In the present era of globalization, territorial boundaries are collapsing, allowing for greater penetration and integration. The idea is pushed by capitalism and free market economy. It calls for the reduction of government presence in business in preference for the control of the market by the forces of demand and supply. However, the effects of globalization has necessitated the need for countries to collaborate in various sectors with a view to pilot their affairs in a uniform manner and to address their challenges in a way that the interests of each participating nation will be protected. This is economic integration. The idea has always been for member nations to cooperate in specific areas for purposes of mutual gain.
The European Union has remained a lucid example of a politico-economic integration that has turned into a supra-national organization. Formed in response to the need to rebuild the continent after the devastating effect of the World War II, the European Union has succeeded in providing leadership to over 500 million Europeans. Member nations are benefiting from free movement of goods and services, free flow of capital and even development. European states willingly relinquished certain level of their sovereignty to the European government to benefit from a common administration. This is the whole essence of integration. At inception when it was proposed by French foreign minister, Robert Schuman, it was merely an integration of the Coal and Steel industries of France and Germany. That cooperation has however grown to the now powerful supra-national body with powers spanning from foreign policy to currency matters. The bloc stands as a contemporary example of a successful inter-governmental organization.
Besides the European Union, another intergovernmental organization has emerged with signs of becoming powerful, if not more, than the EU. Formed in 2009, the BRIC stands for Brazil, Russia, India, and China. However, in 2010, South Africa joined and the acronym changed to BRICS. It was an economist serving at Goldman Sachs, Jim O’Neil who in 2001 conceptualized the BRICS. The aim was to encourage economic collaboration and even development among the identified nations with the understanding that they possess substantial economic potentials and have the ability to exert global influence in view of their rapidly growing economy.
Just like the EU, the BRICS has evolved from just an economic bloc towards political integration, cultural exchange, and unanimity on critical global issues. The bloc has pushed its integration further by establishing a lending institution in the style of the Bretton Woods Institutions. Created in 2014, the BRICS own New Development Bank is to mobilize resources for sustainable and infrastructural development of the emerging economies. The group also has an arrangement to provide member nations with financial support in times of economic down time. It intends to achieve this through the Contingent Reserve Arrangement launched in 2015. Despite being in existence for less than two decades, BRICS has achieved cooperation in various areas including counter terrorism; trade; agriculture; science and technology; and energy to mention a few. This is in addition to pushing for a single currency to rival other globally traded currencies. In addition, it has often spoken with one voice on contemporary global issues.
The BRICS is obviously on the move. Other economic blocs such as the ECOWAS may pick some vital lessons from the emerging global power house.
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