BRICS Cooperation: a High Building Starts with the Foundation

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BRICS Cooperation: a High Building Starts with the Foundation

By Song Yin and Xu Lin, PLA Daily Senior Rporters

A few lines to begin with

On September 3rd in Xiamen, having attended the BRICS Business Forum Opening Ceremony and delivered a keynote speech, President Xi Jinping recalled the extraordinary history of the BRICS cooperation development, came up with a profound summary of practical enlightenment, put forward the Chinese ideas and Chinese program to open the second "golden decade" for the BRICS cooperation, and drew a beautiful vision for the BRICS cooperation to become deepened, solid and stabilized to go into the future.

The red logo for China, green logo for Brazil, blue logo for Russia, orange logo for India, and yellow logo for South Africa, the five colorful logos go very well together, like the sails on a big boat, and also like a rotating earth, a metaphor for the BRICS to pull together in times of difficulties to drive towards a better future.

A decade of painstaking work and hardships, 10 years of encouragement to each other. As a typical model for emerging market economies to get united for self-building, and for reform and innovation, the BRICS has already developed close cooperation among its member countries from the simple investment concept led by the BRICS leaders summits and supported by meetings of foreign ministers and other ministerial meetings, and continuously brought about fresh surging BRICS positive energy for the world.

The 10-year experience for the BRICS member countries to come together is inseparable from their mutual understanding and cooperation, as well as from the increasingly important Chinese contribution, Chinese commitment and Chinese wisdom.

As one of the founders of the BRICS, China with other BRICS members have always been committed to deepening practical cooperation to achieve mutual benefits and all-win outcomes. In 2014, at the BRICS leaders sixth summit held in Fortaleza, Brazil, President Xi Jinping initiated to develop "open, inclusive, cooperative, all-win" spirit of the BRICS, and to establish a closer, more comprehensive and solid partnerships.

Since this initiative, the BRICS members continue to strengthen communication, cooperation and strategy docking, turning the BRICS spirit into programs and put it into action, harvest gratifying fruits not only for the benefits of peoples of the five member countries, and has also made outstanding contributions to safeguarding the interests of the vast number of developing countries and improving the global governance system.

In the face of the complicated international environment, the world expects more Chinese voices. In recent years, China's leaders have put forward a series of new concepts, new ideas and new strategies for global governance and development, which have been widely recognized by the international community. Meanwhile, as an initiator of the BRICS spirit, China is changing from experiencing a beneficiary from globalization to globalization contributor and guide, more and more countries are beginning to take China’s development "ride", and choose to join the BRICS cooperation circle of friends.

Even high mountains and deep seas cannot distance people with common aspirations. Looking forward to the magnificent prospect of BRICS cooperation, as President Xi Jinping points out: the BRICS member countries will usher in a more vigorous second decade, let us work together with the international community, let our cooperation benefit peoples of the five member countries, let the well-being of world peace and development benefit people across the world.

Records of collaboration on the way forward in the first decade

Extensive consultation for cooperation strategy, jointly plan development blueprint. The BRICS cooperation develops from nothing, from surface to depth, prioritizes on development, and upholds mutual benefit. Having gone through a decade of hardships and rainstorm, the BRICS cooperation is developing healthily with great vitality and has become a key-force for pushing global economic growth, improving global economic governance, and maintaining world peace and stability.

The BRICS impact is getting significant. China. Russia, Brazil, India and South Africa are respectively located in Asia, Europe, America, and Africa, their total territory amount to 30% of that of the world, their voting rights accounts for 13% of that of World Bank, their total population for 44% of that of the world, and their shares for 15% of that of the International Monetary Fund.

The BRICS has become an important engine because of growth rate. From the year 2006 to the year 2016, the BRICS total economic aggregate to that of the world rose to 23% from 12%, total trade volume to 16% from 11%, total overseas investment to 12% from 7%, and contribution rate to the world economy is more than 50%. The IMF forecasts that by 2030, the economic growth of the BRICS members will be higher than that for developed countries and other newly emerging economies.

The BRICS becomes regional standard and leads innovations. The BRICS annual R&D input accounts for 17% of the World total, its high-tech products exports volume is close to US$ 6 trillion, about 28% of the world products, about 590,000 technical papers are published, amounting to about 27% of the world technical papers. The BRICS members contribution to world technical innovation gradually increases with growing impacts. The BRICS members have become regional standards and a leading force, guiding technical, economic and social development in their surrounding areas.

The BRICS financial reform pushes exchanges. On July 15, 2014, the BRICS New Development Bank was established, with operational funds of US$50 billion, stringent reserves funds of US$100 billion, further simplifying the settlements and loans between the BRICS members, effectively assuring capital flow and trade. In April 2016, the BRICS New Development Bank announced the first group of projects with its loans worth US$811 million, used for green energy projects for China, India, Brazil and South Africa. In July 2016, the BRICS New Development Bank issues its first green bonds, totaling 3 billion Yuan RMB.

