Editorial Note: The following news reports are summaries from original sources. They may also include corrections of Arabic names and political terminology. Comments are in parentheses.

 

BRICS Summit Expected to Bolster Financial Muscle of Emerging Markets

August 21, 2023

 

A view of logo of New Development Bank at its headquarters in Shanghai, China July 10, 2023	The 15th BRICS Summit is taking place at the Sandton Convention Centre in Johannesburg, South Africa August 21, 2023

 

BRICS SUMMIT EXPECTED TO BOLSTER FINANCIAL MUSCLE OF EMERGING MARKETS

Together, the five member countries - Brazil, Russia, China, India and South Africa - boast a growing population, high growth, natural resources and advanced technology.

Eyewitness News, Motheo  Khoaripe | 21 August 2023 17:10

JOHANNESBURG -

This year’s 15th BRICS Summit is expected to solidify the emerging market bloc as a future superpower.

Currently, the bloc represents 26% of the world’s output and is expected to shift the world’s economy by 2030.

Together, the five member countries - Brazil, Russia, China, India and South Africa - boast a growing population, high growth, natural resources and advanced technology.

The BRICS bloc is gaining serious financial muscle.

The alliance’s global GDP contribution is expected to reach $33 trillion by 2028.

The rise of BRICS has demonstrated the possibility of a power shift from the global north to the south.

The grouping is now leading in terms of demographics, natural resources, energy and expanding industrial capacity.

Ambassador at large for Asia and BRICS at the Department of International Relations and Cooperation Professor Anil Sooklal, said it’s the turn of the developing economies to rise.

“The number of the emerging economies are bigger than G7 economies, bigger than European economies. They are more assertive and surer in terms of what they want,”said Sooklal.

Another key outcome for the bloc has been the establishment of its own development funding institution.

The new Development Bank established as a partial alternative to the World Bank, has approved over 90 projects worth US $32 billion.

Members said the lender’s coffers must be strengthened to help BRICS nations reduce the currency risk that comes with borrowing money in dollars.

This year’s BRICS summit is expected to accelerate trade between the members, as they aim to take their seat on the global economic table.

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BRICS GROWTH EVIDENCE OF 'MULTIPOLARITY' OF THE TIMES, SAYS RAMAPHOSA

Ramaphosa said there has been a tectonic shift in the geopolitical landscape of the world recently, with the era of one power having dominance over many parts of the world over.

Thabiso Goba | 20 August 2023

JOHANNESBURG -

President Cyril Ramaphosa believes the growth of Brazil, Russia, India, China and South Africa (BRICS) organisation shows that the world has entered a "multipolar" era.

Ramaphosa spoke on the sidelines of the African National Congress’s national working committee (NWC) meeting at the Turffontein Racecourse in Johannesburg on Saturday.

Ramaphosa said there has been a tectonic shift in the geopolitical landscape of the world recently.

He said the era of one power having dominance over many parts of the world is over.

Ramaphosa said Brics summit presents an opportunity for world leaders to address many issues, including the case of unilateral sanctions.

"Because we now have a new world order and the BRICS Summit is going to be discussing all that, and the important thing is that South Africa, small as we are, is right at the epicentre of these types of discussions, testifying to the role that we play. We're not arrogant about it, humble but we're recognised for the key role that we play," the President said.

Ramaphosa is expected to address the nation on Sunday regarding Brics and other foreign policy issues relating to South Africa.

BRICS growth evidence of 'multipolarity' of the times, says Ramaphosa (ewn.co.za)

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SA CONFIDENT OF HOSTING SAFE AND SECURE BRICS SUMMIT

The 15th Brazil, Russia, India, China and South Africa summit is set to be held in Sandton from 22 to 24 August.

Flags are seen displayed at the opening ceremony of the New Development Bank Eighth Annual Meeting in Shanghai on 30 May 2023. Picture: AFP

Thabiso Goba | 17 August 2023

PRETORIA -

The country’s security cluster said it is confident that it will host a safe and secure BRICS summit.

The 15th Brazil, Russia, India, China, and South Africa summit is set to be held in Sandton from 22 to 24 August.

The summit is expected to be attended by several heads of state from across the world.

In a media briefing on Thursday morning in Pretoria, co-chairperson of the National Joint Operational and Intelligence Structure, Tebello Mosikili, said all the relevant security measures had been taken to ensure a successful summit.

