BRICS Summit

Chair: Noor Waheed


BRICSSummit

DearDelegates,
Ifyourereadingthis,youhavechosentoattendthe2017Summitofthe
BRICSnationssetinPretoria,SouthAfrica.TheBRICSnationsaretheworlds
mostupcomingnationsintermsofeconomicstrengthandpopulationdensity,
andareincreasingtheirinfluenceregionallyandworldwideeverypassingfiscal
year.Themembersarealldevelopingornewlyindustrializedcountries,
distinguishedbytheirlarge,fastgrowingeconomiesandsignificantinfluenceon
regionalandglobalaffairs.Since2009,theBRICSnationshavemetannuallyat
formalsummits.AtthisiterationoftheBRICSsummit,delegateswillbeexpected
todebateintricaciesofthelocalandinternationalpoliticalandeconomicclimate
thathasbeenactingasaroadblockinthewayofstrongermultilateralrelations.
Thecommitteeaimsforcooperationandappropriateresolutionofregional
conflicts,thegoalbeingtoelevatetheBRICSnationstoapointofauthoritythat
couldnotonlypotentiallychallengeNAFTAandtheWTO,alongwithwestern
financialinstitutionssuchastheWorldBankandtheIMF,butalsochangethe
powerbalanceofthefreeworldasweknowit.
Ilookforwardtodelegatesrepresentingtopofficialsfromthe
governmentsofBrazil,Russia,India,ChinaandSouthAfrica,debatingkey
internationalissuesthatcouldchangethetrajectoryofworldaffairs.WilltheUS
anditsNATOalliesallowforthis?Well,wellhavetowaituntiltheconferencein
Novembertofindout.
SeeyouallonGrounds!

Best,
NoorWaheed
nw4zf@virginia.edu
Chair,BRICSSummit2017


BRICSSummit

CommitteeOverview
Theacronym"BRIC"wasinitiallyformulatedin2001byeconomistJim
O'Neill,ofGoldmanSachs,inareportongrowthprospectsfortheeconomiesof
Brazil,Russia,IndiaandChinawhichtogetherrepresentedasignificantshare
1

oftheworld'sproductionandpopulation. In2006,thefourcountriesinitiateda
regularinformaldiplomaticcoordination,withannualmeetingsofForeign
MinistersatthemarginsoftheGeneralDebateoftheUNGeneralAssembly
(UNGA).Thissuccessfulinteractionledtothedecisionthatthedialoguewasto
becarriedoutatthelevelofHeadsofStateandGovernmentinannualSummits.
AsoftheFirstSummit,heldinYekaterinburg,Russia,in2009,thedepthand
scopeofthedialogueamongtheMembersofBRICwhichbecameBRICSin
2011withtheinclusionofSouthAfricawasfurtherenhanced.Morethanan
acronymthatidentifiedcountriesemergingintheinternationaleconomicorder,
BRICSbecameanewandpromisingpoliticaldiplomaticentity,farbeyondthe
2

originalconcepttailoredforthefinancialmarkets.
AftertheYekaterinburgSummit,sevenannualSummitshavesincebeen
held(Brasilia,Brazil,2010Sanya,China,2011NewDelhi,India,2012Durban,
SouthAfrica,2013Fortaleza,Brazil,2014Ufa,Russia,2015andPanaji,India,
in2016).Theleadersofthemembercountrieshavebeenholdingatleastone

http://brics.itamaraty.gov.br/aboutbrics/informationaboutbrics
Ibid.


