Multipolar world order, leading role of emerging economies, and Western debt: Key takeaways from Putin’s BRICS address

The Russian president’s speech in Kazan focused on the group’s financial integration and new development prospects

Russian President Vladimir Putin addressed a meeting of leaders at the BRICS Summit in Kazan on Wednesday. In his speech, he focused on the growing role and prospects of the economic group, and warned about the risks to the global economy from Western sanctions and protectionist policies.

Putin also announced Russia’s initiatives within the BRICS framework, including the formation of a grain exchange and a new investment platform.

Here are the key takeaways from the president’s address.

Multipolar world order being formed

World trade and the global economy as a whole are undergoing significant changes, the Russian president told the extended-format BRICS meeting. The center of business activity is gradually shifting towards developing markets, he added. “A multipolar model is being formed, which is launching a new wave of growth, primarily due to the countries of the Global South and East – and, naturally, the BRICS countries.”

Leading role of BRICS

The BRICS economies have been demonstrating “sufficient stability” due to responsible macroeconomic and fiscal government policies, the Russian leader said, noting accelerated growth rates are expected in the medium term. Putin cited preliminary estimates that average BRICS country economic growth in 2024-2025 will be 3.8%, compared to global figure of 3.2-3.3%.

The BRICS countries’ share of global GDP in terms of purchasing power parity (PPP) will amount to 36.7% by the end of 2024 and will continue to expand, Putin predicted. Meanwhile, the share of the Group of Seven (G7) leading Western economies is projected to account for slightly above 30%.

“The trend for the BRICS’ leading role in the global economy will only strengthen,” Putin said, citing population growth, capital accumulation, urbanization, and increased labor productivity, accompanied by technological innovations as key factors.

West’s unilateral sanctions and debt burden

The Russian president warned of a potential new global crisis, citing the growing debt burden in developed countries, unilateral sanctions, and protectionist policies as key threats. “These factors are fragmenting international trade and foreign investment, particularly in developing nations,” Putin said.

He also pointed to high commodity price volatility and rising inflation, which are eroding incomes and corporate profits in many countries. Putin’s remarks also highlighted concerns over escalating geopolitical tensions and their impact on global economic stability.

New BRICS investment platform as a powerful tool

The Russian leader said that to fully realize the potential of the BRICS countries’ growing economies, the member states should intensify cooperation in areas such as technology, education, resources, trade and logistics, finance, and insurance, as well as increasing the volume of capital investment many times over.

“In this regard, we propose creating a new BRICS investment platform, which would become a powerful tool for supporting our national economies and would also provide financial resources to the countries of the Global South and East,” Putin said.

BRICS-based grain exchange

The Russian leader proposed a common BRICS grain exchange to protect trade between members from excessive price volatility. BRICS countries are “among the world’s largest producers of grain, vegetables, and oilseeds,” he noted. Such a bourse could be expanded to trade in other major commodities such as oil, gas and precious metals, Putin said.

The initiative is aimed at protecting national markets from negative external interference, speculation and attempts to cause artificial shortages of food products, according to Putin.

AI alliance of BRICS

Putin also proposed a BRICS AI alliance to regulate the technology and prevent its illegal deployment. “In Russia, the business community has adopted a code of ethics in this area, which our BRICS partners and other countries could join,” Putin noted.

https://www.rt.com/news/606245-brics-integration-putin-address/

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Other proposals

The president also spoke about increasing transport connectivity between BRICS countries, saying this could provide additional opportunities for growth and diversification of mutual trade.

“Such promising projects as the formation of a permanent BRICS logistics platform, preparation of a review of transport routes, opening of an electronic communications platform for transport, and establishment of a reinsurance pool are being discussed,” Putin said.

The issues related to the transition of the global economy to low-emission development models are very important, according to the Russian president. The BRICS contact group on climate and sustainable development is closely involved in this work and will continue to counteract attempts by some countries to use the climate agenda to eliminate competitors from the market, he said. “We consider the initiatives on the BRICS partnership on carbon markets and the climate research platform to be promising,” Putin concluded.

Iran’s strikes on Israel show its commitment to international law – official

Tehran has an inherent right to self-defense and will continue to exercise it, Abbas-Ali Kadkhodaei has said

Tehran has the right to self-defense, and its recent strikes on Israel have demonstrated its “commitment to international law,” Abbas-Ali Kadkhodaei, a senior adviser to Iran’s foreign minister, has said.

Kadkhodaei slammed Israel’s aggression in the Palestinian territories, citing UN resolutions and rulings by the International Court of Justice (ICJ), which have repeatedly condemned the enduring occupation.

“The forcible seizure of Palestinian territories by Israel does not grant sovereignty to the occupying power… States must not recognize or maintain this illegal situation and must take positive action to end the occupation,” Kadkhodaei said, urging the international community to press Israel into ending the fighting in Gaza and southern Lebanon.

“Given the numerous war crimes committed by Israeli soldiers, the international community should exert pressure on the regime to end the war. This can be achieved by cutting off military and financial aid to Israel and demanding a ceasefire.”

The October 1 missile barrage fired by Tehran into Israel was conducted in full compliance with international law and constituted Iran’s “inherent right to self-defense” exercised in the wake of “repeated Israeli attacks and the UN Security Council’s failure to act,” the senior adviser said.

The strikes “demonstrated Iran’s “commitment to international law and its determination to protect its sovereignty. Any attempt to impede Iran’s right to self-defense would be a violation of international law and would have serious consequences,” Kadkhodaei warned.

Iran fired around 200 ballistic missiles into Israel in response to the killings of Hamas and Hezbollah leaders and an Islamic Revolutionary Guard Corps (IRGC) general.

Israel has vowed to respond to the strikes, with Defense Minister Yoav Gallant promising to deliver a “deadly, pinpoint accurate, and surprising” retaliation. The targets reportedly being considered by Israel include Iran’s energy and nuclear facilities and infrastructure.

https://www.rt.com/news/606275-irans-israel-strikes-law/