26 December 2024

Thursday, 17:28

BRICS EXPANSION

The status of a partner country was officially endorsed at the Kazan Summit of BRICS

Author:

01.11.2024

Over the past decade, the concept of the Global South has become firmly established in political discourse. By uniting countries with low per capita incomes, it serves as a counterbalance to the Global North, which includes the economically developed nations of the world. Few today recall that this classification was proposed by former Federal Chancellor Willy Brandt in 1980 when he chaired the Independent Commission for International Development. The line separating these two classifications is named in Brandt's honour and runs along the 30th parallel north. Everything above this parallel came to be termed "North," while everything below it was labelled "South." The only exceptions were Japan, Australia, and New Zealand, which were included in the "global North" primarily for political reasons due to their significant connections with the most developed countries.

The Global South, unlike the Global North, is less homogeneous. There is no conventional leader or leaders, and numerous organizations exist within which states unite. However, there is a format that can aspire to act as a catalyst for developing global dialogue among them: BRICS.

 

BRICS as a Leader of the Global South

The acronym was coined in the early 2000s by a Goldman Sachs (USA) economist who referred to investment opportunities in Brazil, Russia, India, and China (BRIC). Originally a marketing term, it evolved into a loose political club in the late 2000s, soon expanding to include South Africa, thus forming BRICS. Today, the group has grown to ten members. Cuba has made a request to join as a partner country, and Azerbaijan has officially applied for membership. According to representatives from Russia, the current chair of this format, approximately thirty countries have expressed interest in joining BRICS, including Algeria, Venezuela, Zimbabwe, Indonesia, Sri Lanka, Thailand, Türkiye, and Venezuela.

This interest can be attributed to BRICS' lack of a principle of subordination; discussions are held on an equal footing, considering the interests of all participants. Moreover, the format brings together countries with fundamentally different positions on various issues. One need only mention China and India or the uneven relations between Iran and the UAE.

It would be misleading to assert that BRICS is merely a platform uniting those dissatisfied with the West to express their grievances. For instance, prior to the summit, media reports cited representatives from the Indian delegation stating that India does not wish for BRICS to evolve into an anti-American coalition. Brazil and South Africa share a similar stance.

An official from the UAE also indicated that Abu Dhabi entirely rejects any portrayal of BRICS membership as positioning the "global South" in opposition to the West. He clarified that the UAE maintains very good relations with Western nations, including the United States.

Thus, BRICS does not represent a bloc dominated by Russia or China, nor does it function as an alliance aspiring to lead the Global South. The expansion of BRICS through ambitious new members further indicates that this format cannot be governed in any traditional sense.

BRICS serves as a platform for ambitious non-Western leaders who resist aligning with any single "camp" in global politics. They prioritize a multi-vector approach in international relations, striving to establish strategic, mutually beneficial ties with major powers regardless of ideology, behaviour, or cultural differences. While most BRICS members criticize the collective West and denounce sanctions practices, this does not imply endorsement of bloc confrontation or conditions leading to a new Cold War.

 

Unity in Difference

This perspective is frequently articulated by representatives of China, the largest BRICS economy, which accounts for up to 70 percent of the group's combined GDP.

To strengthen regional multilateral cooperation in Eurasia through BRICS, China has employed a complex strategy. First, it utilizes its participation in this format as a soft balancing tool to thwart US plans to contain Beijing's influence among developing countries. Second, leveraging BRICS, China actively promotes alternative financial and trade institutions to enhance the legitimacy of its growing power. Third, Beijing seeks to form a negotiating coalition through BRICS and the Asian Infrastructure Investment Bank—under its control—to reshape economic governance. Overall, this organization serves as a strategic tool for China and acts as a security guarantor. It enables China to elevate its status in international affairs by transitioning from being merely a rule maker to one of the creators of rules in global politics.

BRICS also includes China's perennial rival, India, which benefits from the organization by promoting its aspirations for global leadership and strategic autonomy. For New Delhi—having relatively close relations with Western nations—it is also crucial to serve as a bridge between the Global North and Global South, allowing manoeuvrability among states to achieve its multilateral foreign policy objectives.

For Brazil—whose foreign policy aims at maintaining its status as Latin America's leading economic and political power—membership in BRICS presents an opportunity to amplify its region's interests within this major economies format. Additionally, one tangible benefit for Brazil is its co-founding of the New Development Bank (NDB), which President Lula da Silva described as "a milestone in effective cooperation among developing economies."

The NDB is currently headed by former Brazilian President Dilma Rousseff. She was a political protégé of President Lula and succeeded him in 2011; however, she was removed from office in 2016 due to allegations of budgetary fund misuse.

