October, 2024

NDB President Dilma Rousseff Discusses NDB’s Role in Infrastructure Projects with Global Leaders

thegeoeconomics.com | October 30, 2024

Dilma Rousseff, President of the New Development Bank, engaged in discussions with President Vladimir Putin of Russia, On October 22, 2024 – on the margins of 16th BRICS Summit in Kazan. Their meeting touched on significant themes such as local currency financing, the pressing issue of indebtedness in Global South countries, and the proposed expansion of BRICS, according to the official statement of New Development Bank.

President Putin recognized the significant achievements of the New Development Bank (NDB), stating, “We hold in high regard the accomplishments you have achieved in recent years, and the New Development Bank is a strong, evolving, and promising financial institution.”

President Putin underscored the New Development Bank’s impact by noting that since 2018, it has financed approximately 100 projects totaling $33 billion. President Putin further emphasized that increasing the use of national currencies for transactions helps lower debt servicing costs, enhances the financial independence of BRICS nations, and reduces geopolitical risks.

Addressing the challenges of Global South, Rousseff said, “we have indeed implemented and allocated a substantial amount of funds towards a variety of projects. However, this remains insufficient relative to the needs of the Global South. Therefore, it is crucial to provide funding in national currencies and in specialised formats. The New Development Bank is dedicated to this endeavour, funding not only sovereign projects but also private initiatives.”

Dilma Rousseff held discussions with several other heads of state and state functionaries in the sidelines of the BRICS summit in Kazan on October 23. She reaffirmed the Bank’s dedication to advancing projects that align with the development goals of its member countries, as well as their commitments to the Sustainable Development Goals (SDGs) and the Paris Agreement. In discussions with Shavkat Mirziyoyev, President of Uzbekistan, NDB’s contributions to infrastructure and sustainable development within its member nations was raised. They explored various potential collaboration areas, including education, technological advancement, social sector support, industrial modernization, logistics, digitalization, and energy infrastructure.

During her conversation with Ilham Aliyev, President of Azerbaijan, Rousseff underscored the importance of the upcoming 29th United Nations Climate Change Conference (COP29) in Baku in November 2024. She emphasized that climate finance is a critical focus for international financial institutions, including the NDB.

In a meeting with Retno Marsudi, Indonesia’s Minister of Foreign Affairs, Rousseff highlighted the alignment between Indonesia’s national strategic initiatives and the NDB’s mission, expressing optimism about future partnerships. She reiterated the Bank’s commitment to supporting infrastructure and sustainable development projects that align with its members’ development goals.

In the sidelines of the 16th BRICS Summit, Rousseff also met with Aruni Wijewardane, Foreign Secretary of Sri Lanka, to discuss potential areas for collaboration between the NDB and Sri Lanka. She reaffirmed the NDB’s role as a multilateral development bank dedicated to mobilizing resources for infrastructure and sustainable development in BRICS and other emerging markets. Rousseff engaged with Mohd Rafizi bin Ramli, Malaysia’s Minister of Economy, to further explore avenues for cooperation in the sidelines of the BRICS summit in Kazan.

The dialogues led by Dilma Rousseff, President of the New Development Bank (NDB), elegantly highlight the Bank’s essential role in meeting the urgent needs of emerging markets of Global South. With holding the dialogues with leaders from Uzbekistan, Indonesia, Sri Lanka, and Azerbaijan, Rousseff reaffirmed the NDB’s dedication to mobilizing resources for infrastructure and sustainable development projects. The focus on NDB’s initiatives and the overarching goals of the Sustainable Development Goals (SDGs), climate finance, especially in light of the upcoming COP29, underscores the Bank’s proactive commitment to combat pressing issues, the Global South nations facing.

NDB President Dilma Rousseff Discusses NDB’s Role in Infrastructure Projects with Global Leaders Read Post »

Timeline: How Has BRICS Evolved Over the Years?

thegeoeconomics.com | October 21, 2024

Economist Jim O’Neill sparked a revolution in global economic thought by coining the term “BRIC” in 2001. He foresaw a future where Brazil, Russia, India, and China would rise to prominence and further reshape the global economy. Rich in resources and human capital, these four nations formed BRI to challenge traditional economic powerhouses. The bloc was established to unite the world’s key developing countries, creating an alternative to the political and economic dominance of wealthier nations in North America and Western Europe.

