USA
Source: www.economist.com

When the brics meet in Russia in October 2024 they will need a bigger stage than ever. Leaders of the five countries that gave their name to the bloc—Brazil, Russia, India, China and South Africa—will be joined by those from an additional six. The admission of Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates will reflect how geopolitics is changing: the world is becoming more multipolar and middle powers more assertive in challenging the Western-led order. But the summit will also show the limits of what a heterogeneous "global south" can achieve.

In the 2010s the bloc was derided by the West. The economies of China and India grew rapidly but stagnation elsewhere meant the brics became synonymous with underperforming emerging markets. Other forums, such as the g20, were better places to thrash out thorny global issues. The brics lacked a purpose.

The BRICS lacked purpose. But not any longer Not any longer. Rising tensions between the West and China, and Russia's invasion of Ukraine, mean emerging powers see the brics as a vehicle for more independent foreign policies. For China, the driving force behind expansion, the bloc is a potential counterweight to the g7.

The group will forgo becoming brisiesauce and retain the brics name. It looks, at first glance, to be a formidable outfit, accounting for 46% of world population and 29% of gdp. It will include two of the three largest oil producers, and the most powerful countries in the Gulf, Latin America and, arguably, Africa. A bigger brics will have a louder voice to critique the Western-led order.

Yet the bloc is too economically diverse to embrace a currency union or free-trade area. Its members also have different political systems and contradictory strategic aims. So it will never have a unified position on, say, reform of the un Security Council—due to be discussed at the organisation's annual meeting in New York in September. Ultimately, the brics are the geopolitical version of Manchester United or Paris Saint Germain: 11 players that are less than the sum of their parts. ■

Russia
Source: valdaiclub.com

At the 15th BRICS Summit in South Africa, Algeria's candidacy was not retained to join the 5-member grouping; six out of 23 candidates were chosen: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. While politically, Algeria is the ideal candidate, its economic standing might not have been attractive enough, at least not yet. The pause before eventual membership in the BRICS at a later date should entice Algeria to accelerate long-overdue domestic reforms, reflect, innovate, and bolster efforts to position itself as an indisputable player on the global stage.

For decades, Algeria has supported the idea of transforming the world order so as to make it more just. In the 1970s, it was a strong advocate for a New International Economic Order (NIEO), whose main objectives were ending neocolonialism and establishing a more equitable international system. The NIEO Declaration of 1974 sought to institute a world "based on equity, sovereign equality, interdependence, common interest, and cooperation among all States, irrespective of their economic and social system…" These ideas continue to be debated within the Non-Aligned Movement's forums and other groupings of the Global South (e.g., G77, UNCTAD). These NIEO dreams never materialized because the Global South was unable to counteract US hegemony, which has defended the institutions of the Bretton Woods system (World Bank, IMF…) and what some analysts dubbed the "diktat" of the US dollar in most global trade transactions. This was even more difficult with the collapse of the Soviet Union and the victory of the liberal system imposed by the United States and the European Union. Western domination did not end the search for alternatives to escape a financial system whose institutions enforced stringent political and economic conditionalities. For instance, in September 1989, 15 countries from Latin America, Africa (including Algeria), and Asia, known as the G15, promoted growth, prosperity, and cooperation among the Developing Countries to challenge the G7. Although the G15 failed in achieving it objectives, the idea it promoted of a "more equitable" and just world persisted.

The BRICS "encapsulates the rise of emerging markets around the world." It highlights the necessity for emerging powers to gain a greater voice in global governance. This is a legitimate demand for the BRICS, which represents 43% of the global population. In 2014, the BRICS created the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). The NDB provides loans for infrastructure and sustainable-development purposes in developing and emerging economies with more flexible conditions and as an alternative to the Bretton Woods institutions.

