Putin says that globalisation is obsolete and the future belongs to emerging markets

MOSCOW: Russian President Vladimir Putin told BRICS leaders on Sunday that the era of liberal globalisation was obsolete and that the future belonged to swiftly growing emerging markets which should enhance the use of their national currencies for trade.

Putin spoke via video link to the summit in Rio de Janeiro due to an arrest warrant from the International Criminal Court which alleges he is responsible for war crimes in Ukraine.

Moscow says the warrant is unfounded and pointless.

BRICS - an idea thought up inside Goldman Sachs two decades ago to describe the growing economic clout of China and other major emerging markets - is now a group that accounts for 45% of the world’s population.

“Everything indicates that the model of liberal globalisation is becoming obsolete,” Putin said in televised remarks. “The centre of business activity is shifting towards the emerging markets.”

Leaders of growing BRICS group gather for Rio summit

Putin also called on the BRICS countries to step up cooperation in a range of spheres including natural resources, logistics, trade and finance.

The five core BRICS members - Brazil, Russia, India, China and South Africa - account for more than $28 trillion in nominal Gross Domestic Product in dollar terms while the Group of Seven accounts for more than $51 trillion, according the International Monetary Fund.

Much of the economic clout of BRICS, which also includes Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates, though, comes from China, which accounts for more than 60% of the combined clout the BRICS members.