Tag: BRICS

TRUMP AND THE BRICS QUESTION: WHAT CURRENCY?

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By Alan Collins Mpewo,

Strange global times. Syria’s 50 years long guard has been pushed out of standing by the gunbarrel. The US that had long sought solutions to the pushover has decided to distance itself through its President, Trump, who like in his first term of presidency, ruled out wanton war on foreign soil. But Trump has been busy on tabs of excellency to realize his slogan, “make America great again.” As a reader, you are familiar with this phrase, but that is besides what has transpired in H.E Donald Trump’s first days. The BRICS has been in optics that even the outgoing US Executive has been careful at quick response through retaliation. The currency question – ‘Which global currency?’ You can deduce the extension to the question in your context. Which global currency for international trade? Business? Consortium exchanges? Which currency?

The dollar, without ” doubt has been on a run (still is) of global dominance that in many spaces, it is the cynical god of international finance. That an export farmer in Maputo, Mozambique to without foreseeable obstacles, has to heed to the global financial god’s declaration. To yield to compliance. So should the fabrics trader at Saint Catherine in Egypt, or a cosmetics shipper in São Paulo in Brazil. Other global currencies notwithstanding have kept their places on the financial radar but that is it, such are their places. But it is more than just the finances as generically understood. Since the Cold War, retaliation and offense has continued to evolve. Sanctions have gradually become a resounding declaration of ‘power’. To use the term ‘authority’ would be modest. Global power. Who rules what. Who does what. Who says what. Who suffers what. All these bundled are showcased in the consequences. Economies have collapsed because of sanctions. The consequences cannot be over emphasized.

Russia, and until the recent decades China, have become constant parallels to the Western power axis. The side looks given by mandated regulators like the UN have rather amplified the growing resentment from the BRICS. Until December, 2023, BRICS still maintained its founding membership since its formation in 2009, but as of February, 2024, more than 4 countries have joined the alliance, and about a dozen others had been invited to join as of October, 2024. It says a lot about the growing tensions over the scrambled power points globally and expected response to cross border bullying. The currency is now the ticket element to factor because with it, lies a possible circumvention of diplomatic suppression.

While one sees themselves for statesmen, others see for a tyrant. Trump is no stranger to this just as Putin and Xi Jinping have endured criticism. But this state of affairs is what if forming a paradox. Trump is resolute on effecting the ‘Make America Great Again’ project, but so are his far East adversaries. To all, tyranny is what many onlookers have expressed. The complexity has called for restraint in enforcement as noted by Putin regarding a slowed process of modeling a BRICS currency, halting the idea indefinitely for until it can be revived. However, that is not a case for other BRICS members who certainly have their attention seasoned to realising a BRICS currency. It suffices to say that while the fears of potential loss of the current currency dominance has been brushed off by Europe as nonexistent, President Trump’s statements against the BRICS idea rather gives a new outlook to potentially what might perhaps become public.

It is not common in international relations that events happen denied earlier turn out true and so is the timing, given the drastic BRICS membership extension. The US is going to scrap on new battle lines, this time not more of warfare as gunned into its current government’s philosophy of ‘each country’s internal fragile politics, to be determined internally without US intervention’ unless it concerns it, but rather a mild shake up of how far it would go if the BRICS member states finally put a final leg across the finish line. Expectations suffice, and to be fair, the pushback on sanctions. The ICC has gradually been falling for the outcry of impartiality and so were the sanctions against Israel’s Premier. More to look out for battle lines in Washington DC. It is going to be an interesting term in administration for the new US Executive regarding inherited conflicts, and shaping controversies.

But it remains certain that international trade and commerce is kind. Own it, own power. China figured this out in its shaping of the Industrial age and for decades now, manifestation is being showcased in its financial situation. That it is part of BRICS is another storyline. Two of the West’s greatest adversaries continue expanding alliances and since 2019, the shakeup has gained greater tract at it epicenter. One way or another, the BRICS currency will manifest, and when it does, the paradox will find new meaning. It may take decades to achieve, but with the present global tension, Trump will only slow the process.

The writer is a Lawyer and Senior Research Fellow, Development Watch Center .

2024 BRICS Summit: Geopolitics, Geoeconomics and Supply Chains; the Group to Set New World Order

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By Musanjufu Benjamin Kavubu

Many experts have reduced BRICS to a mood, Economists are even saying dollarisation is a myth for left sympathisers and a new enchantment for the global South. Those who take it seriously see it as a threat to the World Bank and the IMF, the former dealing with short-term development plans across the world and the latter dealing with long term fiscal policies, this sets the dollar as the global leading currency and a tool for Western hegemony.

The USA’s economy is based on their military might and NATO. As the world changes there have been many developments and to counter Western led multilateral groups the global South has BRICS, which as of 2023  expanded to 10 countries.

The current BRICS Summit is today 22nd to the 24th of October 2024. For starters it’s reported that 34 countries in one form or another have applied to join the group. The is being viewed as a counter to the G7 and it’s taking even a grander shape on the security front which is a key pillar of its founding.

