Introduction
The BRICS (Brazil, Russia, India, China, and South Africa) represent a coalition of five (5) emerging economies collaborating on multifaceted matters including trade, finance, development, and security. Originating from an initial abbreviation "BRIC" coined by economist Jim O'Neill of Goldman Sachs in 2001, this alliance collectively commands substantial global land area, population, and economic output, contributing to 26.7% of the world's surface, 41.5% of its populace, and 26.6% of its nominal GDP as of 2022.
BRICS Institutional Framework
In addition to its foundational goals, the group has instituted several organizations, notably the BRICS Business Council, the Contingent Reserve Arrangement, and the New Development Bank, each geared towards achieving its overarching objectives. These entities which will be considered below aim to facilitate trade, investment, and financial stability within the BRICS nations.
BRICS Business Council (the “Council”): Established in 2013, the Council serves as a platform where representatives from diverse industries across the five countries collaborate to harmonize policies pertaining to trade and investment. It operates through five industry-specific working groups encompassing infrastructure, manufacturing, financial services, energy, green economy, and skills development.
Contingent Reserve Arrangement: Created in 2015, this arrangement provides financial support to BRICS nations during instances of balance of payments or liquidity challenges. With a value of $100 billion, it complements existing international financial agreements, bolstering global financial safety nets.
New Development Bank: Founded in 2015 and popularly known as the BRICS Development Bank, the Bank's primary objective is to finance sustainable development and infrastructure projects not only within the BRICS countries but also in other emerging economies. Its substantial authorized and subscribed capital, equally shared by the five (5) founding members, fuels development initiatives via various financial instruments and local currency lending, thereby reducing reliance on the US Dollar and avoiding exchange rate risk and variations in US interest rates. The NDB also seeks to create a unique position vis-a-vis established global financing organisations like the International Monetary Fund (IMF) by not including political conditions as a criteria for the grant of loans to countries.
Additionally, BRICS has held annual summits since 2009 and conducts regular meetings to reinforce collaboration on shared interests and challenges encompassing political, economic, social, and environmental domains. This concerted effort aims to amplify the group's influence on global matters.
Initiatives
The BRICS collective strives to establish an equitable and all-inclusive global framework that respects diverse pathways of development, ensuring benefits for all member nations across multiple spheres. This objective is met through reinforcing economic integration, exploring alternatives to the US dollar, promoting the use of national currencies in international trade, and establishing an internal payment system. Moreover, initiatives like BRICS+ and the BRICS-Africa Dialogue Forum expand their engagement with other developing nations and regional organizations.
Challenges
Numerous challenges confront the BRICS in their cooperative endeavours, we have identified a few of them and proposed solutions to address each one:
Addressing internal political and economic turmoil through measures such as strengthening democratic institutions, fostering inclusive growth, and improving public welfare systems.
Extending membership to other emerging economies by establishing transparent criteria, aligning new members with BRICS values, bolstering communication among existing members, and refining internal decision-making mechanisms.
Navigating differing perspectives on United Nations Security Council reform by adopting unified stances through dialogue and negotiations, advocating for representation of emerging economies, and endorsing interim measures.
Resolving territorial disputes between China and India by facilitating adherence to existing agreements, reopening diplomatic channels, fostering trust-building initiatives, and concentrating on shared cooperative areas between the two (2) member nations.
Balancing interactions with established powers like the US, EU, and Japan through peaceful coexistence, dialogue, cooperation, and support for multilateralism and equitable international norms.
Highlights of the 15th BRICS Annual Summit
The recent BRICS Summit in Johannesburg, South Africa (August 22-24, 2023) underscored collaboration among the five (5) emerging economies. Key outcomes include:
Endorsement of the Johannesburg Declaration 2023, thereby reaffirming commitment to international law, multilateralism, and a just global order. The declaration spans trade, finance, development, health, education, climate change, security, and peace. Notably, six new countries—Iran, Saudi Arabia, UAE, Argentina, Egypt, and Ethiopia—will join BRICS from January 1st, 2024, enhancing diversity and influence. The inclusion of these new countries as members will expand BRICS strategic relations within the continent as well as bolster economic integration between new and existing members of the Bloc, which is in line with the mandate of the organization to lessen the dependence of its members on the USD as the dependence of its member state s on the USD a the reserve currency for international trade.
President Xi Jinping's emphasis on unity, critiquing unilateral policies and advocating cooperation among BRICS and other developing nations.
Inclusion of side events and forums like the BRICS Business Forum, BRICS+ Dialogue, BRICS-Africa Dialogue Forum, and BRICS Outreach Dialogue, facilitating engagement with various stakeholders.
Conclusion
The BRICS effort is a shining example of collaboration and expansion, demonstrating the strength of cooperation in reshaping the world into one that is more inclusive and egalitarian. This partnership approach has a resonance that should be especially felt by African leaders as it offers a compelling framework for addressing the particular issues and opportunities the continent is currently facing.
African leaders should therefore grasp the opportunity by leveraging on the continent’s diversity and resources to shape a better future, using multilateralism to pave an empowered path for global prosperity, justice, and well-being to establish deeper alliances both inside and outside of the continent after being encouraged by the BRICS Summit's openness and expansion. African nations need to collectively raise their voices on the international scene and promote fair trade policies, sustainable development, and poverty eradication by coordinating their efforts with BRICS and other emerging economies.