3 September 2024
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.