Category Archives: The BRICS

Finding Success for the BRICS+

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Just in time for the July 4th break here is the latest from Alan’s Newsletter. For my American friends – ‘A Good Fourth of July’

So the summits just seem to keep rolling along. Unlike the most recent summits, the G7 and NATO, the more immediate ones are without leaders and the most disruptive one of those – US President, Donald Trump.

Just concluded in Seville Spain is the 4th International Conference on Financing for Development (FfD4). As noted by SDSN, The UN Sustainable Development Solutions Network (SDSN) which operates under the auspices of the UN Secretary-General, and designed to mobilize a network to drive action on the Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change this summit gathering is designed to:

“This landmark convening offers a critical opportunity for Member States to advance crucial reforms to the Global Financial Architecture (GFA), the system of public and private finance that channels the world’s savings into investment.”

As described by IISD, the International Institute for Sustainable Development (IISD), an independent think tank:

“There are four categories of public goods that must be addressed in Sevilla. First, the UN member states must adequately finance the UN system itself.”

“Second, UN member states must increase their official financing of the Sustainable Development Goals in the lead-up to 2030, including debt relief as needed to create the fiscal space to achieve the SDGs.”

 

“These countries have delayed critical increases in International Monetary Fund quotas and Special Drawing Rights allocations.”

 

“Third, UN member states must increase their financing of the global commons, including the biodiversity of the world’s tropical rainforests, the marine life of the oceans, and the protection of the atmosphere, freshwater, soils, coastlines, wetlands, and other ecosystems from transboundary pollution and global-scale degradation.”

 

“Fourth, UN member states must agree on critical reforms of the international financial markets to ensure that world saving flows to the countries with the highest investment returns and the highest growth prospects – which are the poorer countries in the world. This is not the case today.”

What these objectives tell us at a glance is that the ‘system’ is still operating with blinders on when it comes to multilateralism and the prospect of policy advances through multilateral institutions. Today’s ‘system’ is not your classic multilateral system given we are in the midst of Trump 2.0. Indeed, these days it is more likely that Trump will withdraw US funds altogether as opposed to meeting the all too evident funding crisis for various UN agencies including the UN itself.

Meanwhile, we are already closing in on the next leader-led summit, the BRICS+ set to take place in Brazil and led by its president, Luiz Inácio Lula da Silva, or Lula, for July 6th-7th. The BRICS has a longstanding and high profile emerging around the same time as the leader-led G7 Summit. The BRICS was seen in some ways as the – not G7 – meaning not made up of western allied leaders. As described by Mariel Ferragamo in a Background note at CFR:

“Established in 2009, BRICS was founded on the premise that international institutions were overly dominated by Western powers and had ceased to serve developing countries. The bloc has sought to coordinate its members’ economic and diplomatic policies, found new financial institutions, and reduce dependence on the U.S. dollar.”

The original membership was made up of: Brazil, Russia, India, China, hence the BRIC to become by 2011 the BRICS adding as a full member South Africa. The BRICS remained static until 2024 but then enlarged with:

  • Egypt.
  • Ethiopia
  • Iran
  • UAE
  • Saudi Arabia, though it has not fully adopted membership;
  • and in 2025, Indonesia

Argentina was also invited to become a full member but according to the CFR Backgrounder, “President Javier Milei pledged to turn the country in a pro-West direction, saying that it would not “ally with communists.”

Meanwhile, the BRICS created an additional category – this ‘partners’. The partners now include:

  • Belarus
  • Bolivia
  • Cuba
  • Kazakhstan
  • Malaysia
  • Thailand
  • Uganda
  • Uzbekistan,
  • Nigeria and in June
  • Vietnam

Partner countries are invited to BRICS summits and other meetings, but their participation may be limited or contingent on consensus among full members.

There then are the current members and additionally the partners. But the question: what is the leadership role of the BRICS+? This remains unclear. As described by Feliciano Guimarães, international relations professor at the University of São Paulo (USP), and academic director at the Brazilian Center for International Relations (CEBRI) he argues, in Valor International, … “the expansion of BRICS demands more diplomatic skill from Brazil to ensure that defense and security disputes don’t derail the bloc’s cooperation and global governance reform agenda.”

“Mr. Guimarães added that negotiations would already have been difficult without the Iran-Israel war, but that doesn’t mean the summit is doomed: “Yes, it’s gotten harder, but it’s unlikely Brazil will fail. Everyone—including Iran’s government—has an interest in Brazil’s success at this summit. Exposing President Lula to failure would be a major setback for BRICS.””

The membership expansion of the BRICS has left questions over the role of the group as you can read from Feliciano’s examination. What leadership role is possible for this diverse enlarged group, especially with major powers such as China and Russia and indeed also India? Can the BRICS group play a role in shaping global order relations as might the other contending global leaders summit, the G20? If so, how? Can the BRICS+ play a stabilizing role, or is it more likely to play a disruptive role in a heightened and possibly more fractious geopolitical environment?

