Fos­ter­ing a Fol­low-up Golden Decade

In­ter­view with Chi­nese scholar Jia Jin­jing, di­rec­tor of the Macro Re­search De­part­ment, Chongyang In­sti­tute for Fi­nan­cial Stud­ies, Ren­min Univer­sity of China

China Pictorial (English) - - Contents -

In­ter­viewwithchi­ne­seschol­ar­ji­a­jin­jing,di­rec­to­rof themacrore­searchde­part­ment,chongyan­gin­sti­tute for­fi­nan­cial­stud­ies,ren­mi­n­uni­ver­si­ty­ofchina

China Pic­to­rial (CP): What are the most im­por­tant achieve­ments of the BRICS co­op­er­a­tion mech­a­nism over the past 10 years?

Jia Jin­jing (Jia): The BRICS co­op­er­a­tion mech­a­nism was born in 2006, and BRICS coun­tries have en­joyed a “golden decade” marked by no­table re­sults. The to­tal eco­nomic out­put of the five BRICS mem­bers—brazil, Rus­sia, In­dia, China and South Africa—ac­counts for nearly a fourth of the world’s to­tal, and they have con­trib­uted ap­prox­i­mately 50 per­cent of world eco­nomic growth. BRICS has grad­u­ally evolved into a model for mu­tu­ally­ben­e­fi­cial co­op­er­a­tion be­tween emerg­ing mar­kets and de­vel­op­ing coun­tries from an orig­i­nal in­vest­ment con­cept into con­crete re­sults. To­day, it plays an im­por­tant role in pro­mot­ing world eco­nomic growth and im­prov­ing global gover­nance.

CP: What are the in­no­va­tions of BRICS com­pared to other mul­ti­lat­eral co­op­er­a­tion mech­a­nisms?

Jia: Over the past 10 years, BRICS has grown from an in­vest­ment con­cept on paper to a multi-level and multi-sec­tor co­op­er­a­tion frame­work fea­tur­ing meet­ings be­tween lead­ers, min­is­ters and se­nior private- en­ter­prise rep­re­sen­ta­tives on se­cu­rity is­sues and a host of other is­sues. Over the last few years, BRICS co­op­er­a­tion has main­tained the prin­ci­ple of “two-wheel” drive with eco­nomics and pol­i­tics, which has paved new roads for South-south co­op­er­a­tion. Com­pared to other mul­ti­lat­eral co­op­er­a­tion mech­a­nisms, BRICS has in­no­vated its mech­a­nisms in four ways:

First, BRICS swiftly changed mem­ber coun­tries’ role from a par­tic­i­pant to a leader in global gover­nance. This is not only the re­sult of BRICS coun­tries’ strong col­lec­tive voice in global gover- nance, but also the re­sult of in­evitable evo­lu­tion of global pat­terns. His­tory shows that BRICS does not im­pose its will on oth­ers— rather, it has fos­tered a greater out­put of public prod­ucts while en­sur­ing in­de­pen­dent in­ter­nal af­fairs, thus cre­at­ing a new model worth study­ing and ap­ply­ing to global gover­nance.

Sec­ond, BRICS coun­tries have ac­cu­mu­lated rich ex­pe­ri­ence in eco­nomic and trade co­op­er­a­tion. The present world econ­omy needs a new round of tech­no­log­i­cal rev­o­lu­tion and in­dus­trial trans­for­ma­tion for growth. Dur­ing the past 10 years of co­op­er­a­tion, BRICS has im­pres­sively ex­plored ar­eas of new eco­nomics, e-com­merce, trade, in­vest­ment fa­cil­i­ta­tion, in­no­va­tion and de­vel­op­ment, earn­ing valu­able ex­pe­ri­ence in the process.

Still, there is huge space to cap­i­tal­ize on com­ple­men­tary ad­van­tages be­tween BRICS coun­tries, which are able to pro­mote con­struc­tion of a big, closely in­ter­con­nected mar­ket char­ac­ter­ized by in­fra­struc­ture con­nec­tiv­ity, open trade and in­vest­ment, and mon­e­tary and fi­nan­cial in­ter­con­nec­tion. This will open new av­enues to win-win re­sults in eco­nomic growth.

