BRICS and G20: Agendas of convergence

BRICS and G20 as multilateral organizations have many similarities like rotational nature of host countries and ministerial exchanges. The cooperation in these multilateral frameworks also extends to various stakeholders like youth and other civil society members. Both organizations have their origins in global economic crisis within last decade. The interactions at G2G level especially at ministerial level are to be increased for greater coordination and cooperation among BRICS member countries. BRICS member countries should start ministerial/official dialogues of various sectors like tourism, industries, infrastructure such as highways, railways, civil aviation, and mines for increasing economic cooperation.

Introduction:

BRICS and G20 as multilateral platforms have some similarities. Both BRICS and G20 have emerged significantly in the international relations discourse in the last decade. Both these multilateral organisations lack a permanent location to function as an organization. The rotational nature for organizing summits of both BRICS and G20 provides significant space for host countries to influence the global agenda. The stakeholders and participants in both these multilateral platforms involve diverse communities and different ministerial departments of various states. All member countries of BRICS are participating in G20 summits as members. These conditions create convergence and collision on various global issues. Global economic slowdown in first decade of 21st century created necessary conditions for emergence of various multilateral platforms like BRICS (Brazil, Russia, India, China and South Africa) and G20 (Group of twenty leading global economies). The origins of both these multilateral platforms have similar agenda to address various challenges of global economy and world financial markets. In 2008, BRIC (Brazil, Russia, India and China) countries accounted for 8% of global economic resources, 45% of global labour force and with a total GDP (gross domestic product) of $15 trillion, when leaders of BRIC countries met for the first time at G8 summit in Japan. BRIC countries have stressed on G20 summit and its central role in dealing with financial crisis during their inaugural summit in Yekaterinburg, Russia in 2009. The joint statement issued during this BRICS summit has called all states to vigorously implement various decisions adopted at G20 summit held at London, United Kingdom in April, 2009. The reforms in international financial institutions and nature of reforms were significantly highlighted during 2009 BRIC summit.

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2009 BRIC summit declaration outlined the various principles of reformed and economic architecture. Greater voice and representation for emerging and developing economies in international financial institutions was highlighted in both inaugural summits of BRIC and G20. G20 leaders� communiqu� held at Antalya, Turkey in November, 2015 highlights deep disappointment on the continued delays in implementing IMF (International Monetary Fund) reforms. These IMF reforms were agreed upon during 2010 G20 summit. These IMF reforms require ratification by United States. These reforms will increase the role of emerging and developing countries like India, China and Brazil in the IMF. BRICS and G20 have common agenda on reforms to financial institutions like IMF. The 2015 BRICS Summit declaration expected the United States to ratify IMF reforms by mid-September 2015. However, Antalya G20 summit held in November, 2015 still urges the United States to ratify 2010 IMF reforms. BRICS countries have to increase their diplomatic initiatives at Hangzhou G20 summit scheduled in 2016 for the United States ratification of IMF reforms and work on reform process for 15th general quota review. IMF reforms are discussed and highlighted in all the joint communiqu�s issued during BRICS finance minister�s meetings from 2008.

IMF reforms and global governance will continue to top the economic agenda of BRICS summit and BRICS finance ministers� meetings till United Sates ratification is completed. Similarly, BRICS countries commitments on reform of international financial institutions increased substantially from 2009.

(Source BRICS Research Group, University of Toronto)

The above table only highlights increasing commitments on international financial reforms by BRICS countries but not much progress. International financial reforms along with other major issues like trade, international cooperation and development are four major commitments made by BRICS countries during various summits. Multilateral platforms like BRICS and G20 have various ministerial and official interactions apart from annual leaders� summit. The below table is compilation on the nature of various government officials meetings in both organizations.

(Source: BRICS Research Group and G20 Research Group, University of Toronto

BRICS countries should look at starting interactions of its ministers of Tourism, Energy and Labour. None of BRICS countries are members of IEA (International Energy Association). Countries like China and India are major oil importers in the world. Whereas Russia is a major exporter of oil and gas in the world. Many BRICS countries also depend on renewable resources for their energy needs like water. China and India have ambitious plans to promote solar energy generation on a large scale. Meetings of Energy ministers at BRICS platform will further help in coordination during fall of global oil prices. Similarly, meetings of Tourism Ministers of BRICS countries will be helpful in promoting international tourism and employment generation. Tourism sector involves many other allied sectors like hospitality, civil aviation, railways and others. BRICS ministers of energy, tourism and labour should explore meeting during G20 ministerial meetings and explore possibilities of cooperation. BRICS countries are located in various continents and have long coastlines. They are also home to diverse cultures and varied bio-diversity. There are prospects for exploring tourism potential promoting adventure and ecological tourism. BRICS countries also have many islands in their territories. Island tourism is one area where member countries of BRICS can cooperate and coordinate. Rivers are also major cultural and tourist attractions in BRICS member countries, where there is significant potential for cooperation. The intra-BRICS trade increased from US $ 168 billion in 2008 to US$ 291 billion in 2014. Similarly, combined GDP of BRICS countries increased from US $10 trillion in 2001 to US $32.5 trillion in 2014. The regular interactions of trade and finance ministers of BRICS countries have helped them to address some challenges after global financial crisis in 2008. The growth in trade and GDP volumes can be generated by performance of single member of BRICS with high economic growth rates.