BRICSSummit

meetingperyear.InDurbanin2013,thefirstcycleofSummitswascompleted,
eachmembercountryhavinghostedameetingofleaders.Inthisperiod,BRICS
hasevolvedinanincrementalmanner,inareasofconsensusamongstits
members,strengtheningitstwomainpillars:(i)coordinationinmultilateral
forums,withafocusoneconomicandpoliticalgovernanceand(ii)cooperation
3

betweenmembers.
Regardingthefirstpillar,theeffortstowardsreformingthestructuresof
globalgovernance,especiallyintheeconomicandfinancialfields(e.g.Financial
G20,InternationalMonetaryFund,WorldBank)receiveaspecialemphasis,as
4

wellthereformofpoliticalinstitutions,suchastheUnitedNations. IntraBRICS
cooperationhasalsobeengainingdensity:abroadagendahasbeendeveloped,
comprisingareassuchasfinance,agriculture,economyandtrade,combating
transnationalcrime,scienceandtechnology,health,education,corporateand
5

academicdialogueandsecurity,amongothers. Inthatcontext,thefinancial
sectorreceivesaspecialfocusasanewfrontofcooperation.Atits6thSummit,
theBRICSestablishedtheNewDevelopmentBank,aimedatfinancing
infrastructureandsustainabledevelopmentprojectsintheBRICSandother
developingcountries.Thenewinstitutionwillcountinitiallywithasubscribed
6

capitalofUS$50billion.
3

http://brics.itamaraty.gov.br/aboutbrics/informationaboutbrics.
Ibid.
5 Ibid.
6 Ibid.
4


BRICSSummit

Likewise,theBRICSalsoconcludedtheagreementthatcreatestheContingent
ReservesArrangement(CRA),afundwithaninitialsumofUS$100billion,
whichtheBRICScountrieswillbeabletousetoforestallshorttermliquidity
pressures.OneoftheobjectivesoftheCRAistocontributetointernational
7

financialstability,byprovidinganadditionallineofdefensetotheBRICS. The
establishmentoftheBankandtheCRAconveyedastrongmessageonthe
willingnessofBRICSmemberstodeepenandconsolidatetheirpartnershipinthe
economicfinancialarea.
TheFortalezaSummitlaunchedanewcyclefortheBRICS.Brazilwill
followupontheinitiative,aimingatincrementallyincreasingexisting
cooperation.Themeeting'sparticularfocusonsocialinclusionandsustainable
developmentgavevisibilitytopoliciesimplementedbymembercountries,andto
thecontributionoftheBRICS'economicgrowthtopovertyreduction.Thetheme
"inclusivegrowth,sustainablesolutions"isnotonlyinlinewiththemember
countries'socialpolicies,butalsohighlightstheneedtotacklechallengesinthe
social,economic,andenvironmentalfields,andcreatesnewopportunitiesforthe
BRICSindifferentareas,includingthenegotiationsonthepost2015
8

developmentagenda.

7
8

http://brics.itamaraty.gov.br/aboutbrics/informationaboutbrics
Ibid.


BRICSSummit

LandmarkAchievements
BRICSBusinessCouncil
Oneofthemostcrucialachievementsofthe2013summitheldinSouth
Africa,wastheformationofanew25memberBRICSBusinessCouncil
comprisedoffivemembersfromeachofthemembernations.TheCouncilwill
meettwiceperyearandsubmitareportateachoftheBRICSannualgatherings.
TheCouncilwillserveasaplatformtostrengthenandpromoteeconomic,trade,
businessandinvestmenttiesbetweenthebusinesscommunitiesofthefive
BRICScountries,SouthAfricanPresidentJacobZumasaidatthelaunchofthe
Council.KeyobjectivesoftheCouncilincludethestrengtheningoftrade
relations,promotionofbusinessrelations,technologytransferandcooperationin
theareasofskillsdevelopment,banking,thegreeneconomy,manufacturingand
9

industrialization.

