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The Political Economy of Intra Brics Cooperation Challenges and Prospects Siphamandla Zondi Full Chapter
The Political Economy of Intra Brics Cooperation Challenges and Prospects Siphamandla Zondi Full Chapter
Series Editor
Timothy M. Shaw , University of Massachusetts Boston, Boston, MA,
USA;
Emeritus Professor, University of London, London, UK
The global political economy is in flux as a series of cumulative crises
impacts its organization and governance. The IPE series has tracked its
development in both analysis and structure over the last three decades.
It has always had a concentration on the global South. Now the South
increasingly challenges the North as the centre of development, also
reflected in a growing number of submissions and publications on
indebted Eurozone economies in Southern Europe. An indispensable
resource for scholars and researchers, the series examines a variety of capi-
talisms and connections by focusing on emerging economies, companies
and sectors, debates and policies. It informs diverse policy communities
as the established trans-Atlantic North declines and ‘the rest’, especially
the BRICS, rise.
NOW INDEXED ON SCOPUS!
The Political
Economy
of Intra-BRICS
Cooperation
Challenges and Prospects
Editor
Siphamandla Zondi
Institute for Pan-African Thought
and Conversation
University of Johannesburg
Johannesburg, South Africa
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
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Preface
The book arises from a conversation among members of the South African
delegation to the BRICS Academic Forum in Brasilia, Brazil, in 2019.
The conversation was the question of the extent to which intra-BRICS
could be deepened and consolidated to make sure that BRICS is institu-
tionalised. We then agreed that this was a theme running through all our
presentations that needed to be published to stimulate broader discus-
sion in the world. As a leader of the delegation, I agreed to coordinate
the publication and take on the responsibility of an editor. We had a six-
month process in mind, but it was not realistic. It took almost a year to
have the manuscript in a shape that would be worth publishing.
The book is about possibilities and challenges related to deepening
intra-BRICS cooperation. It is inspired by the fact that work on ensuring
that BRICS had a strong international outlook, and a presence has gath-
ered momentum in 11 years of its existence. The agency of BRICS
in international affairs, often associated with such developments as soft
balancing, a search for alternative world order, a challenge to the global
power asymmetry or reinforcement of this asymmetry, a challenge to
imperialism or a platform for sub-imperialism, and its voice and positions
on global issues is receiving consistent attention.
We also realised that work on how each individual BRICS member
state was fitting in this maze or puzzle was ongoing. Perhaps, questions
about the leading (sometimes called the dominant) role of China and
Russia as major global powers have featured prominently in discussions
v
vi PREFACE
ix
x CONTENTS
Index 273
Notes on Contributors
xi
xii NOTES ON CONTRIBUTORS
She was also a member of the woman and gender cluster of the African
Union’s Economic, Social and Cultural Council (ECOSOCC). She is a
Research Associate to the Faculty of Sciences of the University of Johan-
nesburg. She is also a member of the Organisation for Women in Sciences
Development (OWSD), which champions and addresses the obstacles
faced by women in developing countries. She is the co-founder and the
co-chairperson of the UJ-led maiden International Conference on Food
Security and Safety. She was recently nominated through a competitive
process to participate at the BRICS Young Scientist’s Forum in Brazil
(2019), as one of the bioeconomy scientists. She also forms part of
the UNESCO L’Oréal sub-Saharan team for Women in Sciences. She
recently published on mycotoxin of contamination of maize and other
grains and gender dynamics in school mathematics achievements.
Thokozani Simelane is a Research Director at the Africa Institute of
South Africa. He is a resource person for the South African BRICS
think tank and has been a member of South Africa’s Standing Advi-
sory Committee on intellectual property rights. His speciality areas
are intellectual property management, systems science and system
dynamics modelling, sustainable development, biodiversity management
and science diplomacy. His recent publications are on Belt and Road
Initiative as an alternative development for Africa; poverty alleviation
pathways and sustainable development goals in Africa; system dynamics
models for Africa’s development planning; mathematical models showing
how socio-economic dynamics in African cities could widen or reduce
inequality; and analyses of mathematical models for city population
dynamics under heterogeneity.
