BRICS' bigger and better hope

Group expands to cover nearly half the Earth’s people; analysts say it needs to set a plan, lead.

BRIC, the grouping of the four countries thought to radiate the largest lessons in developing an economy – Brazil, Russia, India and China – is going to transform itself to BRICS, with the much-awaited induction of South Africa into the cohort, making it more representative.

Started in year 2009, this year the summit would enter its third phase, with heads of government from these five countries getting together and preparing a road map to keep pace with the paradigm shifts in the world.

The coming summit, to be held in Sanya on south China's tropical island of Hainan on April 13-15, will be the first one for South Africa, to be welcomed as the new member. Chinese president Hu Jintao will chair the meet. Present will be Brazilian president Dilma Rousseff, Russian president Dmitry Medvedev, Indian prime minister Manmohan Singh and South African president Jacob Zuma.

“Bringing South Africa makes the grouping more representative of the emerging powers from all the developing regions. All of them are members of the G20, the high table of global economic policy coordination. This gives them a significant clout. If they can coordinate their positions in G20 Summits, they will be more effective. They should raise the issues of common interest to them. These include long-pending reform of international financial architecture. As a part of this, they could seek greater representation and voice in international financial institutions for emerging economies,” said Nagesh Kumar, chief economist and director, macroeconomic policy and development division, UN Economic and Social Commission for Asia and the Pacific. What next?
According to Vishnu Prakash, joint Secretary and spokesperson of the ministry of external affairs, the grouping is in a nascent stage but has been able to emerge as an important voice.

“BRICS represent the world’s fastest growing market, comprising 44 per cent of the world population. All of them are members of the UN, of which two are permanent. It is a process which will evolve with the passage of time. It has emerged as a forum for policy coordination and exchange of ideas,” he underlined.

Experts say all the member-countries must take advantage of the moment and come out with a clear map for long-term sustenance. And, that the grouping should take a leadership role in closing the Doha round of multilateral trade deals under World Trade Organisation (WTO).

“It needs to be seen and analysed what BRIC, soon going to be BRICS, has been able to achieve since the forum came into being. It has to now take a firm stand on WTO. It needs to be also seen that it does not become a forum where only China dominates and the others remain silent,” said Biswajit Dhar, director general, Research and Information System for Developing Countries.

Abhijit Das, head, Centre for WTO Studies, Indian Institute of Foreign Trade, says a comparison of the per capita GDP of BRICS with those of developed countries makes the extent of the latter’s lag clear.

“It is important for BRICS to realise and also to convince developed countries that fast rate of GDP growth tells an incomplete story. This reality of such low per capita income, compared to that of developed countries, cannot be ignored. While this may deflate some of the hype associated with BRICS, this reality check is important for BRICS themselves and also for the rest of the world,” he said.

According to one estimate, the total volume of trade among BRICS countries reached $230 billion in 2010.

Besides, focusing on financial cooperation and an effective mechanism for global development, the leaders this year would also dwell on some of the recent events around the world, such as the unrest in West Asia, turmoil in North Africa and the disaster in Japan.