Subscribe to our weekly newsletters for free

Subscribe to an email

If you want to subscribe to World & New World Newsletter, please enter
your e-mail

Diplomacy
The leaders of four BRICS countries, Lula, Xi Jinping, Cyril Ramaphosa with Russian Foreign Minister Sergey Lavrov

BRICS and the West: Don’t Believe the Cold War Hype

by Cedric H. de Coning

While it is prudent to be cautious, it may also be wise to explore cooperation in those areas where there are shared interests rather than assume that the BRICS and the West are strategic rivals on all fronts. This analysis was first published in the Global Observatory, 30 August 2023. When Jim O’Neill coined the BRIC acronym in 2001, the point he was trying to convey was that the global economic system needed to incorporate the world’s largest emerging economies. His advice fell on deaf ears and in 2009, Brazil, China, India and Russia decided to take matters into their own hands and formed the BRIC grouping. South Africa joined the group in 2010 to form the BRICS. This July, the group held its 15th summit in South Africa, where they decided to add six new members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. More are likely to join in the future, including countries like Indonesia and Nigeria.  What these countries have in common is a frustration, if not a grievance, about being side-lined to the periphery of the world economy. Together, the BRICS represent approximately 40% of the world’s population. The combined size of their economies are approaching approximately 30% of the world’s GDP, which puts them roughly on par with combined size of the economies of the G7 countries, depending on whether size is measured in GDP or PPP.  More importantly, in the next few decades, the combined size of the BRICS economies will surpass that of the G7. Despite this growing parity, all the members of the BRICS, with the exception of Russia, self-identifies as being part of the Global South, i.e., they feel excluded from a global system dominated by the Global North. Their stated aim is to work towards a future system of global governance where they will have equal political and economic say in global institutions, and where no one state will dominate others. In pursuit of this aim, BRICS countries have established their own development bank, set up their own contingency reserve arrangement, are developing their own payment system, and have started to trade with each other in their own currencies.  The BRICS want to free their economies from the dollar-based international financial system. They feel exposed to United States interest rates that can have a negative effect on their economies, for no domestic reasons. The dollar-based financial system also provides the US with significant advantages in the global economy, which the BRICS see as unfair. They also feel a dollar-based financial system gives the US hegemonic influence in global affairs, through for example, exerting US jurisdiction on all dollar-based trade or investments that flow through US banks or financial institutions.  While the BRICS countries have these clear shared macro-economic interests, many of the members also have competing interests in other domains. China and India are geopolitical rivals in South Asia. Egypt and Ethiopia are at loggerheads over the Nile. Brazil, India, South Africa and the newly-added Argentina are democracies, while other countries in the group are governed by a diverse set of autocratic regimes, which could set up an irreconcilable clash of values on some issues. Many of the members of the BRICS also have close ties to the United States and Europe, including Egypt, India, Saudi Arabia and South Africa. South African President Cyril Ramaphosa, in a televised statement to the nation on the eve of hosting the BRICS summit in South Africa, explained that South Africa remains non-aligned, and he announced that in 2023 the country will also host a major United States-Africa trade meeting and an EU-South Africa summit. South Africa will also host the G20 in 2025, the first in Africa. For many countries, membership of the BRICS does thus not necessarily imply aligning themselves with one global alliance versus another, but rather cooperation in a group around a series of shared interests.  Where does this place the BRICS on the Russian war in Ukraine? The BRICS summit in Johannesburg steered clear of taking a position on the war, other than welcoming mediation aimed at resolving it through dialogue and diplomacy. Some BRICS members like Iran are clearly supporting Russia, while most others have stopped short of either supporting or condemning Russia. For many such as Egypt, the war has adversely affected their economy. Two of the BRICS members, Egypt and South Africa, are part of an African initiative to seek a mediated end to the conflict, which is perhaps the first African initiative to mediate an international conflict. Overall, however, the BRICS have their eyes on the medium- to long-term transformation of the global macro-economic and financial system, and countries like China are probably frustrated that the Russian war in Ukraine has drawn attention away from this larger objective.  Are the BRICS and the West headed for a new cold war? The shift in the center of gravity of the global economy to the East is an unstoppable fact driven by demographics and economic factors like the cost of production. At the same time, Europe and the United States will remain major economic players. In tandem with these changes in the global economy, it is clear that the global political order will become more multipolar, with China, Europe, India, and the United States representing some of the major centers of influence.  In an August 27 article, Jim O’Neil argues that the influence of the BRICS will be determined by their effectiveness, not their size. An expanding BRICS will most likely succeed in helping its members to break free from a dollar-based international financial system, but that will take several decades of incremental change before it reaches a tipping point. Whether that is a good or bad thing depends on the degree to which your economy is tied to the United States. Many of the BRICS countries, including China, Egypt, India, Saudi Arabia, and South Africa all have economies whose prosperity are closely tied to the Unites States. They will thus have an interest in a slow, stable freeing up of the international financial system, and this should give everyone that is prudent time to adapt.  The same logic also applies to changes in global governance architecture. Apart from Russia, all the other BRICS countries have an interest in making sure that changes in the global order are managed at a slow steady pace that does not generate instability. All the BRICS countries, apart from Russia, are also strong supporters of multilateralism, with the United Nations at its center. Many Western countries and BRICS members may thus have more shared interests than the doomsday headlines suggest. While it is prudent to be cautious, it may also be wise to explore cooperation in those areas where there are shared interests rather than assume that the BRICS and the West are strategic rivals on all fronts.