From the 10th of September to the 12th 2024 the Russian President Vladimir Putin hosted a meeting of National Security Advisors of all the members of the BRICS and that meeting was under the organization’s Political and Security Pillar of Cooperation. There are about 53 conflicts raging in the world today, the Russia-Ukraine and the Israeli brutal occupation of Palestine are the most outstanding causing seismic Geopolitical shockwaves world over. These conflicts disrupt global supply chains that are very vital to globalization in terms of trade especially amongst BRICS and the global South.

Let’s understand what Supply Chains and Geopolitics are first. A supply chain is the network of organizations, people, activities, information, and resources involved in the creation and delivery of a product or service from the supplier of raw materials to the end customer. It encompasses all the processes involved in sourcing raw materials, manufacturing, logistics, distribution, and retail, including the management of these activities to ensure efficiency, cost-effectiveness, and customer satisfaction. Basically the definition of Supply Chains can be swapped for the essence of the Belt and Road Initiative by China that is now a decade and has facilitate development of the world in general.

On the other hand Geopolitics that refers to  how geographical factors, such as location, natural resources, and physical terrain, influence the political power, decisions, and relationships between countries basically international relations. Geopolitics is how nations use their geographical advantages and go about challenges to pursue economic, military, and strategic goals on the global stage. If you look at the foundation of BRICS, you will notice how geography affects global politics and international relations.

Security situations throughout history have proven far and wide effects across the world, effects on every aspect of life, from social to economic. And in the last about 24 months there have been military drills amongst BRICS members aimed at safe guarding trade routes and ensure smooth flow of supply chains that are vital for humans civilization. In 2023 the Russian and South African Navies got together for a drill, in the Second quarter of 2024 the Russian Navy conducted drills with Cuba a vital global South country and very recently the Chinese Navy joined Russia for the Ocean 2024 drill. These drills are aimed to prepare for eventualities that may affect sea trade routes, that’s why they were conducted in the Arctic, Mediterranean, Pacific, Caspian and Baltic water ways.

The world geography has these areas that are prone to military and naval blockages during times of conflicts. Areas like the Strait of Hormuz controlled Largely by Iran and BRICS member in the Middle East, connects the Persian Gulf to the Arabian Sea vital for global oil supply a lot of it ending China. It one the reasons China had to bring Saudi Arabia and Iran together through its Global Security Initiative GSI for normalizing diplomatic relations. The Strait of Malacca connecting the Indian Ocean to the South China Sea, essential for trade between Asia and Europe. The Suez Canal that connects the Mediterranean Sea to the Red Sea helping to bypass the longer route around Africa. The Bab el-Mandeb Strait  between Yemen and Djibouti, connects the Red Sea to the Gulf of Aden, vital for shipping between Europe and Asia, has almost all major Navies operating in the area.

The Panama Canal that Connects the Atlantic and Pacific Ocean, Bosporus and Dardanelles Straits in Turkey a member of NATO but also seeking BRICS membership bridges the Black Sea to the Mediterranean, vital for Russian and Eastern European exports. The Cape of Good Hope on the South African coast serves as an alternative route if the Suez Canal is blocked, crucial for global trade. The Lombok Strait in Indonesia which is an alternative to the Strait of Malacca. All are Geopolitical chock points that are pivotal to global supply chains.

As the new world order faces off with the Western hegemony and developments like the BRICS bank being formed to counter the Bretton Woods another aspect is brought into play. Which is Geoeconomics that is basically about how countries use economic tools, policies, and strategies to advance their geopolitical goals. These tools range from trade agreements and investments for example the $ 50 Billion announced at FOCAC 9 in Beijing, to control over vital resources, like energy or rare earth metals.

Economic strength is a powerful asset in shaping global political power and achieving strategic ambitions. Sadly the West led by the USA and the whole EU see sanctions as the best tool to further this endvour. Today USA sanctions are used to disrupt global South supply chains which hinders development. It’s through embargoes that supply chains have taken the hit affecting even the most basic of traders in your local market to all kinds of consumers.

Supply Chains controls and disruptions even take extreme measures for example the latest case of Israeli operations in Lebanon, when a whole supply chains was compromised to plant explosives across the country.

The cross roads of supply chains, geopolitics, and geoeconomics is going  to shape the Multipolar world order, and the BRICS formation as a counterbalance to Western hegemony. It’s going to take everything for example naval drills and economic partnerships. Multipolarity is going to redefine everything. The current situations, mostly driven by the West, show how supply chains are no longer just about movement of goods but affect every aspect of modern human civilization.

Benjamin is a research fellow at the Development Watch Centre.

 

 

 

 

China-Africa Relations: A Win-Win For All

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By Steven Akabwayi

Increasingly, China is becoming a beacon of hope for the African continent. Now that the BRICS is here bigger, and better than before with the addition of two African countries with Egypt and Ethiopia joining South Africa, China will leverage this opportunity to strengthen its economic foothold on the African continent.

Speaking at the BRICS summit,  South African President Cyril Ramaphosa who was the summit’s chair envisioned a community of shared development and progress between China and Africa referring to it as “ a win-win” partnership.

“Our relationship with China will be one of promoting win-win outcomes based on important projects that we have initiated such as the African continental free trade area that is going to be the engine of our economic development”, noted South African leader, Cyril Ramaphosa.