ContingentReserveArrangement(CRA)
BRICScountrieshavealsocreateda$100billionContingencyReserve
Arrangement(CRA),meanttoprovideadditionalliquidityprotectiontomember
countriesduringbalanceofpaymentsproblems.TheCRAunlikethepoolof
contributedcapitaltotheBRICSbank,whichisequallysharedisbeingfunded
41percentbyChina,18percentfromBrazil,India,andRussia,and5percent

http://thebricspost.com/achievementslaudedasbricssummitends/#.V2Exb2N3bzI


BRICSSummit

10

fromSouthAfrica. Accordingtothetreaty,thepartiesagreethatthiscontingent
reservearrangementshallcontributetostrengtheningtheglobalfinancialsafety
netandcomplementexistinginternationalmonetaryandfinancialarrangements.
ARussianrepresentativestatedthat"thearrangementisimportantnotonly
becauseitprovidesthepossibilitytoquicklyobtainadditionalliquidity,butits
veryexistencehasapositive,stabilizingeffectonthemarket.Similar
arrangementscreatedbyothercountries(e.g.,EuropeanStabilityMechanism)
11

continuetobeinforceandfulfilltheirfunctions." TheCRAismeanttoprovide
analternativetoInternationalMonetaryFundsemergencylending.IntheCRA,
emergencyloansofupto30percentofamembernationscontributionwillbe
decidedbyasimplemajoritywhilebiggerloanswillrequiretheconsentofall
12

CRAmembers.

BRICSDevelopmentBank
LeadersfromtheBRICScountriesformallylaunchedajointinternational
developmentbankduringtheirannualsummitin2014atFortaleza.
HeadquarteredinShanghai,thebankwillfinanceinfrastructureand
sustainabilityprojectsinBRICSandotheremerginganddevelopingcountries.

10

https://www.washingtonpost.com/news/monkeycage/wp/2014/07/17/whatthenewbankof
bricsisallabout/
11
https://in.rbth.com/economics/2015/07/30/brics_contingent_reserve_arrangement_treaty_c
omes_into_force_44497
12
http://thebricspost.com/100bnbricsmonetaryfundtobeoperationalin30days/#.V2FKFm
N3bzI


BRICSSummit

TheNewDevelopmentBank,asitwillbecalled,willhaveUS$100billionin
initialauthorisedcapitalatitsdisposal.TheBRICScountrieswillinitially
underwritehalfthatamountUS$50billionwitheachputtingforwardequal
13

contributionsofUS$10billion. JustastheCRAisanalternativetotheIMF,
similarlytheBRICSDevelopmentBankismeanttomirrortheWorldBank.The
pushtolaunchthisnewbankhasemergedlargelyfromthedesiretomoveaway
fromalongstandingdependenceontheIMFandtheWorldBank,thoughBRICS
leadershavesaidthatthisnewinitiativeismeanttosupplementexisting
14

multilateralinstitutions.
TheBrettonWoodsinstitutions,astheyarealsocalled,havefrequently
comeunderfirefromemerginganddevelopingeconomies,withmany
clamouringforareformintheirgovernancestructuretoreflectcurrentrealities.
TheIMFreformsagreedtofouryearsagowouldhaveshiftedmorepowerto
developingandemergingmarketeconomieshowever,thesereformshavesince
stalledasaresultoftheUSCongressfailuretoratifytheimplementing
legislationdomestically.TheIMFspolicysettingbody,knownasthe
InternationalMonetaryandFinancialCommittee(IMFC)gavetheUSCongressa
yearenddeadlinetopassthesereforms.Otherwise,theIMFCwarned,itsfailure
15

topassthelegislationwillpushtheIMFtodevelopoptionsfornextsteps.

13

http://www.ictsd.org/bridgesnews/bridges/news/bricscountrieslaunchnewdevelopmentbank
Ibid.
15
Ibid.
14


BRICSSummit

Weremaindisappointedandseriouslyconcernedwiththecurrent
nonimplementationofthe2010InternationalMonetaryFundreforms,which
negativelyimpactstheIMFslegitimacy,credibility,andeffectiveness,the
BRICSleaderssaidduringtheconferenceinBrazil,highlightingtheimportance
ofgivingemergingeconomiesagreatervoiceintheinstitution.Thefivecountry
groupmadesimilarcallsregardingWorldBankreform,stressingthatthe
implementationofmoredemocraticgovernancestructuresandimproved
financialcapacitywouldbekeyinhelpingtheinstitutionbringtobearitsgoalto
16

endextremepovertyby2030,aspledgedayearago.