Diplomacy
Kenyan President William Ruto

Kenyan president will receive White House praise over troops-to-Haiti move − but lack of action across Americas should prompt regional soul-searching

by Jorge Heine

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Kenyan President William Ruto will attend a rare U.S. state reception for an African leader on May 23, 2024 – but much of the chat will be about a third country: Haiti. Kenyan troops are preparing to deploy to the Caribbean nation as part of a U.N.-backed mission aimed at bringing stability to a country ravaged by gang violence. The White House event is in part a recognition by Washington of Kenya’s decision to step up to a task that the Biden administration – and much of the West – would rather outsource. Indeed, Haiti has seemingly become a crisis that most international bodies and foreign governments would rather not touch. The U.S., like other major governments in the Americas, has repeatedly ruled out putting its own troops on the ground in Haiti. As someone who has written a book, “Fixing Haiti,” on the last concerted outside intervention – the United Nations’ stabilizing mission known as MINUSTAH – I fear the lack of action by countries in the Americas could increase the risk of Haiti transitioning from a fragile state to a failed one. MINUSTAH was the first U.N. mission formed by a majority of Latin American troops, with Chile and Brazil taking the lead. The outsourcing of that role now to Kenya has sparked concerns from human rights groups. It should also lead to soul-searching questions in capitals from Washington to Brasília, as well as at United Nations headquarters in New York. At the mercy of gangs Haiti’s descent into chaos began almost three years ago with the murder of President Jovenel Moïse in July 2021. Lawlessness in the nation has seen gangs take control of an estimated 80% of the capital Port-au-Prince and thousands killed in the spiraling violence. Today, the country is not only the poorest in the Americas but is also among the most destitute in the world. About 87.6% of the population is estimated to be living in poverty, with 30% in extreme poverty. Life expectancy is just 63 years, compared with 76 in the United States and 72 in Latin America and the Caribbean as a whole. Recipe for disaster International intervention in Haiti has been long overdue. Yet, until now, the attitude of the international community has, from my perspective, been largely to look away. From a humanitarian perspective and in terms of regional security, to allow a country in the Americas to drift into the condition of a failed state controlled by a fluid network of criminal gangs is a recipe for disaster. Yet governments and international organizations in the region are unwilling to step up to confront the crisis directly despite pleas from Haiti and the U.N. The Organization of American States, which in the past played an important role in Haiti and for which I served as an observer to the country’s 1990 presidential elections, and the Community of Latin American and Caribbean States have been criticized over their slow response to the Haitian crisis. The Caribbean Community, or CARICOM, has made a significant effort, holding a number of meetings on the Haitian crisis; several member states, such as the Bahamas, Barbados and Jamaica, have committed to sending police forces to Haiti, albeit in small numbers. The United States, in turn, having left Afghanistan in 2021 after a tumultuous 20-year occupation, appears reluctant to send troops anywhere. Rather, Washington would prefer that others take up the role of peacekeeper this time. In response to the offer from Kenya, the State Department said it “commends” the African nation for “responding to Haiti’s call.” Part of this reluctance in