Third, BRICS has pro­moted peo­ple-to-peo­ple ex­change. BRICS coun­tries are lo­cated on sev­eral con­ti­nents, and each has an iconic and pro­found cul­tural legacy and dif­fer­ent chan­nels of com­mu­ni­ca­tion with the world’s ma­jor cul­tures. The in­ten­si­fi­ca­tion of com­pre­hen­sive cul­tural ex­changes among BRICS coun­tries across mul­ti­ple sec­tors such as busi­ness, academia, me­dia, think tank, and lit­er­ary and art cir­cles is pro­mot­ing peo­ple-to-peo­ple ex­changes as it helps con­struct a com­mu­nity of shared fu­ture.

Fourth, BRICS has founded a new type of co­op­er­a­tion mech­a­nism. The five mem­bers have es­tab­lished a co­op­er­a­tion mech­a­nism while fur­ther­ing de­vel­op­ment in po­lit­i­cal, eco­nomic, and cul­tural realms, form­ing a com­pre­hen­sive co­op­er­a­tion mode dif­fer­ent from the G7, which is flat and mostly net­work­ing, hence pro­vid­ing a new type of co­op­er­a­tive plat­form for emerg­ing-mar­ket coun­tries and de­vel­op­ing coun­tries—which are home to 80 per­cent of the world pop­u­la­tion—and al­low­ing de­vel­op­ing coun­tries to share the re­sults of de­vel­op­ment.

CP: In the next 10 years, where do you fore­see break­throughs?

Jia: In the com­ing decade, BRICS will be­come a heavy­weight par­tic­i­pant in global gover­nance and in­ter­na­tional af­fairs. To fix the im­bal­ance of the global econ­omy, it is nec­es­sary to in­crease de­vel­op­ing coun­tries’ par­tic­i­pa­tion in global gover­nance, en­hance the right to dis­course and en­sure more say in de­ci­sion-mak­ing to build an equal world or­der to­gether. BRICS co­op­er­a­tion in global gover­nance con­tin­ues to in­ten­sify.

At the BRICS lead­ers’ in­for­mal meet­ing in 2016 on the side­lines of the G20 sum­mit in Hangzhou, Chi­nese Pres­i­dent Xi Jin­ping pro­posed that BRICS coun­tries work to­gether to im­prove global gover­nance by in­creas­ing rep­re­sen­ta­tion and the right to speak of emerg­ing mar­kets and de­vel­op­ing coun­tries.

At the 2016 BRICS sum­mit in Goa, the group re­it­er­ated the G20 Ac­tion Plan on the 2030 Agenda for Sus­tain­able De­vel­op­ment to pro­mote eco­nomic global gover­nance while stress­ing an anti-ter­ror­ism theme and ac­tively de­sign­ing an in­ter­na­tional or­der that is peace­ful and sta­ble.

CP: What chal­lenges can the BRICS mech­a­nism help your coun­try face?

Jia: At present, the world’s “long-pe­riod eco­nomic down­turn” hasn’t yet bot­tomed out, as deep-rooted con­tra­dic­tions are con­tin­u­ously ex­posed. In­ter­na­tional co­op­er­a­tion mech­a­nisms such as re­gional eco­nomic and trade ar­range­ments, re­gional groups, the Bret­ton Woods sys­tem and the G20 have nav­i­gated the course of the global econ­omy. To­day, how­ever, the world is ex­pe­ri­enc­ing many new changes eco­nom­i­cally: Emerg­ing mar­kets and de­vel­op­ing coun­tries ac­count for a big­ger part of the global econ­omy, and Eura­sia has be­come a ma­jor power source for global pro­duc­tion and con­sump­tion. Es­tab­lish­ing new con­cepts of and blaz­ing new paths for in­ter­na­tional co­op­er­a­tion have be­come ur­gently needed for global de­vel­op­ment.

China’s voice in global dis­course has be­come in­creas­ingly louder in re­cent years to re­spond to these ur­gent needs. While fac­ing chal­lenges, BRICS coun­tries have also ig­nited op­por­tu­nity in new di­rec­tions for glob­al­iza­tion. In­ter­nally speak­ing, BRICS coun­tries are com­ple­men­tary in econ­omy, and, as emerg­ing economies, they are all in a phase of eco­nomic growth.

