BRICS: Upgrading cooperation of emerging economies

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The Ninth BRICS Summit concluded on Tuesday in southeast China’s Xiamen city as the leaders from five major emerging economies – Brazil, Russia, India, China and South Africa - agreed to synergize their development strategies and further upgrade win-win cooperation after the three-day summit.

Under the theme of “Stronger Partnership for a Brighter Future,” leaders from ten developing countries attended forums and dialogues, and around 1,000 business leaders gathered in the Chinese coastal city, where they reached an important consensus on international and regional issues and global governance.

A larger role in global governance

Facing a sluggish international economy and changes in the global landscape, the BRICS bloc of five emerging economies is expected to work together to play a larger role in global governance during its second "golden decade."

Chinese President Xi Jinping (C), South African President Jacob Zuma (L) and Brazilian President Michel Temer (R) arrive for the opening ceremony of the BRICS Business Forum in Xiamen, Fujian Province, September 3, 2017. /AFP Photo

At the opening ceremony of the BRICS Business Forum on Sunday, Chinese President Xi Jinping noted "a large number of emerging markets and developing countries have come to the fore, playing an ever greater role in international affairs."

As BRICS currently account for nearly a quarter of the world economy and contributed more than half of global economic growth in 2016, BRICS nations have increased the representation and say of developing countries in major international organizations such as International Monetary Fund (IMF) and World Bank.

For example, the voting rights of China and India are increased in the IMF and the World Bank.

This year’s BRICS Summit is also special as China invited other five countries from different regions – Egypt, Guinea, Mexico, Tajikistan and Thailand to attend the Dialogue of Emerging Market and Developing Countries, which was held on Tuesday morning, as a bid to promote expanded cooperation among developing countries.

Leaders from BRICS bloc and BRICS Plus States pose for a group photo ahead of the Dialogue of Emerging Market and Developing Countries on the sidelines of the 2017 BRICS Xiamen Summit on September 5, 2017. /AFP Photo

Experts said the “BRICS Plus” model is a way to promote BRICS as a leading platform for South-South cooperation, which will enhance the resilience of BRICS cooperation and help push inclusive growth and globalization while making development and benefit distribution more balanced and fair.

Unquestionably, for the next decade, BRICS will deepen coordination and expand cooperation on global affairs just as Chinese leader Xi said in his closing remark "BRICS countries should push for a more just and reasonable international order."

As the representation of emerging markets and developing countries, BRICS countries have the common appeal in strengthening global governance, the spokesperson of Chinese Foreign Ministry Geng Shuang said during a regular press conference on Tuesday as the Summit wrapped up in Xiamen, adding that more empowered voices from BRICS nations would promote reform in global governance and also be a benefit to world peace and stability, as well as global economic growth.

New growth impetus

The five nations of the BRICS bloc accounted for 23 percent of the global economy in 2016, while the emerging markets and developing countries accounted for 80 percent of global growth.

Leaders attend the Dialogue of Emerging Market and Developing Countries on the sidelines of the 2017 BRICS Summit in Xiamen, southeastern China's Fujian Province on September 5, 2017. /Xinhua Photo

As a primary engine of the world economy, BRICS bloc along with other developing countries is expected to inject fresh impetus into the global economy.

"We should push for an open world economy, promote trade liberalization and facilitation, jointly create a new global value chain, and realize a global economic rebalancing,” said the Chinese President Xi Jinping at the first day of the BRICS Business Forum.

According to the Xiamen Declaration issued after a plenary session on Monday, leaders of BRICS blocs remain committed to an accessible world economy and stand against protectionism. "We recommit to our existing pledge for both a standstill and rollback of protectionist measures and we call upon other countries to join us in that commitment,” it said.

Practical economic cooperation has served as a foundation of BRICS cooperation and, as noted in the Xiamen Declaration, the five nations stress the role of enhanced trade and investment cooperation and pledge to build financial cooperation through a network of financial institutions.

Chinese President Xi Jinping delivers a speech at the Dialogue of Emerging Market and Developing Countries in Xiamen, southeast China's Fujian Province, September 5, 2017. /Xinhua Photo

The New Development Bank, which was opened in Shanghai in 2015, approved loans totaling 1.55 billion US dollars last year to seven programs of sustainable development and is expected to offer loans of 2.5 billion US dollars this year. It also launched its Africa Regional Center last month in Johannesburg, South Africa.

China will set aside 500 million yuan (about 76 million US dollars) for economic and technological cooperation and exchange between BRICS countries, announced Xi during Monday’s plenary session.

The bloc promotes trade liberalization and an open world economy as Xi stresses that "only openness delivers progress, and only inclusiveness sustains such progress."

BRICS countries have also made headway in strengthening high-quality cooperation this year. They have worked out road maps of cooperation in trade facilitation, service trade, currency swaps and settlements, and public-private partnership (PPP), Xi said when he briefed the press at the end of the summit.

People-to-people exchange

Culture cooperation was also another highlight at this year’s summit, and a gala, d ubbed the “Sail to the Future,” which featured Chinese culture and local artistic figures was presented to the leaders and delegates who attended the BRICS Summit on Monday night

Chinese President Xi Jinping (C) poses with BRICS leaders and other invited heads of state during the BRICS Summit in Xiamen, Fujian province on September 4, 2017. /Xinhua Photo

At the opening ceremony of BRICS Business Forum, President Xi Jinping said that more events such as cultural festivals, movie festivals and sports games should be held. BRICS countries are staging joint art and film festivals, and suggested that these events should be in a regular and institutionalized manner, he added.

Under the proposal, the first BRICS Cultural Festival is scheduled to be held later this month in Xiamen. The first film co-produced by all five BRICS countries "Where Has Time Gone?" will also hit the big screen.

“We will expand people-to-people exchanges in all dimensions, encourage all fabrics of the society to participate in BRICS cooperation,” leaders of BRICS bloc said in the Xiamen Declaration, adding that people-to-people exchange will be “making BRICS partnership closer to our people's hearts.”

Chinese President Xi Jinping (C) and his wife Peng Liyuan pose with BRICS leaders and other invited heads of state and their spouses for a family photo during the BRICS Summit in Xiamen, Fujian province on September 4, 2017. /Xinhua Photo

Over the past ten years, the BRICS bloc has contributed significantly to stabilizing the global economy and brought tangible benefits to more than three billion people, now with more emerging markets joining in, the countries' growth is embracing an optimistic outlook.

The BRICS bloc has progressively realized its development agenda and made a significant contribution to the steady and consistent growth of the world economy, said the Financial Times, as the BRICS system is stepping into the second decade.

The tenth BRICS summit will be held in Johannesburg as South Africa will assume the chairmanship next year.

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