Since 2020, the government has sought to revitalize Algeria's foreign policy and to introduce economic reforms to reduce the country's dependency on hydrocarbons revenues. The vision overlapped with that of the BRICS. In November 2022, Algeria officially applied for membership in BRICS. In July 2023, President Abdelmadjid Tebboune announced that Algeria had also applied for membership in the NDB, offering to contribute $1.5 billion in initial capital. He explained that Algeria shares similar objectives with the BRICS and China regarding development, UN reform, fairness in international relations, and the establishment of a multipolar world; he also stated that the IMF and the World Bank, which require serious reform, no longer serve the interests of the poor and developing countries.

Algerian officials privately admit that the major obstacles for admission to the BRICS are domestic, like the out-of-date banking system, the existence of a strong informal economy, challenges posed by an entrenched and invasive bureaucracy, and pervasive corruption at most levels. These weaknesses are precisely what Algerians hope can be remedied through BRICS membership, a kind of an external validation and a potential instrument for internal reform. If affiliated with BRICS, Algeria would benefit from investments through entities like the NDB and CRA. This would also enable it to access the markets of the member states, enhance its infrastructure, and further its mineral resource initiatives.

Algeria requires internal resilience and capabilities to enact transformative change, for Algeria cannot forge its ideal future unless the internal environment is propitious for business.

This involves a commitment to overhaul the systemic inefficiencies and tackle endemic corruption, thus laying the groundwork for sustainable economic and political progress. By addressing these challenges, Algeria can lay a solid foundation for lasting economic and political progress. Only then can the country optimally utilise platforms like BRICS to catalyse its transformation, leveraging both internal capabilities and external opportunities to realise its aspirations. As Algeria's foreign minister stated, "although we [Algerians] have not joined BRICS, we remain committed to joining institutions such as the New Development Bank and the Shanghai Cooperation Organisation," adding that "the outcome shouldn't be perceived as a significant setback for Algeria but rather as an interim step in a longer-term strategy."

Membership in the BRICS corresponds to Algeria's approach to international relations, which are deeply rooted in a policy of nonalignment. According to this policy, Algeria maintains an equitable stance in its interactions with global powers, aspiring to pursue relations that best serve its national interests. It links this approach with the Non-Aligned Movement. Although it opposes Western hegemony, Algeria does not wish to become part of yet another clash between blocs, for "membership of this group [BRICS] would shield Algeria, a pioneer of non-alignment, from the tug-of-war between the two poles." Like South Africa, Algeria considers Western countries as important partners in trade, security, and in numerous other areas. For Algeria, nonalignment implies good relations with all the players "ready to meet its needs...If it's China, it's China. If it's Russia, it's Russia. If it's the United States, it's the United States. The most important thing is our national interest."

Algeria is a rich country. The United Nations Human Development Indexes rank it highly, but its Achilles Heel is the management of its economy. Although the BRICS have yet to enact a list of criteria for membership, it is obvious that Algeria must develop a stronger economy, independent of hydrocarbons, if it wishes to be accepted because it is economic performance that binds the five BRICS countries together, whose common currency reserve amounts to about US$ 4 trillion; collectively, they will account for 32.1 percent of global GDP by the end 2023, surpassing the G7. Trade within BRICS reached $762 billion in 2022. To achieve its economic potential, Algeria should adopt a multifaceted strategy. Firstly, modernising the banking sector and streamlining bureaucratic procedures could ease the path for foreign investments. Recently, Algeria has been actively upgrading its economic framework to attract both local and international capital, underscored by new laws like the Money and Credit Law and the Public-Private Partnership (PPP) Law. These legislative changes align with the September 2021 Government Action Plan, which recommends pivoting toward private-sector-led development and job creation. To maintain this positive trajectory, Algeria should continue implementing reforms to build a favourable macroeconomic climate where the private sector can be the cornerstone of sustainable growth. Secondly, Algeria could initiate steps towards broader global integration by entering into targeted bilateral or multilateral agreements with BRICS nations, focusing particularly on areas such as agriculture, energy, and education. For instance, Algeria could add to the current BRICS contribution of about 40% of the world's total grain output and over 50% of the global agricultural value. This offers a valuable opportunity for Algeria to learn from and collaborate with these agriculturally rich nations. By engaging in technology transfers and sharing expertise in contemporary farming methods, even in the Sahara, Algeria could significantly boost its agricultural productivity, ensuring a stable food supply and creating mutual benefits. Forming energy alliances with BRICS countries could fortify Algeria's energy resilience and generate new export avenues. Lastly, collaboration in education, perhaps through the planned BRICS student exchange programmes or joint research initiatives, could have a twofold benefit: improving Algeria's educational system and building a skilled workforce capable of driving innovation and growth. This is achievable especially since Tebboune came back from Russia and China with important economic agreements. The hope is that the multi-billion dollar investment he signed with China would considerably help the Algerian economy but would also strengthen Algeria's status within the BRICS.

