The 10th BRICS summit to be hosted by South Africa is going to be closely watched. It comes at a time when extraordinary global political and economic challenges are facing the world. The Brics bloc is made up of five of the leading countries in the global South — Brazil, Russia, India, China and South Africa.

The challenges facing the world range from country specific problems relating to domestic poverty, inequality and unemployment to climate change and a global economic system that is biased in favour of corporate interests, particularly in finance and technology.

One of the most immediate political challenges relate to the changing dynamics in global economic governance. The current global powerhouse, the US, appears intent on starting trade wars with both China and the European Union. Africa can’t avoid being adversely affected by a trade war between these three economic powers, which are its three largest trading partners.

The US is also pulling back from multilateral governance arrangements that it created. For example, it withdrew from the upcoming United Nations (UN) conference on migration and from the UN Human Rights Council. And Washington is effectively paralysing the World Trade Organisation (WTO) by refusing to agree to the appointment of new judges at the WTO Appellate Body.

These developments are creating a volatile and unpredictable situation for all countries. Small players on the global stage, like South Africa and other countries on the continent, face the prospect of becoming collateral damage in the destruction of the current global governance arrangements.

FULL ARTICLE COURTESY OF BIZ COMMUNITY:

http://www.bizcommunity.com/Article/196/516/179238.html

Photo: © Wikipedia

#BusinessBelieves #RegencyGlobal #SaInc #BRICS #RisingPowers