Data & financial journalist covering global economics and policy
While the nations involved remain very optimistic about getting co-operation especially during meetings, it might not be as simple and easy as it seems. While emerging markets have their own tale to tell and could be struggling economically, things might appear difficult in the long run.
This probably is a situation which will be a loss in either case: if Greece exits, it could be a bigger issue for Eurozone and Greece will have to fight its own battles with no common currency nation by its side.
China’s leaders now aim to transform China into one of the world’s leading industrial powers by 2045 and for this, a new business model will be designed. By doing this, it aims to reduce and eventually overcome the country’s dependence on cheap manufacturing and instead focus on advanced industrial goods for markets. Not only this, China has for long been building knowledge-based economy, driven purely by innovation and domestic consumption. But its real estate sector still consists of ghost towns and dozens of unleased commercial spaces.
The whole purpose of BRICS New Development Bank is to be self sufficient and rely less on western economies. The world’s reserves has shrunk from 90% (2004) of dollar denominated securities to 60% in 2014. But, the growing tension individually in the member countries could easily defeat the purpose for which it was originally formed. Some debate that this small initiative (formation of BRICS) could be a big challenge for the advanced economies.