BRICKS and Bangladesh
Chinmay Prasun Biswas :
Formed officially in June 2009, BRIC started as an acronym of the world’s leading and emerging market economies namely Brazil, Russia, India and China. South Africa joined BRIC in 2010 and the alliance was renamed as BRICS. With headquarter at Shanghai, China its aim was to promote peace, security, development and cooperation based on the ideas of inclusion and education. BRICS works on the principles of non-interference, equality and mutual benefit. Three pillars of BRICS are – political security, financial and cultural relation, and people to people exchange. BRICS countries, in particular, stand to benefit significantly from the free flow of personal data among them.
Such an alliance already exists in the world which is called G-7. Formed in 1975 the G7, a group of industrially developed countries and advanced economies, includes the United States, Canada, the United Kingdom, France, Italy, Germany and Japan, as well as the European Union. G-7 holds more than half of global net wealth, 30 per cent to 43 per cent of global gross domestic product but slightly above 10 per cent (77 crore) of the world population in 2022. The BRICS, on the other hand, has 327 crore i.e. 41.11 per cent of the world population. Majority of them live in China and India, the two most populous countries in the world, having more than 140 crore each. BRICKS hold only 16 per cent of global trade, representing just 25 per cent+ of global GDP. According to a report of WTO, the five BRICS countries together contribute nearly 31.5 per cent to the global GDP, compared to 30.7 per cent by G7 countries. Some analysts consider BRICS as an alternative to the G-7 but difference between G-7 and BRICKS is very clear.Russian Deputy Foreign Minister Sergei Ryabkov said that French President Emmanuel Macron is not a suitable guest for BRICS.
On 15th July 2014, the first day of the 6th BRICS summit held in Fortaleza, Brazil, the BRICS countries signed an agreement to form New DevelopmentBank (BRICKS Bank) with $50 billion as an alternative to the World Bank and the International Monetary Fund. In addition, they created a liquidity mechanism called the Contingent Reserve Arrangement to support members struggling with payment. Moreover, it aimed at mobilising resources for infrastructure and sustainable development projects in BRICS and other countries. The journey of BRICS Bank started in 2015. In a separate agreement, a reserve currency deposit worth $100 billion was set up by BRICS nations. In that summit Russian President Vladimir Putin said that the BRICS countries plan to issue a new global reserve currency and are ready to work openly with all fair partners. The BRICS currency is called BRL, Brazil Reals.
Due to directions and austerity measures prescribed by the IMF many developing and emerging economies had to undergo painful sufferings. For this reason many countries said that they might be interested to join the BRICS. The recent 2-day conference of foreign ministers of the BRICS alliance in Cape Town, South Africa has called for a new balance in the world order outside the western countries. The host foreign minister Naledi Pandor said that the vision of this alliance is to provide global leadership to a world divided by geopolitical tension, inequality and insecurity. Indian foreign minister S Jaishankar said that the alliance must send a strong message that the world today is multi-polar, new balances are emerging and new situations cannot be dealt with in old ways.” At the root of the problems we face the centralizstion of economy and as a result many countries have become dependent on the kindness of a few,” he added. Brazilian Foreign Minister Mauro Vieira described BRICS as “essential towards building a multi-polar world order” which would reflect the needs of developing countries. Russian Foreign Minister Sergey Lavrov said that more than a dozen countries including Saudi Arabia have expressed interest to join BRICKS. China’s Vice Foreign Minister Ma Zhaoshu said the BRICS alliance could be expanded to support developing countries and emerging market economies.
Recently there was a news buzz that Bangladesh is going to join BRICKS in next August. According to that news report Bangladesh will get some benefits if it joins BRICS which are:
1. large loan facility at lower interest rate,
2. more trade and investment relation with member countries,
3. strengthening Bangladesh’s position globally.
4. getting advantage of the alternative currency among the BRICS countries,
5. getting large loan facility.
According to that report, Foreign Minister Dr AK Abdul Momen said, joining BRICS will be another area of our financing. We need money. It will be good from that point of view. Joining BRICS was discussed in a meeting between Prime Minister Sheikh Hasina and South African President Cyril Ramaphosa in Geneva on 14th June. According to that report, Bangladesh is going to get membership of BRICS. Bangladesh has already formally applied to join BRICS. Bangladesh’s membership will be finalised at the summit in South Africa in August. Even information minister has said very recently that joining BRICKS will be honourable for Bangladesh.
However, the actual situation is totally opposite. Referring to Foreign Minister Dr Momen, a newspaper report of 21st June confirmed that Bangladesh has not yet formally applied to join BRICS. Bangladesh will join if BRICS invites. As it is a matter of international and multilateral relationship, statement of foreign minister is to be taken for authentic. So, we have to wait further to see whether Bangladesh itself applies for joining BRICKS or BRICKS invites Bangladesh, as told by foreign minister.
(The writer is a former Commissioner of Taxes).