For Brazil the current host, and its leader Lula, the role has become more fraught. As pointed out by Christopher Sabitini in his article for Chatham House titled, “Brazil’s BRICS agenda may be hard to accomplish after the Iran–Israel war”:

“But the Iran–Israel war – and Russia’s invasion of Ukraine – will likely create dangerous distractions to an effective summit outcome along the lines that Brazil had hoped when it assumed the bloc’s presidency.”

On top of these conflicts, Lula, himself has suffered from poor numbers and rising discontent in the country as opposed to his much greater popularity in previous leadership episodes. As the Economist sees it:

“Originally, being a member had offered Brazil a platform from which to exert global influence. Now it makes Brazil look increasingly hostile to the West. The more China transforms the BRICS into an instrument of its foreign policy, and the more Russia uses the BRICS to legitimise its war in Ukraine, the harder it will be for Brazil to keep saying it is non-aligned,” says Matias Spektor of the Fundação Getulio Vargas, a university in São Paulo.”

 

“Brazil’s role at the heart of an expanded and more authoritarian-dominated BRICS is part of Lula’s increasingly incoherent foreign policy. He has made no effort to forge ties with the United States since Donald Trump took office in January. There is no record of the two men ever meeting in person, making Brazil the largest economy whose leader has not shaken hands with America’s president. Instead Lula courts China. He has met Xi Jinping, China’s president, twice in the past year.”

So where does this leave the BRICS+? Again, according to Christopher Sabitini at Chatham House:

“The risk was the body would be turned into an anti-American forum, doing the bidding of China and Russia. For many, the later 2024 BRICS summit in Kazan, hosted by Vladimir Putin, reinforced the perception that the bloc had become a platform to challenge the Western order – even as democratic Indonesia joined the group.”

 

“Now comes the test: can a heterogenous BRICS+ grouping collectively and constructively promote Brazil’s brand of democratic multilateralism, respect for international law and measured reform of the international system? And can it serve as the fulcrum to facilitate the global rebalancing of economic, diplomatic, and normative power Brazil wants?”

 

“Much will hinge on whether the group can move beyond emptily opining on the Israel–US–Iran and Russia–Ukraine wars, to issues of more lasting, institutional consequence. Officially, Brazil is hoping to guide discussion toward concrete themes: the green energy transition, cooperation on vaccines, and expanding most-favoured nation status to all countries in the World Trade Organization.”

To add to Lula’s headaches, key leaders, namely Vladimir Putin, and far more surprisingly, Xi Jinping are not apparently going to attend the Summit. For Putin the international arrest warrant from the International Criminal Court is sufficient to keep him away. But the absence of Xi Jinping is more troubling as indeed this the first non-appearance at the BRICS for the Chinese leader. And Lula will have to deal with Iran and its determination to defend its position following the war with Israel and US bombing of Iran’s nuclear sites. As Christoper Sabitini suggests:

“Iran has announced that it will send a delegation, as will Russia. Their presence risks dragging the summit away from Brazil’s agenda towards issuing statements in defence of national sovereignty – a theme pointedly skirted before by BRICS member states when raised in the context of Russia’s invasion of Ukraine.”

Nevertheless, Mihaela Papa, the director of research and principal research scientist at the MIT Center for International Studies, where she leads the BRICS Lab. and Walter Streeter of the Fletcher Forum see the BRICS+ this way:

“As the BRICS group prepares for its July 2025 summit in Brazil, a new map of global alignment is emerging—one driven not by military alliances or ideology, but by a push for new partnerships in pursuit of multilateralism, trade and development.”

 

“Now, with Washington further retreating from key international institutions and U.S. tariffs unsettling global markets, BRICS has moved into the global spotlight, positioning itself as the new champion of multilateralism.”

“From its outset, BRICS has stood on two pillars: the determination to chart an independent course and the drive to invest in new international institutions.”

 

“BRICS already committed to deeper financial cooperation at the bloc’s 2024 summit in Kazan, Russia, creating a cross-border settlement system and strengthening banking and financial markets infrastructure. The 2024 summit also tasked BRICS finance officials with considering and reporting on the use of local currencies, payment instruments and settlement platforms. These efforts, coupled with deeper engagement with BRICS+ countries and realignment of supply chains, further help reduce reliance on the dollar.”

Such a move away from the dollar has raised the ire of President Trump who has threatened serious tariffs if the BRICS threatens the US reserve currency position.

So what will constitute a measure of success for Brazil in its BRICS hosting? I asked my good colleague Gregory Chin at York University, and a close observer especially of the BRICS, New Development Bank – see his article in Global Policy, “Introduction – The evolution of New Development Bank (NDB): A decade plus in the making”. Now one aspect he mentioned will not occur: that is the attendance of leaders from key members Russia and China. But then he suggests:

“One substantive goal of the Brazilian authorities for their BRICS Presidency is to advance a shared intra-BRICS global climate agenda — the “BRICS Climate Leadership Agenda”, plus a “BRICS Leaders’ Framework Declaration on Climate Finance”. If a joint statement on each can emerge from the Rio Summit, and some actions ensue, it would constitute success for the summit.”

