BRICS »Brazil, Russia, India, China, South Africa » 15th SUMMET in South Africa 2023
Date : 22th to 24 th August 2023
Location : Durban – South Africa
The 15th BRICS Summit in South Africa 2023
The 15th BRICS Summit will take place in Durban in august under the theme: BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism.
Among the issues to be discussed is how to restructure the global political, economic and financial architecture to make it more balanced, representative, inclusive and equitable.
South Africa, as chair of the BRICS (Brazil, Russia, India, China, South Africa), is preparing for the group’s August summit,
South African, are setting themselves up as an alternative to existing international financial and political forums.
Predictions about the BRICS countries as the fastest growing economies haven’t quite panned out.
Instead, the alliance is now offering a diplomatic forum and development financing, outside of the Western mainstream.
BRICS nations (Brazil, Russia, India, China, and South Africa) have been offering an alternative to the dominance of Western nations in global affairs.
The BRICS nations represent a significant portion of the world’s population and economic output, and they have been working to increase their influence on the global stage.
While the BRICS nations may not necessarily be aiming to create an alternative « world order, » their growing influence is certainly challenging the traditional dominance of Western nations in global affairs. It remains to be seen how this will play out in the long term, but it is clear that the BRICS nations are a force to be reckoned with.
Member states and key leaders:
China President Xi Jinping
Russia President Vladimir Putin
India Prime Minister Narendra Modi
Brazil. President Lula da Silva
South Africa (2023 host) President Cyril Ramaphosa
BRICS bank new members in 2021
The BRICS bank is open to new members. In 2021, Egypt, the United Arab Emirates, Uruguay and Bangladesh and the UAE (United Arab Emirates ) took up shares.
However, these were much lower than the respective $10 billion investments made by the bank’s founding members.
BRICS news members – Set to expand, worldwide interest in the BRICS group
Nineteen countries have expressed interest in joining the BRICS, 13 of which have formally applied to join the group, South Africa’s ambassador to the BRICS group announced
Six more countries applying for BRICS membership alongside Algeria, « Saudi Arabia, the United Arab Emirates, Egypt, Argentina, Mexico, Iran and Nigeria are candidates for membership », that have officially requested to join the group.
Bahrain and Indonesia, as well as two East African countries and one West African country, (unnamed) have expressed interest in joining the BRICS.
Brics countries commit to respect the territorial integrity of all states.
The BRICS foremost geopolitical rival to the G7 bloc
The BRICS are considered the foremost geopolitical rival to the G7 bloc of leading advanced economies, announcing competing initiatives such as the New Development Bank, the Contingent Reserve Arrangement, the BRICS payment system, the BRICS Joint Statistical Publication and the BRICS basket reserve currency.
Since 2022, the group has sought to expand membership, with several developing countries expressing interest in joining.
The BRICS have received both praise and criticism from numerous commentators
The G7 is an « informal forum » of heads of state of the world’s most advanced economies, founded in 1975. Germany, France, the United Kingdom, Italy, Japan, Canada and the US are members, as is the EU.
Challenging the World Bank model
In 2014, with $50 billion (around €46 billion) in seed money, the BRICS nations launched the New Development Bank as an alternative to the World Bank and the International Monetary Fund.
In addition, they created a liquidity mechanism called the Contingent Reserve Arrangement to support members struggling with payments.
These offers were not only attractive to the BRICS nations themselves, but also to many other developing and emerging economies that had had painful experiences with the IMF‘s structural adjustment programs and austerity measures.
The New Development Bank
The BRICS nations have established various initiatives, including the New Development Bank, which provides funding for infrastructure and sustainable development projects in emerging economies.
This is why many countries said they might be interested in joining the BRICS group.
BRICS Contingent Reserve Arrangement
The BRICS Contingent Reserve Arrangement (CRA) is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.
It was established in 2015 by the BRICS countries: Brazil, Russia, India, China and South Africa.
The legal basis is formed by the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement, signed at Fortaleza, Brazil on 15 July 2014. It entered into force upon ratification by all BRICS states, announced at the 7th BRICS summit in July 2015.
The establishment of the BRICS Contingent Reserve Arrangement, a financial safety net for member countries in case of economic volatility.
The objective of this reserve is to provide protection against global liquidity pressures.
This includes currency issues where members’ national currencies are being adversely affected by global financial pressures.
Contingent Reserve Arrangement (CRA) in competition against International Monetary Fund (IMF)
The CRA is generally seen as a competitor to the International Monetary Fund (IMF) and along with the New Development Bank is viewed as an example of increasing South-South cooperation.
The IMF works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being.
The capital of $100 billion is distributed as follows: The maximum access states can request from the Arrangement is half (China) to twice the amount of capital contributed.
The most recent economic developments in BRICS
The most recent economic developments in BRICS member states have little to do with the initial myths upon which the group was founded. Of the five members, only China has achieved sustained and extensive growth since then.
As China‘s gross domestic product grew from $6 trillion in 2010 to nearly $18 trillion in 2021, the economies in Brazil, South Africa and Russia stagnated. India’s GDP grew from $1.7 trillion to $3.1 trillion, but was outpaced by China‘s growth.
The possibility of alternative currency
The current global financial crisis and conflicting U.S. foreign policy may explain why Brazil, Russia, India, China and South Africa have stepped up their efforts to launch an alternative currency to the American dollar.
However, this is unlikely to be successful or reduce the importance of the greenback in global markets.
In June 2022, Russian President Vladimir Putin said BRICS nations were working on developing a new reserve currency backed by hard assets such as gold or oil.
The development of a new currency is expected to be discussed in further detail
South Africa to host 2023 BRICS Summit in Durban
Video report from CGTN Africa
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No sanctions against Russia
Since the start of the Russian war in Ukraine, the BRICS countries have only distanced themselves further from the so-called West. Neither India, Brazil, South Africa or China are taking part in sanctions against Russia.
This has become increasingly clear with near-historic levels of trade between India and Russia, or in Brazil‘s dependence on Russian fertilizer.
The BRICS Summit 16th SUMMET 2024 will be held in Russian city of Kazan
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Location : Durban, South Africa