On the other hand, his Chinese counterpart President Xi Jinping expressed commitment to supporting Africa’s industrialisation aspirations which will be achieved by rolling out the required initiatives. “China will launch an initiative in support of Africa’s industrialisation”, Xi said adding that the Chinese government will also harness its resources for cooperation with Africa and initiate business to support Africa in growing its manufacturing sectors so as to realise industrialisation and economic diversification.

Indeed, on the eve of the summit, in an Op-Ed, President Xi emphasised importance of mutual win-win cooperation between China and African countries which he emphasised will always be a guiding principle for China’s cooperation with African countries, writing that, it is “ten years since I put forth “sincerity, real results, amity and good faith” as the principles for China to develop its relations with Africa. The past decade has witnessed our joint pursuit of a China-Africa community with a shared future in the new era, and the completion and handover of a host of projects including the Africa CDC Headquarters, the Foundiougne Bridge in Senegal, the Nairobi Expressway and the Mombasa-Nairobi Railway, renewing China-Africa friendship across the vast lands of China and Africa…”

China has had several initiatives and interventions on the African continent one of them being the Belt and Road Initiative (BRI). The BRI that was launched in 2013 by President Xi Ping was based on the Silk Road that existed many centuries ago and acted as a global pathway for trade in goods and services also serving as a channel for sharing ideas and culture.

The BRI was primarily established to link East Asia and Europe through physical structure but was later expanded to Africa and other continents by the Chinese government significantly broadening the Chinese economic foothold on the continent.

Barely marking its first decade this year, the BRI’s impact have already been felt on the continent. Under the BRI there has been the establishment of railway networks in Eastern African countries connecting Addis Ababa and Djibouti, and other infrastructures such as ports in Kenya, and Karuma dam in Uganda among others.

These projects will accelerate regional integration by improving transportation and logistics which will boost economic development.

At the BRICS summit, member states expressed concern relating to trade-restrictive measures and inconsistencies stemming from international financial institutions such as the World Trade Organisation and the World Bank that are dominated by Western powers.

In his letter issued on 17th August, President Museveni with bitter concern condemned Bretton Woods institutions after the World Bank announced that it was freezing approval of new aid and loans towards Uganda the move that he described as an act an act of “provocation and arrogance”.

Many African countries have expressed resentment towards skewed financing arrangements from Western countries and institutions. These often come with stringent conditions that borrowers from developing economies must meet, the conditions which some observers say are always divorced from African realities and needs.

The harsh borrowing conditions by Western financial institutions have made most African countries turn towards China given its financing strategy that comes in the form of grants, aid, and loans at free or low interest rates.

The Chines loans are always directed on essentials sectors such as mining, transport and construction among others which boost Africa’s economies.

There has also been growing criticism and debates about unfair policies and practices by the Bretton Woods institutions.

Emerging economies have continuously called out America for holding unequal powers and favouritism towards Bretton Woods institutions weaponising dollar currency for example through unfair sanctions.

It’s against this backdrop that the BRICS leaders tasked their respective finance ministries and Central Banks to come up with a viable plan for the use of local currencies, payment instruments, and platforms by the time they report back for the next BRICS summit.

Steven Akabwayi is a Research Fellow at Sino-Uganda Research Centre.

BRICS: The Vehicle of Inclusive Development, Tranquillity and Multipolar World

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By Allawi Ssemanda

The 15th BRICS Summit is ongoing in South Africa’s city of Johannesburg under the theme BRICS and Africa- Partnership for Mutually Accelerated Growth. The summit comes at a time when the world being tested by challenges such as geopolitical competition, the climate crisis, unilateralism, block confrontation with some countries in blocks promoting own security at the expense of others which critical analysts blame for the ongoing Russia-Ukraine crisis.

This year’s summit theme, gives hope African dream momentum. Almost all the leaders of the grouping which today accounts for 40% of global population and slightly more than 30% of world’s GDP are united and see African allies as equal partners. Also, the group’s success is making many countries court them with hopes of joining and benefiting from inevitable benefits that comes with being a member. More than 40 countries including Nigeria, Ethiopia, Argentina, Saudi Arabia, Iran and United Arab Emirates have expressed interest to join the group. However, BRICS leaders must ensure that the group’s expansion is driven by real reasons and purposeful inclusion by admitting members that align with their “ideal” view of the multipolar world the group wants to build. This means their expansion must be strategic; candidates’ animosity towards the west should never be used as qualification for one to become a member.

This is not to say that the group should not expand. There are more reasons for the BRICS to expand now than ever before. As Chinese ambassador to South Africa, Chen Xiaodong recently observed, “the traditional global governing system has become dysfunctional, deficient and missing in action” while BRICS grouping has stood the test of the time as fierce defenders of international justice.

Also, having countries like Nigeria and Ethiopia as members of BRICS will help amplify African countries voice calling for reforms in the UN more audible. For long, African countries have called for reforms at the UN especially in the formation of the United Nations Security Council UNSC permanent members which African countries view as heavily biased against them.

It should be recalled that in 1945 when it was founded, only four African countries were members. Today, all the 54 African countries are full members of the UN. However, of the 193 member states, only United States of America (USA), United Kingdom, France, Russia and China commonly referred to as the 5P are the permanent members of the UNSC – the organisation’s highest decision-making body. This gives the five countries more powers (veto) when it comes to voting on important issues in the council.