The journey began with the first BRIC ministerial meeting in 2006, held on the margins of a UN General Assembly session, establishing the groundwork for future cooperation. The leaders of the BRIC countries—Brazil, Russia, India, and China—held their inaugural meeting in St. Petersburg, Russia, during the G8 Outreach Summit in July 2006. In May 2008, the BRICS foreign ministers convened, signaling the coalition’s growing importance in international diplomacy. This gathering marked the formal beginning of BRIC as a cohesive unit and this emphasized the need for collaboration to address shared economic challenges and seize opportunities.

Momentum increased on 16 June 2009 with the inaugural BRICS summit in Yekaterinburg, Russia. Leaders convened to discuss their economic ambitions and declared their intent to institutionalize their alliance. Prior to this, the first BRICS Academic Forum was held in May 2009 to promote intellectual exchange and collaboration among scholars from member states.

In December 2010, South Africa joined the group, transforming BRIC into BRICS. This expansion symbolized a commitment to inclusivity and recognized the diverse voices within emerging markets, amplifying the perspectives of a wider range of developing nations.

In April 2010, the second BRICS summit was hosted in Brasilia, Brazil, leading to the establishment of the BRICS Inter-Bank Cooperation Mechanism and the first BRICS Business Forum to enhance economic ties among member nations. The inclusion of South Africa that same year further diversified the coalition’s representation.

The third summit took place in Sanya, China, on 14 April 2011, followed by the fourth summit in March 2012, both reinforcing the bloc’s commitment to collaboration. The fifth BRICS summit in Durban, South Africa, in March 2013 was notable for establishing the BRICS Think Tanks Council and the BRICS Business Council, as well as initiating the inaugural BRICS-Africa outreach dialogue to strengthen ties with African nations.

In July 2014, the sixth BRICS summit in Brasilia led to the establishment of the New Development Bank, aimed at financing infrastructure projects and promoting sustainable development. The seventh summit in Ufa, Russia, in July 2015 focused on innovation with the launch of the BRICS Science, Technology, and Innovation (STI) Framework Programme.

Subsequent summits continued to build on this agenda, with the eighth in Benaulim, India, in October 2016, and the ninth in Xiamen, China, in September 2017. The tenth summit in Johannesburg, South Africa, in July 2018, and the eleventh summit in Brasilia in November 2019 further advanced the group’s objectives.

In July 2020, the BRICS Women’s Business Alliance was launched, highlighting the importance of gender equality and women’s participation in economic activities. The twelfth summit, held virtually in November 2020, adapted to the challenges posed by the COVID-19 pandemic, followed by the thirteenth summit, also virtual, in September 2021.

In March 2022, the virtual BRICS Vaccine Research and Development Center was launched, showcasing the bloc’s commitment to global health issues. The fourteenth BRICS summit convened in June 2022, setting the stage for further collaboration.

The fifteenth BRICS summit took place in August 2023 in Johannesburg, South Africa, where significant developments occurred, including the addition of Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia as new members. This reflected the growing influence and interest in BRICS as a platform for international cooperation. The upcoming sixteenth BRICS summit is scheduled for 22-24 October 2024 in Kazan, Russia, marking another important chapter in the coalition’s ongoing evolution and its role in the changing world order. The summit is set to come up with a declaration and some announcements on payment, currency and banking systems. This initiative could pave the way for enhanced economic collaboration and greater financial autonomy among member nations.

Timeline: How Has BRICS Evolved Over the Years? Read Post »

Kazan Convergence: BRICS+ and Quest for a Fairer World Order

thegeoeconomics.com | October 20, 2024

Ayanangsha Maitra, COGGS

The 16th BRICS summit in Kazan, Russia, on October 22-23 is expected to be a landmark summit, teeming with expectations for innovative announcements and remarkable changes in geopolitics and geo-economics. There will be talks beyond currency mechanism. As the group expands into BRICS+, the significance of the bloc continues to rise. The bloc has welcomed five new members: Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. This expansion not only enriches the group’s diversity but also creates a powerhouse with a combined population of approximately 3.5 billion—about 45% of the world’s total. The collective economies of these member states now exceed $28.5 trillion, accounting for roughly 28% of the global economy. Remarkably, with the inclusion of Iran, Saudi Arabia, and the UAE, BRICS nations now command an impressive 44% of global crude oil production, making BRICS a formidable force in both geopolitical and economic arenas.

