BRICS needs to integrate, forge honest cooperation

Following the 2008 global recession, five major emerging economies Brazil, Russia, India, China and South Africa joined hands to form the BRICS group in 2011. The bloc held a crucial meeting in Goa recently. Its top highlight was the pledge taken by the members to fast-track establishment of a new ratings agency as the existing ones — Moody’s, Standard & Poor’s and Fitch — are all Western-based. These have been accused of favouring the Western economies. It is believed that when the new agency comes up, it would “further bridge the gap in the global financial architecture”.
The group set up a BRICS bank a year back, with an initial capital of $100 billion. The ‘New Development Bank’ (NDB) has given loans amounting to $900 million. Interestingly, all these loans were granted for renewable energy projects in the BRICS countries. The NDB is focusing on clean power and sustainable infrastructure while helping the economies of the bloc to move towards a low-carbon economy.
At the end of the recent BRICS meeting, a joint declaration was issued to fight tax evaders. Rampant corruption in some countries is giving rise to the practice of tax evasion, which is hurting their economies. The BRICS needs to put up a joint fight to check this menace.
Even as the impact of 2008 global recession continues to unfold, the BRICS countries have shown resilience till now. To face the impending challenges, the group must scale up cooperation. It should forge greater integration.
During the meeting, Chinese President Xi Jinping warned that growing anti-globalization and protectionism was posing a threat to the global economy. Therefore, it is incumbent on the group to ensure that it adopts economic openness and removes irritants to free trade. Steps to dismantle trade barriers should be coupled with infrastructural push. When business flourishes among the BRICS nations, the increased engagement will boost their bonds and facilitate win-win partnerships.
Russian President Vladimir Putin showed his keenness to strike closer bond in e-commerce and space technology. Since BRICS countries are witnessing a rise in their younger population, it would be imperative that economies are developed that use the growing human capital through education. The massive talent pool can be invested to cash in on the new wave of technological revolution that’s sweeping the globe.
The joint estimated GDP of BRICS nations — which have 53 percent of the world population — is around $16 trillion. The intra-BRICS trade is $250 billion. To double this number by 2020 would require mammoth and concerted efforts.
The BRICS group will succeed only when it acts in cohesion and works out a consensus on economic disputes, while ironing out its internal rivalries. It will be instrumental in giving international voice to countries that are ignored when the grouping is able to generate confidence through unity in other emerging economies.
Today, most of the blocs are reeling from a lack of trust within their members. The element of sincerity is paramount in any long-lasting relationship. The future of BRICS will depend on its economic integrity and transparency. The group should learn a few lessons from the ongoing fragmentation of the European Union. And keep the bigger picture in mind.