3 September 2024

Expanded BRICS: new components of global stability

The expansion of BRICS has confirmed the success of this association and indicated the demand in the world for economic stabilization and for multipolarity. Moreover, the flexibility and non-antagonism of BRICS allows the interests of different countries to be combined. The key task facing the BRICS members today is to combine further development with retention and even greater efficiency of collaboration. This is the conclusion drawn by the participants in the ‘Expanded BRICS: New Components of Global Stability’ session held during the Eastern Economic Forum (EEF).

KEY CONCLUSIONS

BRICS expansion will help stabilize the global economy and geopolitics

"It is a matter of geopolitical stability. I think we are entitled to speak about expansion of the association giving us a good opportunity to improve the situation in the financial stability sphere," said Sergey Storchak, VEB.RF Senior Banker.

"Inclusion of new member countries in BRICS opens up far greater opportunities for cooperation on projects in third countries [Third World countries – Ed.] and use of one another’s strong points. We have spoken about the share of dollarization being very high at the moment. By boosting trade and economic relations within BRICS and raising mutual goods flows between countries, we are able to develop the economy internally, without using the dollar equivalent for settlements. This also applies to logistics," noted Dmitry Prokhorenko, Director of the Development Overseas Network of the Russian Export Centre.

"BRICS has entered a new era of change and turbulence. Everyone knows that imbalance is growing and growing: we are seeing regional conflicts and there are quite serious security threats. All this engenders greater risks for geopolitical stability. And BRICS could suggest solutions here that would help in seeing greater stability," said Zhao Zhing, Deputy Secretary General of the China Council for the BRICS Think Tank Cooperation (CCBTC).

BRICS faces the further development choice

"After its expansion, BRICS faces a sort of fork in the road: it has two alternative paths for further development. The first, which I consider preferable, is to retain and even boost the intensity of cooperation and transform BRICS into the main driver, an institution for global governance and reform of global governance in the interests of the global majority, in the interests of the developing countries. [] But there is an alternative: to transform BRICS into a loose, heterogeneous discussion club, participation in which is prestigious but does not involve any obligations," noted Dmitry Suslov, Deputy Director of the Centre for Comprehensive European and International Studies and Expert of the Working Group ‘Country Analysis and Analysis of National Strategies of BRICS’, BRICS Expert Council – Russia.

BRICS is not against the global West

"BRICS is not against the Seven [G7 – Ed.], BRICS is not against the global West. BRICS is for the global majority, for flourishing, and BRICS is prepared to work with anyone that is for constructive collaboration with them, no matter who," said Victoria Panova, Head of the BRICS Expert Council – Russia and Vice-Rector of the National Research University Higher School of Economics; Russian W20 Sherpa.

"It is important to avoid trying to turn BRICS into an anti-West organization. First of all, this is not possible. Second, this would undermine the authority of BRICS in the eyes of the global majority because the countries of the global majority do not want to have to choose between antagonistic blocs. And the interest they show in BRICS is connected specifically with the fact that BRICS is not an antagonistic, confrontational bloc," said Dmitry Suslov, Deputy Director of the Centre for Comprehensive European and International Studies and Expert of the Working Group ‘Country Analysis and Analysis of National Strategies of BRICS’, BRICS Expert Council – Russia.

PROBLEMS

BRICS members should endeavour to develop the association

"Our governments and national banks must consistently follow the line of making use of opportunities [that arise – Ed.]. Opportunities have arisen and they demand specific efforts on the parts of ministries of finance, ministries of foreign affairs, government and state leaders. […] Solidarity and cooperation must be strengthened. We have common values, […] we must develop a common position, take combined actions," said Zhao Zhing, Deputy Secretary General of the China Council for the BRICS Think Tank Cooperation (CCBTC).

Shortage of information about BRICS members

"Not all countries are aware of one another’s potential and we, the Russian Export Centre, are endeavouring to combine our measures for boosting trade and economic cooperation, as well as cultural cooperation, in order for our countries’ companies to make more effective use of one another’s strong points. We inform foreign companies, teach them negotiating rules and practices, the communication culture in these countries, in order to make the best use of our potential for entering these markets," noted Dmitry Prokhorenko, Director of the Development Overseas Network of the Russian Export Centre.

"The issue is that the BRICS countries do not know all that much about one another. […] There are currently major barriers in recognition of university degrees. […] There need to be mechanisms for recognizing ratings, diplomas," said Mohamed Salah, Member of the Board of Trustees of the Al-Hewar Foundation for Studies and Humanities Research and Chairman of the Eurasia and BRICS Forum; Member of the Advisory Board of the World Tourism Experts Forum.

 

SOLUTIONS

Maintaining the effectiveness of BRICS

"The process of expansion is always a complex one. The efficiency of work is key in any organisation, association or mechanism. When such sharp quantitative changes take place, it is vital to endeavour to prevent efficiency suffering and the authority of BRICS collapsing," said Victoria Panova, Head of the BRICS Expert Council – Russia and Vice-Rector of the National Research University Higher School of Economics; Russian W20 Sherpa.

"I think that the main strength of BRICS lies in its flexibility and informality. […] The solution to the problem consists specifically in flexibility to form possible coalitions between the countries of an expanded BRICS that could co-operate more intensively on certain projects, while this cooperation […] would not oblige all BRICS countries to cooperate equally intensively," said Dmitry Suslov, Deputy Director of the Centre for Comprehensive European and International Studies and Expert of the Working Group ‘Country Analysis and Analysis of National Strategies of BRICS’, BRICS Expert Council – Russia.

Exerting pressure on developed economies

"Expansion of the association’s membership [has increased] the possibilities for exerting pressure on developed economies, which do everything to resist, do not want to review quotas [of International Monetary Fund member countries – Ed.] for a variety of reasons. […] The developing countries deserve a review of the country quotas or the formula for setting the country quotas," noted Sergey Storchak, VEB.RF Senior Banker.

"The second important track associated with the expansion of BRICS is an increase in the number of national currencies that might potentially be used for settlement in mutual trade and investment. Yes, this is a strong trend but we could do with speeding it up even more and moving towards us all together depending less on the reserve currency markets and on the financial infrastructure of developed economies," said Sergey Storchak, VEB.RF Senior Banker.

 

For more, please visit the Roscongress Foundation’s Information and Analytical System roscongress.org.

 

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