BRICS coun­tries have been re­form­ers of in­ter­na­tional fi­nan­cial or­der since the day BRICS was formed. Over the next 10 years, they will lead an­other round of world eco­nomic de­vel­op­ment and fuel an­other round of glob­al­iza­tion with mech­a­nisms in­clud­ing the BRICS New De­vel­op­ment Bank and its “con­tin­gency re­serve fund.”

CP: How will the BRICS mech­a­nism in­flu­ence and pro­mote global gover­nance re­form?

Jia: Within the G20, the some­what more in­clu­sive plat­form for global eco­nomic gover­nance, BRICS and the G7 are two of the most im­por­tant transna­tional mech­a­nisms. Af­ter 10 years of de­vel­op­ment, the BRICS mech­a­nism has grad­u­ally started work­ing along­side the G7 in global gover­nance.

First, BRICS shoul­ders a heavy task in global gover­nance. BRICS coun­tries ac­count for nearly 40 per­cent of the world’s pop­u­la­tion, and they have seen rapid eco­nomic de­vel­op­ment in re­cent years. In a decade, their to­tal share of the global econ­omy has risen from 12 to 23 per­cent, con­tribut­ing more than 50 per­cent of world eco­nomic growth. Be­cause BRICS is the largest driver of the global econ­omy, it needs the great­est “en­hance­ment” of its right to speak and vote in global gover­nance.

Sec­ond, BRICS and the G7 share the global gover­nance “stock” re­spon­si­bil­ity. About 30 years ago, the to­tal econ­omy of the seven ma­jor West­ern coun­tries ac­counted for about 85 per­cent of the world’s to­tal, and the G7 be­came a pre­mier plat­form for global eco­nomic gover­nance.

Af­ter the 2008 in­ter­na­tional fi­nan­cial cri­sis, those coun­tries have not been able to shake off the dust of low growth, and their pro­por­tion of global eco­nomic out­put has dropped to less than 50 per­cent. Nev­er­the­less, the G7 has al­ways been the pace car for the G20 and BRICS to fol­low. There­fore, as a more ma­ture mech­a­nism, it shares the same re­spon­si­bil­ity in global gover­nance as BRICS.

Fi­nally, both BRICS and the G20 share the re­spon­si­bil­ity of lead­ing global gover­nance. The 2016 G20 sum­mit in Hangzhou, China, was a crit­i­cal turn­ing point in the his­tory of global gover­nance. All kinds of re­ports on co­op­er­a­tion in 2017, such as the re­cent Me­dia Note of the Meet­ing of the BRICS Min­is­ters of For­eign Af­fairs/ In­ter­na­tional Re­la­tions, ev­i­dence the clear-cut mis­sion of BRICS to share re­spon­si­bil­ity in G20 poli­cies—a marked dif­fer­ence be­tween the de­vel­op­ment of BRICS and the G7. The BRICS mech­a­nism is be­com­ing the stan­dard-bearer of the G20’s fun­da­men­tal poli­cies.

Au­gust 1, 2017: China’s Vice-min­is­ter of Com­merce Wang Shouwen shakes hands with Marcelo Maia, sec­re­tary of com­merce and ser­vices of Brazil’s Min­istry of De­vel­op­ment, In­dus­try and For­eign Trade, at the sign­ing cer­e­mony of a mem­o­ran­dum of un­der­stand­ing on

Wharfs T12A and T39 of China Oil & Food­stuffs Cor­po­ra­tion (COFCO) are lo­cated at the cen­ter of Brazil’s Port of San­tos, the largest in South Amer­ica and one of the busiest ports for in­ter­na­tional grain trading. Ev­ery year, mil­lions of tons of agri­cul­tural prod­ucts are dis­trib­uted to other parts of the world through the port. The wharfs are in­gre­di­ents of COFCO’S global agri­cul­tural-prod­uct in­dus­trial chain. Xinhua (cour­tesy of the COFCO)

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.