Why is BRICS getting popular?

Several Global South nations feel marginalized by the current world order, which they believe disproportionately favors a handful of wealthy Western countries. Accusations of hypocrisy against the U.S. regarding its selective application of international law—especially in conflicts like those in Ukraine and Gaza—underscore the need for a more equitable global framework. Consequently, BRICS, which promises a fairer international system and proper representation of developing nations’ interests and aspirations, is emerging as a viable alternative to Western-led mechanisms.

However, Jim O’Neill, who coined the term BRIC and is a noted commentator on the bloc, argues that “BRICS has done nothing to effect meaningful organizational or structural change within international institutions.”

Despite Western efforts to isolate Russia following its military actions in Ukraine, Moscow continues to find solidarity among middle powers and Global South nations. This perception is immensely significant for BRICS+, which seeks to challenge the privileges enjoyed by Western nations, primarily through the creation of alternative and parallel institutions. The 16th BRICS summit could mark a pivotal moment for BRICS+, aiming to provide a platform for emerging and middle powers to advance their often overlapping interests while subtly reshaping the global multilateral system.

BRICS+ nations are increasingly driven to gain greater independence from the Western-dominated international monetary system. Presently, approximately 90% of global foreign exchange transactions are conducted in US dollars, and most of them processed through banks in the U.S. and Europe.

Will BRICS+ Appeal to Corporations?

BRICS+ is expected to deliver what the original BRICS could not. Some major corporations, not only from Russia and China but also from Southeast Asia and Africa, are likely to support BRICS+ for a variety of compelling reasons.

First, BRICS+ offers a platform for emerging markets to align on key global issues, creating opportunities for corporations to tap into burgeoning markets across continents. To establish an effective and smooth supply chain and trade network, BRICS nations—Brazil, Russia, India, China, and South Africa—must leverage their unique strengths, which will attract more multinational corporations for economic integration. This would involve setting up a comprehensive framework for trade facilitation, including streamlined customs procedures, reduced tariffs, and standardized regulations. There must also be a serious and continuous focus on enhancing infrastructure connectivity, such as transportation and logistics networks, which are crucial for reducing transit times and costs.

With India and China, two tech giants, on board, BRICS needs to deliver technology-driven solutions, such as digital platforms for trade and supply chain management. Collaboration in sectors like agriculture, renewable energy, and manufacturing among BRICS members is essential, especially given the vast FMCG market in the Global South that presents opportunities for MNCs from BRICS+ nations.

As BRICS+ continues to evolve—establishing political and financial institutions along with a payment mechanism for transactions—it could significantly influence several markets and marketers. The implications for energy trade, international finance, global supply chains, monetary policy, and technological research are substantial. Corporations from BRICS+ nations can position themselves at the forefront of these developments, enhancing their competitive edge in a well-networked market.

The expansion of BRICS or formation of BRICS+ represents a strategic initiative to unite a diverse array of developing countries. At the same time, it has the capability to address the concerns of Global South nations. If BRICS+ maintains its commitment and delivers tangible outcomes, it could dictate several rules of the game. To achieve this, BRICS+ must address economic growth, climate change, resource equity, and the pressing issues affecting its population.

Kazan Convergence: BRICS+ and Quest for a Fairer World Order Read Post »

Why Kazakhstan Said No to BRICS?

thegeoeconomics.com | October 18, 2024

Ayanangsha Maitra, COGGS

It’s shocking for BRICS and surprising for many others in the fraternity that Kazakhstan, Central Asia’s cornerstone economy, has refrained from joining BRICS just before the BRICS summit to be held on October 22-24 in Kazan, Russia. By not joining BRICS, Kazakhstan retains the flexibility to engage more with Western markets. Its geographical and strategic location at the crossroads of Asia and Europe provides a unique advantage in facilitating trade and collaboration between these two prime and prosperous economies. Initiatives such as China’s Belt and Road Initiative and the Trans-Caspian International Transport Route (TITR) enhanced the connectivity, allowing goods to flow seamlessly from Southeast Asia and China through Kazakhstan to the European economies.