The BRICS cultural exchanges show many shining spots. In 2014, China opened 34 Confucius Schools in the BRICS five members, and students of other BRICS members in China totaled more than 340000. In October 2015, the BRICS Universities Union was established, so BRICS Universities can exchanges teachers and students, student credits are mutually recognized and degree can be mutually awarded.

Openness: continuously exploring march forward, and seeking common development

History always starts quietly from incubating situation. In 2001, among many world shaking events, the British economist Jim O'Neill created the "BRICs" concept, which was then still only a small investment group concept. However, it is at the end of the year that China formally assessed to the World Trade Organization and began to embrace the globalization in a more open manner. Other BRICS member countries have also taken the process of opening up with the role of emerging market economies.

Today, when looking back on the formation of the BRICS cooperation mechanism, we can find that adhering to the "open" policy is the founding spirit and a firm and consistent action of the BRICS. As a group representative of emerging market economies, soon after the BRICS cooperation started, it has met with the wide-spread of the global financial crisis so far. Since the outbreak of the crisis, the world economic "full recovery" scene is unable to emerge, but we are faced by "new mediocrity" picture such as low growth, low employment, low trade flows, anti-globalization, etc.

What actions should the world take? Where can the BRICS go? At this critical moment, in the face of "BRICS fading theory", the voices of doubt, the BRICS member countries choose to get united to march forward, with unwavering open posture.

At the beginning of 2013 in Durban, South Africa, President Xi Jinping attended the BRICS leaders meeting for the first time. He said in the keynote speech: we should leverage the partnership to closely connect the BRICS member countries together, make great efforts to promote cooperation in areas of economics and trade, finance, infrastructure, personnel exchanges and others, and move toward the goal of integrated big market, big circulation at multi-levels, land-sea-air connectivity, cultural exchanges. In July this year, President Xi Jinping presided over the informal meeting of BRICS leaders in Hamburg, Germany, and stressed that the BRICS member countries should unswervingly in their efforts build an open world economy.

It is upholding the spirit of openness that the BRICS members, in the rise of anti-globalization today, still collaborate together, create a miracle, and produce a beautiful report card. In the first "BRICS decade", the proportion of the BRICS aggregate economy to that of the world rose from 12% to 23%, the total trade volume rose from 11% to 16%, the total overseas investment rose from 7% to 12%, and the contribution to world economic growth was more than 50%, thus, becoming the backbone force for guiding globalization. Even more demanding people have to admit that, compared with some of the challenges of today, the BRICS members, which adhere to the open road, have more opportunities to grow together.

Today, standing on the new starting point to open up further, facing just unfolding development of the BRICS, Jim O'Neill said emotionally that he never thought that the "BRICs" could get so popular, and become the symbols to describe the rise of emerging market economies, and the changing world trends.

Inclusiveness: based on treating each other equally and adhering to seeking common ground while reserving differences

On April 18th this year, Liu Jieyi, Permanent Representative of China to the United Nations, made a speech on behalf of the BRICS. This is the first time since establishment of the BRICS cooperation mechanism in 2006 the BRICS member countries speak with one voice on major international issues in the United Nations.

As an international organization covering a population of 3 billion, as a cooperation platform composed of the emerging market economies in four continents and across the North and South hemisphere, people cannot help asking: what is it that has finally brought the BRICS member countries far across different geographical distance and transcending the development path and social system together.

Today the clash of civilizations can be heard without end to our ears, in the face of common destiny for mankind, President Xi Jinping points out: "different civilization embodies the different national wisdom and contribution, there should be no distinction between high or low civilizations, or between superior and inferior civilizations. There should be Dialogues among civilizations not exclusion between them; there should be exchanges but not be replacement among them.

Along the extraordinary journey of its first "decade", the BRICS is following the concept of equality, and seeking common ground while reserving differences that cooperation between the BRICS member countries transcends the outdated path of political and military alliance, establishes a new-type relationship featuring partnership rather than alignment; goes beyond the old thinking on distinction by ideology, and pioneers a new path of mutual respect.

- Promoting inclusive development. BRICS member countries actively support a multilateral system based on rules, openness, transparency, non-discrimination and inclusiveness. Under these principles, it is true that there are many differences between BRICS members, but more consensus and achievements have been reached. From promoting energy conservation and energy efficiency cooperation, to reaffirming the support of "Paris Agreement" and the "United Nations Framework Convention on Climate Change", from strengthening cooperation to combating infectious diseases to enhancing food security capacity, in the past10 years, the BRICS member countries have collectively coped with global challenges and made a positive contribution for the international community to achieve lasting stability.

- Promoting inclusive governance. Facing the new situation to promote improvement of global governance, the BRICS members increasingly represent the interests of emerging market economies and developing countries in the international arena to speak with a unified "BRICS voice", and form a clear "BRICS Program". Transcending cultural superiority, adhering to mutual respect and mutual inclusiveness, the mankind will be bound to have brighter prospects.

