BRICS: AN OPPORTUNITY FOR A TRANSFORMATIVE SOUTH?

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1 Submitted by: Urvashi Sarkar Number of pages: 10 BRICS: AN OPPORTUNITY FOR A TRANSFORMATIVE SOUTH? The purpose of this essay is to examine if BRICS can bring about and execute a political vision which is representative of the south. The question is explored from a civil society lens and will address the various dimensions of BRICS and civil society engagement. The structure of the paper is as follows: I begin by touching briefly upon the circumstances in which BRICS emerged as a very much Southern grouping. In the next section, I highlight some of the current criticism of BRICS from a neoliberal perspective. In the next section, I dwell on how BRICS can truly be an opportunity for a transformative south, stressing particularly on participation from civil society. Finally, I suggest avenues of engagement between civil society and BRICS. In conclusion, I show that if BRICS wants to be taken seriously as a Southern political actor, it cannot go far unless it is ready to be inclusive, broadbased and diverse. QUALIFICATIONS OF BRICS AS A SOUTHERN FORUM BRICS, which includes the countries of Brazil, Russia, India, China and South Africa is one of the relatively new initiatives of different countries in the world to break out of the Northern axis. 1 The alliance is seen to be a reinforcement of the need for greater South-South co-operation and representative of the concerns of the three important regions of the South, namely Africa, Asia and South America. The origins of the BRICS lie in the global financial crisis of 2008 and the need for the 1 Ghosh, Jayati. The Global Economic Chessboard and the Role of BRICS: Brazil, Russia, India, China, South Africa. Global Research. Centre for Research on Globalization Accessed:

2 reform and management of international financial systems. Its relevance is closely linked to the impact of the financial and economic crises on the traditional western powers. The grouping was also perceived as a possible counter to the G It is easy to view the BRICS as a set of countries that converged for opportunistic reasons at a point of Northern weakness caused by the financial crisis and the America-led wars of the 2000s. However, the BRICS agenda is not opportunistically driven, but originates from the IBSA Dialogue (IBSA for India, Brazil, South Africa), which in turn comes out of a Southern push. Rather than argue for a reconstruction of the international institutions, IBSA wanted to see them widened, to allow for more democratic functioning, multilateral diplomacy and democratization of international relations. Also given the unfair policies of the North, the IBSA also adopted the phrase South-South Cooperation to indicate the need for trade within the South. 3 The statements made at the various BRICS platforms gives a good idea of the orientation of the grouping and also hints at the attempt to fashion a new political discourse. At the BRICS Yekaterinburg Summit of 2009, a joint statement on global food security challenged the notion that food price volatilities were owing to the growing consumption capacity of developing countries and instead drew attention to restricted market access and trade-distorting subsidies as a key factor that has hampered global food production. 4 Former Brazilian President Lula da Silva at the Yekaterinburg Summit referred to broken paradigms and failing multilateral institutions and also spoke about the stranglehold over decision-making by rich countries in the World Bank and the IMF. 5 In fact starting from Yekaterinburg in 2009, Brasilia in 2010, Sanya in 2011, 2 John, Lysa. Engaging BRICS. Challenges and Opportunities for Civil Society. Oxfam India Working Paper Series. September Prashad, Vijay. Neoliberalism with Southern Characteristics. The Rise of the BRICS. Rosa Luxemburg Stiftung. New York. May John, Lysa. Engaging BRICS. Challenges and Opportunities for Civil Society. Oxfam India Working Paper Series. September Lula da Silva, At Yekaterinburg the BRICS come of age, The Hindu. June 16, Accessed :

