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BRICS Summit 2024
Towards A New World Order In The Global South
By Shumirai Chimombe
BRICS+ at a glance
The expanded bloc of countries (now called BRICS+) includes Brazil, Russia, China, India, South Africa, and the new member states Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE).
This represents a combined population of about 3.5 billion, or 45% of the world’s population.
Combined, its economies are worth more than US$28.5 trillion – about 28% of the global economy. With Iran, Saudi Arabia and the UAE as members, BRICS+ produces about 44% of the world’s crude oil.
13 countries have now joined the BRICS organisation as partner nations (not full members) - Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, Vietnam.
The Global Clout of The New BRICS
At the BRICS Summit 2024 the member nations set out to reinforce their mission to build a multipolar world offering alternative economic institutions that are more representative and democratic and not dominated by the Western powers. The member countries resolved to strengthen trade and financial cooperation and coordination - a commitment that resulted in the historic Kazan Declaration, paving the way for the establishment of a new world order.
“BRICS is an inclusive formation that has the ability to change the trajectory of the Global South. To do this, we must realise the full potential of our economic partnership to ensure sustainable development for all. We must undertake bold steps towards a mutual, shared and equitable prosperity.”
This was part of President Cyril Ramaphosa’s statement during the plenary session of the 16th BRICS Heads of State Summit that took place in Kazan, Russia from 22 to 24 October with the theme‘‘Strengthening Multilateralism for Just Global Development and Security’’.
This year’s summit was significant as it was the first gathering of the expanded BRICS+ which includes Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE). Around 20 world leaders attended the Summit, and the UN Secretary-General Antonio Guterres was also present. “Like most of the world, South Africa desires the smooth operation of supply chains, trade, tourism, and financial flows free from external influence in a multipolar world. Working together, BRICS has an important role in addressing the key challenges of the Global South in partnership with like-minded emerging market countries”, continued Ramaphosa.
He added that BRICS business entities had met in Moscow before the Summit under the stewardship of the BRICS Business Council to explore tangible trade opportunities between the countries. “For South Africa, these endeavours – which are focused on practical results – are critical in addressing our country’s central national priority of inclusive economic growth.For us, inclusive growth means, among other things, prioritising women-led businesses. In this regard, we acknowledge the diligent work of the BRICS Women’s Business Alliance to unlock economic value between the BRICS countries for the development, growth and sustainability of women-owned businesses.”
The Kazan Declaration - paving the future for sustainable development and inclusive growth
The Kazan Declaration was unanimously adopted by the world leaders on 23 October. This groundbreaking, landmark document called for “the promotion of peace, a more representative, fairer international order, a reinvigorated and reformed multilateral system, sustainable development and inclusive growth”.
Some Key Highlights:
On multipolarity:
We note the emergence of new centres of power, policy decision-making and economic growth, which can pave the way for a more equitable, just, democratic and balanced multipolar world order. Multipolarity can expand opportunities for EMDCs [emerging markets and developing countries] to unlock their constructive potential and enjoy universally beneficial, inclusive and equitable economic globalisation and cooperation.
On multilateralism:
We reiterate our commitment to improving global governance by promoting a more agile, effective, efficient, responsive, representative, legitimate, democratic and accountable international and multilateral system. We call for assuring greater and more meaningful participation of EMDCs and least developed countries, especially in Africa and Latin America and the Caribbean, in global decision-making processes and structures and making them better attuned to contemporary realities.
On the World Trade Organisation (WTO):
We reaffirm our support for the rules-based, open, transparent, fair, predictable, inclusive, equitable, non-discriminatory, consensus-based multilateral trading system with the World Trade Organisation (WTO) at its core, with special and differential treatment (S&DT) for developing countries, including Least Developed Countries.
On the International Monetary Fund (IMF):
We reaffirm our commitment to maintaining a strong and effective Global Financial Safety Net with a quota-based and adequately resourced IMF at its centre. We call for the reform of the Bretton Woods institutions, which includes increased representation of EMDCs in leadership positions to reflect the contribution of EMDCs to the global economy.
On blended finance and development banks:
We recognise that the use of blended finance is an effective way to mobilise private capital to finance infrastructure projects. We note the important role of multilateral development banks and development finance institutions, in particular national development banks, in institutionally scaling up the use of blended finance and other instruments.
On BRICS cross-border payment system:
We recognise the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimising trade barriers and nondiscriminatory access. We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners. We encourage strengthening of correspondent banking networks within BRICS and enabling settlements in local currencies in line with BRICS Cross-Border Payments Initiative (BCBPI), which is voluntary and non-binding.
On establishing BRICS grain exchange:
We reaffirm the need to develop a fair agricultural trading system and implement resilient and sustainable agriculture. We welcome the initiative of the Russian side to establish a grain (commodities) trading platform within BRICS (the BRICS Grain Exchange) and to subsequently develop it including expanding it to other agricultural sectors.
On the value of small businesses:
We acknowledge that the MSMEs [micro, small and medium enterprises] sector is a well-proven lever of economic growth, enabling an increase in overall labour productivity, household incomes and quality of goods and services. We intend to exchange best practices of supporting MSMEs, including through digital services and platforms aimed at simplifying business operations.
On the role of women
We acknowledge the critical role of women in political, social and economic development. We underline the importance of women’s empowerment and their full participation on the basis of equality in all spheres of society, including their active participation in decision-making processes, including in senior positions, which are fundamental for the achievement of equality, development and peace. We recognise that inclusive entrepreneurship and access to finance for women would facilitate their participation in business ventures, innovation, and the digital economy.
