BRICS evolution caters to emerging states

Source:Global Times Published: 2014-7-14 23:43:01

The sixth BRICS summit is currently being held in Brazil. Chinese President Xi Jinping, together with leaders from Brazil, Russia, India and South Africa will discuss around the theme of "Inclusive growth: sustainable solutions." 

The leaders are likely to reach an agreement on the Contingent Reserve Arrangement (CRA) and the New Development Bank (NDB), which means the two financial institutions will be officially established.

These will be landmark events in the global financial sector. The CRA and the NDB have an initial capital of $100 billion and $50 billion each. The scale cannot compete with that of the World Bank and the International Monetary Fund, but it means that emerging economies will have their own financial institutions, which is a strategic starting point to diversify financing among developing countries.

Western opinions show both anxiety and disdain over the cooperation among BRICS countries. Many have believed that the BRICS nations have little in common. Some analyses claim that except China, the economic condition of the other four countries is not up to much, therefore the gold BRICS nations have lost their luster and become earthen BRICS.

The grouping owes its creation to an acronym coined by a Goldman Sachs economist in 2001. As Brazil, Russia, India and China have developed rapidly, they have been dubbed "gold BRICs."

South Africa is a latecomer. The five countries do not constitute a geopolitical block. They have different political systems. China and India also have unresolved territorial disputes. There's a lack of cohesion among them.

But all of them are dedicated in their economic and social development. They have been detached from Western clout.

The group has no intention of pursuing political boastfulness, nor does it want to compete with any international organizations.

The group has stuck to its principles of assisting member states rather than creating trouble for them. Unlike the nations of the G7 group led by the US or the G20, some of whom only pick fights with other countries during summits, the BRICS summit is a platform full of positive momentum.

Western countries think with only a political and ideological mind-set. They cannot understand the importance of development to BRICS countries. These countries have voiced differing opinions from the West, which helps the balance of the world. Once the CRA and the NDB are started, they will greatly promote development, which coincides with the wishes of most non-Western countries.

Western opinion has paid particular attention to BRICS nations. The NDB is supplementary to the international financial system, while it also brings in competition, which Western vested interest groups are quite uneasy about. The downplaying of BRICS nations reflects the dysphoria of Western elites. While they cannot stop the trend of growth and prosperity of the non-Western world, they should learn to be open-minded to embrace the diversity of the world.

Posted in: Editorial

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