BRICS Role in Global Governance: Challenges and Opportunities
The discussion explores the potential roles of BRICS in global governance, focusing on economic and trade issues. Key topics include global economic governance, challenges faced by BRICS in balancing development priorities and global imbalances, and the evolving dynamics within the G20 framework. The analysis highlights the importance of coordination and cooperation among BRICS countries to influence international processes effectively.
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Presentation Transcript
SAIIA BRICS ROLE IN GLOBAL GOVERNANCE BRICS-TERN Meeting New Delhi 27 March 2012
Outline Global governance and the BRICS What is global governance? Focus on economics and trade Potential roles for BRICS BRICS and G20 Governance of world trade and investment Issues for the BRICS A possible common agenda International Financial Institutions World Bank Presidency: A chance for the BRICS? 2 BRICS-TERN Meeting New Delhi March 2012
Global Governance Extremely broad covers almost every area where there is international cooperation e.g. Peace and security, environment, development, Focus of BRICS is on economic and trade issues UN is most widely referred to global institution in BRICS statement initial priority regarding Security Council reform G20, WTO and IFIs priorities 3 BRICS-TERN Launch Shanghai 19 November 2011
Global Economic Governance WEF Global Risks 2011 two different but connected global risks: economic disparity worldwide failures in governance Growth of Asia and other developing regions is rebalancing economic power between countries but there is evidence that economic disparity within countries is growing 4 BRICS-TERN Launch Shanghai 19 November 2011
Challenge for BRICS Balance between development challenges and redressing global imbalances National interests vs. Common objectives Shared approach vs. Diversity of position Position with regards to other coalitions e.g. IBSA Regional groupings for some members 5 BRICS-TERN Launch Shanghai 19 November 2011
Potential Roles for BRICS Rebalancing debate voice of emerging economies Development experience Resources and capacity Ideas and positions for mandating to other institutions Coordination mechanism for negotiations 6 BRICS-TERN Launch Shanghai 19 November 2011
G20 and BRICS G20 now established as major forum on global economic governance matters BRICS coordination limited dominance of G7 ongoing? G2 axis of US-China? Agenda often set by chair as no secretariat Crucial for coalitions to influence development of G20 processes and to ensure legitimacy 7 BRICS-TERN Launch Shanghai 19 November 2011
G20 and BRICS: Research Questions What are BRICS core strategic interests in the G20? What influence, if any, have BRICS had on G20 outcomes in areas of strategic interest? How successful have efforts to consult other (including African) stakeholders been? How could consultation efforts be improved? BRICS-TERN Launch Shanghai 19 November 2011 8
G20 and BRICS: Research Questions Have domestic agendas, policy making processes, and legislation been or are poised to be altered by commitments taken by BRICS in the G20 so far? Have the relationships between BRICS and the variety of International institutions tasked with the follow-up of G20 decisions as implementation watchdogs been altered as a result of the G20? Those Institutions underlying the G20 agendas are for instance: IMF, WB, OECD; IEA, OPEC, FSB, BIS. 9 BRICS-TERN Launch Shanghai 19 November 2011
Trade and Investment Growing in terms of BRICS references Now have BRICS Contact Group on Trade and Investment Trade flows Industrial policy Green industries Trade facilitation Services BRICS Statement at WTO Ministerial 2011 10 BRICS-TERN Launch Shanghai 19 November 2011
BRICS Trade Agenda The WTO. India, Brazil, and South Africa have shown that they can collaborate on a common agenda and thereby shift the locus of negotiations e.g. G20 on agriculture. A broader discussion, now including Russia and China, should be pursued with its core focus being on providing emerging market leadership to resuscitate the Doha Round. The future of the WTO should be an issue of core interest to all BRICS countries. 11 BRICS-TERN Launch Shanghai 19 November 2011
BRICS Trade Agenda China s 12th Five year Plan should be explicitly engaged by BRICS, including currency reform. Relevant for BRICS since each is keen to develop domestic manufacturing industries which are currently undercut by the China price portion associated with the RMB s peg to the US dollar. Linked to ongoing trade demand from China through shift to domestic consumption growth from export driven growth 12 BRICS-TERN Launch Shanghai 19 November 2011
BRICS Trade Agenda Common BRICS position within the G20 on global economic imbalances and revival of multilateral trade talks Recommendations to G20 on ways to break impasse on trade issues 13 BRICS-TERN Launch Shanghai 19 November 2011
International Financial Institutions Traditional strong BRICS focus on efforts to facilitate reform of IMF and World Bank Some success in shift of voting power Change of leadership of IMF saw BRICS fail to take common position Opportunity for BRICS with regards to change of presidency of World Bank in 2012 BRICS-TERN Launch Shanghai 19 November 2011 14