The irony of this is that, Africa whose membership at the UN is close to 28% of the body’s total membership has no major role despite always being the centre of discussion during the council’s work. In 2018 for example, more than 50% of UNSC’s meetings, 60% of their official documents and about 70% of their resolutions contained chapter VII mandates all focused on Africa. This means that without Africa, the UN as a body is arguably incomplete. This is not to say that I don’t recognise the fact that in the UNSC Africa is represented by the so-called A3, a block of three elected African states. It is important to observe that, the A3 countries have no big say at the security council because, none has veto power as opposed to the other five states with permanent membership.

The good news is that all the BRICS founding members c, non is opposed to Africa having a representative at the UNSC with equal powers as it is with the 5P. They are all involved in calling for reforms at the UN including reforming the current financial systems dominated by the Bretton woods institutions which many analysts argue work on whims of the U.S and allies.

Critical analysis of Brazilian President Luiz Inácio Lula da Silva who while defending closer ties with Africa noted that “Brazil is back on the continent it should never have left. Africa offers vast opportunities and enormous potential for growth,” to China and Russia who have been strong advocates of African interests, it is clear that African countries’ interests have strong backing among all the founding members of the BRICS  in their call for reforms in the so-called traditional global governing system.

The current rhetoric among BRICS leaders, there is no doubt that BRICS offers more benefits to Africa than any other grouping today including the G7 which has always promised and when it comes to implementation nothing comes as was the case with their promise during the 2021 G7 summit in Cornwall, England where they promised infrastructure support to African countries under what U.S ruler Joe Biden called “build back better for the world” (B3W) that never materialised before they changed it to another white elephant announced during the 2023 G7 summit in Japan’s city of Hiroshima.

On the eve of the ongoing BRICS summit, Chinese president Xi Jinping published an article in south African major dailies entitled “Sailing the Giant Ship of China-South Africa

Friendship and Cooperation Toward Greater Success” President Xi explained that; “China is ready to work with fellow BRICS partners to act on the BRICS spirit of openness, inclusiveness and win-win cooperation, build consensus on important issues, carry forward our tradition of independent diplomacy, and resolutely uphold international equity and justice. We will urge the international community to refocus on development issues, promote a greater role by the BRICS cooperation mechanism in global governance, and make the voice of BRICS stronger.”

Whether as a group or individual, BRICS countries have in many ways shown their resolve to work with African countries supporting, their social economic development. As President Xi observed in his ‘Sailing the Giant Ship of China-South Africa Friendship and Cooperation Toward Greater Success,’ “I will work with African leaders to bring more active, effective and sustainable development initiatives to Africa, expand cooperation in agriculture, manufacturing, new energy and digital economy, and facilitate Africa’s economic integration, industrialisation and agricultural modernisation. China will continue to work for substantive progress in African Union’s joining of the G20 this year, and looks forward to a greater role by African countries and the AU in international and regional affairs.”

In conclusion, in all aspects, the BRICS has great potential to grow while helping the entire global south to develop. With their continued push for a multipolar world and calling for reforms in the current global system, the question at the centre is whether the group is willing to overtly challenge the current global system which has arguably given them the platform and more importantly lessons to learn from, or if they will take a step back and fight covertly and and stay fighting within while pushing for the ideal world they dream of. The challenge with the latter is that with this option, they risk to lose their sight through socialisation and thereby abandoning the zeal of building their ideal world.

That said, the future of BRICS and by extension of Africa is bright. With win-win cooperation which BRICS countries support, working together in sincerity will see the alliance growing stronger as the grouping and Africa work together in building of a world with a shared future in the new era for mankind.

Allawi Ssemanda is a senior Research Fellow at the Development Watch Centre

 

China-Africa Leader’s Dialogue at the BRICS Summit

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By Moshi Israel

The 15th annual BRICS summit in Johannesburg, South Africa covers an important theme of BRICS and Africa; Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism. During this summit, the President of China, Xi Jinping will co-chair alongside Cyril Ramaphosa, President of South Africa the China-Africa leaders’ Dialogue as announced by the Chinese foreign ministry.

This dialogue suitably ties into the overall theme of the summit and has the potential to produce serious outcomes for the African leaders that will take part. China is Africa’s biggest trade partner and has strengthened economic and social ties with the continent through the Belt and Road Initiative, FOCAC, South-South cooperation programs, and a plethora of other development programs.

This dialogue is a vital opportunity for the exchange of ideas that could lead to significant changes on the continent. A major priority for African leaders should be a focus on further investment in the transition to digital economies. Africa still lags behind the rest of the world when it comes to the Internet of Things. Key sectors of the African economy such as health, education, transport, and Agriculture would be more productive if digitized.

Many African countries need to take advantage of the Digital Silk Road (DSR); a component of the Belt and Road Initiative (BRI). The DSR is China’s rebranding of its continuous support for technological advancement all over the globe. During the 1990s, Africa experienced a telecommunications revolution and many Chinese firms set their eyes on the continent. The telecommunications revolution was largely due to many African countries liberalizing their telecommunications sectors and upgrading their infrastructure. This development has been driven by the increased use of mobile telephones and broadband for internet access. It is projected that by 2025 there will be about 615 million mobile subscribers in sub-Saharan Africa which is about 50% of the region’s population.

