Trump's attention on BRICS amplifies its relevance

DONALD Trump makes no secret about his stance when it comes to the BRICS grouping.

- COLE JACKSON

While the BRICS summit was under way, Trump denounced the grouping and started the implementation of a new wave of tariffs (10% on imports) against BRICS countries.

Trump has stated that he would continue to hit the BRICS nations very hard, even if they form in a meaningful way - he added - it will end quickly. This response signals the grouping as a threat, and has true global influence.

The BRICS grouping has, to a large extent, grown naturally considering the global climate during its formation and in today’s context.

BRICS was formed in 2009. Although the formation occurred in 2009, conversation and planning regarding such a grouping was already under way [as Goldman Sachs identified BRIC (Brazil, Russia, India, and China) in 2001 already].

Its formation follows the 2007/08 financial crisis, caused by a period of dramatic economic downturn in the US - due to the housing market collapse and a subprime mortgage crisis - leading to a global recession. Many countries, the world over, bore the brunt of this recession, especially those countries in the Global South already battling economic difficulties. This was the latest reinforcement of the phrase “When the US sneezes, the world catches a cold.”

With the critical juncture caused by global recession, the logical route for countries in the Global South that felt its effects hardest, was to problematise the global financial system as it stood.