TeaThe Russia-Ukraine conflict is having a profound impact not only on the world’s energy supply, but also in bringing about new ideas for trade bodies to reset their priorities and adopt a new agenda. One such body, the five-member BRICS, has indicated its willingness to expand and include more countries. Iran and Argentina have expressed their willingness to join BRICS. In fact, Saudi Arabia is also believed to have shown interest in joining the group. It will not be surprising if other Arab states as well as Pakistan decide to join the BRICS bandwagon soon. As this year’s chairman, China has clearly indicated its willingness to work with “like-minded partners” who can join the group and broaden cooperation to make our ‘strategic partnership’ more I have promised to set clear priorities. efficient,
The Brazil, Russia, India, China (BRIC) Forum incorporated South Africa in 2010 and became a pluralistic organization. In the 14 years of its existence, it has developed into a formidable business segment to tap the economic potential of Asia, Africa and Eurasia. Accounting for about 30 per cent of world GDP, the total trade value of intra-BRICS countries stood at over $600 billion in 2017, an increase of 20 per cent since start, The collective market potential and intra-BRICS trade prospects were expected to create the right environment for greater cooperation among the member countries. China’s production capabilities, South Africa’s resources and gateway to the rest of Africa’s rich and diverse mineral resources, Russia’s energy power and India’s growing consumer base and growing technological prowess were some of the reasons to create the impression that BRICS will be internationally recognized. Will be a game changer. Business. It is understandable that such trading bodies are more important for securing national interests through collective bargaining and negotiation as a bloc.
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China’s BRICS plan coming to the fore
Although BRICS collective trade should have increased manifold, several factors such as bilateral FTAs and national interests prevailed, resulting in bilateral trade becoming much more than collective trade linkages. Furthermore, by the end of the last century, China realized the potential of ‘economies of scale and imperfect competition’, as envisaged by Paul Krugman in his “”.NTT ToolboxThe Belt and Road Initiative (BRI) overturned collective trade principles and made BRICS a supporting platform to the powerful BRI mechanism.
Eventually, the adage has become useless and Beijing’s strategy of turning BRICS as a strategic platform for emerging economies against the West is slowly coming to the fore.
The idea of turning BRICS into an anti-Western platform may have originated in Beijing’s strategy to challenge America’s trade potential. It would be nave for China to assume that all member states would consider the US as their main challenger, especially when it comes to trade. Despite strained relations between the US and Russia over the Ukraine crisis, even Moscow would not want a platform like the BRICS to be turned into an anti-US body. But pushed to the wall and finding itself isolated in its conflict with Ukraine, Russia finds a willing and useful partner in China. The Beijing-Moscow pivot to transform a trade body into a security and strategic platform to take on the US-led West, especially at a time when the US and EU countries are facing an emerging energy crisis, To say the least, the extension of the Cold War. Keeping his intentions no secret, Xi Jinping warned the world’s BRICS partners of being covered in dark clouds of Cold War mentality and without naming the US forcing member states to ‘take sides and pursue Called to unite against countries. unilateral dominance,
core mandate
BRICS is essentially a trading platform which seeks to achieve maximum common benefits for the member countries. But any attempt to turn it into a soft power tool and a strategy to make it a security and foreign policy group would undermine its business aspects and defeat its core objectives.
For India, BRICS is an important platform which gives ample opportunities and provides equal status in terms of investment rules making. India has always supported the expansion of trade bodies to include emerging economies and extend the benefits of the Commonwealth to developing countries. The BRICS Civil Society Forum, held in 2021, gave a clear message that New Delhi would like to pursue the objective of building a new international. multilateral order,
But such expansion must come within the ambit of a rules-based inclusive system, where ‘economic hegemony’ and an anti-Western agenda should have no place. While New Delhi can continue to be part of the positive aspects of BRICS, it should exercise its influence and limit its activities on the business platform to commerce rather than competition and a strong cooperative framework through an independent and sustainable institutional supply chain. should work towards the establishment of Mechanism.
Meanwhile, it is important for New Delhi to immediately focus on the functioning of the India, Brazil, South Africa Dialogue Forum (IBSA) initiative and the BIMSTEC – Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand grouping. IBSA represents three democracies representing Asia, South America and Africa promoting South-South Cooperation (SSC) and has become instrumental in building closer cooperation on global issues.
The author is a former editor of ‘Organiser’. He tweeted @seshadrichari. Thoughts are personal.
(Edited by Anurag Choubey)