EconomicInitiativesandIncreasedGlobalTrade
BRICSFreeTradeZone
AsoftheconferenceinUfa,Russia,in2015,BRICSarediscussingtermsof
afreetradezoneagreementalthoughtheblocisnotreadytorushevents,
accordingtoastatementfromtopRussianofficials.ABRICSfreetradezone
wouldbeasignificantstepfurtherinboostingcommercebetweentherising
powers.Itwouldcreateauniformeconomiczoneformorethan2.8billion
consumersandeliminatemanyofthehurdlesthatobstructtradeacrossthefive
17

countriestoday.

16
17

http://www.ictsd.org/bridgesnews/bridges/news/bricscountrieslaunchnewdevelopmentbank
http://thebricspost.com/bricsfreetradezonebeingconsideredrussia/#.V2FTmN3bzK


BRICSSummit

NegotiationsforanambitiousfreetradezonebetweenBrazil,Russia,
India,ChinaandSouthAfricawouldbechallengingasmostofthesecountries
havebeenaccusedbytheGlobalTradeAlert(GTA)asadoptingstrident
protectionistmeasures.TheEUandtheUSarealsointhemidstoflongdrawn
outnegotiationsontheTransatlanticTradeandInvestmentPartnership,or
TTIP,whichWashingtonclaimswouldcreatetheworldsbiggestfreetradezone.
Meanwhile,MoscowisaggressivelypushingforthenewlyproposedBRICSfree
18

tradezone.
Atfirstitwillbeadeclarativedocumentthatwillinspireourcountriesto
cooperatemoreactively.Thenitcouldbenonpreferentialagreements,which
optimizeregulatorysystem,simplifycustomsandinvestmentprocedures,and
createthesocalledgreencorridorsforgoods.Thethirdphaseisapreferential
regimeconcessionsthatwewillmakeintermsofcommoditytrade,Russias
FirstDeputyEconomicDevelopmentMinisterAlexeiLikhachevclaimedpostthe
19

conferenceinUfa.

SharedGoalsandObjectives:BroadeningScopeforBRICS
CooperationamongsttheBRICSnations,notwithstandingtensionsthat
mayhaveexistedoutsideofeconomictiesintherealmofpolitics,iscontingent

18
19

http://thebricspost.com/bricsfreetradezonebeingconsideredrussia/#.V2FTmN3bzK
Ibid.


BRICSSummit

uponasetofmutualgoalsthatensurescontinuedpeaceandanaccommodating
attitude.TheBRICScomprisesaSouthSouthframeworkofcooperation,acting
asonetopromoteamorelegitimateinternationalsystem,includingadvocating
20

reformoftheUNSecurityCouncil. TheBRICSgroupalsoactsasabridge
betweendevelopedanddevelopingcountries.Forexample,intheWTO,the
BRICScountriesaretryingtopromoteafairorderregardingagriculturalpolicies.
Theyareattemptingtopromotetheliberalizationoftheinternationaleconomic
ordertodiminishagriculturalsubsidiesintheUnitedStatesandtheEuropean
Union,whichwouldmakedevelopingcountriesagriculturalproductsmore
21

competitive.
BRICSseekstoplayanincreasinglyimportantroleinassistingdeveloping
countriesingaininganadvantageintradeandclimatechangenegotiations,as
wellasweighinonissuesrelatedtotheexportofmanufacturingproducts.In
doingso,developingcountriesontheperipheryofthegroupwillbeableto
leveragetheNDBandtheCRAtoincreasetheirbargainingpower.Thegroup
establishedtheBRICSBusinessCouncil,madeupof25prominententrepreneurs
fromthefivecountriesandrepresentingmanyindustriesandeconomicsectors,
tofurtherfacilitatetheleverageoftheirnewlyestablishedfinancialinstitutions.
Additionallyitisobviousthattheyhaveasharedinterestinchallengingthe

20
21

http://www.careerride.com/view.aspx?id=19744
http://www.careerride.com/view.aspx?id=19744

10


BRICSSummit

currentgovernanceofWesternfinancialinstitutionsliketheInternational
MonetaryFundandtheWorldBankandadvocatingfortheinterestsofmiddle
22

powersonglobalforum.

