BRICS Summit: Birth of a counterweight to the West?

Greater integration was the central theme of the BRICS countries' summit on the first day. In contrast to the Chinese government's assurances that emerging economies are being stifled and blocked, Brazil's president advocated closer ties with the African continent. The historical importance of the meeting was underlined by Chinese President Xi Jinping. The objective of the BRICS is to boost economic cooperation without posing a threat to the G7 or the United States.

The BRICS summit will be attended by the leaders of the five member countries, but the 69 invited leaders from other regions are also expected to attend, as well as prominent business executives and world leaders such as António Guterres, Secretary General of the United Nations. The main absence will be that of Russian President Vladimir Putin due to the arrest warrant issued by the International Criminal Court for alleged war crimes, so his participation will take place virtually.

The BRICS no longer wants to present itself as a group of five developing nations, but rather as a rival of the United States and the EU (European Union). The countries, currently meeting in Johannesburg, believe that their economic potential is enough to prevent them from taking a second step in the new bipolar order, also marked by the Russian invasion of Ukraine. President Cyril Ramaphosa of South Africa said, "The changes that have taken place in the BRICS economies over the past ten years have greatly contributed to transforming the shape of the world economy."

The five main points that will be discussed are:

• The expansion: 23 countries have already formally applied to join the group, and as many have shown interest in it. The admission of more member states could have a great impact around the world, giving these countries and the group as a whole, more power on the world stage.
• The War in Ukraine: The Russian invasion has put the other members of the group in a complex diplomatic situation. All called for a peaceful resolution of the conflict, but have largely sided with Moscow. Brazil has been the main opponent because it voted in favor in a UN (United Nations Organization) resolution demanding an end to the conflict and the military withdrawal of Russia.
• The common BRICS currency for all members: High interest rates and recent tensions with the United States have rekindled the group's desire to challenge the dollar's dominance in the global financial system. In order to rely less on the dollar, they are considering developing their own common currency, or closing trade agreements in local currencies, something they have already begun to do.
• The creation of a New Development Bank: It is the main financial institution of the group and the member countries want to expand its prominence. It was originally conceived as an alternative to the World Bank (WB) and the International Monetary Fund (IMF), but sanctions on the Russian economy have complicated the group's plans. The summit will address the issue of diversifying the Bank's financing to circumvent the sanctions imposed by the West, and thus be able to achieve its original objectives.
• Ensuring food security: India recently banned rice exports and Russia rejected an agreement that allowed Ukraine to export grains. This has skyrocketed prices and concern about a global crisis. Discussions on agriculture could play a key role and ensure global food security.
   

These five nations were once on a kind of waiting list to take on the superpowers, but now things are different, especially for China. Beijing not only sets the pace for this group, but has also acquired global importance, particularly in terms of technology.

The South African president added that collaboration between governments goes beyond "strengthening relations between governments”" noting that the BRICS countries collectively account for a fifth of world trade, a quarter of the global economy and more than 40% of the world's population.

Likewise, Lula da Silva, president of Brazil, attended the summit to request “the use of a reference currency” to advance trade relations. The BRICS, however, share a unique perspective on the conflict in Ukraine, especially now that Russia is involved. They see it from afar, valuing the anger of the Western bloc, of which they position themselves as a "counterweight"

Although the conflict has been put on the back burner, South Africa and China have found time to issue a joint statement. They reiterated the position of the Asian giant, still viewed with suspicion by Washington and Brussels, stating that “the parties agreed that dialogue and negotiation are the only realistic way to resolve the Ukrainian crisis and will insist on promoting peace and talks, in order to play a constructive role in the political solution of the issue.”

In this regard, Wang Wentao, Chinese Commerce Minister on behalf of Xi Jinping and Ramaphosa agreed to "continue strengthening cooperation in international affairs and multilateral institutions, and jointly safeguard the international system with the United Nations as the core," relying on international law, safeguarding the rights and interests of developing countries,” and respecting national sovereignty and territorial integrity. At a meeting also marked by the absence of Vladimir Putin (who has delegated to his Foreign Minister, Sergei Lavrov), the tone was essentially constant.

For its part, Brazil believes that greater economic integration within the group is now necessary, specifically to compete with Western actors. As a result, Lula da Silva has called for “the adoption of a reference unit of account for trade between the BRICS countries that will not replace our national currencies.”

The New Development Bank (NDB), founded seven years ago and which, in the eyes of the five States, has produced “positive” results, was cited as an example of this “progress” by the speaker. The New Development Bank already represents a turning point in productive cooperation among developing nations, and Lula predicted that it would soon take the global lead in financing initiatives that address the most pressing problems of our time.

Americas Coordinator: José Antonio Sierra.