3 New Delhi in 2012 and Durban in 2013; by stressing on issues such as food security, agriculture and reform of international financial institutions such as the IMF etc., BRICS has demonstrated an alternate political vision which also seeks to put the South in a position of leadership. 6 Despite this understanding of the BRICS as a positive Southern grouping, there is a broad critique of BRICS, which also includes the civil society perspective and which points out that notwithstanding the rhetoric of horizontality, solidarity, non-intervention, and knowledge exchange for mutual learning in practice BRICS has been marked by problems similar to traditional North-South cooperation, such as the definition of initiatives based on geopolitical, economic, investment and trade promotion interests. Further, skeptics say that the BRICS economic agenda could pose new challenges to human rights and development, particularly in the absence of a clear framework to guide overseas trade and investments. 7 Another common criticism of BRICS undermining its Southern credentials is that it does not pose a frontal challenge to Northern institutional hegemony or to the neoliberal policy framework. Rather, the domestic policies of the BRICS states follow the general tenor of what might be described as neoliberalism with Southern characteristics with sales of commodities and low wages to workers alongside the recycled surplus turned over as credit to the North as the livelihood of the vast majority of its own citizens remains flat. BRICS is also involved in the new Scramble for Africa, reinforcing its neoliberal characteristics. Africa constitutes a key variable in the needs of rapidly growing economies such as those of the emerging states. In some quarters, BRICS is not viewed as a radical or revolutionary grouping that seek to dramatically overturn the existing system of global governance. BRICS is viewed instead as a conservative attempt by the Southern powerhouses to earn what they see as their rightful place on the world stage. 6 BRICS Information Centre. BRICS Official Documents. Accessed : 7 John, Lysa. Engaging BRICS. Challenges and Opportunities for Civil Society. Oxfam India Working Paper Series. September 2012.

4 CAN BRICS BE A VEHICLE FOR A TRANSFORMATIVE SOUTH? In the light of this criticism, can BRICS still be a vehicle for a transformative South? There is certainly hope. The BRICS has caught the North by surprise and even alarm. the BRICS are gaining economic strength, finding their political voice and effectively asserting themselves on the global stage. Further, a few initiatives such as the BRICS Development Bank, contingency reserve and southern rating agency show that BRICS desires to carve out an alternate space which takes into account southern interests. 8 This is all well and good. However, if the BRICS wants to be a truly transformative agent and advocate a different form of internationalism, it needs to figure in civil society concerns. In the next part, I explore the various aspects of the BRICS-civil society relationship. THE RELATIONSHIP BETWEEN BRICS AND CIVIL SOCIETY If we break down the relationship between BRICS and civil society into its key components, the following strands emerge: Why is it important for BRICS and civil society to establish linkages? What are the constraints preventing BRICS engagement? Finally, what are the ways in which civil society and BRICS can engage. First, what is meant by civil society: The Centre for Civil Society, London School of Economics provides the following definition: Civil society refers to the arena of un-coerced collective action around shared interests, purposes and values. In theory, its institutional forms are distinct from those of the state, family and market, though in practice, the boundaries between state, civil society, family and market are often complex, blurred and negotiated. Civil society commonly embraces a diversity of spaces, actors and institutional forms, varying in their degree of formality, autonomy and power. Civil societies are often populated by organizations such as registered charities, development non- governmental organizations, community groups, women s 8 Prashad, Vijay. Neoliberalism with Southern Characteristics. The Rise of the BRICS. Rosa Luxemburg Stiftung. New York. May 2013.

5 organizations faith- based organizations, professional associations, trades unions, self- help groups, social movements, business associations, coalitions and advocacy groups. 9 Why should BRICS and civil society engage: The converging of BRICS has triggered concern that it represents just another group of new players seeking resources and benefits for their own interests. The BRICS are looked at as a new class of global entrepreneurs and the worry is that government and businesses are driving the agenda behind closed doors. Another related concern is that BRICS-led aid and investment activities will significantly impact issues such as the exploitation of natural resources, land grabs, agriculture and food security not just in Africa but also in Latin America, Asia and Eastern Europe where members have economic and political interests. Hence it is imperative for civil society in BRICS countries to collaborate to build a broader agenda of rights and accountability around the international roles of their government and private sector. 10 If BRICS wants to be a vehicle for a transformative south, it will need to figure in a range of civil society actors such as social movements, community workers, activists, trade unions, parliamentarians, NGOs etc. Else it risks being confined to becoming the tool of a narrow elite section of the political and business class. Whatever BRICS speaks about in its statements need to be bulwarked by a robust civil society presence which is solely missing. Skeptics of civil society participation argue that BRICS is essentially a statist grouping with little or no room for civil society participation. However, the various issues which BRICS has voiced concern about at different forums such as inequality and exclusion, basic education, environmental sustainability, youth unemployment, economic inclusion, and local leadership are areas in which Indian NGOs have a wealth of experience and knowledge in. This can be positively harnessed by the BRICS through formal and informal mechanisms Winter Elizabeth, Civil Society Development in Afghanistan, London School of Economics and Political Science, Centre for Civil Society and ESRC Non-Governmental Public Action Programme, June URL: df 10 John, Lysa. Engaging BRICS. Challenges and Opportunities for Civil Society. Oxfam India Working Paper Series. September Joint statement by development NGOS and civil society New Delhi. March 23, 2012