Siphamandla Zondi leads the BRICS Studies Project at the University
of Johannesburg’s Institute for Pan-African Thought and Conversation.
He is the chairperson of the South African BRICS Think Tank. His areas
of research interest relate to ways of decolonising political thought and
practice in such settings as the national question, global south studies, and
Africa in the world. His recent publications include student protests and
the university; constraints of Marxism for African revolutions; Cabralian
theses on politics; monologue of liberal democracy; and African voices
that recenter Africa. He is a member of the Africa Decolonial Research
Network (ADERN).
List of Figures
xvii
xviii LIST OF FIGURES
xix
CHAPTER 1
Introduction
The BRICS marks two auspicious anniversaries in 2021, the 20th anniver-
sary of the coining of the ‘BRICs’ acronym and the 15th anniversary of
the ‘BRICS’. In this period, the group has evolved from an economic
grouping on paper to a platform for cooperation in various areas,
reflecting changing global dynamics. In this chapter, we sketch the next
phase of BRICS development underscored by the need to deepen internal
cohesion, strengthen cooperation among BRICS countries in functional
policy areas and consolidate overall coordination in the absence of a secre-
tariat or central institutions. Our argument arises from the fact that much
The Prism
While all points of view on the significance and future direction of the
BRICS are welcome, there is an even greater need for discussion and
analysis that seeks to interpret development from within BRICS. Deliber-
ations on where BRICS seems to be moving or where it should move
are in the interest of all of those who are also concerned about the
direction of international relations, cooperation and the Global South.
The issues raised can be quite widely shared across the world as it were,
but there are particularities in perspectives from below or from within
BRICS. It may seem unnecessary to point this out, but we now know
how important it is that thinkers declare the vantage points they repre-
sent, the loci of enunciation from which they speak. Sometimes these are
broad and sometimes specific. In this case, this book is conceived from
a broadly South-centric perspective in that the very question that this
book responds to is framed by concerns of the South about its agency,
its initiatives, the challenges to its emergence and the opportunities to be
harnessed. Below, we briefly discuss the key theses that dominate conver-
sations on the BRICS as a rationale for adding, to this conversation, what
we consider to be a pertinent subject for further exploration.
nature of the BRICS makes it unwise to make a definite call about the
direction that this power bloc is taking. But certainly, the BRICS have
emerged with a strong political and economic agenda, although it has
been slow in implementing it. At the centre of this agenda is not really the
markets or consolidation of an economic foothold in the world market,
but it is the high politics of global reform for which it has been criti-
cised by those who hoped it would limit itself to economic and market
integration. This global reform relates to the strengthening of all global
multilateralism including international economic and financial reforms
that threaten the current order in many ways. It is about shifting the
current order in order to serve the interests it was never designed to serve,
namely an inclusive, just, developmental and ethical world. In spite of
differences in nuances related to positions of individual countries, which
change from time to time too, there is a convergence of interests around
global reform. Critics are correct in arguing that the BRICS is reformist
rather than transformational, but being reformist is also an option in the
pursuit of a more progressive world system. It is an alternative to the
status quo, which has failed billions around the world and disadvantaged
the Global South, from four of the BRICS countries.
gives the possessor of structural power the ability to change the range
of choices open to others without putting pressure directly on them to
make decisions one way or another. It is thus an indirect form of power;
it is wielded through governance structures such as international financial
governance, which the paper details and illustrates with the dollar hege-
mony. The author further explores the counter-hegemonic potential of
the New Development Bank.