RegionalTensionsandConflictingNationalInterests
ChineseDomination
ThedominanceofChinainBRICSisproblemforothers.TheChinese
economyisnownotonlythesecondlargestintheworldbutalsolargerthanthe
economiesoftherestofBRICScombined,whichisacauseofapprehensionto
otherBRICSstates.Inthatvein,China'spoliticalaspirationcreateschallenges
thathavemadeitmoredifficultforBRICStoreachaconsensus.Chinas
manipulationofitscurrencyhasalsoresultedinsignificantproblemsforthe
manufacturingsectorsofotheremergingpowerscausingcentralbanksofother
countriestoprotestagainstundervaluedyuan.Thesefactorsleadtoacertain
degreeofinternationalskepticismoverwhetherornotBRICScanemergeasa
unifiedpoliticalforce.ItmustalsobenotedthatBRICSisultimatelyaloose
groupingofcountriesunifiedbycertainsharedinterestsinparticularareas,but
astheyplaybydifferentrulestheyhavebeenunabletoformaformalpolitical
allianceasofyet.
Besidesbeingthelargestemergingeconomiesintheworld,theBRICS

22

Ibid.

11


BRICSSummit

stateshavelittleincommon.TheChineseeconomyis28timesthesizeofSouth
Africas.IncomeperpersoninIndiaisonetenththatinRussia.Brazil,India,and
SouthAfricaaredemocraticcountrieswhileRussia,Chinaareauthoritarian
regimes.Russia,Brazil,andSouthAfricaexportdifferentcommodities,while
ChinaexportsmanufacturedgoodsandIndiaexportsservices.Thesedifferences
resultinsomepolitical/regionaldisputesthathavehistoricallyundermined
cooperationandadditionallycontinuetopresentconflictsofintereststhatagain
hinderBRICSfromgrowingintoapermanentecopolitical(andperhapseven
23

military)alliance.

BrazilChinaTensions
ChinaandBrazilaretwocountrieswithsteadygrowth,activiststate
sectorsandhugelypopulargovernments.Theywillbeinthesamecornerofthe
worldstagefordecades.Bothargueforamoremultipolarandequitableworld
orderonethatislessUSdriven.But,whenyoucomparetheBrazilianand
Chinesevisionsofwhatthisnewordershouldlooklike,itisclearthereisavery
smallcommondenominatoronmostissues,fromcurrencytoclimatechangeto
humanrights.Onthesurface,thereisamplereasonforcoordinationbetweenthe
twocountries.BrazilisahugeexporterofcommoditiesChinaisabigconsumer.

23

http://www.careerride.com/view.aspx?id=19744

12


BRICSSummit

24

Theydon'tshareaborder,andtheyinvestineachother'seconomies.
TheChinesegovernmentandstateownedenterprises,alwaysinneedof
foodforChina's1.3billionpeople,arebuyingupBrazilianlandandinvestingin
Braziliancompanies.ChinaisBrazil'sbiggesttradepartner,"withimportsand
exportsbetweenthetwocountriesreachingUS$75.5billionlastyear,"according
25

