Expectations were high when five big, developing nations in 2009 joined as the so-called BRICS. The cooperation of the fast-rising economies driving world growth seemed to herald a new era of putting poverty alleviation and infrastructure development first.
The five BRICS countries — Brazil, Russia, India, China and South Africa — do not lack for heft. They represent nearly half the world’s population and a quarter of its economy, at a combined USD16.6 trillion. But at a summit in the western Indian state of Goa this weekend, their leaders will be struggling to temper their tendency to compete, rather than collaborate, in boosting their slowing economies.
The five nations face unique challenges that make coordination tricky.
The authoritarian systems in Russia and China diverge from the lively democracies in India, South Africa and Brazil. Conflicting alliances with non-BRICS countries mean the group is unlikely to reach a consensus over issues such as the war in Syria or tensions in the South China Sea.
Within their ranks, the four other nations are chafing at China’s increasing dominance in manufacturing and trade and seem unlikely to support a push by Beijing for more open markets when they are striving to keep their own heads above water.
“BRICS is still a work in progress,” says H.H.S. Vishwanathan, a former Indian diplomat in the U.S. and several African countries. “If one looks at statements from the last seven summits, the agenda of the group is constantly evolving and expanding.”
Chinese academics and analysts have floated the idea of pushing for a free-trade agreement among the BRICS. A Chinese Commerce Ministry spokesman said last month that, while China hasn’t made such a proposal formally, it believes that removing tariffs and other barriers could be important for practical cooperation between the five nations.
Such an idea would likely fall flat with other BRICS countries anxious over cheap Chinese goods flooding their markets and already burdened by huge trade deficits with Beijing.
“It is likely the Chinese may not bring it up at all, because they would not want to be in an embarrassing position,” Vishwanathan said. “This is a nonstarter for the BRICS.”
In Goa, the BRICS leaders are likely to buttress their development-focused economic agenda with a decision to establish their own credit-rating agency, which they argue would treat developing countries more fairly than existing ones favoring Western economies. AP
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