Synergies

A new BRICS "partnership circle" is being spoken about more and more in the lead-up to the 2024 BRICS summit in Kazan. Participating emerging economies may include Kazakhstan, Bolivia, Thailand, Malaysia, and Algeria as part of this effort to bring them into the BRICS framework. At the same time, Belarus is the newest member of the Shanghai Cooperation Organization (SCO), which has been growing in recent years. Looking at the possible changes, difficulties, and possibilities that these partnerships bring, this essay investigates the synergies between the Eurasian Economic Union (EAEU), the Eurasian Economic Cooperation (SCO), and the BRICS countries.

There is great promise for regional and global economic integration through the BRICS-SCO-EAEU synergy. Economic development and geopolitical strategy among member nations might be better coordinated through the planned BRICS "partnership circle" and the extension of SCO membership. Trade liberalization and regional growth can be aided by these groups' shared goals, which can be realized through a strong foundation of South-South cooperation.

The possible establishment of a platform for the financing of massive infrastructure projects in Eurasia is an important step forward. Kazakhstan, Uzbekistan, and Kyrgyzstan are landlocked Central Asian nations that have a significant need for these kind of projects. A specialized development bank or a consortium of national and regional development banks might be established by the SCO countries to co-finance these projects, filling the infrastructure deficit in the area, using the current Belt and Road Initiative (BRI) framework.

The integration of BRICS, SCO, and EAEU activities might be hindered by a number of obstacles, notwithstanding the positive outlook. It may be difficult for member nations to work together if they are politically unstable, economically unequal, or have different strategic interests. Another major challenge is the difficulty of harmonizing different regulatory systems and economic strategies.

Also, geopolitical tensions with Western nations might rise as a consequence of these groups' expansion, which could cause diplomatic crises or economic sanctions. Some in the traditional political and economic blocs may oppose the rise of BRICS, SCO, and EAEU because they see it as a challenge to the current international order.

Members of the BRICS, SCO, and EAEU have a lot to gain by working together. Trade, investment, and GDP development may all benefit from better regional collaboration. These groups can tackle issues like poverty, insufficient infrastructure, and energy security more efficiently if they combine their resources and knowledge.

A more stable and resilient economy is one of the most promising outcomes for member nations. In order to stimulate economic activity and the creation of jobs, infrastructure projects can be adequately funded through the establishment of a development bank or a comparable financial entity. The global competitiveness of member economies may be enhanced through innovation and technology transfer, which can be fostered by stronger economic relations.

More BRICS-SCO-EAEU collaboration would be beneficial, according to recent studies. In 2023, the World Bank found that regional trade agreements, via lowering trade barriers and expanding access to markets, may greatly enhance economic development. According to the analysis, if the BRICS, SCO, and EAEU nations could reach a thorough trade liberalization deal, their GDP might rise by 10% in the following decade.

Investment in emerging nations' infrastructure pays off handsomely, according to data compiled by the International Monetary Fund (IMF). There will likely be a return of $1.5 to $2 for every dollar put into infrastructure. The significance of funding sources to sustain massive infrastructure projects in Eurasia is shown by this.

Harmonization of Policies: Bringing Financial and Regulatory Frameworks into Line to Make Cooperation Easier and Trade Barriers Less. Promoting political stability and resolving internal disputes to foster an atmosphere favorable to economic cooperation is the goal of political stability. Building strong institutional structures to monitor the execution of collaborative projects and guarantee responsibility. The use of proactive diplomacy in the management of geopolitical tensions and the promotion of favorable ties with non-member nations is known as diplomatic engagement.

To better understand the practical consequences of BRICS-SCO-EAEU collaboration, it is helpful to look at real-life instances and personal tales. One example of how large-scale infrastructure projects may have a transformational impact is the China-Pakistan Economic Corridor (CPEC), which was successfully implemented within the BRI framework. The real advantages of better regional cooperation, such more access to markets and better commercial possibilities, may be better illustrated via first-hand accounts from company owners and executives in member nations.

An important step toward deeper economic integration and collaboration among emerging economies is the BRICS-SCO-EAEU synergy. There are still obstacles, but there are also huge opportunities for growth in commerce, investment, and infrastructure. Member nations can build a better future for their people by working together to overcome challenges and capitalize on their joint strengths. Important turning points on this path, such as the next BRICS summit in Kazan and the just concluded SCO summit in Kazakhstan, will usher in a new age of South-South cooperation.