6 Existing levels of engagement: The existing forums of engagement are through the BRICS Academic Forum and the BRICS Business Forum. The fifth Academic Forum held in Durban in 2013 resulted in recommendations with regard to the global economy, reform of institutions of global governance, cooperation on Africa, education, research and skills development for building industrialising economies, and peace and security. 12 The problem with the Academic Forum is failure to include a broader range of civil society voices that go beyond researchers, policy makers and economists. Given that forums like the G8 and G20 host formal interactions with civil society in the course of their deliberations, the absence of a platform for BRICS leaders to engage with community-led experiences and public advocacy efforts is disappointing. Big business is an important agenda of the BRICS as demonstrated by the BRICS business forum. However, this has led to worries regarding the corporatization of the BRICS forum and that it will not factor in voices of the weak and the dispossessed. Factors impeding engagement: Initiatives carried forward by the BRICS lack defined mechanisms to allow social participation. There appears to be no consensus between countries on participation by social organizations and movements. This is despite countries like India and Brazil having an otherwise rich history of social movements and people's organisations. On the other hand, public participation is more controlled in China and Russia and there is a worry that the possibility exercise of moral and political pressure in relation to BRICS may actually be quite low and this is a constraint towards engagement. Another constraint is that there is not a lot of funding support to civil society groups to track the deliberations of the BRICS, or even BASIC Country meetings for that matter. 13 It must be said that civil society is also guilty for not expressing enough interest. There is little knowledge about the topics on the BRICS agenda. Countries like Brazil and South Africa have many more points in common on the agenda and a greater relationship between the social societies and movements. On the other hand, India and South Africa have more linkages, but with regard to Russia and China, these relationships are less John, Lysa. Engaging BRICS. Challenges and Opportunities for Civil Society. Oxfam India Working Paper Series. September 2012.

7 One of the dilemmas is what is the agenda that should determine engagement with the BRICS or to put it in another way- can engagement with the BRICS help in the realization of real political and economic outcomes? This is something the BRICS countries ought to consider and on which civil society must articulate its opinion. Further, in some countries, social organizations and movements play the role of service providers and executors of programs and do not have the chance to be actors on the political plane. In other countries these organizations and movements have often been criminalized and persecuted for their activities of resistance, mobilization and citizen training. 14 The BRICS member countries have different political systems with no common view of civil society, hence the possibility of a single articulation of engagement with civil society from the BRICS is weak. Russia s membership of the BRICS also magnifies doubts given the lack of free spaces in the country for civil society participation. Nay-sayers draw attention to Sino-Indian rivalry as an issue undermining BRICS cooperation. SUGGESTED WAYS FOR ENGAGEMENT Firstly, social movements in various BRICS countries need to unite and connect with the social organizations of the less developed countries, particularly in Latin America and Africa. Secondly, local organisations are already pre-occupied with internal development challenges and advocacy strategies that focus merely on BRICS related summits and meetings would not achieve enough. Advocacy efforts must instead aim to mobilise a broad spectrum of actors such as community leaders, grassroots movements, researchers and advocacy organizations. Sustained and prolonged interventions are required by civil society, articulated in terms of a strong southern-led global initiative, similar to the campaigns around debt, trade and aid in the last decade. 14 The BRICS and Social Participation. From the Perspective of Civil Society Organizations. Instituto de Estudos in partnership with Rede Brasileira pela Integração dos Povos (REBRIP). August 2013.

