Potential of BRICS and SCO

Abstract

The authors consider current status and prospects of Shanghai Cooperation Organization (SCO) and the group of BRICS (Brazil, Russia, India, China, South Africa). It is argued that both are formed by big quickly growing economies. This provides a good potential of economic cooperation. The authors single out the following factors. First of all, all member countries show positive dynamics of economic development. GDP in BRICS and SCO countries grew at the beginning of the XXI century significantly faster than in integration associations built by developed countries (EU, NAFTA). In general, the largest growing economies are on the raising wave of economic cycle and they invest a significant portion of national income into development. This secures them a benefit against developed countries. Secondly, the countries of SCO and BRICS possess vast human potential which is rapidly growing both quantitatively and qualitatively. Thirdly, they are rich in natural resources – in terms of both minerals and agro-climatic conditions. That is why these countries can economically complement each other. BRICS countries already practice economic partnership in a number of spheres – financial, agricultural, scientific and technological. As for investment partnership, the favorable prospects exist for carrying out multilateral mega-projects within BIRCS and SCO. Russia is especially interested in power engineering. Other prospective spheres include airspace, transportation infrastructure, environmental protection, education and vocational training. An important incentive to enhancing cooperation is common strive for transition from conservative resource-based type of development to the innovative economy. Acknowledgments. The article has been supported by the Program of Ural Division of RAS № 14 “Fundamental Problems of Regional Economies, 2015–2017”.