This digital revolution in the telecoms sector has largely been dependent on Chinese firms such as Huawei Technologies, China Telecom, and ZTE which have chipped substantial market share away from non-Chinese companies such as Nokia, Alcatel, Ericsson, and Siemens. Chinese technology firms have played a vital role in building, upgrading, and investing in Telecom’s infrastructure including internet backbone networks, satellites, and undersea cables. These companies offer affordable services and equipment and remain effective and productive.

Since world development is now driven by technology, the digitization of African economies should be higher on the list of priorities when African leaders meet with president xi Jinping. The Digital Silk Road initiative is rarely talked about for instance in a country like Uganda. It is the responsibility of the Ministry of ICT in this country to investigate this issue further and clearly discern opportunities for Uganda’s transition to a digital economy. A push should be made toward isolated individual country technology summits with China’s technology firms, where the youth and other stakeholders are given a chance to engage with these companies.

The citizens in many of the countries that will hold dialogue with the President of China are eagerly waiting for notable outcomes of the summit. It is imperative that African leaders should put the interests of their citizens at the forefront during such impactful deliberations with the continent’s largest trade partner.

Beyond the focus on Digital transition should be a discussion about the need for Africa’s Agricultural products to have a healthy access to the Chinese market. This is naturally conditioned on the quality of products Africans are putting on the market. For instance, the president of Uganda has always championed Uganda as a food basket and advocated for the need for Ugandans to earn from cash crop farming. This dialogue presents a unique opportunity to further this agenda.

Another important issue is that of climate change. African leaders should engage China on the transition to green economies. The latter has been a champion for sustainable development and the fight against climate change and has spent billions of dollars to the cause. A multilateral framework underscoring a combined effort to address climate change issues should be presented by the representatives of African countries during the dialogue. Africa is not the leading polluter in the world but is already suffering the harshest consequences of climate change and global warming. Furthermore, the continent is now faced with the dilemma of industrializing at the expense of the climate or going green at the expense of much needed industrialization and development. However, China could be a reliable partner in striking a balance. Much more investment is required in order for African countries to safely transition to green economies without sacrificing their right to industrialization and economic development.

Finally, the elephant in the room (or not in the room for this matter) should be discussed. This involves the collective west and its reaction to an increasingly pro-china Africa. In an international system based on realpolitik, every country’s interests come first and therefore, partnerships must be formed with this reality in mind. If China is interested in a long-term strategic relationship with Africa, it must offer terms much better and different from the west. And if African countries want to truly benefit from the partnership with China, they must adapt new ways of engaging with china, based on the principles of mutual benefit and placing African interests at the forefront.

The Writer is a Senior Research Fellow with Development Watch Centre

 

In BRICS, Africa’s Interests Are Safe!

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By Musanjufu Benjamin Kavubu

Finally, the 15th annual BRICS summit is happening, and it is taking place on the African continent. There has been a lot of talk about it this time as though it’s happening for the first time but that is because of where the world finds itself at the moment. Ukraine-Russia crisis is impacting everything and the BRICS summit is not unique to the fact after all the “R” in the “BRICS” is at the forefront of what the Kremlin has eloquently blamed on what they call NATO’s eastward expansion spree which threatens Moscow’s national and strategic interests. There is no doubt, this ongoing crisis which the west is fueling pumping arms into Ukraine has changed public opinion about the current World Order which the BRICS sees as biased to them.

BRICS started in 2001 as BRIC and it got its name from a report by Jim O’Neill who was an economist at Goldman Sachs and he predicted then that Brazil, Russia, India, and China would be the world’s leaders economically by 2050 because of the trajectory the four countries economies where taking. In 2010 South Africa joined to form the current BRICS that the whole world is talking about now which analysts argue it puts the G7 on spot especially that unlike G7, BRICS in all ways stands for the interests of the so-called emerging economies while speaking for entire global south.

Russia’s military operation in Ukraine is not the only reason the 15th BRICS summit is making headlines, but global problems like climate change are key to the agenda and also the over 40 requests from countries to join the formation is keeping the West on its heels.

At the moment, the formation is made up of about a population of 3.2 billion humans that can be also termed a labor force and market, a GDP of $ 24.44 Trillion that seems small compared to the population but an average of $ 7,500 GDP per capita is a dream for many in the global south especially in Africa.

At a time when the world is looking for an alternative to the current world order that is shaped by the US dollar the way BRICS operates seems like the best option going forward.  It’s rumored that Egypt, Algeria, Argentina, and Iran are close to membership then it’s a matter of time before everyone jumps onto the formation. Every developing country would desire this kind of forum that offers consultation and cooperation on significant economic and political issues between member countries and seems to be working.

Through the annual BRICS summit like the 15th South of the African continent, we should expect working groups on areas such as finance, trade, investment, science and technology, and health to set up and they are open to even those countries who are just willing to join. These working groups will then continue to meet as they from time to time identify areas of mutual interest and coordinate their efforts to foster inclusive development a major tenet of the BRICS.

As the formation meets on the African continent BRICS fits the current narrative by African leaders of complete independence from the West’s domination. BRICS members agreed at the start and going forward to strive for inclusive economic growth and to eradicate poverty, to fight unemployment, promote social inclusion, promote innovative economic development based on new technologies like blockchain and develop skills of citizens at the same time strongly cooperating with other countries.

