By HE YAFEI

THE BRICS Summit convened in Goa, India, last October. Leaders of the five BRICS nations — Brazil, Russia, India, China, and South Africa — also held meetings a month earlier at the G20 Summit in Hangzhou. World attention is now riveted on the BRICS nations with the expectation that they will lead developing countries to accelerate the transformation of global governance from its present “governance by the West” to “co-governance by West and East.”

On October 16, 2016, President Xi Jinping, Prime Minister Narendra Modi of India, President Jacob Zuma of South Africa, President Michel Temer of Brazil, and President Vladimir Putin of Russia attended the 8th BRICS Summit in Goa.

When talking about the relationship between the BRICS mechanism and global governance, the following points merit particular attention.

First, the BRICS mechanism plays the strategic role of a bellwether for developing countries. Unity and cooperation among BRICS members also enhances the rights of developing countries to be heard and make decisions on global political and economic affairs.

In this era of world multipolarization and economic globalization, global economic growth has remained feeble and financial risks have accumulated since the financial crisis. The BRICS nations have consequently encountered difficulties and challenges, such as imbalances in economic development and internal divergences. Certain Western countries belittle the BRICS mechanism, saying that it is faltering, or even in ruins. This view is based on the innate Western sense of superiority which the ineluctable rise of developing countries threatens, causing worry and unease. Some Western countries have hence overstated the shortcomings of the BRICS mechanism, and have even gloated when certain BRICS economies suffer slowdowns due to the spillover effect of Western monetary policies.   

In fact, the BRICS mechanism has matured over 10 years of development, evolving from a mere concept to a group of five emerging economies from the four continents of Asia, Europe, Africa, and South America. It has become a vital platform for major developing countries to conduct exchanges and dialogues in the spheres of politics, economics, finance, development, and culture. In the process, it has established a framework for multi-layer, multi-area, all-round cooperation. Today we can proudly state that the BRICS, with an enhanced cohesive force, represents more than ever the voice and interests of developing countries in international affairs.

The development of the BRICS mechanism meshes with the rise of developing countries and the significantly narrower gap between them and developed Western countries. World history and political and economic patterns have experienced a fundamental change – one that could be considered the most important characteristic and historical trend of international society in the 21st century.    

China’s Finance Minister Lou Jiwei (sixth left), Shanghai’s mayor Yang Xiong (sixth right) and President of the New Development Bank (NDB) Kundapur Vaman Kamath (fifth left) and other officials and professionals attended the opening ceremony of the New Development Bank in Shanghai, China, July 21, 2015.

The five BRICS nations account for 42 percent of the world’s population and 20 percent of world GDP. They therefore constitute a major engine of global economic growth, and an indispensable force in overcoming global economic imbalances and propelling integrated development. These emerging economies displayed their significance as regards global economic growth and governance in 2008, during the financial crisis. In the past decade, the BRICS nations have contributed to more than 50 percent of global economic growth – China alone as much as 30 percent.

The BRICS nations command vast domestic and overseas markets, immense development potential, and ample room for policy maneuver. They now have more of a voice within international institutions and systems, such as the UN and G20, and more say in dealing with global problems, such as climate change and energy issues. It is no longer feasible to try tackling such global challenges without the participation and cooperation of the BRICS and other developing economies.

Second, the BRICS mechanism is one of the most important platforms for global governance today. It has played a significant role in promoting the transformation of global governance from that of “governance by the West” to “co-governance by West and East.” Moreover, the BRICS cooperation mechanism’s innovation of both the concept and model of global governance is expected to improve international order.

Active participation by developing countries is crucial to building a just and fair system of global economic governance. Leaders of the BRICS nations held regular informal meetings before the G20 Summit, their aim to strengthen coordination in such areas as economic growth, financial reforms, climate change, and trade frictions. These efforts were conducive to promoting structural reform of IMF and World Bank governance. They also enhanced the representation of developing countries in urging reduced spillover effects of the monetary policies of developed countries. A more favorable international environment could thus be created for the less developed countries’ economic growth and financial stability. Leaders of the BRICS nations continue to meet periodically to discuss major global issues, so expanding their international influence and providing strategic foundations for the greater participation of developing countries in global economic governance.  

That big and small countries are equal, and international relations should move towards democratization are key principles of China’s foreign policies. The BRICS nations are an important facet of developing countries, and a backbone force for safeguarding world peace and promoting common development. The BRICS cooperation mechanism highlights the importance of South-South cooperation. Its core concepts lie in “common development” and “development and cooperation,” whereby the BRICS nations and other developing countries work together towards common development by sharing experience and win-win cooperation. The BRICS nations uphold equity and justice in international relations, and champion the common interests of developing countries in major international and regional issues. They thus promote a just, fair, and appropriate system of global governance and international order.

The now mature, stable and healthy BRICS mechanism has entered a new phase. President Xi Jinping emphasized at the G20 Summit in Hangzhou that developing countries’ participation in global economic governance does not imply replacement or denial of the current international governance architecture, but rather constitutes a long-term process of interaction and complementarity among developing and developed economies. The enhanced BRICS cooperation aims not to overturn the current international order but to improve global governance by making it adapt to the changing circumstances. Therefore, Western countries don’t need to fear that the BRICS mechanism will build a governance structure outside that of the current international system.

Third, the BRICS nations will promote and lead the common development of developing countries, which is conducive to long-term, sustainable global economic growth, neutralizing the negative impact of globalization, and narrowing the gap between rich and poor.  

The BRICS nations have experienced good development momentum. Based on the endowment of their respective resources, they have complemented one another’s industrial structures. The multi-level, all-round cooperation that has formed among them has begun to benefit a considerable number of developing countries.

The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, serves as a platform for BRICS nations to enhance win-win cooperation with other nations. Its operation has (1) enabled BRICS members to obtain funds for development, (2) realized financial exchanges, such as currency swaps among BRICS members that expand the capacity of their economies and currencies to withstand the impact of global economic turbulence, and (3) provided new financing channels for other developing countries. In 2016, the NDB announced its first batch of loans and issued its first green bonds, fully showcasing the efficiency and effectiveness of the BRICS cooperation. The move was applauded by developing countries.

The 7th BRICS Summit, held in the Russian city of Ufa in 2015, adopted the Strategy for the BRICS Economic Partnership. This key guideline reaffirmed that the BRICS nations would strengthen policy coordination and conduct close cooperation to meet common challenges in such areas as economic development and environmental governance. We are confident that the BRICS summit this year will provide new impetus for global development and resolve global challenges.

The BRICS nations have, throughout their development, attached great importance to poverty alleviation. China has endeavored to resolve this scourge and made remarkable achievements. Over the past few decades the country has lifted more than 700 million of its population out of poverty. Countries such as India are also working diligently in this regard. The successful experience of BRICS nations will help to enrich the content and expand the scope of South-South cooperation, narrow the rich-poor divide, and promote common development throughout the world. Building such a peaceful environment for stable development is patently conducive to safeguarding international justice and equality.  

HE YAFEI is deputy head of the Overseas Chinese Affairs Office of the State Council and a former Deputy Minister of Foreign Affairs.