toBloomberg. Butbeneaththesurfacearegrowingpressures,evenifneither
powerwillpubliclyadmitit.BrazilshiesawayfromcriticisingChinadirectly,but
thatdoesnotmeantensionsaren'tgrowing.Brazil'shesitancyissymptomaticof
thecountries'increasinglycomplexrelationship.
TakeEmbraer,theBrazilianaerospaceconglomerate.Adecadeago,the
Chinesepromisedthatadeeperinvestmentinthecountrywouldincrease
productionandsales.AlthoughEmbraerstillmakesmoneyandsellsjetsin
China,planstoexpandnevergotofftheground.TheChinesegovernmentwas
slowtodeliveronitspromises,likeitspledgetogivelocalairlinesincentivesto
buyEmbraer'sjets.Ontopofthat,Embraer'sjointventurewithChina's
statecontrolledcompanyChinaAviationIndustryCorporationII(AVICII)
inspiredasistercompany,AVICI,todeveloparegionaljetthatwaseerilysimilar
totheBrazilianfirm'smodel.Embraersawfirsthandhowintellectualproperty

24

http://www.scmp.com/business/globaleconomy/article/1249235/chinaandbraziltension
buildingbetweenbricduo
25 Ibid.

13


BRICSSummit

26

canbesiphonedoffandinvestmenttreatiescanbedisregardedinChina.
ThedeepestpointoftensionisthatBrazilianmanufacturersaregetting
outsoldbycheapChineseimportsthatmakeBrazil'sindustryuncompetitivein
theglobalmarketplaceandathome.PresidentDilmaRousseff'sadministration
hasrespondedbylevyingimporttariffsonsomeindustrialgoods.Without
namingChina,thebillisclearlyaimedmostatChineseimports.Rousseffhasalso
putinplacelocalcontentrulesinareasthathittheChinesehardest,suchascar
27

plants.
ThesetensionsdonotjustplayoutinBrazil'sandChina'sbackyards.InAfrica,
theheadlinesfocusonChina'sincreasinglydominantinvestmentsacrossthe
continent.But,lessattentionisgiventoBrazil'sexpandingties,particularlyin
fellowPortuguesespeakingcountriessuchasAngola,Mozambique,
GuineaBissau,CapeVerde,andSaoTomeandPrincipe.Brazil'sPetrobrasisa
keyplayerinAngola'soilsectorandValehastheworldclassMoatizecoalproject
inMozambique.
AsBrazilchallengesChina'sroleasinvestorinchiefinAfrica,itiscreatinga
growingrivalrybetweenthetwopowers.SincetheChinesehavefarmore
financialresources,Braziliancompaniesandmanygovernmentofficialssee
ChinesechequebookdiplomacyasapotentialthreattoBrazilianinvestmentsin

26

http://www.scmp.com/business/globaleconomy/article/1249235/chinaandbraziltension
buildingbetweenbricduo
27 Ibid.

14


BRICSSummit

theregion.Rousseffhasalsoundertakenasubtleshiftinforeignpolicy,focusing
oneconomicissues.Thisexacerbatesalloftheabove,asitisclearlyinthe
economicplaneratherthansecurityconcernsthatputBrazilandChinamostat
odds.
BRICS,evenwiththeirnewdevelopmentbank,arenotahappyfamily,nor
havetheyeverbeen.Inaglobalisedworld,thereistoomuchcompetition,and
28

theirinterestsandprioritiesaretoodiverse. ForBrazil,theBRICSlabelbrings
prestigeitisasteppingstonetoamoreprominentglobalrole.Brazilwantstobe
aplayerIndiawantstocatchupRussiawantstobeabullyChinawantstobe
theboss.Conflict,inotherwords,isinevitable.

BraxitBrazilsPositioninBRICSinapostRousseffworld
WillthenewproAmericangovernmentinBrazilforceaBraxitandbring
downtheBRICSwall?AccordingtoOliverStuenkel,AssistantProfessorof
InternationalRelationsattheGetulioVargasFoundation(FGV)inSaoPaulo,
29

"manyBraziliananalystsbelieveitistimetoleave"theBRICS. Justthreeyears
ago,SouthAmericaslargestnationhaddeclareditwantedtodisconnectfrom
theUScontrolledinternetduetotheNationalSecurityAgencysinvasive
surveillancetacticsthatincludedtappingthenPresidentDilmaRousseffs

