The BRICS summit in Xiamen is expected to promote business cooperation among member states in a wide range of areas. In essence, BRICS is a forum that consists of five countries which agreed on coordinating their actions in the global economy and geopolitical space. An important direction of BRICS is joint preparation of positions for developing economies in the global architecture. Also important for member states is the emergence of a structure within BRICS that will engage in global politics. Its goal is changing the structure of global governance to make emerging economies take a worthy place in it.
Speaking in Davos in January, PRC President Xi Jinping said that China is in favor of regulated globalization. Russian President Vladimir Putin also said that globalization should give advantages not to select countries, but to all who are engaged in it, as it is a global process. The same position was made by the Indian Prime Minister. Because of that, the BRICS forum agenda will likely include the issue of formulating unified approaches for regulating globalization processes at the national level.
China, offering the BRICS+ idea, hopes to create more partnership ties and broaden its circle of friends, to turn BRICS into the most effective platform for South-South cooperation through the joining of the largest economies and creating close ties between various alliances led by all developing regions of the world. More detailed contours of the new association could be made during the meeting of BRICS countries’ leaders.
Members of the BRICS summit in Xiamen aim to sign a large package of documents on cooperation in global governance, UN reform, climate issues and further easing of global trade terms.
Global economies develop slowly today, and BRICS is no exception, but the countries in this organization have great prospects.
How BRICS+ Format Can Become an Alternative Track for Globalization
As the developed world is increasingly leaning toward protectionism, the emerging nations seem to take the lead in shaping the contours of an alternative globalization with BRICS serving as the backbone of these processes. The BRICS+ paradigm, which can make the process of global economic integration more inclusive and comprehensive, was discussed at a Valdai Club event in Moscow on July 19.
Today, BRICS is one of the few international institutions that are aimed at development. BRICS countries strive to reform the outdated financial system that does not account for new realities. BRICS has already accomplished significant successes in this. This includes the creation of the New Development Bank (NDB) and the BRICS currency reserve pool that has a total capital of $200 billion.
BRICS countries will create a $10 billion bond fund. Russia’s share in this project is 18 percent or $1.8billion. The New Development Bank will issue $250 million in ruble bonds in 2017.
All BRICS countries have a great internal potential for providing for self-development and self-reproduction in the international community, including human capital and the resource base. First, they all develop more or less dynamically. Second, this association includes very different countries in the level of economic development, climate conditions and the population’s mentality, but each one of them has the ability to create regional associations around itself.
BRICS member-states will increase economic cooperation, emphasizing the increase in cooperation in small and medium enterprises. Other than that, the innovation area has a lot of potential within the framework of BRICS.