2023-08-22 23:59:58
Integration, economic independence and opening of the block: what left the first day of the BRICS summit (REUTERS)
The first day of the summit of the leaders of the emerging BRICS economies in Johannesburg left advances and coincidences on a series of issues, although not without some discrepancies and friction.
Presidents and representatives of Brazil, Russia, India, China and South Africa meet at the XV meeting that the group usually organizes, in which their role on the world stage is evaluated and guidelines for the near future are proposed.
“Together, the BRICS countries represent a quarter of the world economy, constitute a fifth of world trade and are home to more than forty percent of the world’s population,” began the president of South Africa, Cyril Ramaphosa, in front of his guests. before noting that “the changes that have taken place in the BRICS economies over the last decade have contributed greatly to transforming the global economy”.
Ramaphosa argued that, in the last decade, the BRICS economies contributed greatly to transforming the global economy (REUTERS)
With a view to continuing this trend of growth and development, one of the main issues addressed was the opening of the bloc to other emerging countries.
So far, some 40 nations have expressed their interest in joining the group and 23 -among them Argentina, Iran, Saudi Arabia, Bolivia, Cuba, Honduras, Venezuela, Algeria and Indonesia- have advanced in formal expressions. In the eyes of Ramaphosa, something that “shows that the BRICS family is gaining in importance, stature and influence in the world.”
One of the main proponents of this idea was the Chinese leader, Xi Jinping, who made the bloc a key bastion of his expansionist ambitions.
Xi Jinping was one of the main promoters of the opening of the block (REUTERS)
In a speech delivered on his behalf by Commerce Minister Wang Wenato, the leader of the Chinese Communist Party assured that “we will forge stronger BRICS strategic partnerships” and added that “hegemonism is not in China’s DNA.”
“We will expand a BRICS-Plus model, actively advance membership expansion, deepen solidarity and cooperation with other emerging markets and developing countries, and help make the international order more just and equitable,” he continued.
Like South Africa, which before the meeting had already stated that it supported the idea, Lula da Silva supported the position of his counterpart and declared before the press that “the BRICS cannot be a closed club. The G7 is a closed club and for the rich. We don’t want to be that. We want to create a multilateral institution and propose something different. We are a force for fairer, more predictable and equitable global trade.”
The Brazilian president’s statements, however, are part of a similar request that he has been making to China for some time.
Lula accompanied the Chinese position with the desire to obtain the approval of the UN Security Council (REUTERS)
Brasilia needs Beijing’s backing to become a permanent member of the UN Security Council, which would allow it an active voice and vote in those discussions. That is why Lula decided to go along with Xi Jinping’s will, in an effort to get an equivalent response from his peer.
However, the Asian giant refuses to support the entry of Brazil and, on the contrary, would be working behind the scenes to block the expansion of the Council’s permanent members.
The internal ones were also reflected in the position of India, which, for its part, viewed the bloc’s desire to open up with suspicion. By bringing together two of the strongest economies in the world -although China is going through a delicate moment- the changes under discussion might favor the expansion of Beijing’s influence in the region, a clear advantage for its opponent.
Proof of this were the words of the Indian Prime Minister, Narendra Modi, who emphasized the economic strength of his country in the group and announced that “it will be the engine of growth in the world.”
India viewed Chinese wishes in the bloc with suspicion as this might give it a wide advantage in its expansion in the region (REUTERS)
Another issue that exposed divisions among the five was the condemnation of the war that Russia launched in Ukraine a year and a half ago. South Africa, China and India have refused to condemn the invasion while Brazil remains ambiguous and takes no part in arms shipments to kyiv or the imposition of Western sanctions on Moscow.
In this sense, President Vladimir Putin -who might not travel to the meeting due to the arrest warrant issued once morest him by the International Criminal Court- addressed those present through a pre-recorded video in which he blamed the security measures the international community of “seriously” affecting the world economic situation and of “violating all the basic norms and rules of free trade and economic life”.
Putin was unable to travel due to the arrest warrant once morest him and, through a video, condemned the actions of the international community once morest the war (AP)
However, once these questions were raised, the bloc left behind the disparities and expressed unity in the rest of the aspects.
Thus, Lula was in favor of “diversifying the sources of payment in local currencies” and defended the creation of his own “reference” currency, “a reference unit of account for trade between the BRICS countries that will not replace our national currencies”.
To this end, he highlighted the role of the New Development Bank (NDB) which, since its creation in 2015, has become “a milestone in effective collaboration between emerging economies” and which “is expected to be the world leader in the financing projects that address the most pressing challenges of our time.”
Putin, for his part, referred to the de-dollarization of transactions within the block and described it as an “irreversible process.”
“As a result, the percentage of the dollar in export and import operations within the BRICS framework decreased. Last year it amounted to only 28.7%”, specified the Kremlin leader.
Part of the BRICS proposal consists of presenting themselves as an alternative to the World Bank and the International Monetary Fund, under the same conditions that these institutions do.
The bloc aspires to make the New Development Bank the world leader in financing projects that address the most pressing challenges of our times (REUTERS)
“We want to sit at the negotiating table on an equal footing with the European Union, the United States or any other country,” Lula commented in this regard.
The countries of the group represent more than 40% of the world’s population, 23% of the gross domestic product and 18% of world trade.
Since its creation in 2009, they have worked in pursuit of their desire to achieve a world order that better reflects their interests and their growing influence.
Keep reading:
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