BRICS: Putin Says Decentralization Will Boost Global Economy\'s Resilience
Russian President Vladimir Putin has stated that decentralization could help the global economy’s resilience. Specifically, he stated, “Of course, the stability of all global…” Putin’s vision for a decentralized global economy aims to enhance resilience, depoliticize economic interactions, and reduce dependence on a single dominant player.
BRICS as a Driver of Growth in a Multipolar World
Putin believes the newly expanded BRICS group showed that a “multipolar world” is being created, in a challenge to the US-dominated global order. Facing isolation from the West over Russia’s actions in Ukraine, Putin hopes the BRICS grouping will be a power counterweight to it in both global trade and politics. The BRICS group will generate most of the global economic growth in the coming years thanks to its size and relatively fast growth compared with that of developed economies.
According to Putin, world trade and the global economy are undergoing significant transformations, with activity increasingly shifting toward emerging markets. He emphasized the rising economic influence of BRICS nations, saying that their combined GDP now exceeds $60 trillion, surpassing that of the G7 countries. In the foreseeable future, BRICS will generate the main increase in global GDP, Putin told officials and businessmen at BRICS business forum in Moscow.
De-dollarization: A Cautious Approach
While advocating for greater use of local currencies within the BRICS bloc, Russian President Vladimir Putin tempered expectations on de-dollarization at BRICS\'s summit. Putin said BRICS was aiming to use local currencies, not to create a replacement to the dollar as the main currency of international trade. The focus remains on promoting trade and investment within the BRICS nations and beyond, using local currencies to reduce reliance on the US dollar.
Vladimir Putin, the Russian president, came out in support of decentralization during the second Eurasian Economic Forum, which was held in Moscow. In a context of global economic uncertainty, decentralization is seen as a key strategy for enhancing the stability and resilience of the world economy.