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Putin claims that globalisation has become obsolete and that the future belongs to emerging market

On Sunday, Russian President Vladimir Putin said to BRICS leaders that the era liberal globalisation is obsolete. The future belongs to rapidly growing emerging markets that should increase the use of national currencies in trade.

A warrant of arrest issued by the International Criminal Court alleging that Putin is responsible for war crime in Ukraine caused him to speak via video link at the Rio de Janeiro summit. Moscow claims the warrant is unfounded, and has no purpose.

BRICS – an idea that was conceived in Goldman Sachs 20 years ago to describe China's growing economic clout and that of other major emerging market countries – now accounts for 45% the world’s population.

In a televised statement, Putin stated that "everything indicates the liberal globalisation model is becoming outdated." "The center of business activity is moving towards emerging markets."

Putin called on the BRICS nations to intensify their cooperation in a variety of spheres, including natural resources and logistics, as well as trade and finance.

According to the International Monetary Fund, the five core BRICS countries - Brazil Russia India China South Africa – account for over $28 trillion of nominal Gross Domestic Products in dollar terms, while the Group of Seven is responsible for over $51 trillion.

China is the source of most of the economic clout for BRICS. This group also includes Egypt and Ethiopia as well as Indonesia, Iran, and the United Arab Emirates. China accounts for over 60% of the combined clout among BRICS.

(source: Reuters)