Well there then from my good colleague is a measure of BRICS+ Brazilian success. Let us see how it goes; and I will return to the BRICS+ after the Summit.

This Post first appeared at my Substack, Alan’s Newsletter

https://globalsummitryproject.substack.com/p/finding-success-for-the-brics

Image Credit: Ricardo Stuckert

Threatening a ‘Single International Community’

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Who would think that the threat to the global order could emanate from global summitry leadership. But that appears to be a real possibility. Let me explain.

For some time now at CWD and the Global Summitry project (GSP) we have identified that sustaining global order requires the maintenance, even strengthening of a ‘single international community’. Stability cannot be sustained without such a community. Fragmentation hinders collaboration. But that single international community is being challenged today. The current wars in Europe and in the Middle East undermine a single international community.  Rising geopolitical tensions between the leading powers, China and the United States, especially, erode it. Fragmentation then undermines stability of the order and diminishes, or eliminates,  opportunities for advancing global governance.  As described in the WPR Daily Review:

These tensions were underlined recently by statements from the President of Brazil, Luiz Inácio Lula da Silva, better known as Lula, now the host for this year’s G20. In an opinion piece he published in the Washington Post in January Lula described the impact of geopolitics and nationalism on global governance efforts:

The world is experiencing a contradictory moment today. Global challenges require commitment and cooperation among nations. We have never been so connected. At the same time, we are finding it increasingly difficult to dialogue, respect differences and carry out joint actions. Societies are taken over by individualism and nations are distancing themselves from each other, making it difficult to promote peace and face complex problems: the climate crisis; food and energy insecurity; geopolitical tensions and wars; the growth of hate speech and xenophobia.

Such a statement seems to suggest that Lula really gets it. Only a single international community can maintain a stable global order. But that may not be true. In fact Lula’s recent statements may be undermining such a goal. Why such statements are unclear. Some have suggested that he is determined to promote a different global order no longer dominated by the US and the West more broadly. Others focus on his imperatives in current domestic politics. Whatever. Nevertheless his recent comments over the War in Gaza may make it difficult to promote collective efforts in this critical Informal – the G20. One need only reference Lula’s view of Israel’s action in Gaza expressed by him in remarks at the African Union Summit Conference in Addis Ababa and reported in the NYTimes:

What is happening in the Gaza Strip with the Palestinian people has no parallel in other historical moments,” Lula told reporters during the 37th African Union Summit in Addis Ababa, Ethiopia. But, he then added, “it did exist when Hitler decided to kill the Jews.

And now as a result of these remarks his global summitry leadership efforts – and here I am focusing on his G20 efforts as the President – are being called into question. Rather than trying to knit the order together he apparently seems willing to fracture it.

Such a rupture of the international community is possible notwithstanding a promising start as G20 host. Indeed at the time of the transfer of hosting to Brazil, Lula set out important developmental priorities in a speech at the closing of the India G20 Summit. There he declared:

We are living in a world where wealth is concentrated. In which millions of people still go hungry. In which governance institutions still reflect the reality of the middle of the last century.

We will only be able to tackle all these problems if we address inequality.

Income inequality; inequality in access to healthcare, education and food; gender, race and representation inequality is behind all these anomalies.

If we want to make a difference, we must place the reduction of inequalities at the center of the international agenda.

Thus, Brazil’s G20 presidency will have three priorities:

(i) social inclusion and the fight against hunger;

(ii) energy transition and sustainable development in its three aspects (social, economic and environmental); and

(iii) reform of global governance institutions

All these priorities are contained in Brazil’s G20 presidency motto: “Building a fair world and a sustainable planet”

In advancing these priorities Lula announced  that Brazil would establish two G20 Task Forces (TF) for the Brazil hosting year. These TFs will unite the Finance and Sherpa tracks in a concerted effort to advance global governance policy. The two are: the Global Alliance against Hunger and Poverty, and  the Global Mobilization against Climate Change.

And in addition in the Concept Note Brazil also committed to the  following:

Seeking to close this gap, Brazil plans to launch a G20 Initiative on Bioeconomy with the objective of deepening the international debate on the subject and of identifying potential avenues for cooperation in the area. The Initiative would be structured into three axes: (i) research, development, and innovation for bioeconomy; (ii) sustainable use of biodiversity for bioeconomy; and (iii) bioeconomy as an enabler for sustainable development. As a final result,  the Initiative would be expected to produce a set of “High Level Principles on Bioeconomy.

All these priorities and institutional efforts require concerted collective action. Yet today all these promises seem to be in question over Lula’s statements on the current geopolitical crises, notwithstanding Lula’s injunction in his speech at the closing of the India G20 Summit that:

Thirdly, we cannot allow geopolitical issues to hijack G20 bodies’ discussion agendas. A divided G20 does not interest us. We can only tackle present day challenges through joint action.