Regarding the NDB's relationship with Russia, the bank suspended all transactions involving Russia in March 2022 in solidarity with international sanctions following the Ukraine conflict. This illustrates that while BRICS countries may oppose sanctions generally, they do not ignore them entirely.

Notably, Russia is set to assume the presidency of the bank in mid-2025.

 

From Economics to Politics

At the BRICS summit in Kazan, Russia proposed that BRICS leaders establish a new financial and payment system. In June, the Russian Finance Ministry announced the emergence of the BRICS Bridge platform for settlements in national currencies—including digital currencies. Foreign Minister Sergey Lavrov stated that an alternative payment system would enable economic transactions "without relying on those who have decided to weaponize the dollar and euro."

This decision was also reflected in the declaration adopted at the summit's conclusion. Specifically, participants agreed to discuss exploring an independent cross-border settlement and depository infrastructure called BRICS Clear. The declaration noted that this initiative would complement existing infrastructures within BRICS financial markets and enhance independent reinsurance capabilities; however, participation in BRICS Clear would be voluntary.

Nevertheless, the primary themes outlined in the declaration related more significantly to major political matters.

BRICS leaders expressed strong support for Palestine's admission as a full United Nations member and called for an immediate ceasefire in Gaza. They condemned attacks on UN peacekeepers in Lebanon and voiced concern over the deepening humanitarian crisis in Palestine while emphasizing the need for a nuclear-free zone in the Middle East. Their commitment to "dialogue and peaceful resolution of conflicts," including addressing the ongoing war in Ukraine, was also reaffirmed.

 

Baku on Path to BRICS Membership

Azerbaijan has long been interested in this format, viewing its activities as aligning with national development strategy priorities. In this context, President Ilham Aliyev's participation in the Kazan summit is particularly noteworthy.

In August 2024, Baku expressed its desire to join BRICS—a move not made without reason; there exists significant common ground among these states regarding building a new global security architecture. For clarity's sake, one need only refer to declarations adopted at the summit's conclusion: key aspects of international politics and economic relations align with Azerbaijan's objectives outlined within its development strategy titled "Azerbaijan 2030: National Priorities for Socio-Economic Development."

The declaration emphasizes developing transport links between BRICS nations. Azerbaijan occupies a strategic location at the crossroads of two major transport projects linking BRICS countries with each other and beyond: these are North-South and East-West routes. Implementing these key corridors is critically important to Baku’s transportation strategy. Currently, two BRICS members are Azerbaijan's neighbouring states—making it an essential communication link within this geographic format.

Ahead of the summit, Azerbaijani Presidential Aide Hikmet Hajiyev stated in an interview with Chinese Xinhua that Baku's desire to join BRICS represents a logical extension of its active independent foreign policy.

These sentiments were reiterated by Ilham Aliyev during his address at the inaugural plenary session of the Outreach/BRICS+ format, held in Kazan. "Azerbaijan is an active proponent of multilateralism in international relations, a commitment exemplified by our tenure as the chair of the Non-Aligned Movement from 2020 to 2023. Over the course of four years, the chairmanship enabled substantial progress towards institutional development, while significantly bolstering the Movement's influence within international relations systems," he stated.

"By leveraging our geographical location and modern infrastructure development, Azerbaijan has positioned itself as a pivotal transport and logistics hub in Eurasia. Our territory hosts both east-west and north-south transport corridors, which are currently operational and facilitating seamless connectivity. In view of the considerable increase in cargo traffic across the country, further resources are being allocated with a view to enhancing the capacity of these corridors," President Aliyev further elaborated.

Aliyev also discussed Baku's contributions to the collaboration between the Global South and the Global North on climate issues, emphasising the importance of mutual understanding on matters related to climate change security. He highlighted the necessity of adherence to international law, respect for non-interference in each other's affairs, and the principles of mutual respect.

During his attendance at this summit, Aliyev engaged in productive discussions with heads of state from BRICS member countries and leaders from various invited nations. Discussions with President Dilma Rousseff addressed bilateral and multilateral cooperation challenges spanning diverse topics.

In light of the upcoming climate conference scheduled in Baku, the Azerbaijani President extended invitations to distinguished guests to participate in this significant event. All members of the alliance seek solutions that harmonize regulatory frameworks regarding the advanced integration of sustainable technologies into daily practices.

A close exchange of knowledge and experience remains imperative in addressing environmental challenges. Summit participants noted their expectations of meaningful outcomes from COP29 while supporting Baku's aspirations to make it a success, ensuring decisions made will play pivotal roles in adapting our planet to climate changes amidst prevailing climate shifts and overcoming adverse repercussions as a result of these changes.



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