Kazakh President Kassym-Jomart Tokayev’s spokesperson, Berik Uali, according to the media reports stated that Kazakhstan will not seek BRICS membership now or in the near future. Uali further emphasized Tokayev’s support for the UN as an essential international organization.

The main reason behind such move of Astana is because of its commitment to the United Nations as the foremost international body overseeing global affairs. Kazakhstan’s foreign policy, focused on multilateralism and peace, is evident in its role in the Astana Process for the Syrian civil war and recent negotiations between Azerbaijan and Armenia. This positions Kazakhstan as a neutral mediator in conflicts, but a close alignment with BRICS could weaken its ability to mediate effectively.

Kazakhstan is an active participant in several regional organizations that include China and Russia, such as the Shanghai Cooperation Organization (SCO) and the Conference on Interaction and Confidence-Building Measures in Asia (CICA). Additionally, as a founding member of the Eurasian Economic Union (EAEU), which encompasses Russia and other nations, Kazakhstan has ample opportunities for collaboration on regional security and economic projects.

Can Kazakhstan be a EU member?

Astana has expressed interest in discussing the possibility of eventual EU membership, despite not sharing a geographical connection with Europe. While the EU may not take this proposal seriously, it is clear that the bloc is committed to build a closer relationship with Kazakhstan. The EU will ensure that discussions about membership do not hinder future diplomatic relations, particularly as Kazakhstan’s influence grows in the Central Asian region.

Astana’s Ties with China and Russia

Kazakhstan’s decision not to pursue BRICS membership will not affect its warm ties with either China or Russia. The country maintains robust economic and trade relationships with both giants. Kazakhstan’s relationship with China is rooted in its Communist past and has evolved rapidly since the collapse of the Soviet Union. President Tokayev not only studied in China but also began his career at the Soviet embassy in Beijing, establishing personal and historical connections.

In 2023, trade between Kazakhstan and China reached a record $41 billion, reflecting a 32% increase from the previous year. This growth is fueled by numerous investment initiatives, with 45 joint ventures worth over $14.5 billion established in vital sectors such as energy and infrastructure.

Conversely, Russia remains a crucial trade partner for Kazakhstan, particularly for land-based trade due to their extensive shared border. In the Post-COVID era, Kazakhstan’s trade with Russia has surged. The years 2022 and 2023 marked record levels of economic cooperation, with trade figures hitting $26 billion and $27 billion, respectively. A $6 billion deal was also inked for Russia to construct three coal plants in Kazakhstan, and several Russian firms operate within the country.

Since Russia’s invasion of Ukraine on February 24, 2022, Kazakhstan’s foreign relations have shifted significantly. While Kazakhstan does not officially endorse international sanctions against Russia, citing their potential negative impact on its own businesses, the country has complied with these sanctions.

However Kazakh President Tokayev is expected to attend BRICS summit as a guest. Such move of scaling back from joining BRICS – just ahead of the BRICS summit appeared to be setback for Moscow, which aspires to promote BRICS as a coalition representing “the global majority” as part of its strategy to counter Western dominance and resist sanctions imposed due to the war in Ukraine. After Kazakhstan announced its withdrawal from BRICS, Russia’s agricultural safety watchdog temporarily halted imports of tomatoes, flax seeds, peppers, fresh melons, wheat, and lentils from the country.

Why Kazakhstan Said No to BRICS? Read Post »

Global South’s Impact on Peace and Equity: Under-Secretary-General Erik Solheim’s Insights

thegeoeconomics.com | October 17, 2024

Erik Solheim, former Under-Secretary-General of the United Nations and Co-Chair of the Europe-Asia Center, highlighted the significant role of the Global South in promoting a more peaceful and equitable world
amid historical Western dominance. He made the comment, while delivered a significant address at
the Global South Think Tank Forum in Beijing, organized by Chinese broadcaster CGTN.

Solheim began by reflecting on the last two centuries, a period dominated by Western powers, particularly European colonial forces and the United States, which wielded considerable influence over global affairs. While acknowledging the advancements in science and industry during this era, he emphasized the accompanying social injustices, including racism and colonial oppression.