In October 2023, Tebboune declared that the "BRICS dossier is definitively closed." It would be a serious mistake if by this he meant that Algeria would no longer seek membership. President Vladimir Putin stressed shortly afterwards that Algeria's membership in the BRICS is very important. The path to the BRICS is widely open; Algeria's inclusion in this important group would provide a unique opportunity for its development. With its specific strengths—abundant energy and mineral reserves, significant role as a regional and economic hub in Africa, and well-established diplomatic relations with existing BRICS nations—Algeria remains an inescapable candidate for BRICS membership.

However, Algeria should take a few steps to prepare for membership. In addition to initiating the essential economic reforms, it would be judicious that it establishes one or several centres for BRICS studies to conduct research on the BRICS members and ways in which the members cooperate with one another. The government should set up a lobby group to represent Algeria among BRICS members. The government should also encourage exchange programmes for scholars, students, artists, journalists, media specialists, and influencers to provide information about the country's potential. For instance, Algeria can promote the idea of building a BRICS school with one or several member countries. Algeria could also suggest the establishment of a BRICS-Algeria free trade area or, better yet, a BRICS-African Continental Free Trade Area (AfCFTA), modelled on the China-ASEAN Free Trade Area, suggesting that payments among consenting states be made in local currencies. Algeria can also create a BRICS business council in one of its southern cities, where Algeria is developing desert agriculture, and promote the development of food sufficiency. With the completion of the Trans-Saharan Highway, Algeria is well positioned to develop BRICS-Sub-Saharan trade. The possibilities are immense, and their sponsorship would make Algeria a truly indispensable member of the BRICS.

Russia
Source: valdaiclub.com

The architects of the current global governance system have failed the world. Not only didn't they redeem the sins of their ancestors, but we now have the leaders of the richest club in the world convening every year preaching to the rest of the planet about the rules-based order, while the rules are treated like tissues from a Kleenex box, usable at times but discarded when inconvenient, John Gong writes.

There is a reason why six new members were tapped to be added to BRICS in Johannesburg. There is a reason why more than 20 countries so far have applied to join BRICS. These national aspirations resonate with a theme of the creation of another world system. I will go back to one of the most important founding principles of BRICS to address the nature of this pending new world system, which is, I quote, "the shared commitment to restructure the global political, economic, and financial architecture to be fair, balanced and representative, resting on the important pillars of multilateralism and international law."

In other words, the current incumbent world system is unfair, unbalanced, and is definitely unrepresentative. The unfairness, the lack of balance and the dearth of representation in the current system is not just a recent creation; it can be traced back hundreds of years. Four out of the five original BRICS members were victims of European colonialism for the better part of the past three hundred years. The period starting with the Age of Exploration in the 16th century and culminating with the end of the Second World War in the 20th century can be said to be one of the darkest, most grossly unjust chapters of human history, with the proliferation of sugar plantations, coffee plantations and slave trade at the hands of European colonists, even amidst the tremendous progress in science and technology, arguably also steered and led by the West.

