Guyana at BRICS Summit

As soon as the Football World Cup would have climaxed, Brazil will be hosting the Sixth Summit of the BRICS bloc of Brazil, Russia, India, China and South Africa on July 15-16. As part of a BRICS outreach strategy to emerging economies, a working session will be held on July 16 between the heads of states of BRICS and their counterparts from the governments of South American nations, including Guyana.

This is a signal opportunity for Guyana to recalibrate its foreign policy to take into account the rising importance of this bloc.

BRICS have 43 per cent of the world’s population and total foreign-currency reserves of US$4.4 trillion, which present them with the opportunity to reshape the present world order that has been practically unchanged since the end of WWII. It appears that the BRICS countries have achieved the confidence level to challenge the global order with the United States as the hegemonic power. The most recent conflict between the BRICS countries and the United States was at the spring meeting of the International Monetary Fund (IMF) in Washington in April when an agreed reform of the IMF failed because of a veto by the US Congress.

In 2010, IMF members had agreed to shift voting rights by six per cent in favour of the developing and emerging countries. The reason: over the past 10 years, BRICS countries increased their share of global Gross Domestic Product (GDP) from 18 per cent to 28 per cent. While it may have been expected that the Europeans would have dragged their heels on the proposals to reduce their voting rights, the US had given all assurances they would back the equitable shift.

In Brazil, the veto by the US Congress caused an outcry, further deteriorating the already strained relations between the two countries.

Of interest to Guyana and the other poorer countries invited to the BRICS Summit is that, in this Summit, BRICS will emphasise social inclusion and sustainable development. The debate will be informed by the theme, “Inclusive growth: sustainable solutions”. There will be concrete initiatives launched – a US$100 billion Contingency Reserve Arrangement (CRA) – and final details of the US$100 billion New Development Bank (NDB) will also be unveiled.

In last year’s BRICS Durban Summit, the leaders had approved the reserve fund to combat currency crises. All the BRICS leaders, excepting Brazil, have raised their hand for the Development Bank to be headquartered in their country. This issue might be settled at the summit.

India, Brazil and South Africa have also all demanded a permanent Security Council seat, and Russia and China endorsed their claim at the BRICS summit in Sanya, China in 2011. This cooperative spirit has been increased as the West has conspired to exclude Russia from the heavyweight of the old world order – G8. As the Ukraine crisis heightens, the BRICS countries are backing Russia even more – as they did on Crimea, and becoming less willing to accept US wilfulness.

Brazil views the participation of Chinese President Xi Jinping at the BRICS summit in Fortaleza as an absolute priority. His official visit is the first of a Chinese Head of State in Brazil and in the Region.

China replaced the US as the primary buyer of Brazilian products in 2009. Since 2012, the Chinese have also been Brazil’s most important import partner. But for Brazilian President Dilma Rousseff, the political and strategic cooperation with China is even more important than the growing trade between the two countries. Prime Minister of India, Narendra Modi is also expected to play a very influential role in the BRICS Summit – his first multilateral engagement.

Also of interest to Guyana are plans which the other South American nations are jointly exploring – the creation of a communications system to curtail US spying in the Region. Part of the final communiqué could call for an end to mass surveillance, like that carried out by the US’s NSA.