BRICS: Community with shared future for mankind versus ‘deglobalization’

There are two major trends in the world now. The first one is “deglobalization.” After World War II, America has written and dominated the rules of global business and international relations. Major world organizations such as the UN, WTO, World Bank, IMF, G7, NATO as well as regional ones – the EU, NAFTA and others – were functioning under American dominance and usually for Washington’s interest.

Under the new circumstances – China’s economic surge and Russia’s proactive policies – an influential part of the US Establishment launched the process of “deglobalization.” Using the slogan “America First,” US President Donald Trump withdrew from the Paris climate accord, the TPP, the Iran nuclear deal and UNESCO; it threatens to leave the UN and even NATO. By violating multilateral agreements and international treaties, Washington is trying to impose new rules on its partners.

Another trend can be called “new globalism,” but is better known as building a community with a shared future for mankind. It was put forward by President Xi Jinping and endorsed by the 19th National Congress of the Communist Party of China in 2017.

The new doctrine seems to aim at keeping for some time the present international order and trade framework with minor changes. These gradual changes must reflect new realities in economy and security, putting an end to the unipolar system.

It is obvious that positive changes on a global scale will not come easily and quickly. That is why the nations most dissatisfied with American domination started to come together to coordinate their views and activities.

The beginning of the 21st century saw several new regional and international organizations being formed. The Shanghai Cooperation Organization (SCO) was launched in 2001 and BRICS in 2006. The new financial institutions followed – SCO Interbank Association, BRICS New Development Bank, BRICS Contingent Reserve Arrangement (CRA), as well as Asian Infrastructure Investment Bank and Silk Road Fund. All such organizations of the new type are based on principles like equality, consensus, and mutual interest. This approach helps the new political organizations and financial institutions to be efficient and attractive.

The SCO, which started as the “Shanghai 5,” now includes 8 nations with 4 of them nuclear powers. While China launched the Belt and Road initiative (BRI) in 2013, Russia upgraded the Eurasian Customs Union to the Eurasian Economic Union (EEU) in 2014. After the Sino-Russian agreement about conjunction of the EEU and the BRI in 2015 and decisions of the Beijing SCO summit in 2018, the framework of the new Eurasian architecture was basically completed.

To oppose the destructive idea of “deglobalization,” the world needs positive ideas of global dimensions and efficient organizations. The only existing global idea is the community of a shared future for mankind while the BRICS serves as the best example of potential structure for global cooperation and coordination. BRICS already consists of 3 nuclear states and its economic potential exceeds that of the G7 nations. That is why I propose to call BRICS the B5.

The beginning of trade wars between the US, China, the EU, as well as new sanctions against Russia and Iran dictate the necessity of countermeasures by the victimized nations. Fortunately, there are the SCO, BRICS and their financial institutions already in place.

Operating comparatively small funds, they have both positive and negative experiences and have after a period of experimenting developed a functioning infrastructure which can be easily expanded. I believe it is time for bold political decisions to start this expansion as soon as possible. Apparently, the keys to that process are with Beijing and Moscow.

Russia should end its opposition to development of the Interbank Association into launching a full-fledged SCO Bank. With additional contributions from India and Pakistan, this financial institution could become an important alternative to the Asian Development Bank.

China should inject much more funds into the growing alternative banking system.

The ongoing BRICS summit in Johannesburg can start a new approach to global governance and economic crisis. By enlarging the capital of the New Development Bank and putting into effect the BRICS CRA as well as the BRICS payment and ranking systems, Russia, China and other B5 states will demonstrate their capacity to withstand the trade wars, sanctions and global liquidity pressures. This summit can and should become a major milestone on the way to form a comprehensive backbone for the community of a shared future for mankind.