American political commentators and experts are still smarting, or at least scratching their heads, over the fact that China will likely step in to help Italy deal with their fiscal issues. For so long, it would have been the U.S., or at least the E.U. who would step in. After all, these nations were natural allies and had always led the way in the past. But, as this week’s BRIC meeting should tell you, the U.S. and the world, should get accustomed to the concept that it is not just the U.S. who will be stepping in to help out from now on.
The BRIC countries – Brazil, Russia, India and China – are very concerned about the global economic recession. They came together this week to see how they could combine resources to help stimulate the global economy through aid packages to some struggling economies. In so doing, each nation would also help their own economic growth, for certain.
Chinese central bank Deputy Governor Yi Gang recently said that China can support the European and global economies “at the margin,” but insisted that Europe needs to find the solution to its debt crisis itself,.
This only reinforces that the economies from the BRIC nations once known for their rapid growth, in part because their growth was from a modest economic base,, have now truly come into their own. For centuries, the BRIC nations were the recipient of financial aid from Europe and the US. It seems like the the tables have been turned.
We will ultimately see what the BRICS countries decide to do cooperatively or individually to help out struggling parts of Europe. What can be learned from all of this is the fact that the world may need China’s or other BRIC countries help with other struggling economies which really points to a shift in the global order with these nations truly graduating from emerging economies to established economies.