BRICS success is enshrined in diplomacy not politics
By Shahid Hussain
Heads of states of all BRICS members except for Russia have gathered in South Africa to discuss BRICS' expansion, promoting political security, advocating the usage of local currency and cooperation on the digital economy.
The current BRICS summit holds paramount importance geopolitically and geo-economically. It marks the first in-person gathering since 2019, navigating the pandemic's disruptions. Notably, it follows the 2022 Russian-Ukrainian conflict, impacting global stability and key sectors like food, fertilizer and energy security. This summit also coincides with Lula's return to power in Brazil. In essence, this gathering is a crucial nexus of global dynamics, political shifts and economic strategies.
The talk of the town is essentially, BRICS expansion as heavyweights like Saudi Arabia, Iran, Argentina and other countries are interested in joining the bloc. The hopefuls are expecting positive steps by the current members but recent reports suggest India and Brazil have their own reservations. The consensus regarding the parameters for expansion and the underlying principles will be clear in a few days. Not all participants have fully embraced the notion of enlarging the entity at this point in time.
The reason that is momentarily creating a nonalignment on the issue is domestic politics which is dictated by the bilateral relations of member states and the current situation in the Russia-Ukraine crisis. As per experts, India is hesitant because it wants to avoid the group becoming heavily China centric as both nations' relations soured over the past few years.
The issue of borders between the countries is not new but in the past, both countries did not let it hamper their bilateral relationship. Both countries are the two biggest heavyweights in the group and it is paramount that both agree on all major issues if they want to bring about real game-changing shifts in the bloc.
BRICS members should not let go of this opportunity to consolidate the emerging markets, which can balance the Western bloc, which despite its low number, has a huge influence on global policies.
In order to overcome the challenges within the group, the member states should value diplomacy over politics. It's normal to have differences in a multi-group system and it should be celebrated instead of becoming an obstacle to achieving a higher purpose. The group members are willing to make BRICS stronger than before and for that, it's expected they will let politics stay away by allowing the diplomats to do their magic.
The success of BRICS is deeply rooted in its diplomatic approach, surpassing mere political considerations ― a fact substantiated by tangible instances. Despite potential obstacles posed by political divergence, BRICS member nations have adeptly employed diplomatic strategies to steer their joint accomplishments. A striking illustration is the inception of the New Development Bank (NDB), a collaborative endeavor of Brazil, Russia, India, China, and South Africa. This institution stands as a testament to diplomatic synergy, channeling resources into developmental projects within emerging economies. This achievement vividly underscores how BRICS harmonizes despite political disparities, fostering mutual economic advancement.
Hopefully this year we will see more steps to strengthen the use of local currencies to do business among the members. The organization maintains its commitment to multilateralism, global governance reform, and equitable treatment of developing nations.
The potential inclusion of new members in the BRICS group could enhance cross-border trade efficiency and attract increased investor attention. The introduction of a BRICS-backed currency remains a viable option, with the group's economic powerhouses capable of diversifying production beyond current monetary unions. As exemplified by the recent inclusion of Bangladesh, Egypt, the United Arab Emirates and Uruguay in the BRICS New Development Bank, prospects for more equitable international trade are promising due to their diverse geographical locations. Joining BRICS offers new entrants amplified diplomatic influence and access to lucrative trade and investment prospects.
When protectionism is becoming the new normal, BRICS has become the new hope for multilateralism and globalization in the world. Hopefully, we will see good results from the summit which will make the world better and more prosperous for emerging economies.
Shahid Hussain is the founder and CEO of UAE-based consulting firm Green Proposition and writes about matters which shape trade and business in the global market.