BRICS expands to eleven members
BRICS expands to eleven members
The quest for an alternative, more just world order advances
The Fifteenth Summit of BRICS was held in Johannesburg, South Africa, from August 22 to August 24, 2023. The five nations of BRICS were represented by Cyril Ramaphosa, President of South Africa; Xi Jinping, President of China; Narendra Modi, Prime Minister of India; Luiz Inácio Lula da Silva, President of Brazil; and Serguéi Lavrov, Minister of Foreign Relations of Russia in representation of Russian President Vladímir Putin, who participated via videoconference.
On August 24, the leaders of the five nations of BRICS held a press conference, in which they presented the Final Declaration and provided a review of the event. The most spectacular announcement, although expected, was that BRICS would include six new member states, beginning January 1, 2024. The new member nations are Saudi Arabia, Argentina, Egypt, United Arab Emirates, Ethiopia, and Iran. With the inclusion of six new members, BRICS nations will comprise 46% of the world population, and their economies will constitute 37% of the world GDP.
Chinese President Xi Jinping characterized the expansion of BRICS as “a historic day” and a “new point of departure for the BRICS group.” He asserted that “it is a new horizon of work for BRICS. It is something that will give a greater quality to its mechanism of cooperation for peace, stability, and security.” He also noted the decision for expansion not only reflects the interests of the BRICS group to expand its cooperation with countries in development, but also the disposition of the newly incorporated countries themselves to contribute to a future prosperity for humanity.
The origin and development of BRICS
Brazil, Russia, India, and China created BRIC as an economic bloc of the world’s largest emerging economies in 2006, holding their first meeting in Russia in 2009. South Africa became a member in 2011, thus establishing BRICS. Since 2009, fourteen summits have been held, meeting on an annual basis. The Group does not have a permanent secretariat or administrative headquarters. The presidency rotates on an annual basis among the five members, which assume the organization and planning of activities during the year of its term of office.
The five BRICS nations of 2023 comprise 41% of the world’s population and 30% of the world’s surface. Their economies account for 20% of the world’s exportations; 17% of world importations; and 18% of world commerce. Their economies represent 27% of world GDP; four of its five members are among the eleven countries with the highest GDP.
The practical consequence of BRICS has been the promotion of a shift from the Western-led global governance system to a more inclusive paradigm of multipolarity that likely will increasingly function as an alternative to the U.S.-directed unipolar model, a phenomenon that has become increasingly evident. The commitment in practice by BRICS to the construction of an alternative pluripolar world dovetailed with the return of the Non-Aligned Movement to the classic Third World agenda and its principles of the equal sovereignty of nations and mutually beneficial trade; and with the emergence of an anti-imperialist integrationist project in Latin America and the Caribbean. Recently, as a backlash to the Western proxy war against Russia via Ukraine, the emerging tendency toward regional integration accelerated in East Asia, the Middle East, and Africa.
What has been emerging in practice is increasingly declared. Following its 2017 Summit in China, BRICS published the Xiamen Declaration, which has been described by Adriel Kasonta as “a 68-point manifesto for a multipolar world order aimed at replacing Pax Americana.” The Xiamen Declaration affirms the importance of strategic partnerships within regions and blocs. And it affirms the centrality of the United Nations and the need for reform of the UN Security Council and the Bretton Woods institutions, which are long-standing demands of the Non-Aligned Movement.
The Xiamen Declaration affirms that since the founding of BRICS in 2006, the member nations have:
“fostered the BRICS spirit featuring mutual respect and understanding, equality, solidarity, openness, inclusiveness and mutually beneficial cooperation. . . . We have shown respect for the development paths of our respective choices, and rendered understanding and support to each other's interests. We have upheld equality and solidarity. We have furthered our cooperation with emerging markets and developing countries (EMDCs). We have worked together for mutually beneficial outcomes and common development.”