28

http://www.scmp.com/business/globaleconomy/article/1249235/chinaandbraziltension
buildingbetweenbricduo
29 http://in.rbth.com/blogs/stranger_than_fiction/2016/07/04/bricsshouldpreparefor
braxitabrazilianexit_608637

15


BRICSSummit

phones.Today,thesamecountryunderanewleader,MichelTemer,widely
viewedasanAmericaninformant,istiltingheavilytowardstheUScamp.Italso
appearstobemovingawayfromtheBRICSgroup,ofwhichitisafounding
30

member.
SohowdoesthatconcerntheBRICS?IfTemerisindeedanAmericanally,
thenhecouldthrowamonkeywrenchintotheBRICSmachineryandparalyseit
muchthesamewayBritainhasactedasAmericasTrojanHorsewithinthe
EuropeanUnion.Temer,oneoftheringleaderswhoengineeredthefallofthe
proBRICSRousseff,ishimselfunderinvestigation.Itislikelyheandhiscohorts
willplungeBrazilintoaperiodofgreatupheavalandinstability.Saysfinancial
intelligencewebsiteZeroHedge:Asareminder,thelasttimetheUSinstituteda
puppetgovernmentwasin2014wheninyetanotherbloodlesscoup,the
presidentofUkrainewasoverthrownandreplacedwithabillionaireoligarch,a
31

scenariocomparabletotheoneinBrazil. TheBRICSgroupshouldensure
TemerisnotabletoimpactthecohesionoftheBRICS,whichisalreadybracing
forgeopoliticaltensionbetweenIndiaandChinaoverthepresenceofasizeable
IndianNavyflotillaintheSouthChinaSeaandBeijingsrefusaltoallowNew
32

DelhiintotheNuclearSuppliersGroup.

30

http://in.rbth.com/blogs/stranger_than_fiction/2016/07/04/bricsshouldpreparefor
braxitabrazilianexit_608637
31 http://in.rbth.com/blogs/stranger_than_fiction/2016/07/04/bricsshouldpreparefor
braxitabrazilianexit_608637
32 Ibid.

16


BRICSSummit

IndiaChinaTensions
ThetwocountrieshavebeenassociatesinBRICSsince2009,whenthe
firstsummitwasheld.IndiajoinedtheChinafoundedAsianInfrastructure
InvestmentBankinJune,andwasadmittedtotheChinaledShanghai
CooperationOrganizationatitsmostrecentsummit,whichalsotookplaceinUfa
inJuly.Bothcountriescouldbenefiteconomicallyandstrategicallyfromgreater
collaboration.YetChina'sSilkRoadEconomicBeltandits21stCenturyMaritime
SilkRoadblueprintsclashwithIndia'scompetingstrategicinitiative,knownas
ProjectMausam,whichmeans"weather"inHindi.Indiawantstoplayakeyrole
inIndianOceansecurityandtradewithlittoralcountries.
ChinaandIndiadifferonmanyotherissues,includingglobalterrorism,
internationalborders,andUnitedNationsreformwithChinascloserelationship
33

andbilateraltieswithPakistanposingathreattoIndiasregionalinterests.
Chinaisalsoinvesting$46billiontobuildaChinaPakistanEconomicCorridor
throughpartsofKashmir.NewDelhi'sobjectiontotheconstructionofroadson
thiscontestedgroundwasdismissedbyBeijing.Theriposte:Chinaopposes
IndianoilexplorationintheSouthChinaSeabecausethatisalsoadisputedarea.

33

http://asia.nikkei.com/Viewpoints/Geopolitico/ChinaIndiatensionscouldstymieBRICS

17


BRICSSummit

ThisreferredtotheparticipationofIndia'sstateownedOil&NaturalGasCorp.
inexplorationofwellsclaimedbyVietnam.