Chapter 4 examines the complex regime of climate change responses
within the BRICS. Impacts of climate change, such as the rising frequency
and intensity of water shortages, persistent drought, floods, storms and
increase in temperature, currently traverse the globe; they confront
the BRICS countries in serious ways. The authors base their approach
on Keohane and Victor’s concept of ‘regime complex’, which means
that instead of a fragmented set of bodies or institutions, the climate
change issue-area clusters around a single framework, the United Nations
Convention on Climate Change. This chapter makes a case for a new
approach to cooperation on climate issues. They argue that a typical top-
down approach would not be the most appropriate. They further under-
score the need for the BRICS to involve the youth at the various levels
of engagement, i.e. societal, institution, as well as personal. The chapter
shows that each member of BRICS has a responsibility to constructively
contribute to ways in enhancing cooperation among BRICS countries to
find solutions to impacts of climate change. It suggests that bottom-up
approaches rooted in both supply and demand mechanisms, in contrast to
a single comprehensive top-down approach, may provide practical options
to enhance cooperation that addresses climate change challenges, thereby
opening new frontiers for the BRICS.
Chapter 5 tackles energy security and energy cooperation oppor-
tunities, within the BRICS. By 2040, the BRICS are anticipated to
account for 45 per cent of global energy consumption. As massive energy
producers, they continue to be key role players in the energy security
debate; this includes oil, gas, renewable energy and nuclear energy. The
authors identify opportunities and options for energy security and policies
in BRICS. They look for trends in renewable energy patents registered
by BRICS states to underscore knowledge production patterns. They
conclude that energy production and consumption are catalysts for coop-
eration requiring cross-pollination of skills, capabilities, resources and
technologies. They also argue that BRICS would better serve African
1 TOWARDS DEEPER INTRA-BRICS COOPERATION: AN ARGUMENT 11
Conclusion
Time has come to explore how the BRICS might reach a sufficient level
of internal cohesion through functional cooperation, practical strategic
cooperation and policy/programmatic coherence. To get to this, we must
begin a conversation that seeks to make a case for this cooperation, either
by identifying shared challenges and opportunities for such collabora-
tion or by exploring ways in which cohesion might happen. The idea
was not to be prescriptive, excessively technical, for it is not the task of
researchers to translate ideas into policy programmes—that is, the task
of intellectuals within the public service of these countries. Ours is to
reason visions and possibilities based on concrete data and a clear analyt-
ical framework. As this chapter suggests, the focus on external dynamics
of BRICS and internal conflicts or divergences deserves attention, but
so does the subject of internal coherence through functional coopera-
tion among BRICS countries. As the chapter has said, this book only
makes opening thoughts on the subject in the hope of instigating further
deliberation, deeper studies, and a more comprehensive treatise of the
subject.
References
Naudé, W., Szirmai, A., & Haraguchi, Neds. (2015). Structural change and
industrial development in the BRICS. OUP Oxford.
Quiliconi, C., Saguier, M., & Tussie, D. (2016). BRICS: Leadership in the
making. In S. Kingah & C. Quiliconi (Eds.), Global and regional leadership
of BRICS countries (pp. 29–47). Springer.
CHAPTER 2
Modimowabarwa Kanyane
Introduction
At the fourth BRICS Summit in New Delhi in 2012, the leaders consid-
ered the formation of the New Development Bank hereafter referred to as
the BRICS Development Bank. Following the 2014 sixth BRICS Summit
in Fortaleza, the leaders signed the Agreement establishing the BRICS
Development Bank with headquarters in Shanghai, China and regional
offices in Johannesburg, South Africa. The establishment of the BRICS
Development Bank is to close the gap of infrastructure needs in BRICS
and developing countries. The bank was established in July 2015 by the
BRICS countries (Brazil, Russia, India, China and South Africa). The
M. Kanyane (B)
University of Venda, Thohoyandou, South Africa
e-mail: barwa.kanyane@univen.ac.za
Brazil, India and Africa within the BRICS community share socio-
economic characterisation, i.e. the large size of the economy, unemploy-
ment and slow economic growth. Although sustainability and inclusion
have been a key policy driver, these socio-economic development chal-
lenges still stubbornly persist among significant proportions of their
populations. China and Russia, to a certain extent, are not an exclu-
sion. The BRICS Development Bank comes in as a potential catalyst to
break the past with new developmental interventions. The willingness of
political leaders and government institutions in BRICS to cooperate and
strengthen relationships will be required to support the transition towards
inclusive and sustainable development (van Voorhout & Wetzling, 2013).