It should be noted that these are the principles of the emerging alternative pluripolar world that have been declared by the Non-Aligned Movement and the project of Latin American and Caribbean union and integration,
The Xiamen Declaration openly commits to the promotion of a more just and equal world.
“We will enhance communication and coordination in improving global economic governance to foster a more just and equitable international economic order. We will work towards enhancement of the voice and representation of BRICS countries and EMDCs in global economic governance and promote an open, inclusive and balanced economic globalization, thus contributing towards development of EMDCs and providing strong impetus to redressing North-South development imbalances and promoting global growth.
“We will emphasize fairness and justice to safeguard international and regional peace and stability. We will stand firm in upholding a fair and equitable international order based on the central role of the United Nations, the purposes and principles enshrined in the Charter of the United Nations and respect for international law, promoting democracy and the rule of law in international relations, and making joint efforts to address common traditional and non-traditional security challenges, so as to build a brighter shared future for the global community.”
“A New International Economic Order,” it will be recalled, was the name given to the declaration prepared by the Non-Aligned Movement and approved by the General Assembly of the United Nations in 1974. This 1974 demand of the peoples of the world was ignored by the world powers, which opted instead for the decadent turn to the worldwide imposition of neoliberal economic policies. For the last quarter century, however, Third World governments plus China have been increasingly turning to the implementation of the principles of a New International Economic Order, fueled by the rejection of the neoliberal project by the world’s peoples, as a result of its negative socioeconomic consequences.
In the same vein, in the 2022 Beijing Declaration, the BRICS members reiterated their “commitment to multilateralism through upholding international law, including the purposes and principles enshrined in the Charter of the United Nations as its indispensable cornerstone.” They affirmed the principle of “making instruments of global governance more inclusive, representative and participatory to facilitate greater and more meaningful participation of developing and least developed countries, especially in Africa,” with respect for “sovereign independence, equality, and mutual legitimate interests.”
The alternative principles of a new world order were reiterated in the 2023 Final Declaration of the Fifteenth BRICS Summit in South Africa.
“We reiterate our commitment to inclusive multilateralism and upholding international law, including the purposes and principles enshrined in the Charter of the United Nations as its indispensable cornerstone, and the central role of the UN in an international system in which sovereign states cooperate to maintain peace and security, advance sustainable development, ensure the promotion and protection of democracy, human rights and fundamental freedoms for all, and promoting cooperation based on the spirit of solidarity, mutual respect, justice and equality.
“We express concern about the use of unilateral coercive measures, which are incompatible with the principles of the Charter of the UN and produce negative effects notably in the developing world. We reiterate our commitment to enhancing and improving global governance by promoting a more agile, effective, efficient, representative, democratic and accountable international and multilateral system.”
Africa
The slogan of the Fifteenth Summit, “BRICS and Africa: Association for accelerated mutual growth, sustainable development, and inclusive multilateralism,” continues with the perspective of promoting a more just world order, with a particular emphasis on Africa, a continent that recently has shown signs of renewing its historic quest for unity as a necessary defense against imperialist intentions.
In accordance with its African emphasis, the Final Declaration of the Fifteenth BRICS Summit included the following.
“We reiterate our support to the African Union Agenda 2063 and to Africa's efforts towards integration, including through the operationalisation of the African Continental Free Trade Area. We underscore that the AfCFTA is poised to create a predictable environment for investments, particularly in infrastructure development, and provides an opportunity to find synergies with partners on cooperation, trade and development on the African continent. We underline the importance of strengthening the partnership between BRICS and Africa to unlock mutually beneficial opportunities for increased trade, investment and infrastructure development.. . .
“We further note that the African continent remains on the margins of the global trading system and has much to gain through BRICS collaboration. The African Continental Free Trade Agreement (AfCFTA) and BRICS cooperation presents opportunities for the continent to transition away from its historic role as a commodity exporter towards higher productivity value addition.”
