The emergence of the BRICs is a
worry to the western dominance, especially in economic affairs and global
domination, thus might be the reason why USA is advocating for a slowdown in China‘s
GDP and accusation for violation of human rights, however the cooperation of
BRICS countries does not consider the aspect of human rights and democracy as
such of other regional groups and blocs.
Misheck Gondo
BRICS is an acronym for the
world’s largest grouping of emerging developing nations namely Brazil, Russia, India,
China, and South Africa.
The first BRICs summit took place
in Yekaterinburg, Russia, where they elected membership of the BRIC economy. South
Africa joined the bloc in 2010.
Some of the BRICS ‘objectives are
to achieve peace and security, development, cooperation and contribute
significantly to the development of humanity and establish a more equitable, fair
world. Hence the main mission of the BRICS is to find a counter balance for the
structures controlled by the traditional centers of the world of economic and
political power.
The resent events in Brazil on the 6th BRICS summit has
dominated the international debate on whether the bloc ‘s strategy that
established the new Development Bank; is
a sign of the new world order, with the old order dominated by the Britton wood institutions such
as the World Bank , IMF among other, that are controlled by the western
powerful nations.
The new economic order is seeking
to establish a strong cooperation that helps developing countries with
resources for infrastructure development, and enhancement of trade among other.
The grouping is also threatening
the concept of unipolarism in which USA was a global dominator, with control of
existing financial institutions. This means, the bloc has a major task to make
their dream a reality as other global powers will try by all means to dilute
their destined agenda.
The recently established
Development Bank will start with a 100 billion capital, with China contributing
42 percent of the fund; China will also host the bank, with India hosting the
Presidency.
The BRICS like the G20 is a new
actor in the global system mainly aimed at transforming global regulatory
systems and a panacea to the theory of south to south cooperation that
challenges western dominance in the global political economy.
The Goldman Sachs predicts that China and India will become the suppliers
of manufactured goods and services whilst Brazil and Russia will become
suppliers of raw materials.
South Africa and Brazil have the advantage of being both suppliers and manufactures within the bloc whilst
China’s pace has outdistanced that of its peers.
Together, BRICS comprise of more than 2, 8 Billion people, 40% of the
world’s population and 25% of the global GDP which is $US18 Trillion.
In 2003, the Goldman Sachs forecasted that China and India will become
the first and third largest economies by 2050 with Brazil and Russia fifth and sixth.
BRICS’s combined nominal GDP accounts for 14.6 % of the world’s
indicator, 15,434 trillion dollars and 18 percent of global trade, attract 53
percent of the foreign capital, accounts for about 25 percent of global gross domestic
product on purchasing power parity basis and are currently generating about 45
percent growth of the world economy.
China, Brazil and India take 2nd, 7th and 10th
positions respectively in the ratings of countries with the highest GDP; China, Russia and India
take 1st, 3rd and 6th positions respectively in the ratings of countries with
the greatest stock of gold.
The joint Development Bank can be
taken as a step in the right direction since it seeks to finance first rate
collective projects; it acts as a chamber of international payments
with a view to use national currencies in trade and investment.
It also acts as exchange union
that will be able to join the five countries stock markets thereby attracting
further investment and currency resources.
However, the BRICS agenda still
remain unclear to some people, questions still linger on how Africa will
benefit or is it a case of another exploitative world order that seeks to manipulate
poor countries for the idiosyncrasies of the bloc countries.
Let’s wait and see.
Misheck Gondo is an International
Relations Expert with the University of Zimbabwe (U.Z)
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