“A priority committee comprised of various government departments across all three spheres has been meeting regularly with all relevant role players to ensure a security plan is developed that looks at transport route, venue, accommodation, traffic control, sea, land, and air border security."

SA confident of hosting safe and secure BRICS summit (ewn.co.za)

***

BRICS expansion hopefuls seek to rebalance world order

By Joe Bavier August 21, 2023

Summary

BRICS seeks to be champion of 'Global South' Over 40 countries interested in joining bloc Many developing nations unhappy with Western dominance

JOHANNESBURG, Aug 21 (Reuters) -

An expansion of the BRICS bloc under consideration at a summit this week has attracted a motley crew of potential candidates - from Iran to Argentina - with one thing in common: a desire to level a global playing field many consider rigged against them.

The list of grievances is long. Abusive trade practices. Punishing sanctions regimes. Perceived neglect of the development needs of poorer nations. The wealthy West's domination of international bodies, such as the United Nations, the International Monetary Fund or the World Bank.

Amid widespread dissatisfaction with the prevailing world order, the pledge of BRICS nations - currently Brazil, Russia, India, China and South Africa - to make the grouping a leading champion of the "Global South" has, despite a dearth of concrete results, found resonance.

Over 40 countries have expressed interest in joining BRICS, say officials from South Africa, which is hosting the Aug. 22-24 summit. Of them, nearly two dozen have formally asked to be admitted.

"The objective necessity for a grouping like BRICS has never been larger," said Rob Davies, South Africa's former trade minister, who helped usher his country into the bloc in 2010.

"The multilateral bodies are not places where we can go and have an equitable, inclusive outcome."

Observers, however, point to an underwhelming track record they say does not bode well for BRICS's prospects of delivering on the lofty hopes of prospective members.

Though home to some 40% of the world's population and a quarter of global GDP, the bloc's ambitions of becoming a global political and economic player have long been thwarted by internal divisions and a lack of coherent vision.

Its once booming economies, notably heavyweight China, are slowing. Founding member, Russia, is facing isolation over the Ukraine war. President Vladimir Putin, wanted under an international arrest warrant for alleged war crimes, will not travel to Johannesburg and only join virtually.

"They may have over-inflated expectations of what BRICS membership will actually deliver in practice," said Steven Gruzd from the South African Institute of International Affairs.

DEVELOPING WORLD DISCONTENT

While BRICS has not divulged a full list of expansion candidates, a number of governments have publicly stated their interest.

Iran and Venezuela, punished and ostracised by sanctions, are seeking to reduce their isolation and hope the bloc can offer relief to their crippled economies.

"Other integration frameworks existing on a global level are blinded by the hegemonic vision pushed by the U.S. government," Ramón Lobo, the former finance minister and central bank governor of Venezuela, told Reuters.

Gulf states Saudi Arabia and the United Arab Emirates see BRICS as a vehicle for a more prominent role within global bodies, analysts say.

African candidates Ethiopia and Nigeria are drawn by the bloc's commitment to reforms at the United Nations that would give the continent a more powerful voice. Others want changes at the World Trade Organization, International Monetary Fund and World Bank.

"Argentina has insistently called for a reconfiguration of the international financial architecture," an Argentine government official involved in the negotiations to join BRICS told Reuters.

'MUCH TALK, LESS ACTION'

BRICS public positions already reflect many of these concerns.

And as it seeks to become a counterweight to the West, amid China's tensions with the United States and the fallout of Russia's invasion of Ukraine, growing its membership could lend the bloc and its global reform message more clout.

In the run-up to the summit, however, the grouping's shortcomings are in the spotlight.

While BRICS leaders at the summit are expected to discuss a framework for admitting new members with China and Russia keen to forge ahead with expansion, others, notably Brazil, are worried about rushing the process.

The tangible benefits to joining, meanwhile, are waning.

The bloc's most concrete achievement, the New Development Bank, or "BRICS bank", has seen its already sluggish pace of lending further hobbled by sanctions against founding member Russia.

Small countries hoping for an economic boost from BRICS membership might look to South Africa's experience.

Its BRICS trade has indeed increased steadily since it joined, according to an analysis by the country's Industrial Development Corporation.

But that growth is largely down to imports from China, and the bloc still accounts for just a fifth of South Africa's total two-way trade. Brazil and Russia together absorb a mere 0.6% of its exports and by last year, South Africa's trade deficit with its BRICS partners had ballooned four-fold to $14.9 billion compared to 2010.