Lula needs to heed his own words or he will find that his G20 leadership is undermined by his own words. Such words put at risk his determined collective priorities in the G20. They divide the international community putting at risk ‘a single international community’.

Image Credit : Brazil

This Post was first published at my Substack Alan’s Newsletter

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Troubles with Global Summitry

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We are definitely in the midst of Global Summitry gatherings. With the BRICS Summit just recently ended, we are deep into the G20 weekend gathering in New Delhi. So much commentary has accompanied these summitry gatherings. But I caution casual observers and readers: there are way too many assessments and conclusions drawn by all those folks that unfortunately barely pay attention to Global Summitry through much of the year. You can see this in the various ‘hair on fire’ commentaries in the assessments and consequences of the actions of key players in both the BRICS and now especially with the G20. Too many declarations of the G20 demise; firm conclusions that China and Russia would block any consensus statement that sought to condemn Russia’s aggression against Ukraine; the fragmentation of global summitry with the rise of the BRICS plus and the demise of the G20 with leaders from Russia and China choosing to absent themselves from summit.

Now don’t get me wrong, the geopolitical pressures, particularly rising US-China competition and opposition and condemnation of Russia for its unprovoked aggression on Ukraine are impactful. The geopolitics has seemingly hindered the G20 in advancing global governance policies. Yet the global governance agenda and goals remain. Look at the G20 agenda as described by Damien Cave in the NYT:

The agenda in New Delhi includes climate change, economic development and debt burdens in low-income countries, as well as inflation spurred by Russia’s war in Ukraine. If members can reach consensus on any or all of these subjects, they will produce an official joint declaration at the end.

In the ‘hair on  fire’ camp here is a piece by Alec Russell in the FT

The countdown to the talks was dominated by news that Xi was not going to attend. This was widely seen as a major blow to the G20, and an acceleration of the shift to a world in which a China-led bloc is facing off against a US-led one, with many countries hovering in the middle.

But the collective global governance effort has not been stymied. Indian efforts to reach consensus have proven successful. The G20, thanks to India, has released the Declaration a day early. Our good fortune. As described by the Indian Sherpa the Declaration was:

… a complete statement with 100% unanimity” that highlights India’s “great ability to bring all developing countries, all the emerging markets, China, Russia, everybody together at the same table and bring consensus.

He went on:

Urging adherence to the United Nations Charter, the New Delhi statement says: “All states must refrain from the threat or use of force to seek territorial acquisition against the territorial integrity and sovereignty or political independence of any state. The use or threat of use of nuclear weapons is inadmissible.

So there we are, a consensus statement has been issued. As often is the case, the document was not short, some 29 pages of declaration plus pages of annex.  Nevertheless it ended on a ‘high note’:

81. We reiterate our commitment to the G20 as the premier forum for global economic cooperation and its continued operation in the spirit of multilateralism, on the basis of consensus, with all members participating on an equal footing in all its events including Summits. We look forward to meeting again in Brazil in 2024 and in South Africa in 2025, as well as in the United States in 2026 at the beginning of the next cycle. We welcome Saudi Arabia’s ambition to advance its turn for hosting the G20 Presidency in the next cycle. We also look forward to the Paris Olympic and Paralympic Games in 2024 as a symbol of peace, dialogue amongst nations and inclusivity, with participation of all.

But a reading of the Declaration raises again the question: what success has in fact been achieved? As Caves points out:

But how much progress has the G20 made toward its ambitions? And what can be expected from this year’s meeting in India on Saturday and Sunday? … Then what? Often, not much, when it comes to real-world results. Most of the grouping’s joint statements since it formed in 1999 have been dominated by resolutions as solid as gas fumes, with no clear consequences when nations underperform.

‘Solid as gas fumes’. Well, in many respects the Declaration is no more than a statement of collective progress – what have we collectively identified as worthy of committing to and implementing. And, I did note, in an earlier Substack Post, Not Simply the Pace of Summitry that Leaders and their official are working toward commitment but:

So, let me at least raise in this Post, what I believe is the ‘continuum of action and commitment’ available to leaders in these various Leaders’ Summits. This continuum identifies the extent to which global governance policies have been secured. We move from the aspirational, often set out in the leaders’ declarations or communiques all the way to implementation by a country. What is evident from the continuum is that these folks are governmental leaders. And, as a result no matter what the communique announces, individual leaders’ may, or may not, actually implement a collective wish set out in a declaration.  This is well beyond just the aspirational.

The continuum, as I see it, is:  Consultation/ Cooperation/ Coordination/ Collaboration – the 4Cs of global governance progress, as I see it. Distinguishing between these concepts can be quite difficult. And of course, beyond this is, collectively achieving the actions, proposals and policies that are set out in the communiques, or announced at the Leaders’ gatherings.