Therefore, building synergies through knowledge sharing and skills trans-
fers to reduce inequalities, poverty and unemployment will be important
highlights of the BRICS member states to foster inclusive develop-
ment especially in Africa, India and Brazil where there are persistent
socio-economic challenges.
The Sustainable Development Goals (SDGs), officially known as trans-
forming our world, the 2030 Agenda for Sustainable Development
(United Nations General Assembly, 2015) based on the principles popu-
larly known as ‘the future we want’, largely built from the experiences of
15 years of Millennium Development Goals (MDGs). Thus, the SDGs
should not be seen as a disconnect but to draw from the MDGs experi-
ences, which showed the value of planned and goal-driven development
effort though many goals were not met. As such, Africa framed within
Agenda 2063 should not be left behind in pursuit of developmental
projects supported by the BRICS Development Bank. The SDGs provide
a useful framework for the advancement of inclusive development within
the BRICS member states. An emphasis on inclusivity—especially on
equality of opportunity in terms of access to markets, resources, and an
unbiased regulatory environment is an essential ingredient of successful
growth. Unlike China and Russia, the inclusive growth and development
in both India, Brazil and South Africa, especially in the continent would
of course take a longer lifespan as the focus is on productive employment
and skills transfer to increase the incomes of the poor and marginalised
and thereby raise their standards of living (Ianchovichina & Lund-
strom, 2009). This calls for government institutions and corporations to
rally around as a mixed approach to advance inclusive development for
emerging economies (Vandemoortele et al, 2013: 16–57).
22 M. KANYANE
of globalisation and narrowing the gap between the rich and the poor
(Ibid: 15). The BRICS Development Bank can both increase the amount
of financing available to developing countries and break the monopoly
of developed countries over the international financial architecture. In
this way, it will help to establish a new mechanism for international
development financing that is more beneficial to developing countries.
The BRICS Development Bank has not co-financed any investment
projects with other MDBs (Wang, 2019: 227), as an alternative largely
because the bank is still entrenching itself on the ground. For the bank to
gain experience and capacity, it must work closely with other MDBs. This
will require cooperation and existing multilateral development banks to
reform and transform. BRICS’ recent approach of integrating with other
emerging countries in the BRICS Plus model is a new mechanism of
fostering a cooperation agenda with BRICS countries inviting developing
states from three continents Africa, Asia, and Latin America, to boost
dialogue and discussion about cooperation between BRICS and other
developing states. ‘The mode will enrich the BRICS cooperation mecha-
nism. Particularly, against the current backdrop of anti-globalisation and
protectionism, it will offer the wisdom of developing countries for global
economic governance’ (Lintao, 2017: 15).
Xiaoyan (2017: 17) argues that there is a necessity for e-commerce,
services trade and investment cooperation to strengthen BRICS economy
because this will promote industrial upgrade, create jobs and help devel-
oping countries as well as small medium-sized companies integrate into
the global value chain. However, this is possible if there is construc-
tive cooperation on people-to-people exchange of information and skills
within the BRICS space. The BRICS Think Tanks should be actively
involved in scientific research and policy development to create fertile
grounds for such exchanges.
There are MDBs currently operating worldwide comprising the WB, a
number of regional development banks and several specialised or sub-
regional banks (Humphrey, Op Cit: 2). The number of borrowing
countries varies. The large global MDBs, WB, European Investment Bank
(EIB), International Fund for Agricultural Development (IFAD), OPEC
Fund for International Development (Organization of the Petroleum
Exporting Countries) (OFID), reach well over 100 countries, with the
WB’s borrowing countries totalling 144. The large regional banks (AfDB,
AsDB, European Bank for Reconstruction and Development (EBRD),
Inter-American Development Bank (IADB) and Islamic Development
2 THE BRICS DEVELOPMENT BANK AND CHALLENGES … 27
Bank (IsDB) finance between 25 and 54 countries, and the smaller sub-
regional and specialised MDBs serve fewer than 25 countries. When
combined, and considering overlap, the legacy RDBs (AfDB, AsDB,
EBRD and IADB) serve a total of 146 countries, slightly more than the
WB (Engen & Prizzon, Op Cit: 22). All these MDBs existed before the
formation of the BRICS and BRICS Development Bank.
