|Demand of the question
Introduction. Contextual Introduction.
Body. Show how BRICS act as a bridge between developed and developing countries. Mention various concerns and issues in front of BRICS.
Conclusion. Way forward.
BRICS, has evolved from an abstract forum into an influential forum in the international arena and it has become not just a manifestation of globalization, but increasingly a key control lever of global processes. During the years of existence and development, BRICS is in a constant process of transformation. BRICS has a critical role in global processes of building a new world order through the consolidation of international efforts.
BRICS role as a bridge between developed and developing countries:
- The BRICS group acts as a bridge between developed and developing countries. For example, in the WTO, the BRICS countries are trying to promote a fairer order regarding agricultural policies.
- BRICS are also attempting to promote the liberalisation of the international economic order to diminish agricultural subsidies in the United States and the European Union, which would make developing countries’ agricultural products more competitive.
- The BRICS countries act as one to promote a more legitimate international system, including advocating reform of the UN Security Council. By acting together, they can share their resources to realise national interests.
- The long-awaited NDB, with initial capital of $50 billion, and a CRA worth $100 billion represent alternatives to the World Bank and the IMF, which are led by the Global North. In this sense, the BRICS group is a South-South framework for cooperation.
- The BRICS group will also play an increasingly important role in assisting developing countries in gaining an advantage in trade and climate change negotiations, as well as on issues related to the export of manufacturing products. Developing countries on the periphery of the group will be able to leverage the NDB and the CRA to increase their bargaining power.
- BRICS’ cooperation has been driven not only by economic and political factors but also the failure of the existing global economic governance framework to satisfy the needs of many countries. As a result, the BRICS countries have established a new cooperative mechanism that promotes political and security governance structure reform in the UN and in the international financial, monetary and trade systems.
- Importantly, cooperation between the BRICS countries not only produces outcomes that align with their own interests but also reflects the interests of other countries. Their cooperation will lead to progressive changes in the international system and minimise the inevitable shocks that may result from reform.
- The BRICS countries also participate in regular informal leaders’ meeting during the G20 summits. This not only helps to improve BRICS’ influence through forming alliances but also provides a platform for them to express their stance on certain global issues.
- The financial and economic cooperation of BRICS has served as a new and innovative model for achieving further cooperation. This is seen in the BRICS countries carrying out the UN Millennium Development Goals action plans and providing liquidity guarantees, debt reduction, market entry and technology transfers to support poverty-stricken countries. Individual BRICS countries have also expanded the scale of foreign aid for under-developed countries.
Concerns and issues of BRICS:
- It is claimed that heterogeneity (diverse nature of countries) of the BRICS nations with its diverse interests possess a threat to the viability of the grouping.
- All the countries in BRICS grouping trade with China more than each other, therefore it is blamed that as a platform to promote China’s interest. Balancing trade deficit with China is huge challenge for other partner nations.
- Amidst, global slowdown, trade war and protectionism, the critical challenge for the BRICS consists in the development of a new global model of governance which should not be unipolar but inclusive and constructive.
- While BRICS and other emerging economies have been pushing for deep reforms in global governance, their national interests and world views differ. Since 2013, structural problems in BRICS’ economies have also been significant, including large income gaps, lack of financial transparency and infrastructure deficiencies.
- BRICS need to pay attention to their internal cohesiveness- that is, the governance of economic and social issues in and among the BRICS countries. The Sino-Indian Doklam border confrontation before the Xiamen summit chilled relations between China and India, and it raised many worries about the participation of India in the Xiamen summit.
- In addition, because the economic structures and development trends of the BRICS countries are very similar, it is inevitable that there will be economic competition and even conflicts. Therefore, it is necessary to establish an arbitration mechanism to resolve such conflicts.
The BRICS need to face these internal challenges and pursue structural economic reforms such as improving their infrastructure, supporting independent innovation and promoting the business environment to boost economic diversification. Collective leadership within the BRICS framework is the face of globalisation. The future of the BRICS depends on making these internal and external adjustments.