BRICS can bridge global gaps and boost cooperation, says expert
Professor Juliano Assunção highlights how BRICS can foster economic cooperation and resilience amidst rising geopolitical and climate risks.
In an era defined by increasing geopolitical tensions and economic uncertainty, the BRICS platform stands as a vital mechanism for nations to seek collective solutions. This sentiment was echoed by Juliano Assunção, Executive Director of CPI/PUC-Rio and Professor at the Department of Economics, PUC-Rio, during the Kautilya Economic Conclave in New Delhi.
Speaking on the sidelines of the event, Assunção emphasized that BRICS economic cooperation is essential for building resilience as the global landscape becomes increasingly fragmented.
A Shield Against Global Risks
The world is currently grappling with a trifecta of challenges: climate change, geopolitical instability, and economic volatility. According to Assunção, these risks necessitate dedicated spaces where countries can find common ground and promote more inclusive economic growth.
"BRICS is a great example of how countries can get together in order to find solutions to the problems that they share," Assunção stated, noting that such collaborative platforms are critical for meaningful dialogue in a fractured world.
Navigating Fiscal Stress and Trade Shifts
Assunção pointed out that many nations are currently struggling with significant fiscal stress, a lingering consequence of the COVID-19 pandemic. He noted that governments are facing the difficult task of balancing fiscal responsibility with the urgent need to provide public support. He suggested that the focus must remain on the efficiency and necessity of public expenditures.
Addressing recent shifts in international trade, Assunção described the move toward US tariffs as "very unfortunate." He argued that the global economy stands to benefit far more from collaboration and open trade than from protectionist policies.
Furthermore, he highlighted the impact of rising US bond yields, which he views as a reflection of heightened global risks. As investors demand higher yields, the resulting pressure creates additional hurdles for emerging markets, specifically naming India, Brazil, and Indonesia.
India’s Economic Resilience and Green Future
Despite these global headwinds, Assunção offered high praise for India's economic performance. He noted that India's ability to sustain robust growth amidst such widespread challenges is a significant positive development for the global economy.
"What India has done in terms of making sure that putting in place policies and putting the economy to growth at the level that it's growing, I think it's very good news," he remarked.
The Solar Opportunity
The conversation also touched upon India's interest in Brazil's success with flex-fuel vehicles and ethanol blending. While Brazil's transition was fueled by specific policy decisions and natural resources, Assunção believes India has a unique advantage in the renewable sector.
He highlighted that the sharp decline in solar panel costs, combined with India's abundant sunlight, presents a massive opportunity. For a country with such prevalent solar resources, the potential to lead in renewable energy technology is immense.