And that is paydirt. Collectively achieving the actions set out in all these Summit Declarations – implementing policy in other words – is global governance success. Such implementation lies generally at the national political level, although there are instances where international organizations do in fact implement.

Bottom line: it requires a lot more than a statement in a Leaders’ Declaration to achieve global governance progress. But a number of us are watching including my colleagues at the CWD process.

This Post was originally uploaded to my Substack – Alan’s Newsletter. Feel free to subscribe.

Image Credit: Al Jazeera

 

 

BRICS Confusion is Rather Evident

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Well, though still in the weekend, I must admit this Post is a bit late, though still available, I hope, for an enjoyable weekend read.

So, I was not planning to target the BRICS South Africa gathering a second time in this Alan’s Newsletter Post, at least not quite this soon. However,  the decisions taken, or not taken in some cases at this most recent BRICS Summit in Johannesburg South Africa was too ‘juicy’ to ignore.  As pointed out by Rajiv Bhatia of India’s Gateway House now, more than ever the diplomatic balancing act for the new and enlarged BRICS presents an even more dramatic challenge for this Leaders’ Summit:

As BRICS heads into its 18th year, [the South Africa Leaders’ Summit is the 15th] its success and way forward will depend on the members’ ability to tackle the principal challenge of retaining its internal solidarity while balancing expansion and its impact and influence in the world.

And that central point – retaining its internal solidarity while balancing expansion – is hard to foresee. There is confusion over who was chosen to add and indeed whether they have agreed to join, and what conditions; there is confusion over the choices themselves; and there is confusion over what the enlargement is likely to mean for this Leaders’ Summit.

It is evident that the enlargement has added heft to an already significant leaders’ group. As Bhatia points out:

As a grouping of five nations, BRICS represents 27% of the world’s land area, 42% of the population, 16% of international trade, 27% of global GDP in nominal terms, and 32.5% in PPP terms.

Now the group, according to, Bhaso Ndzendze in The Conversation , is:

The enlarged grouping will account for 46.5% of the world population. Using IMF GDP data, we can deduce that it will account for about 30% of global GDP.

On a PPP basis apparently, it will represent 37 percent of global GDP according to James Kynge in the FT.

So, six countries were identified as joining the BRICS come January 2024: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and Iran. JIm O’Neill, formerly of Goldman Sachs,  who has been tagged for creating the BRICS acronym suggested this about the enlargement:

… I have questioned the organization’s purpose, beyond serving as a symbolic gesture. Now that the BRICS has announced that it will add six more countries – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates – I pose the question again. The decision, after all, does not appear to have been decided on any clear objective, much less economic, criteria. Why, for example, was Indonesia not asked? Why Argentina and not Mexico, or Ethiopia and not Nigeria?

All good questions. Now the list, I would suggest, seems to reveal that China and Russia prevailed in the choices agreed to. Why, I suspect that is, is the BRICS enlargement includes Iran. As the NYTimes pointed out in its article on BRICS expansion:

The inclusion of Tehran — which has antagonistic relations with China’s chief rival, the United States — suggests that Chinese and Russian pressure had succeeded over the qualms of members like India, Brazil and South Africa, which maintain friendly ties with the West.

It is not unreasonable to suggest that adding Iran can only heighten the geopolitical tensions between the BRICS and others – most notably the G7, and most particularly the US with its many Iran sanctions.

Nevertheless, the hosts and commentators as quoted in the NYTimes again, tried to put the best face on it:

… South Africa, sought to put a hopeful spin on the enlargement decision in any case.

Anil Sooklal, South Africa’s representative in the BRICS negotiations, told reporters that the group needs to change with the times. “This is what BRICS is saying, let’s be more inclusive. BRICS is not anti-West,” he said.

And then of course there is the boosterism from the South Africa President, Cyril Ramaphosa as well (FP):

BRICS has embarked on a new chapter in its effort to build a world that is fair, a world that is just, a world that is also inclusive and prosperous,

As for Indonesia, an obvious choice for the BRICS to draw closer to ASEAN and Southeast Asia more  broadly. Why was it not part of the enlargement group? It would seem that Indonesia has not yet decided whether it wants membership. It has not submitted, apparently, a letter of intent. Also, it appears, notwithstanding the announcement that the UAE, in fact, has not decided whether to accept the BRICS invitation, though I suppose in the end it will.

And then there is – Argentina.  Argentina remains mired in a dreadful economic crisis. If in the end new members will be asked to contribute capital to the most important BRICS creation, in my opinion, the New Development Bank (NDB), Argentina is far more likely to ask for support than to be able to contribute support. In the end, I suspect it was Brazil and its current president, Lula that pressed for membership to be extended to Argentina.

As just noted, the most notable significant BRICS achievement, in my opinion, has been the creation of the NDB. There  was some indication that the expanded members would all be required to contribute to the NDB.  And that still may occur.  Still, it is disappointing that not more was mentioned of the NDB by the current announcements.