The end of the Second World War didn't change that status quo in substance, although the victors could have worked towards this. Even the subsequent establishment of the international institutions by the US-led coalition, including the United Nations, the WTO, the IMF, the World Bank and many others, not only did not correct a grotesque historic wrong, but on the contrary continues and perpetuates that historic wrong, albeit not via naked force and violence, at least not ostensibly.

The so-called international rules-based order has failed spectacularly the hopes of the victims of colonialism, and it begs a fundamental question: whose rules, whose order, are we talking about here?


Yes, we have a United Nations and its charter. But count how many times regime changes in foreign lands have been orchestrated by the United States without UN approval. Yes, we have a WTO. But count how many times the WTO dispute settlement panel decisions are outright rejected and ignored by the United States, and to the extent that the appointment of that panel's succeeding members could even be blocked. Yes, we have an IMF. But count how many times the IMF rescue packages were acting as a political choke tool to encroach upon a sovereign nation's political establishment because of some ideological penchant of some countries. Yes, we have a World Bank. But count how many real ports, bridges, railways and highways the World Bank helped build vis-à-vis the so-called capacity building it is so fond of indulging in.

The architects of the current global governance system have failed the world. Not only didn't they redeem the sins of their ancestors, but we now have the leaders of the richest club in the world convening every year preaching to the rest of the planet about the rules-based order, while the rules are treated like tissues from a Kleenex box, usable at times but discarded when inconvenient. We are left with a compromised, negotiated division of power among a few Western capitals in the northern hemisphere. The vast majority, the Global South, the offspring of the victims of the colonial era, continue to be side-lined and marginalized in a global system that is working fundamentally at odds with their economic and political interests. A large number of developing countries in the South continue to struggle economically and politically as they did in the colonial era.

The root cause of the failings of the current system has everything to do with the unipolar world, or the almost-unipolar world after the Cold War. Unipolarity brews hegemony, and hegemony promises neither peace nor prosperity. The revered US statesman Henry Kissinger has this equilibrium theory for international politics. Those well-versed in game theory understand that there would be no equilibrium with a dominant player with a dominant strategy, which means he can act in his interest with no regard to other parties' interests.

The rise of the BRICS and this year's BRICS Plus expansion signify a new era coming, in which unipolarity no longer holds anymore, and in which the Global South calls for the end of the current, broken system. The endeavour of BRICS Plus to restructure the global political, economic, and financial architecture rests on the pillars of multilateralism and international law. BRICS Plus and the Global South in general do not seek a wholesale overhaul of the current system. It does not pursue a confrontational or revolutionary approach against the West to reach its goals. It recognizes and respects many of the international rules and laws developed over the last seven decades. It prefers a multilateral framework to work and cooperate with the West to gradually modify the shortcomings of the current system, in order to pursue a new system in which there is multipolarity, there are checks and balances, and hopefully there is a peaceful equilibrium.

In that sense, as scholars from the BRICS world, we call upon the leaders of the West to view the rise of the BRICS not through an antagonistic, geopolitical lens, but as an equal partner that deserves understanding and respect. The world has changed. No longer will the Global South accept the West's pompous, condescending lectures. Today, BRICS Plus already represents nearly fifty percent of the world's population and 36% of the world's GDP. It is time to reflect on the true state of the world we are living in and act accordingly.

Let's point to some concrete ways in which BRICS is developing, mostly from an economics perspective, as part of achieving the BRICS goal of achieving a new global order. First, economic development underlies everything. In addition to making BRICS a political platform for advocating the Global South's interests in dealing with the West, the NDB, which is the BRICS' World Bank, needs to continue to make project loans, especially in infrastructure projects, at a relentless pace under its own set of loan standards.

Second, it must continue to support China's Belt and Road initiative and other countries' initiatives that provide infrastructure connectivity, connectivity in other soft infrastructure, and cultural, societal, and people-to-people exchanges. Needless to say, infrastructure provides the basis for economic development, which provides for economic and political power in international relations.