Such outcomes should give candidate nations pause, Gruzd said.

"Concrete achievements for BRICS are difficult to find. Lots of talk. Much less action."

Additional reporting by Lucinda Elliott in Montevideo, Deisy Buitrago in Caracas, Yousef Saba in Dubai, Gustavo Palencia in Tegucigalpa, Lamine Chikhi in Algiers and Ahmed Eljechtimi in Rabat Editing by Tomasz Janowski

BRICS expansion hopefuls seek to rebalance world order | Reuters

***

China’s Xi visits South Africa in just his second trip abroad this year as domestic woes bubble back home

By Nectar Gan,

CNN, August 21, 2023  

Chinese leader Xi Jinping heads to South Africa Monday on a trip intended to bolster Beijing’s influence among developing and emerging nations, as ties with the United States remain deeply strained and economic troubles bubble up at home.

The three-day state visit, which also includes a summit with leaders of the BRICS emerging economies, is only Xi’s second international trip this year – a sharp contrast to his globe-trotting days of diplomacy before the coronavirus pandemic.

The Chinese leader last left the country in March to meet his “dear friend” Vladimir Putin in Moscow, where the two authoritarian strongmen reaffirmed their strategic alignment against the US and touted their vision for a new world order no longer dominated by the West.

For Xi, the first in-person summit of the BRICS grouping since the pandemic presents another opportunity to advance that vision.

The bloc’s members – Brazil, Russia, India, China and South Africa – account for more than 40% of the global population. They also share the desire for a more multipolar world and the demand for a greater say in global affairs.

“Xi Jinping is not trying to out-compete America in the existing liberal international order dominated by the US. His long-term goal is to change the world order into a Sino-centric one,” said Steve Tsang, director of the SOAS China Institute at the University of London.

To support that ambition, Tsang said, “it makes sense for China to engage with the Global South, (which is) much more numerous than Western democracies and mostly authoritarian in governance structure.”

Previewing Xi’s visit on Friday, China’s ambassador to South Africa Chen Xiaodong hailed BRICS as “an important platform for cooperation among emerging and developing nations” and “the backbone of international fairness and justice.”

“The traditional global governance system appears to be out of order, incapacitated and absent. The international community is eagerly looking forward to the BRICS to…play a leading role,” Chen told reporters.

Xi’s trip to South Africa comes just days after US President Joe Biden met with the leaders of Japan and South Korea in a show of solidarity and force against rising threats from China.

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The summit at Camp Davis saw the US and its two closest allies in Asia deepen military and economic cooperation – and criticize China’s “dangerous and aggressive behavior” in the South China Sea.

With China and the United States locked in an increasingly intense rivalry, the BRICS has taken on greater strategic relevance to Beijing, said Paul Nantulya, a research associate at the Africa Center for Strategic Studies.

“Xi is going to be the center of the BRICS summit, given that Vladimir Putin is not attending in person,” he said.

Putin, who faces an international arrest warrant over alleged war crimes in Ukraine, will take part by video from Russia.

Nantulya described BRICS as “another multilateral platform through which China can exert influence around the world – especially in the Global South.”

Domestic woes

But the summit also comes at a difficult moment for Xi, who is grappling with a myriad of domestic challenges 10 months into his unprecedented third term.

China’s much-anticipated economic rebound from its rigid Covid lockdowns is faltering. Instead, the world’s second largest economy is beset by a confluence of problems – from a spiraling property crisis and mounting local government debt to worsening deflationary pressure.

The country’s youth unemployment rate – which hit consecutive record highs in recent months – is so bad that the Chinese government has suspended releasing it all together.

Yun Sun, director of the China program at the Washington-based Stimson Center think tank, said the struggling economy is a key constraint for Xi’s diplomatic charm offensive, especially in the Global South.

“For Xi to visit developing countries, the norm is for China to deliver generous packages of aid, finance and cooperation deals. But given the current state of the Chinese economy, Beijing is no longer as well-equipped to do that,” she said.

“The economic performance (is) constraining his ability to play the great power leader he used to (be).”

China is also facing a public that has become much more skeptical about their government’s lavish spending abroad.

“On Chinese social media, there has been a lot of push back against, for instance, the Belt and Road Initiative,” Nantulya said, referring to Xi’s flagship global infrastructure program.

“Chinese citizens are asking what the rationale is to invest so much money overseas, yet domestically there’s so many problems China faces.”

