According to this portfolio, the owner made this declaration at the III. Colloquium on critical economics, global economic turmoil and geopolitical reconfiguration of the world market, held in the auditorium of the Public University of El Alto (UPEA).
Montenegro warned that emerging countries such as the BRICS countries – Brazil, Russia, India, China and South Africa – as well as the G77 and China are seeking a new geopolitical order.
He described that this concept includes, among other things, broader multilateralism with new global governance, a transformation of the international financial architecture and the use of currencies other than the dollar.
He described the current international situation as complicated, characterized by stagflation, stagnation with high inflation, an economic downturn and high interest rates due to the impact of the war between Russia and Ukraine.
He emphasized that due to this conflict, a global geopolitics is taking shape with rising raw material costs and rising inflation, a phenomenon that some central banks are addressing by increasing interest rates.
The owner believed that such measures would slow economic growth, make access to credit more expensive and lead to more unemployment in many sectors.
“In many parts of the world, the prospects for a rapid recovery are not encouraging (…), below forecasts for 2023 will be lower global growth rates and below pre-pandemic levels,” Montenegro commented.
In characterizing this reality, the headline warned that the emerging economies, along with the Brics states, were gaining important places in the configuration of world production.
“In 1992, the participation of these countries was only 16 percent,” he stated emphatically, “and now it has doubled to 31.6 percentage points, an important force and also measured by the exports that these countries make it 3.9 percent.” the year “90” to 20.2 (units of 100); and the G7 (Group of Seven) lost their place from 51.6 percent to 27.6 out of 100 points.”
He criticized the G7 for not giving China and India the space they deserve and for ignoring their progress in order to maintain their dominance in the 1990s.
“It is clear that China will be a country that – together with India, the BRICS countries, Brazil is also important there, an important neighbor – (…) will create spaces of analysis in terms of importance in the reconfiguration of geopolitics. “and the global economy,” warned the minister.
jpm