Third, find ways to facilitate trade and investment flows within the BRICS and with the Global South in general. Current global trade is undergoing a structural re-orientation, due to the conflict in Ukraine, America's big power competition with China and other reasons. Sino-Russian trade is a very good example; it has been increasing by 70% year-over-year so far this year. This kind of intra-BRICS trade and investment flows strength BRICS' economic base, which in turn translates into a political base.

Last but not least, the world's financial system is in desperate need of some reform. We have seen enough of countries, companies and individuals that are subject to arbitrary sanctions due to one country's unique role in the global financial system. There must be some initial developments within BRICS to circumvent that power, in terms of trade currency, currency transfers, settlement mechanisms, etc.

In short, the West' dominance in world politics over the last few hundred years is fundamentally based on economic and technological dominance. For BRICS to truly be a force to be reckoned with in world politics, it needs to step up in these areas as well.

China
Source: english.news.cn

TEHRAN, Nov. 15 (Xinhua) -- Iran and Russia on Wednesday exchanged views on the BRICS activities in different areas and the group's expansion and development in the future.

The issues were discussed in a meeting in the Iranian capital Tehran, between Iran's Deputy Foreign Minister for Economic Diplomacy Mehdi Safari and visiting Russian Deputy Foreign Minister Sergey Ryabkov, according to a statement published on the Iranian Foreign Ministry's website.

The two sides discussed BRICS activities in the fields of economy and trade, energy, agriculture, science and technology, environment, sports and culture, among others, the statement said.

Safari said Iran is determined to take an active role in BRICS' broad and diverse activities, assuring that his ministry would do its utmost to "play an effective and constructive role in BRICS."

Ryabkov, for his part, congratulated Iran on its recent admission to the group, elaborating on the priorities of Russia's BRICS chairmanship in 2024.

BRICS is a group of emerging economies that are currently membered by Brazil, Russia, India, China and South Africa.

In August, it was announced at the 15th BRICS Summit in South Africa that six countries, including Iran, Argentina, Egypt, Ethiopia, Saudi Arabia and the United Arab Emirates, had been invited to join the bloc, and their membership would take effect on Jan. 1, 2024. ■

United Kingdom
Source: www.etfstream.com

BRICs acronym creator Lord Jim O'Neill has said he never intended for the emerging market investment framework to become a political club.

Speaking at ETF Stream's ETF Buyer London event, O'Neill said the recent expansion of the group had made it "highly political" and was something he "never encouraged".

"The way BRICs has developed in emerging markets is not really what I intended. I never encouraged them to develop a political club," he said.

"It has made the framework much more durable and has added to its longevity. The recent decision to expand has now become highly political and I am not sure what fruitful purpose it serves other than being a club that the US is not a part of."

O'Neill coined the acronym in 2001 as former head of global economics research for Goldman Sachs in a bid to capture the performance of the 'Big Four' emerging markets.

BRIC – which stands for Brazil, Russia, India and China – hit the headlines in recent months following the announcement it would be expanded to include five more nations, comprising Iran, Saudi Arabia, Egypt, Argentina, the UAE and Ethiopia.

South Africa is also part of the intergovernmental group which it helped found in 2010.

Analysts have questioned how impactful the expanded organisation will be and its ability to act in unison as it looks to counterweight the power of the US and the west.

China fluke

Turning to the dominant country of the 'Big Four' – China – O'Neill said he was not surprised by the country's recent economic slowdown given its ongoing population dynamics and falling productivity.

"The labour force is now turning down because of some very strange decisions by President Xi Jinping which is weakening productivity," he said. "Therefore, the weakness of Chinese markets is not that surprising.

"The comparison to Japan in the 1980s and 1990s is not completely crazy, which probably has the worst labour force dynamics in the world.

"Perhaps I have misunderstood China for the past 30 years because I could not understand anything they have done over the past four years in terms of the lockdown aggressiveness which has deliberately weakened their own growth industries. If they do not shift, it will stay really bad."