Africa has a chance not to leave anyone behind through the BRICS formation since the ground in the group has proven the antithesis of elitism with its original intention of a restructured political, security, and economic outlook of the world. Africa also has conditions that are in line with the founding members of the BRICS for example fastest growing and emerging economies like Nigeria that is seeking membership, low labor costs that is being brain and muscle drained to Europe, favorable demographics of youths, and natural resources. These conditions need economic cooperation and development through multilateralism to have win-win situations at the end of the day.

To Africa, BRICS through the New Development Bank NDB can offer funding for infrastructure and sustainable development projects as it relives the pressure created by the Bretton Woods systems institutions like the IMF and World Bank that recently decided to stop funding in places like Uganda. For those countries that will go on to attain full membership, BRICS has the Contingent Reserve Arrangement CRA which is a financial safety net that provides liquidity support to members in case of balance of payment difficulties.

As AfCFTA works by boosting intra-African trade from 12% to 30% BRICS through Bilateral and Multilateral areas of trade, investment, technology transfer, Cultural exchange, and matters of security the Free trade Area on the continent can be unstoppable. BRICS along AfCFTA with the free movement of people would bring about people-to-people exchange programs and then foster research and innovation. Cultural exchange, enhance economic and social ties within the formation to create countries that can take on the West. Maybe even the International Criminal Court would be restructured and made to make more sense than being a tool for the West.

Apart from offering hope to Africa and the entire global south BRICS is so important that it offers a workable framework that can be exploited for real and true development that is inclusive. With BRICS bringing Africa on board the world Rebalancing will not be just a song but a reality. As Modi of India, Xi of China, Lula of Brazil, Ramaphosa of South Africa, and Putin is being represented by maybe Lavrov, since he has a war to attend to and just survived a mutiny come together BRICS through the NDB can start the process of dollarisation in Africa where US designed sanctions are used and hurt most.

By Musanjufu Benjamin Kavubu is a Junior Research Fellow at the Sino-Uganda Research Centre.

 

 

 

 

 

 

BRICS STRUCTURE TO DEVELOPMENT MORE RELEVANT TO AFRICA

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By Balongoofu Daniel

The steady traction of the emergence of the BRICS in the contemporary global order reflects a potential shift of the global governance structure to a more economic led mechanism of cooperation through trade and the formulation of coordinated political positions on global issues to secure and under guard a collective path to economic development. The BRICS, a bloc that represents emerging economies; Brazil, Russia, India, China and South Africa have gained much traction in the international arena due to their firm positions and structures of engagement specifically favorable for south-south relations, a structure that the global south has upheld to achieving economic development.

This year’s BRICS summit currently underway in south Africa is one of the most followed and widely anticipated political engagements globally due to the blocs’ spread popularity and attraction of interest from over 40 states including the UAE, Ethiopia, Saudi Arabia among others.  The state of turbulence in global governance characterised with war, economic recession and post -pandemic recovery have made this 15th summit a much anticipated one on forging a way through for development. However, I find the bloc’s structure to development a more relevant reality to Africa and the global south as follows,

In this year’s summit’s special mug, a compilation by the south African government highlights the blocs’ special achievements, challenges and way forward in south Africa’s context thus far seeks to  highlight the beauty and advantages of the adopted strategy for BRICS economic partnership that looks forward to increasing access to each other’s markets, promote mutual trade and investments and creating a business friendly environment for investors in all BRICS countries. The authorities in south Africa further highlight that the most important part of this strategy is to diversify the trading of finished products as opposed to raw materials, a strategy that Uganda, Africa and the global south needs to broadly adopt in order to realize home production and control trade deficits.in the same vein, south Africa notes that its exports share to the BRICS countries have recorded strong growth since 2016 and registered a 7.1% per annum on average reaching US 817.6 billion in 2022. The mug further highlights that the principal contributor to such growth was exports to china over the same period.

In light with the AFCTFTA, an economic initiative by the African union that seeks to achieve a liberalised African continental market and to address the challenges of Africa’s low level of participation in the global economy and world trade, the south African authorities highlighted the importance of merging markets and the building of more partnerships with the BRICS under such an initiative. This will not only unlock trade possibilities but also mutually beneficial opportunities for investment and infra structural development. This further underscores a much broader market and   more liberalism in trade and also promote self-reliance through encouraging industrialisation for production. It should be noted that BRICS brings together a 3.27 billion population of people that makes the question of market and diversity a more achievable reality necessary for production.

The relevancy of the New Development Bank (NDB) that the cooperation achieved through availing of funds for development seeks to solve the global south long unanswered question of funding. It should be noted that the bank has catalyses availability of funds for development that so far US$ 32.8 billion worth of developmental projects have been funded using this bank availed financial resources. So far, the funds have been invested in building and upgrading of 820 bridges, building and upgrading of 35000 housing units and the generation of 2800mw of renewable and clean energy. This therefore is a blessing and an alternative source of funding from the IMF and world bank that the global south has arguably criticised for politicising funding and unfair repay policies.

