Empowering the global south: A paradigm shift in global economic landscape

Global economic landscapes are transforming with the BRICS+ alliance's strategic expansion and Africa's inclusion in the G20. This article delves into the combined impact, exploring how these developments reshape resource dynamics and energy security. Additionally, it examines the significance of the India-Middle East-Europe Economic Corridor (IMEC) and its potential to redefine economic dynamics in Asia and India.

## **BRICS+ alliance: Shaping resources and energy Security**

**Evolving mineral supply dynamics**

Lithium is becoming increasingly important in the world's transition towards renewable energy and electric vehicles. BRICS+ is addressing the growing demand for lithium by including Argentina in its alliance. Argentina is the fourth-largest lithium producer globally and is joining forces with Chile and Bolivia to form the well-known "Lithium Triangle," a region that plays a crucial role in global lithium resources. This addition strengthens BRICS+'s role in securing critical minerals and collectively fortifying energy security.

**Lithium as a strategic focus**

As the world embraces renewable energy and electric vehicles, lithium emerges as a linchpin in the transition. BRICS+ strategically addresses the heightened demand for lithium by incorporating Argentina into its alliance. Argentina, ranking as the fourth-largest lithium producer globally, joins forces with Chile and Bolivia to form the renowned "Lithium Triangle," a region pivotal in global lithium resources. This inclusion enhances BRICS+'s significance in securing critical minerals and fortifying energy security collectively.

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## Africa's inclusion in G20: A global paradigm shift

**Economic potency unleashed**

Africa's inclusion in the G20 transforms the group into the G21, unlocking immense economic potential. With the African Union (AU) representing 55 member states and boasting a combined GDP of $3 trillion, the continent has become a pivotal player, contributing significantly to global GDP. This inclusion is especially crucial as the world seeks to diversify supply chains, with Africa emerging as a key link due to its vast mineral resources.

**Environmental advocacy and geopolitical balance**

The move signifies more than economic implications; it marks a shift towards a balanced and representative global governance structure. With its disproportionate impact from the climate crisis, Africa gains a platform for environmental advocacy and climate justice within the G20. The transformation aligns with the commitment to correct historical imbalances in international frameworks, recognizing Africa's growing influence.

**Addressing shared global challenges**

Africa's inclusion recognizes that some of the region's most significant challenges, including poverty, inequality, and unemployment, are acute. The AU's active participation in the G21 provides a platform to collectively address these challenges, fostering solidarity and cooperation in the face of shared global responsibilities.

## **Impact of India-Middle East-Europe Economic Corridor (IMEC) on Asia and India**

The launch of the India-Middle East-Europe Economic Corridor (IMEC) on the sidelines of the G20 summit holds significant implications for Asia, particularly India. It could reshape economic dynamics, trade, and connectivity in the region.

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**Enhanced regional connectivity**

The IMEC project, with its comprehensive sea lanes, rail networks, and maritime routes, will substantially enhance connectivity between India, the Middle East, and Europe. This improved connectivity has the potential to significantly cut trade times and costs, fostering smoother trade flows and reinforcing economic ties between these regions.

**Trade and economic growth**

India benefits from closer ties with the Middle East and Europe, particularly in energy sectors. The corridor's focus on strengthening existing trade and manufacturing, ensuring food security, and optimizing supply chains aligns with India's economic goals. This could lead to an expansion of port infrastructure projects on India's west coast and enhance rail and road connectivity between production centers and ports.

**Digital and energy infrastructure development**

The IMEC project goes beyond traditional transportation infrastructure. It involves the deployment of cables for electricity, digital connectivity, and pipes for clean hydrogen export. This not only facilitates the exchange of energy resources but also creates opportunities for the growth of the technology sector, including undersea cable projects and high-speed internet connectivity.

**Boost to telecom, technology, and innovation**

The telecom and technology sector companies are poised to benefit from the undersea cable and connectivity projects. The corridor's emphasis on innovation of advanced clean energy technology aligns with India's push for sustainable development. The IMEC project could also stimulate investment in various sectors, including India's innovative agriculture sector.

**Impact on capital market development**

India's potential inclusion in the JPM Emerging Markets’ Global Bond Index could be catalyzed by the IMEC project, attracting foreign inflows and triggering capital market development. The ambitious nature of the corridor, spanning across continents and involving various economic sectors, could instill confidence in global investors regarding India's economic prospects.

**Conclusion**

In conclusion, the collaboration of the BRICS+ alliance and Africa's G20 inclusion marks a transformative shift in global economic dynamics. Addressing resource challenges and promoting inclusivity, these developments synergize for a more sustainable and interconnected future. The India-Middle East-Europe Economic Corridor (IMEC) also promises substantial benefits for Asia and India, fostering enhanced connectivity, economic growth, and technological innovation, signaling a promising trajectory for global progress.

Explore the transformative impact of the BRICS+ alliance and Africa's G20 inclusion, reshaping global economic dynamics. The article delves into BRICS+'s strategic mineral supply approach, focusing on lithium amid the renewable energy shift. Africa's G20 inclusion signifies a paradigm shift, unlocking economic potential and advocating for climate justice. The India-Middle East-Europe Economic Corridor (IMEC) holds implications for Asia, enhancing connectivity and fostering economic growth through trade and innovation. IMEC's diverse projects, from sea lanes to clean energy infrastructure, signal a promising future for global progress and capital market development, particularly in India.

Empowering the global south: A paradigm shift in global economic landscape

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