Therefore, close collaboration with existing RDBs and MDBs would
be vital for the BRICS to strengthen its governance and sustenance,
hence, there has been a lot of emphasis on public–private financial part-
nerships with equally or links between multilateral, regional and national
development banks. The cooperation between the MDBs and BRICS
Development Bank can be a new strategy for not only financing devel-
opment but also to promote mutual benefit, while enabling the BRICS
Development Bank to gain expertise and experiences from the existing
banks. In turn, the BRICS Development Bank could also offer innova-
tive, effective and efficient perceptions on the reform of banks in order to
meet the needs of developing countries and emerging markets.
Kaukaa voi hän jo kuulla, miten niitä nyt ajettiin takaisin talleihin,
mutta hän ei halunnut kysyä, montako niistä tuli ja savu olivat
tappaneet. Kaiken tuon sai hän kyllä tietää tarpeeksi pian — jo
huomenna. Tänään ei hän luullut kaipaavansa enää muuta kuin
lepoa. Hän totesi, että useimmat talonpojat olivat poislähdössä
palatakseen jälleen Arokszállakseen. Tuo taivaanrannalta näkyvä
ruusunpunainen juova alkoi levetä ja kirkastua, ja savunkin läpi voi
hän nähdä, miten tähdet himmenivät auringonnousun lähestyessä.
Isä Ambrosius sanoi hänelle monta lohduttavaa sanaa, ja jokainen
talonpoika nosti kunnioittavasti lakkiaan mennessään vararikkoon
joutuneen kreivin sivu.
TOINEN OSA
XVI
PÄÄSIÄISAAMU.
»Mistä?»
»Mutta sitä kai et voine kieltää», sanoi vanha Berczi, »että juuri
tuona tulipaloyönä muuttui András tuollaiseksi omituiseksi ja
vakavaksi»?
»Pauhu oli hirmuinen viime yönä. Eilen kävin aivan kreivin talleilla
asti ja minusta näytti, että koko Bideskuty on veden vallassa».
Jokaisen asunnon ovesta tuli nyt tielle kauniita tyttöjä, jotka olivat
pukeutuneet koko sunnuntaikoreuteensa. Leveät silitetyt pellavahihat
kiilsivät ja kansallisväriset, punaiset, valkoiset ja viheriät nauhat
liehuivat tuulessa. Kaunis huntu, joka oli sidottu niskaan suurella
nauharuusulla, täydensi kuningatarmaisen pienen pään kauneutta.
Tukka oli kammattu sileäksi ja letitetty kahdeksi paksuksi palmikoksi,
pusero oli edestä kauniisti koruompeluin kirjailtu ja hoikan vartalon
ympärille oli napitettu ahtaat liivit. Lukemattomat hameet heiluivat
iloisesti tyttöjen kävellessä omituisesti lanteitaan heiluttaen, suuret
kultaiset korvarenkaat, useat helminauhat ja liivien kirkkaat soljet
loistivat auringossa yhtä kirkkaasti kuin kauniit silmät ja lumivalkoiset
hampaat. Vanhemmilla naisilla oli hieman tummemmat puvut ja
pitemmät hunnut, kirkkaanväriset huivit peittivät heidän hartioitaan ja
kaikilla oli käsissään suurilla joko messinki- tahi hopeahakasilla
varustetut raskaat rukouskirjat.
»Hän tuli kyllä tänne viime vuonna, mutta en tiedä, tuleeko hän
tänään», sanoi eräs nuori Bideskuty’n paimen. »Kun sivuutin
päärakennuksen, odottivat vaunut ja hevoset portaitten edustalla,
joten on varma, että kreivitär ja nuori neiti saapuvat».
»Auta minut ylös, Rezsö, äläkä puhu tyhmyyksiä. Olen varma, että
jalo
Ilonka on aivan alttarilla olevan pyhän neitsyen näköinen».