There was, also, a fair bit of reporting, and loud statements prior to the conclusion of the Summit, that suggested the BRICS might well take steps to create some form of common currency, or steps at de-dollarization by the BRICS. But as was pointed out by Henry Poenisch in OMFIF:

A declaration released at the gathering in Johannesburg on 24 August made no mention of a common currency and instead focused on bilateral clearing – the second-best option. It stressed the importance of ‘encouraging the use of local currencies in international trade and financial transactions between Brics as well as between their trading partners.’

Yet, it seems to me the enhanced use of local currencies, except possibly the Chinese renminbi, is a rather questionable proposition. Using some of the local currencies available, and then holding the surplus for future use doesn’t seem a rather appealing course of action.

Finally, what most commentators failed to point to in their descriptions of the enlargement of the BRICS is that two of the six new members – Argentina and Saudi Arabia – are already members of the G20, as of course are all of the original BRICS. Rather than contemplating the consequence of the enlarged BRICS for global policy progress, it strikes me targeting the efforts, and today’s evident hardships in advancing global governance in the face of rising geopolitics by focusing attention on the G20 might well be a more fruitful avenue of inquiry if one was examining global summitry and the efforts to advance global governance. Looking again, at Jim O’Neill he turns, not reasonably, in this direction:

What the world really needs is a resurrected G20, which already includes all the same key players, plus others. It remains the best forum for addressing truly global issues such as economic growth, international trade, climate change, pandemic prevention, and so on. Though it now faces significant challenges, it still can reclaim the spirit of 2008-10, when it coordinated the international response to the global financial crisis. At some point, the US and China will have to overcome their differences and allow the G20 to return to its central position.

This was originally posted at my Substack ‘Alan’s Newsletter’ You can view there and you are free to subscribe as well.
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Puzzling over BRICS Enlargement

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As Global Summits go, and besides the leader-led summits, G7 and the G20, there is nothing with greater presence, and possible impact in international relations, than the BRICS. As noted by Ndzendze, Bhaso, Siphamandia Zondo (2023) in their recent article in The Conversation on the state of the BRICS: 

What began in 2001 as an acronym for four of the fastest growing states, BRIC (Brazil, Russia, India and China), is projected to account for 45% of global GDP in purchasing power parity terms by 2030. It has evolved into a political formation as well.

It is the political impact that is most interesting and, I would say, somewhat puzzling. For the BRICS club – Brazil, Russia, India, China and South Africa – all are members of the G20.  Like the G20, and for that matter the earlier created G7, the BRICS represent a ‘leaders club’ that is a leader-led global summit that has an annual meeting of those leaders – the centerpiece of the year-long hosting by one member or another. In some respects the BRICS are unique in what the group is not. That is, unlike the G7, the BRICS members have no  evident ideological dimension – neither democratic nor autocratic. Instead it appears to see itself as focused on opposition to US hegemony in the current global order and they appear to demand a greater development focus and attention to the Global South. Again, as pointed out by Bhaso and Zondo: 

Crucial to this was these countries’ decision to form their own club in 2009, instead of joining an expanded G7 as envisioned by former Goldman Sachs CEO Jim O’Neill, who coined the term “Bric”. Internal cohesion on key issues has emerged and continues to be refined, despite challenges. … Ever since, the grouping has taken on a more pointedly political tone, particularly on the need to reform global institutions, in addition to its original economic raison d’etre. 

Now, it is not that there haven’t been efforts to enlarge these informal leader-led institutions  – to draw in the systemically important Global South players – China, India, Brazil – and other regional powers, Turkey and Indonesia for instance.  Obviously, the G20 is the evident case. Still, it would seem that the BRICS members resisted absorption in the G20, indeed, just at the G7 members – Canada, France, Germany, Italy, Japan, UK and the U.S., and also the EU, failed to wind up the G7 and ‘live’ in an enlarged G20 after the Global Financial Crisis (GFC) in 2008. Though there has been constant academic and expert discussion over absorption, enlargement and continuing separation, there continues to be both a G20 and a G7 a G20 and a BRICS. Again my SOAS colleagues focussing on the BRICS suggest: 

Some may even bring destabilising dynamics for the current composition of the formation. This matters because it tells us that the envisioned change in the global order is likely to be much slower. Simply put, while some states are opposed to western hegemony, they do not yet agree among themselves on what the new alternative should be.

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Scepticism Again Abounded Prior to the Opening of a G20 Leaders’ Summit – But Then …

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Alan Beattie, veteran G20 watcher from the Financial Times, has regaled us once again with reasons to dismiss G20 summits before they begin.  On November 14th,  a day before the Indonesian G20 summit begins in Bali, we are treated to the conclusion by him that the G20 is a “gabfest” and  that “it is what it always has been, which is largely pointless”! 

To prove his point,  Alan Beattie links us to his March 13, 2009, article , published a month before the London G20 summit, which was arguably the most important economic summit ever. Entitled “the gap of twenty”, he wrote back then rather definitively that “there should be little doubt…that the divisions seen on display have already dissipated the G20’s ability to spread confidence”.

