BRICS’ Implications on International Business and World Governance, “Indictment of the Relations Established Between the Center and the Periphery”

Abstract

BRICS countries are set to alter the current structures and norms of global governance in two ways. First, the world semi-periphery that includes the BRICS becomes new and competitive partners of the core and the periphery. As such, the old trade relations that existed between the core and the periphery change, to the detriment of the core countries. Second, and most importantly, the semi-periphery for historical reasons and other convictions, they are committed to infrastructure development in the periphery.  Infrastructure developments projects in the periphery countries will, as argued in this paper, in the medium to long term lead to industrialization of the periphery countries. The impact of that industrialization will be that those countries will not continue to export raw material to the core and import finished goods. They will use the raw material to feed their infant industries. Ultimately that new relationship will result in empowered countries in the periphery and weakened countries of the core, a power relationship that will become the foundation for the establishment of new structures and norms of global governance. This paper maintains that the BRICS will meaningfully impact the current contested Eurocentric system of world governance and will play a significant role in establishing new structures and norms that will guide future world governance, if the block grows stronger.