BRICS also demands voice quotas at the World Bank and IMF. Further BRICS has ambitions to own its own currency. We hope that BRICS will be an economic axis that provides broader access to developing countries to trade more fairly and no longer always apply protectionism. For Indonesia the BRICS market is a huge market opportunity and is no longer just dependent on the United States and the European Union.

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