34

QuestionstoConsider
1. WhataretheimplicationsofCRAandtheBRICSDevelopmentBankon
theglobalpowerdynamic?
2. AretheseSouthSouthalternativestotheBrettonWoodsbodiesreally
effective?
3. HowcantheCRAandDevelopmentBankgaintractionandoverthrowthe
traditionaldominanceoftheIMF&WorldBank?
4. WhatarethepossibilitiesofformingaBRICSalternativetoNAFTA?
NATO?Whataretheimplications?
5. WhataboutinnerBRICSconflict?Whataretheexistingtensions?How
cantheybeovercome?
6. HowcanlargerinternationalplayerssuchasUSAandJapanbeattracted
toBRICSfinancialinitiatives?
7. HowwilltheUSEurozonerespondtogrowingpoweroftheBRICS
nations,andhowdoesitcontributetotheexpansionofBRICS?

GuidelinesforResearch

34

http://asia.nikkei.com/Viewpoints/Geopolitico/ChinaIndiatensionscouldstymieBRICS

18


BRICSSummit

ThehistoryofBRICSisbriefcomparedtosomeoftheotherprominent
multilateralunionsoftheworldandwhilethisBackgroundGuide,asthestarting
pointofyourresearch,hascoveredtheimportantmomentsandachievementsof
thiscollaboration,Istronglyencouragedelegatestolookoverthehistoryof
BRICSconferencesanddetailsofagendasetinsaidconferences.Lookingatthese
agendasindetailwouldgivedelegatesaclearvisualizationatthenatureof
negotiationsandargumentsbroughtforthbytherepresentativesofeach
individualBRICSstate.Youdontneedtoknowthedetails(sincetheoutcomes
havebeenarticulatedabove)butitwoulddefinitelyaddtoyourinformation.
Inaddition,eachdelegateismeanttorepresentadifferentsectorof
importanceineachcountryrangingfromeverythingfromfinance,technology,
andtradetohealth,agriculture,andsecurity.Itwillbeimperativetoknowthe
goalsofeachcountryindividuallywithregardstoeachsector.Researchingthis
willfurtheruncoverexistingproblemsandweaknesses,whichBRICS2017needs
toaddressinordertofurtherdiplomaticandeconomic(perhapsevenmilitary)
ties.Also,BRICSsetouttobeaunionpromisingtobemutuallybeneficialtoall
partycountriesandhencetheforwardingofindividualnationalinterestsand
goalsisimportantfortheprogressingofthecommitteeandinturnthe
progressionofBRICSasaunion.Oneofthebestguidestoresearchwouldbethe
officialMinistrypageoftheBRICScountries(itwillbehelpfulifyouknowallof
thembutmostlyyouarerequiredtoknowyourownpositionsgoalsand

19


BRICSSummit

objectives),andthecountrythatyouarerepresenting,alongwiththeindividual
andseparatehistoryoftherestofthememberstatesofBRICS.Belowaresome
additionalreadingsourcesthatwillgiveyousomemoreinsightonthemore
technicalaspectsandfurtherimplicationsoftheBRICSDevelopmentBank.
Itisimportanttokeepinmindyourgoalsasacountry,remindyourself
whoyourgreatestalliesareandwhomyouarecompetingwithonastatelevel.
Yourresearchshouldhelpyouaddressallthesequestions.

AdditionalReading
"WhattheNewBankofBRICSIsAllabout."WashingtonPost.
https://www.washingtonpost.com/news/monkeycage/wp/2014/07/17/w
hatthenewbankofbricsisallabout/.
Afp."TheBRICSCountriesJustLaunchedaRivaltotheIMFandthe
WorldBank."BusinessInsider.2015.
http://www.businessinsider.com/afpnewbricsbankopensforbusiness
inchinaxinhua20157.
"3ReasonstheBRICS'NewDevelopmentBankMatters."TheDiplomat.
http://thediplomat.com/2014/07/3reasonsthebricsnewdevelopment
bankmatters/.
"AboutBricsFifthBricsSummit".2015.FifthBricsSummit.
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23

We appreciate your feedback about our conference. Please

direct all inquiries and comments to our Secretary-General.
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