The Indonesian G20 Summit has in fact demonstrated that without the G20 there would be no global leadership platform which could bring together a finite number of major actors in global affairs from an eclectic array of regions and regime types to address the war in Ukraine, US-China relations, and global systemic challenges. 

What Alan Beattie gets wrong in both 2009 and now more recently just prior to the Bali Summit is to fail to see that “domestic  constituencies “do indeed drive the “domestic calculus”.  The dynamics of global summitry are intended to push the frontiers of public discourses in order to mainstream ambition as good governance rather than to be an exercise in fancy pants diplomacy.  The term “gabfest” trivializes the efforts by global leaders and their officials, advisers and experts to provide societies with the vocabulary for understanding global risks and with vision for global solutions.   

What has gone on all year before the Leaders’ Bali gathering is the tedious developments of policy proposals that will work and the quest for pushing  feasibility frontiers to the maximum that domestic  and financial constraints will bear.   

The  G20 process is essential for global survival and for guiding global systems toward sustainability instead of disaster. The Indonesian Summit has underlined this critical point.

Image Credit: SMA Negeri 1 Singaraja

By Guest Blogger Colin Bradford who is lead-co-chair of the China-West Dialogue (CWD), co-chair of the Vision20, global fellow of the Berlin Global Solutions Initiative (GSI), and non-resident senior fellow of the Brookings Institution.

 

The Shanghai Cooperation Organization: “Symbolically significant”, for now

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The Shanghai Cooperation Organization (SCO) leader-led summit was held in Samarkand in this September. It brought global attention to the group first established by Beijing at the start of the 21st century. Not only was it Xi Jinping’s first trip outside the country since January 2020, with the ongoing war in Ukraine, but the meeting was also an opportunity for a sit down between Xi and Putin on the margins of the summit. That meeting was the immediate point of interest for the global media. In Samarkand, India’s PM Modi was openly critical of Russia as he tried to carve out a leadership position for the South Asian republic. While commentators noted that PM Modi did not hold a bilateral with President Xi indicating that the warmth of 2018’s Wuhan Summit between the two has not yet been rekindled.  Iran participated for the first time with the group now representing 40 percent of the world’s population and nearly a third of global GDP and all of which, barring India, are decidedly illiberal regimes.

While the SCO has more than two decades of existence, the summit is of interest not just because of the high-level leader diplomacy but on the peculiar qualities of a multilateral institution that is often neglected by Western scholars and analysts.

The SCO was established in 2001 by the People’s Republic of China (PRC) with the intention of providing stability to the former Soviet Central Asian spaces with a particular focus on cooperation to combat what the members called the ‘three evils’ of terrorism, separatism and religious extremism. This initial motivation reflected China’s broader concerns about counterterrorism and Islamic extremism in the early 2000s as well as long term anxieties Beijing has had about the threat to the Communist Party of China (CPC) rule at the peripheries of the China.

The initial work of the SCO focused on coordinating the members’ security policies and sharing information, as well as conducting regular military exercises. The group added narcotic trafficking to its counterterrorism agenda and began to talk about economic collaboration and had periodic rhetorical flourishes about global governance and international order. From its initial membership of: Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, the SCO has expanded to include India and Pakistan in 2017and now Iran.

While the SCOs public diplomacy has been wide ranging, the group was, and remains at its heart, interested primarily on matters of international and transnational security. Yet as many analysts point out, Beijing and the members often appear disinterested in many quite obvious regional security matters, the most immediate example of which is the deadly clash between Tajikistan and Kyrgyzstan taking place barely 200 km from the current Summit which elicited neither comment nor action from individual leaders or the group as a whole.

Multilateral institutions often serve both symbolic and substantive functions. With the former, symbolic functions provide the opportunity to signal intent, represent collaboration and more broadly to perform statecraft. But substantive functions can provide the means to advance actual policy coordination and, in their more advanced forms, bind members into strict policy commitments, most famously exemplified by the EU and WTO. Most initiatives provide a blend of performance and policy as well as offering a platform at which ad hoc diplomacy can take place, such as the China-Russia meeting this year.

The SCO today is, however, a grouping that is long on symbolism and short on substance. At first glance it appears to be a good example of institutional balancing, that is when states use international institutions to balance against the influence of major powers. In this case the intention is to use the SCO to ensure that the US and its allies’ influence on the geopolitical dynamics in the Eurasian heartland is blunted. From this perspective bringing India into the fold was intended to hedge against Delhi’s growing alignment with Washington.

More broadly, it also represents a desire for a more multipolar and multimodal international order in which the North Atlantic powers have less influence; and liberal values are diluted as well.

