Global economy undergoing largest-scale transformation: Putin - International

Al-Ahram Weekly

21-06-2025

Russian President Vladimir Putin has claimed that the global economy is undergoing its most significant transformation in decades, as emerging powers reshape the balance of influence and redraw the economic map.
At the plenary session of the St Petersburg International Economic Forum (SPIEF), Putin highlighted the growing influence of the so-called "global majority" — a term increasingly used in Russian and Chinese diplomatic rhetoric to describe countries outside the traditional Western bloc.
'At the beginning of the 21st century, BRICS countries accounted for one-fifth of the global economy. Today, they represent 40 percent, and this share is set to grow — inevitably,' Putin said.
This year's SPIEF, held from 18 to 21 June under the theme Shared Values: The Foundation of Growth in a Multipolar World, is organized by the Kremlin-aligned Roscongress Foundation. Among the high-profile attendees at the plenary were Indonesian President Prabowo Subianto, Bahrain's National Security Adviser Sheikh Nasser bin Hamad Al Khalifa, Chinese Vice Premier Ding Xuexiang, and South African Deputy President Paul Mashatile.
Putin argued that economic growth in the Global South is becoming 'increasingly sustainable' and demanded a new development model, free from what he described as neocolonial economic practices.
'We need a fundamentally different model, not one based on the rules of neocolonialism, where the so-called 'golden billion' is extracting resources from all other countries for the benefit of a narrow circle of elites,' he said. 'This isn't even in the interest of the people in those countries, but solely their elites.'
Putin criticized the United States, claiming its economic gains had disproportionately benefited wealthy elites and not average citizens over the past decade. He linked this disparity to broader global political shifts.
'The middle class, regular citizens, haven't seen the benefits of this growth. That's one of the reasons we're witnessing political changes globally,' he said.
He called for economic development to translate into improvements in quality of life, education, science, infrastructure, and technology. Russia, he said, is pursuing such an agenda.
Putin said stable, long-term capital flows from international companies and investors are needed to drive growth. BRICS aims to provide a platform based on 'consensus, parity, and mutual respect.'
He noted that at a BRICS summit in Kazan last year, 35 countries took part — representing two-thirds of the world's population and half of the global economy.
'They all expressed a shared vision for the future world,' Putin said. 'Today, BRICS is leading the way in launching large-scale projects to improve quality of life.'
He cited initiatives in nuclear energy, aviation, artificial intelligence, robotics, IT, and new materials as examples of BRICS' innovation focus. Trade among BRICS countries, he said, has already exceeded $1 trillion and continues to grow.
'We welcome all partners willing to contribute to shaping a new global model of growth,' Putin added. 'The broader the circle of participants, the more effective and equitable this model will become.'
He also highlighted the recent launch of Open Dialogue — a new international forum in Moscow with participants from over 100 countries. 'We intend to make this a regular format and build a whole ecosystem around it to develop breakthrough ideas.'
Turning to the Russian economy, Putin said the country has now become 'Europe's number one' in gross domestic product and ranks fourth globally.
He noted that annual inflation stood at 9.6 percent as of 16 June — still high but better than anticipated. 'This has already allowed for a cautious easing of monetary policy,' he said, adding that GDP had grown 1.5 percent in the first four months of 2025, with April's growth accelerating to 1.9 percent.
He called on the Russian government to digitize the monitoring of economic indicators and keep structural reforms under 'special control.'
'I have focused today on five main areas of structural change in the Russian economy. Government programmes must be continuously adjusted to reflect the global situation and emerging opportunities,' he said.
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