An alternative to the U.S. dollar
A central theme at the Summit was the ongoing quest to develop a systemic alternative to the U.S. dollar, the Euro, and the British pound. One possibility is the creation of a new international currency, which possibly could be called R5, since the national currencies of the five member countries all begin with the letter “R.”
As I reviewed in my commentary of April 19, 2022, “A just world economic order,” the creation of a currency that would function as an alternative to the U.S. dollar as well as the Euro and the British pound is a key step in the development of the emerging pluripolar world order. The U.S. dollar is no longer reliable as a foreign exchange reserve, because the United States has seized dollar reserves deposited in U.S. banks, which has occurred with respect to Iran, Afghanistan, Venezuela, and more recently Russia. In the case of Cuba, the United States has arbitrarily placed the island nation on a list of nations that supposedly sponsor terrorism, and it uses the unjust and spurious list to block financial transaction in dollars between Cuba and companies and financial entities in third countries. And this problem pertains not only to the U.S. dollar. When Russian foreign exchange reserves in Western banks were frozen, the reliability of the Euro and the British pound was undermined. Taking these facts into account, the nations of BRICS seek to eliminate the possibility of a Western power seizing or freezing assets in their banks. This would restore international law, and it would enable governments to control their banking and commercial systems and to establish their own national priorities.
In addition, as a complementary approach, the Summit discussed the possibility for the accelerated use of national currencies in international commercial exchanges and the development of a system of common payment using national currencies. Some members have already developed bilateral commercial agreements that involve the utilization of national currencies, most notably India and Russia as well as Brazil and China.
It does not appear that any important steps or agreements were made at the Fifteenth Summit with respect to de-dollarization. The Final Declaration states only that “We stress the importance of encouraging the use of local currencies in international trade and financial transactions between BRICS as well as their trading partners. We also encourage strengthening of correspondent banking networks between the BRICS countries and enabling settlements in the local currencies.” The Declaration also charges the Finance Ministers and Central Bank directors to consider the issue of local currencies and payment instruments and to report to the presidents at the next Summit.
Following the emission of the Final Declaration, Russian President Vladimir Putin pointed out that two principal questions for the BRICS group are the creation of a common money for payments and the organization of economic transactions among member countries. He stressed that BRICS will continue to analyze these issues in the upcoming year, which will include the organization of practical discussions with the new members of the association as well as with other countries that cooperate with BRICS. Russia will serve as president of BRICS for the next year and will host the 2024 Summit.
What does an expanded BRICS mean?
The expansion of BRICS to include more nations, a process that some have called BRICS Plus, was much discussed prior to the Fifteenth Summit. Algeria, Argentina, and Iran had formally solicited BRICS for membership. And twenty-one nations had announced their desire for membership, including Belarus, Bolivia, Cuba, the United Arab Emirates, Indonesia, Kazakhstan, Türkiye, Tunisia, and Venezuela.
Some have said that BRICS Plus has the potential to develop a union analogous to the G7. I don’t think analogies with G7 are helpful. The Group of 7 is an alliance among the most powerful nations that seek to maintain the international economic rules that function to defend the interests of its seven members. In contrast, BRICS Plus will likely be a more inclusive group, and its aspiration likely will be to develop in theory and practice an alternative world order that respects the sovereignty of nations and that defends a more cooperative and more equal world. The principal leaders of BRICS have repeatedly declared that mutually beneficial commerce is the best guarantee to the common security of all and to a stable and prosperous world.
Ideologically, BRICS has much more in common with the G77 than it does with the G7. The Group of 77 was established in 1964 by seventy-seven nations of the Third World, as a bloc functioning within the United Nations. At its founding meeting, G77 called for the First World governments to finance Third World projects, as compensation for colonialism; and to permit Third World states to use protective tariffs, without being sanctioned. It supported Third World efforts to improve the prices of raw materials through the formation of commodity exporting cartels; and it called upon the Third World nations to develop mutually beneficial trade among themselves, in order to ameliorate the effects of colonialism and imperialist exploitation.