Balongoofu Daniel is a Junior Research Fellow at Sino-Uganda Research Centre

 

15 th BRICS Summit: Is this Africa’s Time to Step Up onto the Global Stage?

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By Moshi Israel

From the 22nd of August 2023 to the 24th, BRICS nations will be holding their 15th annual summit themed; BRICS and Africa- Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism. The summit will take place in Johannesburg, South Africa. President Cyril Ramaphosa will chair this summit as agreed by all five member states of BRICS who host the annual summits on a rotational basis. The heads of state for Brazil, China, and India will attend in person with the exception of the Russian president. Mr. Putin will be represented by his foreign minister, Sergey Lavrov because the former has an arrest warrant from the ICC out for him and the host nation is a signatory to the criminal court. He is expected to attend via a video link.

BRICS countries represent around 42% of the world’s population and about 25% of the world’s Gross Domestic Product (GDP). The five members also account for around 18% of international trade. Since its creation in 2009, BRICS has been courted by over 30 eager countries that have either applied to join or have expressed interest to be part of the group. Some of these countries include; Argentina, Iran, Saudi Arabia, UAE, Ethiopia, and Egypt. This interest highlights one of the summit’s key agendas of focus, BRICS expansion.

The expansion of the bloc is being pushed by China and Russia with Brazil and India still on the fence. The seriousness of the expansion agenda can be deduced from the fact that well over 60 countries have been invited to the summit, including all African countries. Also, the fact that the last day of the summit is dedicated to ‘Friends of BRICS’ focusing on talks with leaders from other countries speaks volumes. The invited countries span four oceans; Asia, Latin America, Africa, and the Caribbean. 

Economic cooperation will also be key on the agenda as the member states seek to improve their economic ties. Discussions will center on trade and investment opportunities in sectors ranging from energy cooperation and infrastructure development to the digital economy and the job market. Under the umbrella of strengthening ties, special attention will be given to the relations between BRICS and African countries which blends in with the theme of the summit. A major area of focus will be the exploration of opportunities within the African Continental Free Trade Area.

It is unfortunate that the world’s recent and current crises are what it took to bring a major focus on the role of the African continent on the global stage. The pandemic saw Africa do well in mitigating the spread of the virus, the global oil crisis has put a focus on Africa’s major oil producers and the War in Ukraine has shown Africa as a potential peacemaker. The competition among the West, Russia, and China to have Africa in their corner also highlights the growing geopolitical importance of the continent. The trajectory is slowly shifting from Africa being a backyard market for the global north to being a respected partner in international discourse.

It is up to African countries to step in and show up when a positive light is shining on the continent. The recent events in Niger present an interesting conundrum. But African states must handle the issue diplomatically with African interests in mind and not at the behest of any foreign power. BRICS presents an opportunity for the continent to get on board something that has been and could be even more mutually beneficial. African countries are still lagging behind the digital revolution and our social and physical infrastructure is still in need of upgrade. These are the key issues African leaders and representatives should aim to address during the summit.

The BRICS National Development Bank (NDB) can play a vital role in Africa’s growth. It was created in 2015 as an alternative to major lending institutions of the IMF and World Bank. The BRICS bank has had over $30 billion in investment in infrastructure development projects both for members and other developing countries. Moreover, the bloc aims to boost local currency fundraising and lending within the NDB. According to South Africa’s finance Minister Enoch Godongwana; local currency use will aid in de-risking the impact of foreign exchange fluctuations.

Furthermore, Brazil and China have signed a bilateral agreement to settle their trade in their local currencies. This adds meat to the bone of the notion that BRICS seeks to use member’s national currencies for trade and perhaps even adopt a common payment system long-term. However, a South African senior BRICS diplomat, the ambassador at large; Asia and BRICS during a press Briefing in July said that there will be no talks about a common BRICS currency.

Another important development at the BRICS summit to watch out for is the previous month’s announcement by BRICS education ministers expressing interest to create their own international university rankings system. This comes at the heel of Russia’s complaint that the current global university rankings are biased against it and extremely Eurocentric.

In the current global political atmosphere, it is impossible to talk about BRICS without mentioning China. As the second largest global economy, China’s geopolitical moves are always under scrutiny by both its allies and adversaries. During this summit, President Xi Jinping will co-chair the China-Africa leaders Dialogue as reported by the Chinese foreign ministry. This is an event that should be paid special attention to and could have significant implications for African countries. China’s presence on the continent keeps growing and presents new opportunities.

Therefore, African countries, should pay close attention to this summit and take this moment to step up and contribute significantly to global discourse. This summit must exceed expectations and produce some major announcements. The fight for a functional multipolar world could formally begin here on the mother continent. It is high time African countries stopped playing for different teams and play for themselves by taking the mantle presented by BRICS and run away with it into a new era of global order.  

The Writer is a Senior Research Fellow with Development Watch Centre.

 

BRICS should focus on big issues to build ideal world

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The highly anticipated meeting between president of China Xi Jinping and the Russian President Vladmir Putin at the Shanghai Cooperation Summit (SCO) took place in Uzbekistan on the backdrop of deteriorating relations between the two leaders and the collective west. President Xi and Putin generally showed support for each other and encouraged further cooperation in trade. Moscow is very much in need of a new market for its energy and China welcomes the opportunity to acquire cheap gas. An oil and gas pipeline deal were discussed between Russia, China and Mongolia and it is supported by the president of Mongolia.  Important on the agenda were security concerns for the two nations and their allies. President Putin was more interested in addressing what he considers the unwarranted dominance of the collective west in the international arena and it is no surprise that he is actively seeking for challengers to the status quo.

