Policy Alert #171 | August 1, 2018

On July 25-27, 2018, delegations from Brazil, Russia, India, China, and South Africa met in Johannesburg for the 10th BRICS Summit. The resulting Johannesburg Declaration placed a heavy emphasis on trade relations, multilateralism, and the bloc’s commitment to the Joint Comprehensive Plan of Action with Iran, in a stark juxtaposition against recent US foreign policy shifts. The summit included a joint session with delegations from eighteen invited African states as well as sideline bilateral meetings with Argentina, Jamaica, and Turkey, in an apparent continuation of China’s BRICS-Plus format when it hosted the 9th BRICS Summit in September 2017. Despite official statements reiterating the strength and relevancy of the bloc, reception of BRICS in the member Rising Powers remains mixed.

CHINA

In a speech at the BRICS Business forum, Chinese President Xi Jinping expressed high hopes for the bloc’s development initiatives and cooperation: “We BRICS countries should firmly promote an open world economy, be resolute in rejecting unilateralism and protectionism, promote trade and investment liberalization and facilitation, and jointly steer the global economy toward greater openness, inclusiveness, balanced growth and win-win outcomes for all. We should ensure that economic globalization will deliver more benefits. We should help emerging markets and developing countries, African countries and the least developed countries in particular, fully involve themselves in international division of labor and share in the benefits of economic globalization.” Ahead of the BRICS Summit, Xi took the opportunity to visit the United Arab Emirates, Senegal, Rwanda, South Africa, and Mauritius for his first overseas trip following his reelection as president earlier this year, demonstrating China’s commitment to the region through its Belt and Road Initiative.   

• In an editorial, the nationalist Global Times praised China’s “cooperative” democracy and condemned Western states’ “discriminatory attitudes toward Africa”: “Chinese society deems Africa as a continent full of opportunities and countries there as diplomatic partners. Chinese sincerely believe every African country deserves to be treated cordially and valued. […] Western powers either still treat African countries as their colonies or think them too far away for modernization efforts or national politics.”
• The state-directed China Daily hailed President Xi’s efforts at BRICS and in his tour of African states: “China, as a leading beneficiary and proponent of free global trade and multilateral international cooperation, has a particular interest in helping Africa prosper because of its long-standing friendships with African countries.” The Daily also featured op-eds by scholars from other BRICS member states, including Sikhumbuzo Zondi and Evandro Menezes de Carvalho, regarding the bloc’s potential for expanding free trade agreements.
• In an op-ed for the People’s Daily, the official newspaper for the Communist Party of China, researchers He Wenping and Hisham Abu Bakr Metwally echoed Xi’s calls for a BRICS-Plus platform to expand cooperation with other developing countries: “The BRICS Plus model is likely to go beyond the boundaries of the current BRICS framework, creating a new platform for cooperation among countries across different continents. Cooperation among the BRICS’ new circle of friends can extend the use of national currencies to overseas investments and bilateral and multilateral trade, thus reducing dependency on the US dollar.”
• Wang Yongzhong, research fellow at the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, argued that while intra-BRICS trade has been limited, increased US tariffs should serve as an impetus to act: “To achieve deeper cooperation on trade, Chinese industry associations and chambers of commerce at different levels will have to go abroad and establish branches in other BRICS countries. […] Eventually, products from other BRICS members will fill gaps in the Chinese market left by US products. For example, China can encourage farm product associations to go to Brazil, energy associations to look at Russia and renewable energy associations to study India.”

INDIA

Indian Prime Minister Narendra Modi attended the BRICS Summit following short trips to Rwanda and Uganda. In its official press release, India’s Ministry of External Affairs affirmed that “Africa has been the top priority of India’s Foreign Policy. The visit of Prime Minister to Rwanda, Uganda and South Africa will further strengthen our relations with the African continent.” At the summit, Prime Minister Modi highlighted recent challenges to multilateralism and rules-based international order, reportedly characterizing BRICS as “a rock of stability and development” according to an Indian Ministry of External Affairs’ spokesperson. In an address during the Africa Outreach session at the BRICS Summit, Modi also highlighted trade issues: “After the financial crisis of 2008, the dark clouds of protectionism are hovering over the fundamental aspect of globalization.”