8 Third, since there is a lack of information with regard to BRICS, a step forward would be to systematically track information and events related to the BRICS. Existing initiatives can be built on for instance the Cities Initiative of the BRICS which should involve not just government functionaries, but also civil society representatives to advise the BRICS on the challenges of urbanisation from the perspective of women and informal workers. 15 Collaboration through social BRICS projects There can be collaboration and learning through BRICS social projects. In other words, BRICS countries can learn from each other s progressive experiences in the social sector. A good example is Brazil s Bolsa Familia programme which has created a net of financial assistance and health and education facilities. It is a direct cash transfer, which in order to get a family s children should be in school and get vaccinated. The programme has empowered women, alleviated extreme poverty and helped in tackling hunger. 16 South Africa is in the process of reviewing all its bilateral investment treaties (BITS). BITs do not adequately take into account the particular conditions found in South Africa, the complexities of its socio-economic challenges and the broad objectives of government policy. Further the South African experience shows that BITS are not required for receiving increased FDI flows. 17 In February 2010, Philip Morris International announced it had filed an arbitration claim against Uruguay for alleged breaches of the Swiss-Uruguay bilateral investment treaty. The alleged 15 John, Lysa. Engaging BRICS. Challenges and Opportunities for Civil Society. Oxfam India Working Paper Series. September

9 breach was domestic legislation requiring that 80% of cigarette packs display graphic health warnings. 18 China s NRR (New Rural Reconstruction) model is another example. The NRR is a five-pronged system, comprising peasant organizations, student movements, migrant labour centres, and organized sections of the middle class concentrating on food security. The fifth prong of the NRR promotes love for the village and recognizing that the individual s roots are in the village. Traditional society and culture is nurtured by rural society and countryside culture, which constitutes the civilization, is not to be dismissed by the mainstream. The NRR programme has mobilized thousands of rural people to join local education movements carried out by rural reconstruction institutes and community colleges. The programme utilizes grassroots human resources for self-organization, self-empowerment and self-governance for rural regeneration. Closer home, Indian s Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a good instance of providing rural unemployment. By drawing on each other s experiences, both positive and negative, the BRICS countries can form people-centric collaborations. CONCLUSION There are initiatives which show that BRICS desires to carve out an alternate space which takes into account southern interests. These include BRICS Development Bank which even though not actually supplanting the World Bank will still chalk out a scheme of loans minus World Bank style conditionality; the BRICS Contingency Reserve Arrangement consisting of a pool of $100 billion to protect members from foreign exchange fluctuations; and a proposed Southern Ratings Agency which will counter the arbitrary ratings assigned by Agencies of 18

10 the North, such as Moody s and Standard & Poor s. 19 On their part civil society could start studying these proposed initiatives and advance their suggestions. Further, civil society engagement can happen through collaboration through the BRICS social projects, roping them in to monitor initiatives such as the Development Partnership Administration (DPA). India's development assistance has started to cover large number of countries. Recognizing this, the DPA was created in the Ministry of External Affairs in January 2012 to effectively handle India s aid projects through the stages of concept, launch, execution and completion. 20 The South African counterpart is the South Africa Development Partnership Agency (SADPA). More of interaction such as a parliamentarians forum could be created to include elected parliament members of different political hues from the member countries. In conclusion, it is useful to reiterate that any legitimate vision of South-South cooperation has to be inclusive, broad-based and diverse. The BRICS needs to avoid the risk of being continued to be seen as a formation which advances the interests of a select political and business elite, even though it may be the case now. Genuine forums of civil society participation can help put such views to rest and in the democratization of the BRICS. 19 Prashad, Vijay. Neoliberalism with Southern Characteristics. The Rise of the BRICS. Rosa Luxemburg Stiftung. New York. May