Guyana being a small nation facing several challenges in the international arena, the BRICS+ summit that was held between October 22-24 in Kazan, Russia should be of interest to us for several reasons, not the least being that Venezuela has applied to become a member of this bloc, and that Maduro was present during its deliberations.
BRICS, launched in 2006 and initially comprised of the emerging economies of Brazil, Russia, India and China, has been joined by South Africa in 2010. At the beginning of this year, they accepted applications from Egypt, Ethiopia, Iran and the UAE to become BRICS+. Their economies represent over US$28.5 trillion, or about 28 per cent of the global economy.
At this summit, 13 new nations were added to the alliance as “partner countries”: Malaysia, Indonesia, Vietnam, Thailand, Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Nigeria, Turkey, Uganda and Uzbekistan. They are not yet full members, but partner country status is a mandatory step before full membership. Malaysia’s Foreign Affairs Minister, Mohamad Hasan, explained their application: “Malaysia’s desire to join BRICS+ represents its effort to uphold policies and identity as an independent and neutral country, striking a balance with great powers and opening up new business and investment opportunities.”
This confirms the image of BRICS+ as a counterweight to the presently dominant Western bloc that is led by the US and the EU, and is suspiciously like the old Non-Aligned Movement NAM) that sought to steer a course between the US and the USSR, but was seen by the US as favouring the latter. BRICS+, with members like China and Iran, might also precipitate similar sentiments.
The activities of the grouping will do nothing to assuage such fears. In BRICS+, Indonesia “conveyed the pivotal message of peace and the importance of developing countries and the Global South to unite, enhance solidarity, and play their important role in creating a more inclusive, just, and equal world order,” – implying that the present western-dominated order is unjust etc. More pointedly, Maduro utilized the platform to launch a withering tirade against the UN. It demonstrated the weight behind the ability of BRICS+ to condemn Western institutions in a way not seen before at such a global level.
There had been much discussion over the possibility of replacing the US dollar as the dominant global currency, which gives that country a tremendous edge in trade. To finance its enormous trade deficit, all the US has to do is print pieces of paper called “dollars” and exchange them for goods and services. However, there are many differences among the members on how replacing the US dollar can be achieved. The expected rise of China’s renminbi as an alternative to the dollar, for instance, does not sit well with co-member India and others.
There is, however, expected to be an increase in trade using the currencies of the members, such as the use of the yuan and rouble in the Russian-Chinese trade. Putin explained the challenges to be faced in replacing the US dollar: That “requires thorough economic integration (…) Apart from a high level of integration among BRICS members, the introduction of a single BRICS currency would involve comparable monetary quality and volume (…) Otherwise, we will face even bigger issues than those that occurred in the EU.”
The summit declaration addressed the overall global financial architecture which presently favours the West, but interestingly, called for reforming the Bretton Woods institutions that are controlled by the latter, rather than creating full-blown alternatives. Additionally, the member states agreed “to discuss and study the feasibility of the establishment of an independent cross-border settlement and depositary infrastructure, BRICS Clear, an initiative to complement the existing financial market infrastructure, as well as BRICS independent reinsurance capacity, including BRICS (Re)Insurance Company, with participation voluntarily” (emphasis added) – an arguably lukewarm response to Russia’s more robust initiatives.
With Guyana’s rising profile as an oil-producing country, we would have to weigh the pros and cons of becoming a member of BRICS+ in order to protect our interests in this fast-evolving multipolar world.
