Globalisation has lowered costs and enlarged markets. It has also left many economies dependent on a handful of suppliers for goods they cannot easily do without. Wars, export restrictions and disruptions to shipping have exposed these vulnerabilities repeatedly in recent years. The risks are greater for developing countries because replacing a supplier of fuel, fertiliser, medicines or industrial inputs can be expensive and slow.

Walking away from global trade would be a costly response. The more sensible course is to reduce concentrations that leave an economy exposed when one supplier or transport route fails. This is the useful meaning of de-risking.

BRICS has the economic weight to attempt this. Whether it can do so is another matter.

Read more