Cuba, in its capacity as president pro tempore of G77 plus China, was invited to the Fifteenth BRICS Summit. The Group of 77 plus China, with 134 member states, is the most ample and diverse grouping that currently exists among nations in development. The member states constitute two/thirds of the membership of the United Nations, and they represent 80% of the world population.
The Cuban delegation arrived to the South African Summit of BRICS with the goal of promoting effective coordination between G77 and BRICS in their common defense of the legitimate claims of the nations of the South and in defense of the right of countries in development to a greater representation in the decision-making process within international financial and economic institutions.
In his address to the Summit, Cuban President Miguel Díaz-Canel declared that it is an honor for Cuba to participate in its capacity as President pro tempore of the Group of 77 plus China in this historic BRICS Summit, which has opened the expectations and hopes for the strengthening of multilateralism, which today is urgent and is necessary for the common destiny of humanity. The Cuban President catalogued the inefficiencies of an international order designed by the developed countries of the West and the big transnationals, without giving any consideration to the progress of the nations of the South. The Group of 77 and BRICS have the responsibility to act for a change of the unjust world order, the Cuban President declared. It is not an option; it is the only possible alternative.
The Cuban President noted that the undertaking of BRICS today for a real transformation of the profoundly unjust, anachronistic, and dysfunctional international financial architecture has been a historic demand of the Group of 77. He expressed support for the expansion of BRICS to include other countries, which would increase its relevance and representativity. And it would strengthen the New Bank of Development created by BRICS, which could contribute to the alleviation of the disequilibrium of the present monetary system, reducing the abusive monopoly of the U.S. currency.
The alternative voice of BRICS leaders
In an address by videoconference to the Business Forum of the Summit on August 22, Russian President Vladimir Putin observed that the de-dollarization of the economic ties among the nations is gaining force and has become an irreversible process. The de-dollarization, he noted, is a response to the illegitimate practice of sanctions and the illegal freezing of the assets of sovereign states, which violate the basic norms and rules of free commerce and economic life. He also observed that the world has experienced significant inflation, as a result of the irresponsible action of a series of countries that emitted money without adequate backing in order to soften the consequences of the pandemic. On August 23, in the session dedicated to interchange among the five members of BRICS, the Russian President pointed out that BRICS is seeking the solutions to the most urgent questions on the global agenda today, oriented to the formation of a just world order based in international law.
Chinese President Xi Jinping, addressing the business forum of the Summit on August 22, declared that “as a country in development and member of the ‘Global South’, China always has shared the same destiny of the other countries in development, has defended firmly the common interests of countries in development, and has advocated for increasing representation and voice of the countries with emerging markets.” He noted that China does not have the gene of hegemony or the desire to play the game of the great powers. China has maintained its firm position on the right side of history, following the road of the common good. The Chinese President further maintained that the BRICS countries are a stable and positive force, and they will flourish. He noted that more than twenty countries are knocking at the door of BRICS, and China sincerely gives welcome to all of them to join this mechanism of cooperation.
Brazilian President Luiz Inácio Lula da Silva declared that “We do not want to be a counterpoint to the G7 or the G20 or the United States. . . . We want to create something that never has existed. The Global South.” BRICS, he declared, is an organization that can try to change the relations among the nations of the world.
Lula further declared that “They have always treated us as though we were second class. We now realize that we can become important countries.” BRICS cannot become a closed club, he observed, and for this reason he is in favor of admitting new nations, although it is necessary to adopt criteria and procedures. In contrast, he noted, the G7 is a closed club of the rich.
Subsequently, in his Twitter account, Lula wrote that “We need to create a more just and more solidary world. . . . We have to permit all the world to live in dignity. We have the money to do it. We need the political will. This is what BRICS symbolizes: the creation a new and strong organization to improve the world.”
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