• Ahead of the BRICS Summit, Swaran Singh, Professor of International Relations at Jawaharlal Nehru University, commented that expansion of BRICS could be a double-edged sword for India, especially regarding its foreign policy initiatives on terrorism and security: “Such an expanded audience bodes well for Prime Minister Narendra Modi’s genre of diplomacy. But as this summit sees BRICS expanding its reach and launching new initiatives, it poses an uphill task for the Indian team that needs to surpass the high benchmark of the Xiamen Declaration which was celebrated last year as a victory for Indian diplomacy.”
• Abhijnan Rej, Senior Fellow at the Observer Research Foundation, argued in an op-ed with online news website The Quint, that BRICS should avoid blanket anti-West rhetoric in its pursuit to reshape the world order: “The BRICS must coordinate at the UN and other forums to check American unilateralist impulses, by framing common position on this, and other global governance issues.”
• In an article for the left-leaning The Hindu, Observer Research Foundation researchers Harsh Pant and Abhishek Mishra highlighted Modi and Xi’s respective charm offensives in the region to promote India and Japan’s Asia-Africa Growth Corridor and the China-led Belt and Road Initiative. “There are significant differences in their approaches, and the challenge for them would be to develop partnerships with African nations in a way that makes Africa a part of their growth stories too,” they concluded.

RUSSIA

At a press conference following the summit, President Vladimir Putin celebrated the success of the multilateral gathering: “The summit sent a powerful signal in favour of preserving the WTO, against protectionism and changing the rules of world trade. Inter-governmental memorandums were signed on cooperation in regional aviation and environmental protection, and an agreement on establishing a new Development Bank office in Sao Paulo, Brazil.” President Putin also highlighted Russia’s commitment to Africa during a joint meeting with delegations from invited non-member states, and placed special emphasis on “the development of the national energy sector” through oil, gas, and nuclear energy projects. Russian Foreign Minister Sergey Lavrov expressed Russia’s support for the expanded BRICS-Plus platform and “advocates a greater coordination of the five BRICS countries within major international platforms, such as the UN, G20, WTO, IMF, World Bank, as well as other multilateral organizations and fora.” Russia also suggested the institution of a “BRICS mini-Olympics” to showcase member states’ national sports and requested support in Russia’s bid to host the 2025 World Expo. Despite the Russian delegation’s enthusiasm for the BRICS Summit, the Russian media had little to say regarding the event.

• Government-funded RT interviewed Bob van Dijk, CEO of South Africa-based media group Naspers, regarding the economic weight of the BRICS bloc, and emphasized President Putin’s report at the summit that Russian trade with member states has increased by “almost 30 percent” in the last year.

• State-owned Sputnik News coverage of the summit spotlighted academics from BRICS member states, including Charles Pennaforte, Srikanth Kondapalli, and Daniel Bradlow. Sputnik’s interviews with the scholars emphasized the bloc’s commitment to free trade and the detriment of recent US tariffs.

BRAZIL

• According to Professor David Fleischer in his Brazil Focus analysis, Brazil had tough words of its own for other BRICS member states’ unfair tariffs on its exported goods. To this end, Brazilian President Michel Temer met with President Xi to negotiate Chinese tariffs on Brazilian sugar and chicken.
• Época Magazine took interest in the political motivations behind the location of the BRICS Summit in the province of Gauteng. Época explained that the province is home to a concentrated portion of the South African middle class, and the region accounts for nearly one-third of South Africa’s gross domestic product. For these reasons, the Época argued, the political efforts of the current president and the National African Congress party are often hosted in Gauteng.
• Folha de São Paulo took note of the disconnect between President Temer’s speeches and statements at the summit calling for increased integration between Brazil and African countries, and his hard-to-miss early exit from Johannesburg and absence at panels with African observer states.

RPI acknowledges support from the MacArthur Foundation and the Carnegie Corporation of New York for its activities.