In face of the slowing economy, the Chinese government has become much more selective in choosing what foreign projects to finance, according to Nantulya.

While its international funding has slowed, Beijing has stepped up political and military engagement in Africa, including increasing party to party engagement, setting up more Confucious Institutes, and training more African officers in military academies in China, Nantulya said.

“These are low-cost activities, but very high impact in terms of China’s ability to demonstrate that it still cares about Africa even if it has reduced funding for major infrastructure initiatives,” he said.

His last journey to the continent – also for the BRICS summit in South Africa – in 2018 includes a whirlwind of visits to Senegal, Rwanda and Mauritius, spanning almost every corner of Sub-Saharan Africa.

This time around, Beijing has not announced any other stops for Xi.

Instead, the Chinese leader will co-chair the China-Africa Leaders’ Dialogue with his South African counterpart Cyril Ramaphosa on the sidelines of the BRICS summit, China’s Foreign Ministry said.

A total of 69 countries have been invited to the summit, including all African states.

BRICS summit: China's Xi visits South Africa in second trip abroad this year | CNN

***

BRICS summit 2023 agenda: What major issues will likely be discussed?

Reuters August 18, 2023

JOHANNESBURG, Aug 18 (Reuters) -

The BRICS group of major emerging economies - Brazil, Russia, India, China and South Africa - will hold its 15th heads of state and government summit in Johannesburg from Aug. 22-24.

South African President Cyril Ramaphosa, Chinese President Xi Jinping, Brazil's President Luiz Inacio Lula da Silva and Indian Prime Minister Narendra Modi are expected to attend.

Russian President Vladimir Putin will not attend in person due to an arrest warrant issued by the International Criminal Court for alleged war crimes in Ukraine. Putin will participate in the summit virtually and will be represented in Johannesburg by Foreign Minister Sergei Lavrov.

Few details have emerged about what they plan to discuss, but here are some of the key issues expected to be on the agenda.

BRICS EXPANSION

The leaders are divided over the expansion of the bloc by adding new members, including the admission criteria.

Over 40 countries, including Saudi Arabia, Iran, United Arab Emirates, Argentina, Indonesia, Egypt and Ethiopia, have expressed interest in joining BRICS, according to South Africa.

China, seeking to expand its influence as it tussles with the United States over trade and geopolitics, supports BRICS expansion, while Brazil is sceptical.

Russia, hoping to overcome its diplomatic isolation over the Ukraine war, is keen to bring in new members, as is South Africa. India is undecided.

BRICS BANK

The group is also expected to discuss how to boost local currency fundraising and lending within the New Development Bank (NDB), or so-called BRICS bank. Local currency use will help de-risk the impact of foreign exchange fluctuations, South Africa's Finance Minister Enoch Godongwana said.

The dollar has gained against emerging market currencies since Russia invaded Ukraine and the Federal Reserve began raising interest rates to fight inflation in early 2022, making dollar debt more costly for those countries to service.

While the NDB, which was established in 2015, is still looking at the potential use of alternative currencies, there will be no talk about a common BRICS currency during the summit, South Africa's senior BRICS diplomat said.

The NDB is also expanding and the summit could become a key platform to attract more member countries. Bangladesh, the United Arab Emirates and Egypt have joined the bank since 2021. Uruguay is part way through the process of joining, while Algeria, Honduras, Zimbabwe and Saudi Arabia have expressed interest.

ECONOMIC COOPERATION

The leaders are also likely to discuss how they can improve economic ties between their diverse economies.

They are expected to engage in a series of discussions about trade and investment opportunities in sectors ranging from energy cooperation and infrastructure development to digital economy and the job market.

'FRIENDS OF BRICS'

The last day of the summit is expected to focus on talks with leaders from other countries. Invitations to attend the summit were extended to 67 leaders across Africa, Latin America, Asia and the Caribbean, South African Foreign Minister Naledi Pandor said.

France had expressed interest in President Emmanuel Macron joining the summit, but Russia was opposed to this because of French support for Ukraine against the Russian invasion. Macron was not invited.

Particular attention will also be paid to the relationship between BRICS and African countries to tie in with the summit's theme of "BRICS and Africa", Pandor said, adding that BRICS partners were eager to explore opportunities to benefit from the African Continental Free Trade Area.

