Elizabeth Morgan | 15th BRICS Summit: Expanding bloc key agenda item

The 15th Meeting of the Heads of State and Government of the members of the BRICS group of emerging economies started in Johannesburg, South Africa, on Tuesday. In attendance are President of Brazil Luis Inácio Lula da Silva; Prime Minister of India Narendra Modi; President of China Xi Jinping; and Foreign Minister of Russia Sergey Lavrov. President Vladimir Putin will participate by video. The meeting will be chaired by the host, President Cyril Ramaphosa, who is the current chair of the group.

It is reported that 67 countries from Africa, Asia, and Latin America and the Caribbean were invited to attend. It is not clear whether there is any representative from the CARICOM region attending.

In 2018, Jamaica’s Prime Minister Andrew Holness attended the 10th Summit as chair of CARICOM. Twenty dignitaries have been invited also, including the UN secretary general, the commissioner of the African Union, and the president of the BRICS New Development Bank.

It seems no western leaders will attend this summit, in spite of a bid by President Emmanuel Macron of France to be invited. You may recall that President Macron co-chaired, with Prime Minister Mia Mottley of Barbados, the Summit on a New Global Financial Pact held in Paris in June. This was inspired by Barbados’ Bridgetown Initiative and members of the BRICS were present.

I wrote about the BRICS on April 19 in my article titled ‘Interest in the BRICS new economic order’, given the focus on the utterances from, and activities of, the group, especially as the war in Ukraine unfolded with its economic and political consequences.

An article from Modern Diplomacy quotes President Ramaphosa as saying that the bloc could be “transformative” representing those nations, including from Africa, that wish to play a role in world affairs, ensuring benefit to the Global South, and that BRICS has acquired a very important stature in the world, with many across various continents seeking to be part of it.

THE AGENDA

The items on the agenda will include the expansion of the group and using local currencies in cross border trade, instead of relying on the US dollar.

Regarding the expansion of membership, it is known that about 40 countries have shown an interest in joining, as President Ramaphosa stated. Formal applicants for membership include Algeria, Belarus, Saudi Arabia, United Arab Emirates, Iran, Indonesia, Argentina, Ethiopia and Egypt. However, it seems that this may still be open for discussions.

It is reported that there is not a unanimous decision among the four current members. India and Brazil, apparently, are still to be convinced. There is concern about some countries applying for membership, and the motives behind wanting to expand and to join the group.

Expanding the membership could be more in China’s favour. India wants strict rules for membership to be agreed. Brazil believes there should be an observer status, with membership after a period of time. Expanding the membership could significantly change the group from its original intent. So, by the end of the summit on August 24, we will know whether there has been agreement on admission of any new members, and on future expansion.

There has been much talk about the BRICS aiming to reduce the dominance of the US dollar in the global economy as the reserve currency and developing an alternative BRICS currency. It is said though that, at this summit, they will not be considering replacing the US dollar. They will be discussing using local currencies in international trade. The BRICS New Development Bank is reported to be in support of this. The aim of using local currencies is to limit the impact on trade when sanctions are imposed on trading partners. Due to the war in Ukraine, economic sanctions have been imposed against Russia. This group is opposed to the imposition of unilateral sanctions, as stated in the joint statement of BRICS foreign ministers issued in June.

It can be expected that the trade-related financial issues will be raised in international fora, such as the G20, to be held September 9-10 hosted and chaired by India; the UN General Assembly High Level Sessions later in September; and in the World Trade Organization, with its 13th Ministerial Conference to be held in 2024. I assume that these issues are being monitored in the CARICOM Council for Trade and Economic Development, as well as in the Council for Foreign and Community Relations.

We should be monitoring and assessing developments at this BRICS Summit.

Elizabeth Morgan is a specialist in international trade policy and international politics. Email feedback to columns@gleanerjm.com.