Despite being developed as an investment framework, O'Neill said he should have labelled it 'IC' following the terrible performance of Russia and Brazil over the past decade.

Russia's exclusion from major indices following its invasion of Ukraine has compounded this further.

Earlier this year, BlackRock's BRIC ETF changed its name to the iShares BIC 50 UCITS ETF (BRIC)after index provider FTSE Russell deleted Russian equities from the index. Over the past decade, the ETF has returned -14.2%.

Russia
Source: tvbrics.com

The World Youth Festival 2024 (WYF 2024) will take place in the Russian city of Sochi from 1 to 7 March and will host 20,000 young people from around the world. Representatives of Latin American countries will play a very important role at the festival, as will the BRICS and BRICS+ countries.

BRICSLat, a partner of TV BRICS, held a meeting with the WYF regional coordinators for Latin America, who spoke about the work they are doing with the committees, the goals of the festival and the importance of dialogue.

"We are very interested in Latin American integration. For us, this Latin American integration, BRICS integration with other regions is a priority," said one of the coordinators.

There are three regional coordinators in Latin America: Elizaveta Feofilova, Daria Litova and Ruzanna Malikova.

The WYF is scheduled for next March, so it is now in the preparatory phase. One of the objectives of this stage is to create a network and community beyond the World Festival itself. "Our idea is, firstly, to bring all these young people together during the preparatory activities and create a network of young leaders in Latin America that could exist before and after the festival. Secondly, to create a strong community based on this network that will exist after the event," said Daria Litova.

"We also want to show the whole world what the real Russia is. For Latin American youth, this is a special opportunity to get to know the Russian Federation beyond preconceived notions, as well as an opportunity to build bridges between cultures," said Elizaveta Feofilova.

"The interest in travelling to Russia among young people in Latin American countries is very high. This gives us hope and confidence that there are many young people who want to participate in the WYF," mentioned Ruzanna Malikova.

Events in Latin America

The different WYF committees are developing activities to promote the festival and create a network of young people around the world.

"We hold cultural presentations. For example, in Colombia our ambassador is a classical musician and she promotes the festival with her concerts. This is great because art knows no borders," Litova emphasised.

"In Brazil, for example, we work with the council of Russian compatriots. These are people who have Russian roots in the second or third generation and are mostly Orthodox Christians. For them, tradition is an important value. That is why there is now an open discussion about how to integrate tradition into the modern world," she added.

"In Argentina, one of the most active committees with a very clear system of work. In Paraguay, we work closely with the Ministry of Youth, we have achieved an official note from the ministry that determines the status of a project of interest to the festival and to the committee. We do various presentations. We also use social media very actively," Feofilova noted.

"In general, in each country we have quite a lot of work to do in these three areas - presentations, social networks and media," Feofilova summarised.

It is important to note that so far two key discussions have been scheduled at the WYF: "Russia and Latin America: a new page of co-operation" and another one is dedicated to the indigenous peoples of the region.

As for what kind of young people the committees are looking for to participate in the festival, they said they expect "young people from different spheres: culture, sports, science, politics, business, volunteering."

"It is very important for us that a person should be a professional in his field of activity and study. He should be very active, participate in various events, have some achievements," Feofilova said.

About the World Youth Festival

The main programme of the festival will take place from 1 to 7 March 2024, and from 10 to 17 March 2024 a tour of 26 Russian cities, including Moscow, St. Petersburg, Kazan and Vladivostok, will be organised.

The festival, which will be attended by 10,000 young Russians and 10,000 foreign citizens, will be held at the Sirius Education Centre in Sochi. It was created in the Olympic Park after the 2014 Winter Games and has all the necessary infrastructure for a comfortable stay.

Representatives of young people from all regions of the world - Europe, America, Africa, the Middle East, Asia and Oceania - will be able to take part in three programmes: educational (debates, round tables, expert presentations, master classes and networking), cultural (excursions, exhibitions, fairs, performances and Russian language lessons) and sports (competitions and group training).

Photo: IStock
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