1. BRICS, Energy and the New World Order
- Author:
- Stein Sundstol Eriksen, Sverre Lodgaard, Arne Melchior, Karl M. Rich, Elana Wilson Rowe, and Ole Jacob Sending
- Publication Date:
- 05-2012
- Content Type:
- Special Report
- Institution:
- Norwegian Institute of International Affairs
- Abstract:
- When a Goldman Sachs executive introduced the ‘BRIC’ (Brazil, Russia, India, China) acronym in 2001, it was an innovative move, since continued success could not be taken for granted for all of the countries: only China and India had sustained high growth in the 1990s. Time has shown that the bet was a safe one: the BRIC constellation has been a rising star. In 2010, the category expanded to BRICS with the inclusion of South Africa, thereby covering all the major developing continents. BRICS is still in the making as an institution, but it may be here to stay, with annual summits held since 2009 and a stronger role in global governance through the G-20. In the geopolitics of energy, the BRICS play several roles, with increasing weight and significance. As large nations with rapid growth, the BRICS are increasingly important as suppliers or consumers of energy (Chapter 1). As emerging economies, they are part of a broader process of reallocation in the world economy, with a ‘New World Order’ emerging and energy affected via GDP growth, new trade patterns and transport-related energy demand (Chapter 2). In this emerging new order, the BRICS are also challenging the old powers in the field of security, and Chapter 3 examines the related implications for energy. While the old world was – at least in the economic field – a ‘hub-and-spoke’ system with Western Europe and North America at the core, a new pattern is emerging with increasing interaction along the rim. As an illustration of these new patterns, Chapter 4 examines the role of China and India in Africa, with the focus on energy and governance. With respect to timing, the focus on the giants rather than the dwarfs may have been a product of its era: Until 1980, there was broad development among poor nations, but the last two decades of the 20th century were a story of two tracks: a minority of important developing nations forging ahead and succeeding, and a large number of failures, especially in Africa. Perhaps that was why G-77 was no longer so much fun, and the rise of the giants seemed a more appealing concept. BRICS are large middle-income countries on the way up. The group is perceived, and perceives itself, as a symbol of development and the emerging world, challenging the ‘old world’. Is this perception true? has there really been a ‘decline of the West’? and have the BRICS been leading this change?
- Topic:
- Security, Climate Change, Energy Policy, and BRICS
- Political Geography:
- Russia, China, India, South Africa, and Brazil