the Americas could also be related to the perception – in my view, a misperception – of how past interventions have played out. The United Nations mission from 2004 initially managed to stabilize Haiti after another rocky period. In fact, the country made significant strides before it was hit by a devastating earthquake in 2010. There were bad missteps, for sure, after 2010. A cholera outbreak brought to Haiti by infected troops from Nepal resulted in more than 800,000 infections and 10,000 deaths. Sexual misconduct by some of the U.N.’s blue helmets further tarnished the mission. But the notion that MINUSTAH was a failure is, in my view, quite wrong. And the end of the mission in 2017 certainly didn’t see improved conditions in Haiti. Indeed, after the mission ended, criminal gangs had the run of the country once again and proceeded accordingly. Yet the perceived failure of the U.N. mission has become the basis of a view held by some Haiti watchers that international interventions are not only unsuccessful or misconceived but also counterproductive. Such a view forms the backbone of the notion of Haiti as an “aid state” – as opposed to a “failed state.” In this view, international interventions and the inflow of foreign funds have created a condition of dependency in which the country gets used to having foreigners make key decisions. This, the argument goes, fosters a cycle of corruption and mismanagement. There is no doubt that some previous interventions left much to be desired, and that any new initiative would have to be conducted in close cooperation with Haitian civil society to avoid such pitfalls. But I believe the notion that Haiti, in its current state, would be able to lift itself up without the help of the international community is wishful thinking. The nation has moved too far down the direction of gang control, and what remains of the Haitian state lacks the capacity to change that trajectory. A duty to intervene? Moreover, there is an argument to be made that the international community bears responsibility for the Haitian tragedy and is duty bound to try to fix it. To use one example from the relatively recent past: Haiti, until the early 1980s, was self-sufficient in the production of rice – a key staple there. Yet, pressured by the United States in the 1990s, the country lowered its agricultural tariffs to the bare minimum and, in so doing, destroyed local rice production. Former U.S. President Bill Clinton later apologized for the policy, but its legacy still lasts. Haiti today has to import most of the rice it consumes, largely from the United States. And there isn’t enough of it to go around for all Haitians – the U.N. estimates that nearly half of Haiti’s population of 11.5 million is food insecure. Indeed, from its very beginning as an independent nation in 1804, Haiti has suffered the consequences of its unique place in history: It was simply too much for white colonial powers to see Haiti thrive as the first Black republic resulting from a successful slave rebellion. France retaliated over the loss of what was once considered the world’s wealthiest colony by exacting reparations for a century and a half. Payments from Haiti flowed until 1947 – to the tune of US$21 billion in today’s dollars. The United States took 60 years to recognize Haiti and invaded and occupied the nation from 1915 to 1934. Any thoughts of atoning for past actions, however, seem far from the minds of those looking on as the chaos in Haiti spirals. Rather, many appear to have the kind of mindset expressed in 1994 by current U.S. President Joe Biden when, as a senator discussing the rationale for various interventions, he noted: “If Haiti just quietly sunk into the Caribbean, or rose 300 feet, it wouldn’t matter a whole lot for our interests.”