Solheim is a diplomat and former Politician, served in the Norwegian government from 2005 to 2012 as Minister of International Development and Minister of the Environment. He was Under-Secretary-General of the United Nations and Executive Director of the United Nations Environment Programme from 2016 to 2018.

The central theme of Solheim’s remarks was the emergence of the Global South, particularly nations like China and India, which he characterized as key players in this transformative phase.

He described this rise as a “positive development” that promises a fairer and more sustainable world,
contrasting the Global South’s focus on sustainability and inclusive prosperity with the historical practices of Western powers. In concluding his remarks, Solheim expressed optimism for the 21st century, envisioning it as a time of increased peace and prosperity. He pointed to regions in Asia where large populations coexist without conflict as models of this promise.

Solheim highlighted the peaceful nature of major Global South countries, a few key points:

China has not engaged in military conflict for the past 45 years.
India has only been involved in conflict with neighboring Pakistan since its independence.
Other Global South nations, such as Indonesia, Brazil, South Africa, and Nigeria, have refrained from military aggression against other countries.

This emphasis on non-aggression suggests that the Global South is poised to play a commendable role in promoting global peace, which Solheim identifies as a crucial asset in the evolving geo-politics. Solheim proposed the creation of a multipolar world where diverse nations coexist and collaborate. He articulated a vision in which:

The United States, China, India, and Europe all play significant roles in global governance.
It is essential to acknowledge the unique political systems of each nation; he asserted that the U.S. will not adopt the Chinese political model, nor will China adopt the American one.

Principles of Respect and Dialogue

To facilitate cooperation in this new multipolar context, Solheim emphasized two foundational principles:

Respect: Mutual respect among nations is essential for fostering collaboration on prosperity, environmental sustainability, and peace.

Dialogue: Open communication is crucial for addressing differences, particularly regarding contentious issues such as conflicts in Ukraine and Gaza, as well as economic and environmental policies. The former Under Secretary argued that constructive dialogue can lead to resolutions and understanding, positioning these principles as necessary for a stable global order.

Global South’s Impact on Peace and Equity: Under-Secretary-General Erik Solheim’s Insights Read Post »

Why Gulf Cooperation Council Needs to Act to Illuminate Global South

thegeoeconomics.com | October 2, 2024

Ayanangsha Maitra, COGGS

As the sand is shifting, the Global South nations need more sunlight to emerge from darkness. The South nations need both a hand as well as a compassionate during their transition towards prosperity. Despite the strong bonhomie that the Gulf Cooperation Council (GCC) shares with the countries in Africa, Latin America, and South Asia, the council’s overall influence and camaraderie within the Global South remain very limited. Established in 1981, the GCC, the hexad club, is a union of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.

Over the decades, Arab-African ties have scaled newer heights. Dubai is now the New York of Africa. On the flip side, the Gulf region too is finding Africa more interesting due to its minerals, resources, huge human habitat, hardworking skilled workforce, and emerging economies. The diversity of the continent is highly appealing. But as an organization, the Gulf Cooperation Council still lacks a sharp vision to strategically enhance its influence in the Global South.

GCC in Africa

Worried about the increasing influence of China and Russia in Africa, the US has begun urging the United Arab Emirates, Qatar, and Saudi Arabia to take on a larger role in Africa. Last year, GCC companies unveiled 73 Foreign Direct Investment (FDI) projects in Africa, totaling over $53 billion. Among the GCC nations, Kuwait has historically played a remarkable role in shaping Arab-African relations, being the first Arab country to host the Arab-African Summit in 2013. Agility, a Kuwait-based global logistics firm, is actively working to encourage foreign direct investment (FDI) and facilitate access for multinational companies to the African economies.

The UAE stands out as a significant player, currently the fourth-largest investor in Africa after the European Union, China, and the United States. In 2021 alone, the Abu Dhabi Fund for Development allocated approximately $16.6 billion to over 66 projects across 28 African countries. Additionally, Dubai Ports World has established itself as a leader in port expansion and maritime collaboration, managing operations in more than 10 African nations. DP World is pumping $80 million to develop a 300,000-square-meter logistics park in Sokhna, Egypt, in partnership with the Suez Canal Economic Zone, while also securing a 30-year contract to upgrade and manage sections of Tanzania’s Dar es Salaam port.

