Praneeta Mahajan
Hamilton, August 30, 2023
All eyes of the world are now on the BRICS countries as the Fifteenth BRICS Summit concluded last week in Johannesburg, making some significant announcements and developments that are being closely scrutinised and evaluated by financial and political experts across the globe.
In general, the BRICS Summit meetings have a significant impact on the global economy, as they provide a platform for the world’s largest emerging economies to coordinate and collaborate on common economic issues. The decisions made at these summits can influence the direction of global trade, investment, and finance. Together, the BRICS nations encompass a population of 3.5 billion, accounting for a substantial segment of global emerging markets.
This year, the addition of six new countries as members, setting the stage to represent the global south, and talks about peaceful relations and economic growth were some of the highlights that did not go unnoticed, to say the least.
Recovery from Covid 19 hardships
The Summit noted that an unbalanced recovery from the hardship of the Covid-19 pandemic is exacerbating inequality across the world. The summit hence encouraged multilateral financial institutions and international organisations to play a constructive role in building global consensus on economic policies.
BRICS Chair and President of South Africa, Cyril Ramaphosa said in a statement, “We encourage multilateral financial institutions and international organisations to play a constructive role in building global consensus on economic policies. We have noted that there is global momentum for the use of local currencies, alternative financial arrangements and alternative payment systems.”
He said, “We are ready to explore opportunities for improving the stability, reliability and fairness of the global financial architecture. Through this Summit, BRICS has embarked on a new chapter in its effort to build a fair world, a world that is just, a world that is also inclusive and prosperous.”
People-to-people exchange
The Summit agreed to task the BRICS Finance Ministers and/or Central Bank Governors, as appropriate, to consider the issue of local currencies, payment instruments and platforms and report back to the BRICS leaders by the next Summit. This Summit reaffirmed the importance of BRICS people-to-people exchanges in enhancing mutual understanding, friendship and cooperation.
The Summit appreciated the progress made over the last year in the fields of media, culture, education, sports, arts, youth, civil society and academic exchanges.
The group also welcomed the work of the BRICS Women’s Business Alliance in their first in-person engagement with leaders. It also welcomed the participation of youth representatives in the Summit. Another important address was the expectations for the BRICS economic partnership to generate tangible benefits for our communities and deliver viable solutions for common challenges faced by the global South.
“We shared our vision of BRICS as a champion of the needs and concerns of the people of the Global South. These include the need for beneficial economic growth, sustainable development and reform of multilateral systems,” said President Ramaphosa.
New members announced
The group announced Thursday that six countries are set to join the group in 2024, Iran, Saudi Arabia, the United Arab Emirates, Argentina, Egypt and Ethiopia.
The move, which will more than double the size of the bloc, will likely throw more scrutiny on Beijing’s political influence in the Persian Gulf.
Recently, questions have been raised about whether BRICS is taking an anti-West turn under the influence of China and Russia, amid Beijing’s deteriorating relationship with the United States and Russia’s standoff with the West over the war in Ukraine.
The Additions will also increase the group’s economic clout. BRICS, which was set up in 2009, currently represents around 40% of the world’s population and more than a quarter of the world’s GDP. That is set to increase with the new members, which include three of the world’s biggest oil producers in Saudi Arabia, the UAE and Iran.
Peace on the horizon
India’s Prime Minister Narendra Modi and China’s President Xi Jinping agreed to intensify efforts to de-escalate tensions at the disputed border between them and bring home thousands of their troops deployed there, according to an official from India’s foreign ministry.
India’s Foreign Secretary Vinay Mohan Kwatra told Indian reporters that Prime Minister Modi, in an impromptu meeting with President Jinping, highlighted India’s concerns about their unresolved border issues.
The Chinese Embassy in New Delhi later tweeted a foreign ministry statement saying Xi stressed that improving China-India relations served their common interests and was also conducive to peace, stability and development of the world and the region.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
