Elizabeth Morgan | Outcomes from the 15th BRICS Summit

The 15th BRICS Summit ended on Thursday, August 24, following the adoption of their outcome document, the Johannesburg II Declaration. Making headlines globally was their decision to expand the membership from January 1, 2024, by six countries, namely, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).

Acknowledging the interest of countries in the Global South in joining the group, the BRICS members stated that true to its spirit and commitment to inclusive multilateralism, they had reached consensus on the guiding principles, standards, criteria, and procedures of the BRICS expansion process. It is not clear what these are as yet.

Concerning news reports in the CARICOM region, I noted the editorial in The Sunday Gleaner (August 27) titled ‘CARICOM and the new BRICS’ and the editorial in Guyana’s Sunday Stabroek News titled ‘BRICS ’. Both were suggesting that CARICOM, in the case of The Gleaner, and Guyana, in the Stabroek News, should be paying attention to developments in the BRICS and assessing implications/benefits for the region. It was noted that both editorials, in their discussion of the BRICS, referenced the Non-Aligned Movement, established in 1961, which claimed to be a body not aligned to either the Western bloc or the Soviet bloc during the Cold War.

I noted that the UN secretary general, António Guterres, in his BRICS address, spoke of the creation of a multipolar world. He cautioned that multipolarity in itself is not enough to guarantee a peaceful or just global community, but required strong and effective multilateral institutions. Jamaica and other CARICOM members have to consider how they manoeuvre in this evolving scenario.

POINTS FROM THE JOHANNESBURG II DECLARATION

In reviewing the Johannesburg II Declaration, the emphasis is clearly on strengthening the group, promoting its interests, and positioning it to play a more influential role in world affairs. I am wondering whether on January 1, 2024, the name of the group will be changed or whether it will simply be known as ‘BRICS Plus’.

The declaration, which covers nearly all items on the global agenda, starts by stating:

“We reaffirm our commitment to the BRICS spirit of mutual respect and understanding, sovereign equality, solidarity, democracy, openness, inclusiveness, strengthened collaboration and consensus. As we build upon 15 years of BRICS Summits, we further commit ourselves to strengthening the framework of mutually beneficial BRICS cooperation under the three pillars of political and security, economic and financial, and cultural and people-to-people cooperation and to enhancing our strategic partnership for the benefit of our people through the promotion of peace, a more representative, fairer international order, a reinvigorated and reformed multilateral system, sustainable development and inclusive growth... .”

The 10 BRICS members in 2024 will include six of the major oil producers in the world – Brazil, China, Iran, Russia, Saudi Arabia and UAE. The declaration states:

“While emphasising the fundamental role of access to energy in achieving the UN Sustainable Development Goals (SDGs) and noting the outlined risks to energy security, we highlight the need for enhanced cooperation among the BRICS countries as major producers and consumers of energy products and services. We believe that energy security, access and energy transitions are important and need to be balanced.”

The BRICS support the implementation of the 2030 UN Agenda for Sustainable Development and its Sustainable Development Goals.

They also call for reform of the Bretton Woods financial institutions (World Bank and IMF), including for a greater role for emerging markets and developing countries, including in leadership positions in these institutions. I noted that there was no mention of the Paris Summit on a New Global Financial Pact, held in June.

SUPPORT FOR GLOBAL ISSUES

They supported work on climate change and the UN Framework Convention on Climate Change (UNFCC) COP28 to be held in Dubai, UAE, November to December 2023. They recognise that the means of implementation should be enhanced by developed countries, including through adequate and timely flow of affordable climate finance, technical cooperation, capacity-building, and transfer of technology for climate actions.

They support comprehensive financial arrangements to address loss and damage due to climate change, including operationalising the Fund on Loss and Damage agreed at COP27 to benefit developing countries.

They reiterated their concern about unilateral sanctions applied contrary to the UN Charter. Of course, sanctions have been imposed on Iran and Russia as well as Venezuela.

As expected, they addressed payment systems. The BRICS Payment Task Force is continuing work on cross-border payments in BRICS countries. This should further enhance cooperation amongst the BRICS countries and encourage dialogue on payment instruments to facilitate trade and investment flows between the members, as well as other developing countries. They emphasised the importance of using local currencies in international trade and financial transactions between BRICS members and their trading partners.

They encourage strengthening of correspondent banking networks between the BRICS countries and enabling settlements in the local currencies. Finance ministers/central bank governors are to consider the issue of local currencies, payment instruments and platforms and report at the next summit, which is to be held in Kazan, Russia, in 2024. This means that President Vladimir Putin will be the next chair of the BRICS-plus group.

It is worth having a read of the 26 pages of the Johannesburg II Declaration, which is available online.

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