Over the past decade, GCC countries have made significant strides in their investments in the continent, collectively surpassing capital of $100 billion. The United Arab Emirates leads the charge with an impressive $59.4 billion invested across various sectors. Saudi Arabia follows with $25.6 billion, focusing on infrastructure, energy, and technology projects. The other GCC nation, Qatar, has contributed $7.2 billion, primarily targeting strategic investments in areas such as real estate as well as hospitality.

Africa’s social challenges remain a concern for Saudi Arabia too. Saudi Arabia is actively engaging African countries with proposals for debt reduction and conflict resolution.

During its G20 chairmanship in 2020, Saudi Arabia emphasized the need for suspending debt service obligations for African nations. Several GCC investments are often criticized for prioritizing short-term returns over sustainable development. To maximize its influence in Africa, the GCC must contemplate a more strategic approach.

GCC in Latin America

In the Latin American region, the Council’s footprint remains minimal despite significant opportunities. In the early 2000s, ties between the GCC and Latin America were revitalized as both regions committed to enhancing their relationship through political exchanges and bilateral initiatives. The inaugural Summit of South American-Arab Countries (ASPA), hosted by Brazilian President Luiz Inácio Lula da Silva in 2005, played an immense role in strengthening ties, leading to the signing of an Economic Cooperation Framework Agreement between the GCC and MERCOSUR. Despite geographical distance, formal exchanges between the GCC and Latin America saw a remarkable surge in trade during the 2010s. Gulf states significantly increased imports from Latin America, with Brazil, Mexico, Chile, and Argentina being key contributors. In recent years, Gulf countries have exported goods like fertilizers, plastic polymers, aluminum, ammonia, and oil to Latin America. Latin America has exported iron ore and manufactured aluminum to the Gulf on the other hand.

Brazil is the main trade partner for the GCC in Latin America, but a substantial trade deficit exists there. Uruguay and Panama enjoy a favorable trade balance with the GCC. Saudi Arabia has a keen interest in mining and minerals within Latin America. The Saudi Public Investment Fund (PIF) is planning to invest approximately $15 billion in Brazil, focusing on sectors such as green hydrogen, infrastructure, and renewable energy. Additionally, the UAE’s state-owned defense technology firm, EDGE Group, has acquired a 50% stake in the Brazilian high-tech weapons systems company SIATT.

What Can the GCC Do in the Global South?

It’s high time for the GCC to act in the Global South for mutual prosperity. The Global South represents large markets for the GCC, and the Council should seek to enhance its influence in these fast-emerging economies.

The behemoths and venture capitalists belonging to the GCC are expected to flex their muscle in the continent. Substantial economic investments can be a game changer, which in turn makes the ties between the Gulf and Africa stronger. As GCC countries are diversifying their investment portfolios and actively seeking opportunities in sectors such as infrastructure, technology, and renewable energy, the Global South would be a perfect destination for investment.

Areas of infrastructure projects, transportation, and telecommunications are highly lucrative. The UAE has invested in numerous projects across Africa to enhance connectivity as well as increase local economies. Qatar has completed projects aimed at improving water security in drought-stricken Global South nations. The GCC may identify new geographies in the Global South for capacity building and high-impact community infrastructure development. At times of crisis, the GCC nations have extended help to nations in Africa on humanitarian aid grounds. Similarly, the Council can consider empowering more local leaders and enhancing institutional capacity in the Global South. To uphold its position at the global level, the GCC should no longer be just a bloc of elite nations but should position itself at a higher stage for its contribution through impact as well as impression, leaving lasting works. The GCC is missing its clout in the Global South and the potential in those economies. Promotion of public-private partnerships (PPPs) in developing nations would widen the Council’s avenues for economic growth.

References:

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Why BRICS Needs Ruh – a Soul?

thegeoeconomics.com | October 1, 2024

Ayanangsha Maitra

BRICS, the Panch Pandavas or a pentagon of power is opening its doors to new members, despite facing a barrage of sanctions and a flurry of allegations. Iran, Saudi and several oil rich nations inclusion has made the group more energetic. One thing is crystal clear: BRICS, having built itself “brick by brick,” is now aiming to “cement” its place in the global hierarchy.