Reporting by Anait Miridzhanian; Editing by Olivia Kumwenda-Mtambo, Tim Cocks and Nick Macfie

BRICS summit 2023 agenda: What major issues will likely be discussed? | Reuters

***

China, South Asia trade ties shine in key expo, but Indian presence remains low

The last China-South Asia Expo was held in 2019, and its resumption saw hundreds of trade and investment deals made, though some would-be investors remain cautious Global supply-chain upheaval and trade tensions have forced China to get creative in securing new buyers in the face of geopolitical disputes

Kandy Wong in Kunming, Yunnan province

SCMP, 22 Aug, 2023

Post Hundreds of investment pacts and trade contracts were signed at the recently concluded 7th China-South Asia Expo in Yunnan province. Photo: Xinhua

After four long years, China has secured a number of deals with its South Asian neighbours at the first in-person gathering of the 7th China-South Asia Expo since before the pandemic.

The five-day event, held in Kunming, Yunnan province, served as an opportunity for regional economies to expand their trade pool amid US tariffs and a global supply-chain decoupling.

However, businesses from India – now believed to be the world’s most populous country – reported a relatively low presence at the expo.

A total of 342 investment pacts and 141 trade contracts were signed – up 2.2 and 3.9 per cent, respectively, from the 2019 expo. But just 52 Indian companies were present, compared with 140 in 2019, according to Ajay Sahai, director at the Federation of Indian Export Organisation, as Indian businessmen are taking the “wait and see” approach amid the widespread economic slowdown.

“We’re hoping that both the global economy, as well as the Chinese economy, will improve in 2024,” he told the Post at the expo. “So, right now, the participation size [at the expo] will be limited because people are just testing the market here at this point in time.”

India and China have been in a border stand-off for years, punctuated by a deadly clash between soldiers along the disputed Himalayan frontier in 2020. Additionally, India has opted not to engage in the China-led Belt and Road Initiative, contending that Beijing’s trade initiative to link economies does not offer a level playing field for Indian businesses.

When addressing the expo, Chinese foreign minister Wang Yi called on South Asian countries “to ride China’s development momentum and share the benefits of China’s growth”.

As a wholesaler of arts and crafts, Rasmila Biswal, the owner of Oditribe Innovations in India, took part in the expo for the first time and said diplomatic relations between China and India were not a factor in her business decisions.

“So you look at the big market in China, and if they have any requirements that we can fulfil, then why not,” Biswal said.

US and India agree on defence cooperation road map in the face of China’s regional influence

Dipti Ranjan Mohanty, who deals in Indian handicrafts as the owner of Medi Bank, also participated in the exhibition for the first time with the intention of finding a new buyer in China.

“Diplomatic relationships between China and India don’t matter to Indian businessmen,” he said, adding that it was not difficult to get a business visa to enter China.

But foreigners tend to feel “a bit inconvenient” because they cannot use Google, WhatsApp, or major credit cards, he added.

The total trade value between China and South Asia was near US$200 billion last year, and over the past decade it grew by an average annual rate of 8.3 per cent.

China has been the largest trade partner of Pakistan, Bangladesh and the Maldives for many years, while water-related products, tea leaves and nuts from South Asian countries are the favourite choices among Chinese customers.

Other neighbouring countries took a different approach at the expo. Pakistan, for instance, had around 75 companies at the show, and there were about 100 businessmen from Nepal setting up booths to attract Chinese buyers.

Faisal Rasheed, CEO of Pakistan’s Mega International, which sells goods ranging from jewellery to rugs, said that the Belt and Road Initiative has connected roads and ports that help facilitate the transport of products with just one permit issued by China.

“If we move by sea, it’s very convenient from Karachi to Guangzhou, Hong Kong and also Tianjin” without having to make midway stops, Rasheed explained.

With road connections, it takes 10 days to move products from Pakistan to Kashgar in the Xinjiang Uygur autonomous region.

Kandy Wong returned to the Post in 2022 as a correspondent for the Political Economy desk, having earlier worked as a reporter on the Business desk. She focuses on China's trade relationships with the United States, the European Union and Australia, as well as the Belt & Road Initiative and currency issues. She graduated from New York University with a master's degree in journalism in 2013. An award-winning journalist, she has worked in Hong Kong, China and New York for the Hong Kong Economic Journal and the Financial Times, E&E News, Forbes, The Economist Intelligence Unit, Nikkei Asia and Coconuts Media.

China, South Asia trade ties shine in key expo, but Indian presence remains low | South China Morning Post (scmp.com)