The slowdown of Chinese economy in recent months will also be a major concern for economic growth in BRICS and G20 summits scheduled to be held in 2016. Slowing down of Chinese economy will be a major impact on global fuel prices and global trade. Fall of exports will have significant impact on employment for youth in countries with large populations like India and China. Indian exports have declined in last one year primarily due to three major factors like fall in crude prices and its adverse effects, relative appreciation of Indian rupee against dollar and other currencies and slower growth in global trade. Indian Prime Minister, Narendra Modi has proposed for organizing annual BRICS trade fair during 2015 BRICS summit at Ufa, Russia. Annual BRICS trade fair will be prominently placed in agenda during 2016 BRICS summit at India. Similarly, Brisbane Action Plan, which was released during G20 summit held in 2014, has ambitious target to lift economic growth in G20 economies by 2 % and non-G20 economies by 0.5 % till 2018. This action plan has both individual and collective measures to achieve targets set in Brisbane action plan. India will be hosting G20 summit in 2018, when the targets of the Brisbane Action Plan needs to be achieved. India and China will be hosting G20 summits in 2016 and 2018 respectively. Two member countries of BRICS will have prominent role in shaping the global economic agenda as G20 hosts. This will also increase the coordination and cooperation among BRICS and G20 as multilateral organizations.

As outlined by Yang Jiechi, State Councillor of People�s Republic of China in January, 2016 during the G20 Sherpa meeting, the major theme of the 2016 G20 Hangzhou Summit is �towards an innovative, invigorated, interconnected and inclusive world economy�. He also highlights about 1000 commitments made by G20 countries for lifting G20�s GDP by additional 2 % by 2018. Long-term economic growth is prominently highlighted in two of total four priorities listed for 2016 Hangzhou G20 summit. Promotion of international trade and investment is another priority being highlighted. Similarly, 2016 BRICS Summit should also have priorities for long term sustainable economic growth and promotion of trade between member countries. These are some major economic priorities for upcoming BRICS and G20 summits in 2016. The first meeting of tourism ministers of G20 in 2015 resulted in agreements to foster stronger linkages between private sector, public sector, educational and training institutes in tourism sector. This agreement covers many other aspects of global tourism. Similar statements on tourism are used in BRICS economic partnership released after 2015 Ufa summit in Russia. The signing of agreement on tourism in 2016 BRICS summit will be a welcome step.

BRICS Ufa summit resulted in signing of agreement for cooperation in the field of culture promoting exchange of arts, museums, publishing and libraries, cultural heritage, and development of joint programmes between cultural institutions. There are possibilities to upgrade this cultural agreement promoting the concept of sister cultural institutions and sister museums among BRICS countries. The signing of agreement for creating a joint BRICS website is a welcome initiative, similar to G20 website. The rotational nature of G20 and BRICS hosts are also similar in nature. The shortcomings in G20 summit website can be addressed in upcoming BRICS website. This agreement also provides opportunity for archiving BRICS official documents in various international and national languages in proposed website. This facility would be helpful to promote BRICS as organization in countries like India with multiple languages. There are some universities which have G20 research centres in some countries. Renmin University, Shanghai International Studies University, Griffith University, University of Melbourne and University of Toronto that have all research centres focused on G20. The agenda for establishing BRICS Network University or multiple research centres focused on BRICS at various universities should be actively pursued in upcoming 2016 BRICS summit.

BRICS Ufa Summit released comprehensive strategy for BRICS economic partnership listed out its priorities as trade and investment, manufacturing and minerals processing, energy, agricultural cooperation, science, technology and innovation, financial cooperation, connectivity and ICT cooperation. This strategy will be reviewed after five years. \ This strategy highlights cooperation in various sectors where BRICS countries have no meetings at ministerial level. The interactions at both official and ministerial level interactions for various sectors like energy, tourism, infrastructure, minerals and manufacturing should be initiated in future BRICS summits. G20 has Brisbane Action Plan with 1000 commitments to increase global economic growth. BRICS should explore to come up with action plan and commitments in upcoming summit in 2016 for achieving the priorities listed out in BRICS economic partnership strategy, released in 2015.

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