Putin Says Liberal Globalization Model is Obsolete

TEMPO.CO, Jakarta - Russian President Vladimir Putin stated that the liberal globalization model which has dominated the world economy is becoming obsolete. This statement was made in a video speech at the opening of the 17th BRICS summit in Rio de Janeiro, Brazil, on Sunday, July 7, 2025.

"Everything indicates that the model of liberal globalization is becoming obsolete," Putin said, quoted from Al Arabiya English. Putin mentioned that the center of world business activities has now shifted to rapidly growing developing countries. As reported by Anadolu, he evaluated that this shift has triggered a strong wave of growth, including in BRICS member countries.

"In order to make the most of the opportunities that are opening up in this regard, it is important to intensify cooperation," he said. Putin highlighted sectors such as technology, trade, logistics, natural resources, and finance as strategic areas for cooperation.

BRICS and the New World Order

According to Putin, the unipolar system of international relations is being replaced by a more just multipolar world order. He mentioned that the process of changing the global economic order is accelerating. Putin emphasized the great influence of BRICS on the world economy.

He mentioned that this group covers a third of the world's land area, almost half of the world's population, and 40 percent of the global economy. "BRICS combined GDP at purchasing power parity has already reached 77 trillion dollars," he said, citing data from the International Monetary Fund (IMF) in 2025.

According to Al Arabiya English, most of the economic power of BRICS is still supported by China, which contributes more than 60 percent of the total economic power of this group.

Call to Use National Currencies

Putin also urged BRICS member countries to expand the use of national currencies in bilateral transactions. He mentioned that this step is important to strengthen economic sovereignty amid global dynamics.

Meanwhile, Putin did not attend the BRICS summit in person. He participated in the event via video link due to the arrest warrant from the International Criminal Court (ICC) regarding allegations of war crimes in Ukraine. The Kremlin stated that the arrest warrant was unfounded and had no legal force.

The Russian delegation at the summit was led by Foreign Minister Sergey Lavrov. This BRICS forum also marked the first after the expansion of membership. In addition to the original five members—Brazil, Russia, India, China, and South Africa—BRICS now includes Egypt, Ethiopia, Iran, the United Arab Emirates, and Indonesia.

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