While the symbolism is strong, and in the current moment it has particular salience given the Ukraine war illustrating starkly the clash between authoritarianism and democratic systems, there is little sign of the SCO making any meaningful progress on the substantive side of the ledger. One might be tempted to view the SCO as a nascent Central Asian NATO, yet the preferences of the key SCO powers remain low on concrete commitments as well as exhibiting not inconsiderable tensions between various members. At least for now, it is unlikely that the SCO will take any steps to move beyond the symbolic.

It is tempting, therefore, to write off the SCO as another example of shallow diplomacy in which grand statements of intent and photo opportunities are confused for actual statecraft. That is certainly true right now, but in the building of the foundations for collaboration among  influential and illiberal states in a geopolitically crucial zone of world politics, the members in general, and China in particular, have established a solid platform from which members may ultimately make good on their very real ambitions to transform the principles and practice of the regional order and possibly the international order.

Image Credit: YouTube

The March of Global Order

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This Post is a collaboration with Yves Tiberghien Professor of Political Science at UBC and RisingBRICSAM blogger Alan Alexandroff.both Principals at the Vision20. It underscores that key actors in Asia, Europe and elsewhere are not waiting on the United States to return to global collaboration and multilateral action.

Out of Asia there is a major push on various global governance fronts. The world is not waiting for the United States. And in fact Joe Biden, the President Elect and his people are going to have to think ‘hard’ about whether they are prepared to be ‘left behind’ in the march forward of various multilateral gatherings. Are the demands of domestic politics and the Democratic Party’s distaste for ‘free trade arrangements’ going to leave the Biden Administration lukewarm to rejoining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP? Lukewarm leaves the United States on the outside of efforts to integrate trade and investment in Asia and beyond.

While the Regional Comprehensive Economic Partnership (RCEP) is a limited integration of trade and investment, nevertheless the RCEP is the largest regional agreement concluded in Asia. The Pact covers 2.2 billion people and 15 countries . It includes China and other major economic actors including Japan and South Korea. As the NYTimes (2020) points out:

The pact will most likely formalize, rather than remake, business among the signatory countries. Its so-called rules of origin will set common standards to determine whether a final product qualifies for duty-free treatment, potentially making it simpler for companies to set up supply chains in several different countries.

While the RCEP lacks significant and needed steps to further liberalization and common regulation in key areas such as services trade, e-commerce, intellectual property protection and the elimination of manufacturing subsidies it is a key advance for the Asian region. As pointed out by Yves Tiberghien (2020) in a just published EastAsiaForum post:

RCEP will advance the acceleration of regional economic integration in Asia, and pushes back on Trump’s strategy of decoupling of US allies from China. While Southeast Asian countries, Japan, South Korea, and Australia may all be wary of China at the moment and seek diversity in their trade relations, they simply cannot sustain their prosperity without stabilisation of trade relations with China. Asia is criss-crossed by ever intensifying value chains, and China’s still an integral part of that. Vietnam and other ASEAN countries are rising as manufacturing hubs, but that’s a process accompanied by increased imports of intermediary goods from China.

But RCEP is also of global significance. The agreement, signed off in the middle of a pandemic and US–China trade war, reminds the world, first, that East Asia countries, unlike the Americas and Europe, have broadly succeeded in controlling COVID-19. That success, across different types of political regime, with a similar respect for science, expertise, and trust in government, was accompanied by general acceptance of mask-wearing and community rules.

Second, it also reminds the world that the biggest trading group in the world economy is doubling down on the rules-based multilateral system. Research by Homi Kharas shows that most of the increase in the global middle class until 2030 will take place in China and Asia.

 

RCEP also embeds the first trilateral agreement between China, South Korea and Japan, itself a huge deal. The common interests of these three countries have over-ridden tense geopolitical relations across the Asia Pacific. RCEP underscores the pragmatic efforts of Japan to balance its strong security stance on the South China Sea and in the East China Sea with stability in the bilateral relationship with China. After the completion of the CPTPP, the EU–Japan partnership, and the US–Japan agreement, this marks the completion of the Abe trade agenda (even though Japan would have preferred India to join RCEP). …

As well, RCEP brings significant institutionalization to Japan’s economic relations with China, including a new chapter on e-commerce (with a ban on data localisation requirements), rules on government procurement, and rules on intellectual property rights that go beyond WTO rules. The same calculations drive Australia’s readiness to sign RCEP in the midst of a bitter, but hopefully short-lived, trade fight with China.

The coming Biden Administration needs to rethink its reluctance to rejoin the CPTPP. If it fails to do this it could be on the outside of growing multilateral economic integration and possibly more.

Image Credit: Vietnam News Agency, via Associated Press.

From Shanghai to Pretoria – From Where You Stand: Part II

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Shanghai was the first conference stop; but it wasn’t the last.  For the first time the partners – the Munk School of Global Affairs and the Stanley Foundation – held a conference in Pretoria partnering with our friends at the Department of Political Science at the University of Pretoria.  We were very fortunate to welcome friends from most of the key countries – Brazil, India, China and obviously South Africa.  Unfortunately, our colleague from Russia was ultimately unable to make it.

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