This meeting, however, is especially vital for a whole other reason since three of the five core members of BRICS were present. It is significant for the future of BRICS, a coalition of five states, namely; Brazil, Russia, India, China and South Africa. In the last BRICS summit hosted virtually by China, BRICS members committed to expanding the bloc and being more inclusive. Notably, countries like Iran, Argentina and other African nations signaled interest to join the bloc. At the moment the future of the bloc seems assertive enough to challenge the dominance of the western coalition led by the United States in global politics. BRICS members have wide and ambitious objectives that surmise into restructuring the current global political and economic order. However, the vital task at hand is that the bloc should not morph into a mere anti-western hegemony coalition and according to the stated objectives of BRICS, the alliance is well poised to aim beyond that.

Therefore, the expansion of BRICS should be strategically based on a careful review of a potential member’s profile. Being hostile to western hegemony should never become the only qualifying quality for any potential member. It is a fact that unilateral decisions by USA with the often-expected assistance from her allies have caused havoc and crippled entire regions, from the Middle East, Eentral and Southern America, Eastern Europe to Northern and sub-Saharan Africa.

These unilateral and sometimes short-sighted actions have earned the United States a fair number of aggrieved enemies seeking to settle scores and they might view BRICS as a stepping stone to that goal. However, this fact may render BRICS a home to less-than-ideal candidates that may not have the long-term interests of the bloc in mind. Neutral states like India are a necessary ingredient for the bloc long-term even though they might seem like a risky partner in the coalition. This is due to India’s close partnership with the collective west.  However, the risk that India poses to the bloc does not lie in her close partnership with the west but in her belligerent and rocky relationship with China. And this relationship is an important chapter in the bloc’s evolution story.

Though leaders of China and India have proven their capacity to address grievances of the two by meeting and talking, a lasting solution to issues of each side’s concern is much needed and will boast the cooperation and trust of the two largest members of the BRICS. Once such differences are sorted, which is not an easy task but it is one task that must be accomplished, then the bloc will have skipped a major hurdle that stifles many promising partnerships in their infancy.

BRICS should make as priority the political and social integration of all its members, moving past the limiting economic partnerships if it is to challenge the west in any meaningful manner. It takes one look across the aisle to notice that most countries in the western coalition, share almost similar socio-political and economic values despites being geographically and ethnically diverse. Avoiding the trap of being merely anti-west is important because, some western allies can be lured into joining the bloc if the latter has a recognizable and meaningful positive impact on global politics. A meaningful impact on the world ranges from having a comprehensive global security framework that ensures world peace, an economic system that is balanced and beneficial to all encompassing detailed and practical solutions to protecting the environment and tackling the crisis of climate change.

Many challenges lie ahead for BRICS in different pockets of the world and members of BRICS+ will need institutions both financial and political to guide in the implementation of the bloc’s policy goals and objectives. This must be done with expected resistance form the western coalition and her institutions. Observing current statements and ambitions of BRICS member states, it is quite clear that in the long-run the bloc must create a separate financial system form the current western one and this involves convincing potential members and the rest of the world that the BRICS alternative is much better. New Development Bank (BRICS bank) can help in selling this agenda by offering financial assistance to different sectors than its current focus of infrastructure and energy.

This is where developing countries in Africa, South America and Asia can play an important role. China has already made significant in-roads on the African continent economically, Russia is making in-roads militarily in places like Mali, Sudan, Central African Republic and in other west African countries.

One key recipe missing is media presence to foster people-to people diplomacy and strengthen cultural ties, an area where the west has excelled. The west has managed to endear herself to Africa despite all their past atrocities on the continent during and after colonialism. The west has achieved this by opening up opportunities within western borders for talented and ambitious individuals from the African continent and overtime this number of western educated and influenced Africans has significantly increased.

When it comes to presence of media from BRICS member states on the continent, there is no competition because the west dominates this area. Though gaining, still China’s CGTN is yet to be felt on ground. For Russia’s RT, arguably, very few know it exist. Advanced Television.com found that in 2020, BBC news in Africa increased its reach to 132 million people a week.

BRICS alliance mechanism aims to promote peace, security, development and cooperation and the surest way to this is through adopting new, unique and innovative approaches to developing alliances and solving problems around the world. This to be felt on ground, as a group or individual member countries, BRICS must invest more in media and sell their ideas of their ideal world they aspire to bring.

BRICS still has an open advantage to expand strategically and create a whole different world, it is made up of emerging economies, a trait that gives its founding members relatability to other developing nations. The alliance, accounts for over 3 billion people which is over 40% of the world’s population and just over a quarter of the global GDP. Therefore, on face value, the alliance has immense potential and this potential has to be realized through strategic expansion. Most importantly, this expansion should not be solely fueled by grievances against the collective west but by a genuine concern for global affairs and a resolute desire to challenge and change the status quo.

By Moshi Israel.

The Writer is a Research Fellow at Development Watch Centre

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