The unstable situation in the world dictates the urgent need for countries to seek new partners and support. In a situation where economic and political instability became hypothetical concepts, the creation of alliances has become a prerequisite for survival. The SCO and BRICS associations , the decoding of which will be given below, work with a single goal - creating a balance of forces in the world.
Era of integration
The 21st century is considered to be an era of integration and unification. That is why the SCO and BRICS associations entered the struggle for a balance of power in the world. The Shanghai Cooperation Organization, or SCO, has nothing to do with NATO or with ASEAN, a regular security meeting. The coalition has an intermediate position. A certain Eurasian space is being formed, which intends to actively defend its interests before the West. America keeps abreast and is actively engaged in several alliances simultaneously:
- Transatlantic Trade Association.
- Trans-Pacific Trade Pact between Asia and America.
Russia and China are left overboard. And if we take into account the aggressive sanctions against Russia by the West, the significance of the SCO takes on a completely different meaning. The role of BRICS in the global economy is no less justified.
The role of the SCO and BRICS
The SCO structure includes Russia and China, Kazakhstan and Kyrgyzstan, Tajikistan and Uzbekistan. In the near future, the tandem is planned to replenish India and Pakistan. According to the Russian government, it is this association that will solve a number of pressing domestic problems. The Chinese representative perfectly understands the situation in the country, as it itself is experiencing inconvenience due to sanctions from America and Europe. The restrictions introduced back in 1989 were only partially removed.
The goal of BRICS, which includes Russia and China, Brazil and India, South Africa, is to move forward. The abbreviation is formed from the English abbreviation BRICS - the first letters of the countries included in the group (Brazil, Russia, India, China, South Africa). The economic potential of these countries is very high, since they own half of world production. According to representatives of organizations, there is no question of dominance in the world market. The issue of associations affects only the topic of complete independence from Europe and America.
Forecasters say that in the near future, the SCO and BRICS, the decoding of which is given above, will significantly squeeze the world economic elite due to its rich natural resources, a powerful industrial base and developed agriculture. Good intellectual potential should be added here .
SCO structure
The Shanghai Cooperation Organization is governed by a council of heads of state that are members of it. Any decisions are made within the framework of summits held annually on the territory of one of the member countries of the association. This year, the SCO and BRICS summit will be held in June in Ufa. The conference will discuss issues of multilateral cooperation. The council plans to approve the budget and establish relations with other international associations. The executive body of the association is the secretariat. One of the constantly operating bodies is the RATS in Tashkent, which solves anti-terrorism tasks.
A bit of BRICS history
The BRICS includes five countries that are classified as new industrial countries. They are characterized not only by powerful, but also by rapidly developing economies, by their active influence on regional and global markets. Each member of the association is a member of the G-20. By 2013, the total GDP of countries reached $ 16.039 trillion. The first BRICS summit, whose countries are able to influence the economy, caused the dollar to fall, as the heads of state raised the issue of creating a single stable and predictable currency. The association encourages commercial and political, cultural cooperation between peoples. Moreover, today the member countries of the union are taking active steps to create their own financial institution, which could compete with the West.
Economic cooperation
The SCO and BRICS associations, the decoding of which indicates that they include countries with great potential, have signed a framework agreement. Its goal is to improve the productivity of economic partnerships. Back in 2004, an agreement was signed on the formation of a free trade zone, which largely balanced the flow of goods in the regions.
In 2005, the member countries of the groups agreed on joint projects in the oil and gas segment, the rational distribution of water resources and carbon reserves. In order to finance joint activities, an Interbank Council was formed.
Each SCO and BRICS summit brings good results and portends global changes. So, in 2009, representatives of China received a proposal to provide $ 10 billion to partner countries for active development, which allowed them to support their economy under the conditions of the global crisis at that time.
Relations with the West
According to the media and many world experts, it is the SCO and the BRICS that, in the first place, must compete not only with America, but also with NATO. This will avoid a number of conflicts that could open the way for the United States to the economy of states that border China and Russia. Representatives of associations actively monitor the situation on the world stage. Despite the complete lack of open criticism towards America in general and Washington in particular, problems of this category are often discussed at summits. For example, in 2005, the question of finding the American military on the territory of Uzbekistan and Kyrgyzstan was actively raised. The SCO asked the United States to set clear deadlines for the withdrawal of troops from the territory of the member countries of the association. Moreover, the closure of the K-2 airbase was stimulated.
BRICS States
The BRICS member countries occupy the positions of leading and actively developing world markets. The main interest is caused by India, Brazil and China. In the next five years, their significance will only increase. States such as Indonesia and South Africa are potential candidates for membership. The main priorities set by the member countries of the alliance are not the reduction of production costs, but the formation of the material base, which should stimulate long-term success in state markets. SCO and BRICS volunteers are actively involved in research and analytics to make the partnership even more fruitful.
Development Bank - a revolution in the global economy
For many years now, the SCO and BRICS associations, the decoding of which indicates that they are defending their interests in the West, are aimed at creating a single financial institution. In connection with the situation in the world in 2014-2015, this area of partnership has intensified. The project, which began in 2009, based on available factors, is finally coming to its logical conclusion. Development Bank has already been approved. Moreover, numerous issues have been resolved: leadership has been selected, contributions to the financial institution by all participating countries have been determined, the location of the organization and its first headquarters has been determined. At the moment, the structure is being actively filled up with representatives of each of the member states of the association. The SCO and BRICS countries, the list of which is very limited, are actively tuned in this matter. Secondary tasks remained on the agenda, in particular regarding the right to participate in the financial institution of states that are not included in the structure of associations. Priority is given to a minimum of bureaucratic processes for the most expedited procedure for consideration and adoption of investment projects. If the plan can be realized, global markets will be radically changed.