- Promoting inclusive exchanges. State-to-state relations rely on people-to-people amity. In recent years, people-to-people exchanges between the BRICS members continuously strengthen, the exchange of teachers and students continuously expand, the dance, music, economic and trade exchanges complement each other. In September of this year, "Where Has Time Gone" the first BRICS co-produced film, will soon be released.

The BRICS members are like 5 fingers, each one has its good point when outstretched while making a fist when clenched. The history of BRICS cooperatively advocating inclusiveness vividly implies cultural exchanges can transcend civilization discords and mutual learning among cultures and civilizations can transcend clash of civilizations and bring about of civilizations coexistence.

Cooperation: taking obligation and responsibility bravely, and improving global governance

Under the era conditions of deepening economic globalization, the development of BRICS members can not be spared. Only by strengthening cooperation, can we make the BRICS "quality" better and the BRICS more important.

The BRICS action plan for innovative cooperation, BRICS trade in services cooperation roadmap"...... In the past 10 years, from Durban, South Africa to Fortaleza, Brazil, from Ufa, Russia to Goa, India, cooperation has become the strongest voice for the coordinated development of the BRICS members. Finance is the blood of modern economy. Blood vessels are not blocked, growth is powerful. In recent years, BRICS cooperation in the financial sector has become a vivid example.

Just a few days ago, the BRICS New Development Bank approved 4 loan applications from China, Russia and India, which will be used in areas such as energy conservation, water supplies, and judicial system construction, etc.

The New Development Bank of BRICS, officially launched in July 2015, is the first international multilateral development bank established and led by emerging market economies in history. The establishment of this institution is a key step in the "consolidation" of BRICS cooperation. Since then, the BRICS mechanism has a "tangible" hold and pillar, and will irreversibly move towards a "community of shared interests"".

Harmony is beneficial for both sides. Focusing on peace and prosperity, the BRICS cooperation has put stress on both the economic and political aspects, and shouldered obligation and responsibility.

- attaching importance to economic cooperation. Service in trade cooperation roadmap, e-commerce cooperation initiative, investment facilitation cooperation framework, and economic and technological cooperation framework ... one item after another gradually unfolded, having stimulated the unlimited potential of BRICS members cooperation.

- strengthening coordination in the political area. The BRICS members are serving as an anchor of world economic stability and a shield of international peace. In recent years, the BRICS members continuously promote political security dialogue, especially coordinate their positions on major international and regional hotspot issues such as counter-terrorism, Middle East, Afghanistan and Syria, Ukraine and others, speak in a one voice. While, it has also collectively promoted the reform of the IMF and the World Bank in terms of share and voting rights, which has transferred more than 6% of the shares to emerging markets economies and developing countries.

These vivid facts have proved that in the face of increasingly shortage of global economic governance leadership and coordination ability, the BRICS grouped by emerging market economies and developing countries will be able to bear greater responsibility and realize more achievements in global governance.

All-win: expanding spoke influence and seeking stability

To seek interests should be seeking interests for the world. The butterfly effect of today's global situation makes more and more problems to be considered and solved by humankind as a whole. In this regard, President Xi Jinping points out sharply: only all-win cooperation can do major things, do good things and do long-term things.

In line with all-win principle, in the past 10 years, the BRICS members continuously increase strategic docking, and promote mutual understanding and mutual learning. In this regard, China as a BRICS founding member constantly contributes China’s wisdom and provides the Chinese program.

From the Hangzhou G20 summit to this BRICS summit held in Xiamen, from the Belt and Road Initiative to the BRICS spirit, for a long time, China’s concept of pursuing all-win outcomes can be traced to the same oringion. German Chancellor Merkel said emotionally that thinking in the long history perspective is China's great tradition.

An all-win situation does not only exist at the government and enterprises levels, but has increasingly integrated into basic necessities of life of the BRICS public, become a real "BRICS welfare". China’s trains run into South Africa, the Russian ice cream is available in restaurants in China, Indians use the native version of Alipay......

Just as the Belt and Road is not a private drive way, but a highway built by working together; BRICS cooperation is not closed and narrow "club", but an open and all-win "circle of friends".

In order to further strengthen cooperation, at the Xiamen summit, China creatively introduced a new concept of "BRICS + ", the BRICS five leaders will discuss cooperation with leaders of Egypt, Guinea, Mexico, Tajikistan, Thailand, and build a broader partnership. It can be imagined that the "BRICS +" will inevitably bring about a all-win "opportunity +"!

The BRICS cooperation of the second decade has started in Xiamen. However, as the famous poet Chernyshev J Ki said, "the path of history is not the sidewalk on Nevsky Avenue. It is completely moving forward in the field, sometimes through dust, sometimes through mud, sometimes across swamp, sometimes through jungle." Looking forward into the future, the BRICS members will continuously face risks and challenges, will also occasionally meet with differences, but as long as various parties adhere to the "open, inclusive, cooperative and all-win" BRICS spirit, it will be able to march forward steadily, and embrace a better tomorrow.

(Abridged translation of the article from PLA Daily, September 4, 2017)