The Global South builds BRIC by BRIC

Insight: Malaysia and Thailand have revealed plans to join the BRICS, a forum for political, economic and cultural cooperation among its members and the Global South’s equivalent of the OECD. While it was originally dominated by China, the BRICS forum is much wider today, involving countries from Egypt to the United Arab Emirates, with India having a much stronger voice. 

Impact: The growing appeal of the BRICS shows how keen, even desperate, emerging nations are to hedge against the US-China geopolitical rivalry. And it is fostering the emergence of regional, as well as global, trading webs. Vietnam is once again one of the world’s fastest growing economies – with GDP up 7% in its latest quarter – due to strong export growth and rising foreign investment as multinationals relocate from China. Unsurprisingly, it too is said to be keen on joining the BRICS, as is Indonesia. While this throws up challenges to the future of the ASEAN group, a multipolar world ought to be safer and more prosperous than today’s rigidly divided one. 

2 billion litres

The level of Australia’s wine inventories, equivalent to two years’ production. With younger people increasingly eschewing alcohol completely and older drinkers swapping quantity for quality, global wine consumption is down 7% over the past five years. Australia, which focuses on low- and mid-priced vintages, is thus swimming in surplus wine. 

Insight: While China’s real estate market continues its slump, and tech industries brace for a fresh round of tariffs, China’s tourism industry is a bright spot in an otherwise faltering market. The World Travel & Tourism Council (WTTF) predicts China’s tourism sector will reach a record high of RMB 12.62 trillion (USD 1.74 trillion) this year, with domestic tourism revenue accounting for almost half.

Impact: Chinese media have dubbed current trends in domestic travel as “new Chinese style”, in which younger travelers increasingly choose destinations that are historically significant and seek out cultural experiences. Even 4-hour long museum teach-ins have doubled in popularity! Smaller Chinese cities are launching activities leveraging cultural themes to attract tourists, and many third tier and smaller cities have been reaping the rewards. By contrast, foreign tourism and related spending have not returned to 2019 levels. China has released a slew of visa-free policies to attract foreigners, with Poland, Australia and New Zealand recently joining the list. There is some catching up to do with Japan, where foreign spending has quintupled over the past decade to become its second-largest export category.

Insight: Politicians around Asia are hopping aboard the AI hype train and using it in clever and sometimes outlandish ways to help their campaigns. Recently, Indonesian President-elect Prabowo Subianto’s campaign leaned on AI to create a “cute” digital avatar in his likeness to win over young voters, while incumbent Tokyo Governor Yuriko Koike is harnessing an AI version of herself to deliver video speeches on social media leading into her reelection bid this month. Incidentally, one of her challengers is a mystery candidate confusingly known as “AI Mayor,” whose platform includes developing an AI “opinion box” for citizens. 

Impact: For better or worse, AI continues to penetrate seemingly all facets of public life. In a world where high-level politicians like Governor Koike go so far as to endorse deepfakes of themselves, the nimble PR professional will recognize the risks and opportunities AI presents in our field and embrace its positives while working to protect clients from its risks. The smart PR professional will work with clients as the human editor checking AI-generated content while also keeping an eye out for AI threats, such as the potential for deepfakes to create crises out of thin air. 

Who knew making silly pictures of cats in space was so energy intensive?

Insight:  One ChatGPT query consumes 50 to 90 times more electricity than a Google search, says a recent analysis. Generating a single AI image, meanwhile, consumes about the same energy as charging 522 smartphones. As AI grows to consume every aspect of our lives (even our politics, as mentioned above), these are the types of behind-the-scenes costs that societies around the world will eventually need to confront.

Impact: Perhaps the region that will need to face the climate realities of AI most urgently is Asia, as it looks to become a data center hub for the world in light of exploding AI adoption. The Asia-Pacific market for data centers is expected to grow to US$48 billion by 2027, and the energy and water usage associated with data centers along with it. Meanwhile, chipmakers stand to make a real impact in combating AI-driven climate risks, as new semiconductor designs aim to make AI more efficient and less power-hungry. As we’ve covered here before, Asian countries – especially Japan – are enjoying something of a chip renaissance and could lead the charge for a more climate-friendly AI future. 

Read more on Asia's AI energy woes here