Brics leaders will push for global governance reform, says Ramaphosa

Leaders of the Brics bloc of countries are calling for reform of global governance institutions and financial systems they say are being used as “instruments of geopolitical contestation”.

The leaders of Brazil, Russia, India, China and SA addressed the second day of the 15th Brics summit in Johannesburg on Wednesday.

Chairing the session was President Cyril Ramaphosa, who said the bloc wanted a fundamental reform of institutions of global governance, so they are “more representative and are better able to respond to challenges confronting humanity”.

“We believe that as we advance the interests of the Global South … we want to collaborate more, co-operate more with all countries that aspire to create an inclusive international order,” said Ramaphosa.

He said the summit wants to advance the cause of “common prosperity, progress … we are confident that this summit will in the end enrich and inspire our work towards achievement of a more human global humanity. This is what Brics is all about and is committed to achieving”.

The Brics trade bloc accounts for 42% of the world’s population, 27% of global GDP and about 20% of international trade.

The Brics economies accounted for about 21.3% of SA’s total trade with the world in 2022, of which China accounted for 67.6%, India 26.5%, Brazil 4.2% and Russia 1.7%, according to data from the Industrial Development Corporation (IDC). SA’s overall trade with its Brics partners increased by an average 10% from 2017-2021.

Ramaphosa said the bloc was concerned about global financial systems that “are being used as instruments of global geopolitical contestation”.

Business Day has reported that SA, which is hosting the 15th Brics summit at the Sandton Convention Centre (SCC), will use the gathering to encourage Brics countries to use their own currencies when trading with one another as a mechanism to push for the reform of global political and financial institutions.

While this is not a new agenda but rather a continuation of previous Brics declarations and initiatives, it is a call that has long been ignored by world superpowers, including the US, the UK, France and Germany, which play a dominant role in global governance institutions such as the UN Security Council (UNSC), World Bank and International Monetary Fund (IMF).

Ramaphosa said: “We will continue discussion on ... trade and investment flow through use of local currencies. This matter, we believe, needs further discussion … to take place among finance ministers.”

Ramaphosa was pleased the Brics countries were engaging with Africa in a “meaningful way”, as they supported the continent’s aspirations for development.

“We want goods and services from Africa to compete on equal footing on the global economy. The AfCFTA [African Continental Free Trade Area], once fully operational, will unlock benefits of the African market ... both for Africa and Brics countries,” he said.

On climate change, Ramaphosa said the transition to a low-carbon economy should be just, fair and take into account the “different circumstances that prevail in all countries”.

He said peace and stability were preconditions for a better, more equitable world: “We are deeply concerned about conflicts across the world [which are] causing a great deal of suffering to people across the world.”

Ramaphosa said “diplomacy, dialogue, negotiation and adherence to the principles of the UN charter are necessary” to resolve conflicts.

Putin points fingers at the West

Russian President Vladimir Putin, who addressed the session virtually as he is wanted by the International Criminal Court (ICC) for war crimes in Ukraine, spoke against neocolonialism and sought to blame the West for the war in Ukraine.

As a signatory to the Rome Statute, SA would have been compelled to arrest Putin in line with the warrant of arrest issued by the ICC in March had he attended the summit in person. Instead, he sent his foreign affairs minister, Sergei Lavrov, to attend physically.

Putin thanked his Brics counterparts for their attempts in trying to put an end “[to] this situation and ensure settlement by peaceful means”.

Putin also spoke about dedollarisation, the digital economy and the need to boost entrepreneurship within the bloc.

Ramaphosa, who was chairing the session, said after Putin’s address that Brics was committed to a peaceful end to the conflict in Ukraine: “This type of conflict is best brought to an end by negotiation, which you [Putin] have always said that you’re always ready for. Brics members will continue to be supportive of various efforts to bring the conflict to an end through dialogue and negotiation.”

Brazilian President Lula da Silva said his country was ready to join efforts for an “immediate ceasefire” in the interest of everlasting peace. He said everybody suffers consequences during a war and the Ukraine-Russia conflict “shows [the] limitation of the UN Security Council”.

Da Silva, who is honorary president of Brazil’s governing Workers’ Party and enjoys massive support from SA’s trade union movement, said: “Our resources should not be exploited for the benefit of the few.” He said it was difficult to fight climate change while developing nations still needed to deal with hunger and underdevelopment, among other socioeconomic crises.

Indian Prime Minister Narendra Modi spoke about the need for the bloc to co-operate on skills development and technology, and look at modalities for a traditional medicines repository.

Chinese President Xi Jinping highlighted the need to “deepen financial co-operation” to boost economic growth, stressing the world’s economic recovery “remains shaky”.

Ramaphosa said women’s empowerment, support for SMEs and reform of financial institutions were matters the Brics bloc “needs to be seized with”.

“Brics stands for solidarity and progress; it stands for inclusivity … we are an inclusive formation of developing emerging economies seeking to work together to benefit from our rich histories, our rich cultures and systems to advance the prosperity of [the] peoples of our countries,” Ramaphosa said.

“We do so because we know poverty, inequality and underdevelopment are the biggest challenges facing humanity. We are, therefore, determined that the Brics partnership, which has been growing in importance and influence, must be harnessed to drive an inclusive global economic recovery agenda.”

The summit ends Thursday.

mkentanel@businesslive.co.za