Laos’s Dual Pursuit of SCO and BRICS: A New Model for Emerging Economies?
A staggering 40% tariff imposed by the United States on Laotian exports last month isn’t just a bilateral trade issue – it’s a catalyst reshaping Laos’s foreign policy and accelerating its embrace of alternative global power structures. Prime Minister Sonexay Siphandone’s recent statements signal a clear strategic shift: Laos is actively courting membership in both the Shanghai Cooperation Organization (SCO) and BRICS, viewing these blocs not merely as economic opportunities, but as vital buffers against unilateral economic pressure and pathways to a more balanced global order.
Laos and the SCO: Beyond Dialogue Partner Status
While currently holding dialogue partner status within the SCO – a position secured recently and highlighted by President Thongloun Sisoulith’s attendance at the recent summit in China – Laos is clearly aiming higher. Siphandone emphasized the value placed on the SCO’s “cooperation mechanism” for economic development and trade. This isn’t simply about accessing new markets; it’s about diversifying partnerships and reducing reliance on traditional trade routes potentially vulnerable to geopolitical shifts. The SCO, with its focus on regional security and economic integration across Eurasia, offers Laos a platform to strengthen ties with China, Russia, and Central Asian nations – a strategic counterbalance to Western influence.
The dialogue partnership, despite Laos’s relatively small economy, is seen as a crucial first step. As Siphandone stated, it “will open opportunities” to engage directly with member states and address trade barriers, particularly in light of the aforementioned US tariffs. This proactive approach demonstrates a willingness to leverage multilateral forums to protect its economic interests.
BRICS Expansion: A Vote for Multipolarity
Laos’s interest extends to BRICS, the bloc of Brazil, Russia, India, China, and South Africa, which collectively surpassed the G7 in GDP (PPP) in 2019. Siphandone views BRICS as a “significant cooperation platform” spanning Asia, Europe, Latin America, and Africa. This isn’t just about economic gain; it’s a philosophical alignment. Laos explicitly supports BRICS’s vision of a “turning point from a unipolar world into a multipolar world,” advocating for multilateral cooperation over unilateral actions.
The appeal of BRICS lies in its challenge to the established global financial architecture. The bloc’s discussions around creating alternative payment systems and reducing reliance on the US dollar resonate with nations seeking greater economic autonomy. For Laos, joining BRICS could provide access to new sources of investment, technology transfer, and potentially, a more equitable trading environment.
Implications for Southeast Asia
Laos’s moves are not isolated. They reflect a broader trend within Southeast Asia, where nations are increasingly diversifying their partnerships to navigate a complex geopolitical landscape. Countries like Cambodia and Myanmar are also strengthening ties with both China and Russia, signaling a regional recalibration. This shift could lead to increased regional integration within the SCO framework and a more assertive Southeast Asian voice on the global stage.
The Future of Trade and Laos’s Strategy
Laos’s pursuit of both SCO and BRICS membership highlights a growing desire among emerging economies for greater agency in shaping the global trade landscape. The emphasis on “economic cooperation that is free, free of choice, and fair” underscores a rejection of perceived imbalances in the existing system. This strategy isn’t without its challenges. Balancing relationships with multiple blocs will require careful diplomacy, and the benefits of membership may take time to materialize. However, Laos’s proactive approach offers a compelling model for other nations seeking to navigate a world increasingly defined by geopolitical competition and economic fragmentation.
What are your predictions for the evolving role of BRICS and the SCO in the global economy? Share your thoughts in the comments below!