Among the Five members,the most thrilling story is that of the love-hate relationship between Dragon and Elephant. The strategic ambiguity between India and China, marked by differing perspectives and a lack of trust, has contributed to the stagnation of BRICS in some ways.

India and China may clash fiercely like rival firebrands, but they also trade like old friends haggling over a market stall. It’s a curious dance of diplomacy—one moment, they’re at each other’s throats, and the next, they’re swapping goods as if they’re in a bustling bazaar. No matter how heated our verbal sparring with China gets, we can’t ignore that it’s ByteDance, the brains behind TikTok, that has truly transformed the worlds of dance, broadcasting, and self-expression. TikTok isn’t just a platform; it’s where foreign ministries and state officials spin their press engagements into viral gold. After banning TikTok, India tried to launch its own alternatives, but let’s be real—none have come close to matching TikTok’s flair or popularity.

While concerns about data centers and local laws loom large, Western companies are relishing the opportunity to tap into India’s rapidly expanding digital audience. If BRICS wants to keep up, it needs to shake off its old bureaucratic ways and get in tune with the current trends.

The tragedy of lives lost to preventable issues like inadequate healthcare and the absence of mosquito nets underscores the urgency for BRICS to evolve and address these critical concerns. Ignoring such realities, BRICS can’t gain value. With Iran, Saudi Arabia, and the UAE on board, BRICS nations are responsible for around 44% of the world’s crude oil. It’s high time BRICS stepped up to meet the energy needs of the Global South, where per capita income often feels like it’s been trapped in a time warp while fuel prices are on a rocket ride.

Now it’s time to excert BRICS’ influence in global politics. But let’s not just become another offshoot of the P5 duo of Russia and China. This alliance needs to embrace the aspirations, struggles, and stories of all its members.

The West, with its directives, continues to dominate the IMF and World Bank, the so-called Bretton Woods twins. From the heights of wealth, these rich economies can hardly fathom the realities of BRICS and Global South nations—or even think of offering meaningful advice.

In 2014, BRICS established the New Development Bank to finance infrastructure projects. I’m thrilled to mention that one of its co-founders is an advisor to my organization, COGGS. By the end of 2022, the Bank had disbursed nearly $32 billion to emerging nations for new roads, bridges, railways, and water supply projects. The NDB should have to function for capacity building and empowering communities in the developing member states.

New Development Bank’s annual meeting in Cape Town 2024

BRICS should do more to nurture entrepreneurs and product suppliers; after all, India boasts numerous high-quality yet affordable FMCG brands, many of which even Bollywood stars endorse. Each nation has its ambitions and perhaps a few own agendas for joining BRICS. Take China, for instance—it’s keen to deepen its influence in Africa.

Ahead of 2024 BRICS summit in Kazan, Russian President Vladimir Putin expressed his desire to enhance BRICS’ role in the international financial system, increase bank cooperation, and multifold the use of currencies.

Member nations and BRICS supporters should contemplate ways to negotiate duty-free arrangements and slide more items into convenient tariff brackets.

Another pressing issue is currency. India and Bangladesh have found a sweet spot in their currency trading via vostro accounts. At a press meet in February, Bangladesh’s former foreign minister, Dr. Hasan Mahmud in a conversation with this journalist, mentioned plans to multiply currency trading with India. It’s likely happening anytime soon. On the flip side, Moscow has been grappling with a pile of rupees, which has caused headaches for garment manufacturers who’ve had to halt exports to Russia despite demand due to currency complications. BRICS must devise a payment mechanism that enables local traders to conduct transactions smoothly and hassle-free. After all, in the world of international trade, convenience is king.

Andrei Tarkovsky from Russia, Abbas Kiarostami, and my personal favorite, Asghar Farhadi from Iran, have profoundly to the world of arts through their cinematic masterpieces. Their unique storytelling resonates with millions who speak neither English nor any bridge language, reaching hearts across the region and beyond.

While BRICS may not outshine Netflix or Hollywood anytime soon, it boasts a wealth of film festivals and an abundance of talented plot-makers, storytellers, and performers. To truly captivate the screens, canvases, and stages, BRICS must harness this artistic talent and let it shine.

[Ayanangsha Maitra is a Journalist and Research Coordinator of Center of Geoeconomics for the Global South. ]

Why BRICS Needs Ruh – a Soul? Read Post »