The World Order and Global Challenges Faced by BRICS Cooperation

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The World Order and Global Challenges Faced by BRICS Cooperation

By Professor Pang Zhongying, Ocean University of China

On September 4th, the BRICS leaders met for the ninth time in Xiamen

I. Introduction

In Chinese, the "BRICS" refers to the member countries (Brazil, China, India, Russia and South Africa) participating in the international coordination and international cooperation. So far, the BRICS is still just an international forum. The concept of "BRICS Cooperation Organization" has not yet emerged. Despite the various proposals, the BRICS has not been replaced by such as G5 (the 5 nations group) or G11 (a group formed by 11 largest emerging economies).

From 2013 to 2016, the leaders of the BRICS members in Durban, Fortaleza, Ufa and Goa held 4 meetings (Chinese side did not use the wording "summit"). After each meeting, a statement (declaration was used sometimes in Chinese) was issued . It is worth noting that the "declaration" or " statement" was not yet modified by "joint", i.e."Joint Declaration" was not used, but the “hosting city + declaration” such as Goa Declaration, etc..

All the BRICS statements include contents on the international order. The above 4 documents use the wording "international order" in stead of "world order", "Give full play to the central role of the United Nations and respect the fundamental position of international law, build a more equitable, democratic and multi-polar international order." "The international community should work together to respond to these challenges, achieve sustainable peace and build a more just, equal, democratic and multi-polar international order." "Safeguard the fair and just international order based on the purposes and principles of the Charter of the United Nations."1

The global governance structure formed on the basis of pattern of international force has gradually lost its legitimacy and effectiveness, resulting in the increasing prevalence of transitional and temporary arrangements and seriously eroding multilateralism. We believe that the BRICS members is an important force for progressive change in the existing mechanism, and help to achieve a more representative and more equitable global governance, to promote a more inclusive global growth, and to build peaceful, stable and prosperous world", "we reaffirm the commitment to maintaining a fair and just international order based on the Charter of the United Nations."2

"We reaffirm our strong support for the United Nations as the most important multilateral forum, carrying the mission of bringing about hope, peace, order and sustainable development to the world."3

This paper intends to observe the BRICS framework and its development direction in the future by jumping out of the BRICS cooperation, but to select two focus of global issues -- the world order and globalization, discussing its present and future roles in these two major issues, and then put forward the strategic proposals on how to improve the BRICS cooperation.

II. The relationship between the global framework and the world order

The author has discussed the relationship between the BRICS cooperation and the shifting world order.4This article emphasizes the relationship between the BRICS framework and the world order.

Currently, in the United States and Europe, etc, there are worries and even fears about the disruption, failure, and even the possible anarchism of the (existing) world order. Then, is the BRICS a factor for the world disorder worried by the West? Is the BRICS cooperation a heavy blow against the " liberal (liberalism) order"? Or is the BRICS cooperation an inevitable process to prevent disorder of the world, and build the "Western liberal order" into "a global liberal order"? Can the BRICS play an indispensable role in ensuring the world order transformation (from the West-dominated world order to a more just and democratic world order) and the future orderliness of the world?

The BRICS countries never mention anything about establishing a new international order, let alone building a new world order. It is a judgment or panic of the West to talk about that the BRICS members are shaping a new world order. However, some Western critics statements on the BRICS shaping a new world order are not based on what the BRICS say, but based on what the BRICS "do" to discuss the relationship between the BRICS members and the world order. The current main "actions" of the BRICS cooperation, that is, the establishment and operation of a New Development Bank and Stringent Reserve Arrangement and so on are generally interpreted as a try at shaping a new world order.5Indeed, these new international institutions (especially the new international financial institutions) have emerged in the world order for the first time since the Bretton Woods system was born in the middle of the 1940s.

Of course, the article pays very much attention to the distinction between an "international order" and a "world order". The BRICS members insist on and demand for improving "the international order", and what it means to the "world order"? At least in the past 30 years (after the reunification of Germany in 1989), the BRICS members are part of the existing globalization of the world. The international order is not enough to solve the problems of globalization. It is here that the international legitimacy of the BRICS cooperation is based. In "the sixth BRICS leaders meeting" documents, there is a sentence to which we failed to pay enough attention: "global governance structure based on the previous pattern of international force is gradually losing its legitimacy and effectiveness, leading to increasingly prevalent transitional and temporary arrangements, seriously eroding multilateralism." In fact, the BRICS cooperation is no more than these "transitional and provisional arrangements? While adhering to the "international order", the BRIC members show general and large-scale acceptance and use of "global governance" concept quite different from the "international order". It Is again in the "Fortaleza Declaration" that the BRICS members once again call for "more representative and more equitable global governance, for promoting a more inclusive global growth, for building a world of peace, stability and prosperity",6and inconsistency or contradictions between "international" and "world" can be almost seen across the board in the discourse system of the BRICS members.

As mentioned above, the BRICS member countries have their differences in the "world order" behind their "consensus" on the "international order". The future of BRICS cooperation depends on whether the member countries can face the world order and achieve real consensus on the world order.

In the 4 statements of the BRICS member countries, there is wording on "gradual change" of the existing international order. The existing international order is essentially an open or liberal multilateral system. The United States and other Western countries call the order "the liberal world order". The United States and Europe, however, are in dominant position in this liberal order. Actually, what the BRICS members is unsatisfied is not the liberal order itself, but the control of this order by the United States and other Western countries. The usual American explanation for this control is that the United States plays the role of "world leadership" (leading the world). What the BRICS members try to "gradually" change is only the U.S. control or the U.S. leadership, which is the same as the BRICS members request the international financial institutions of Bretton Woods to increase the BRICS decision-making power, which will not change the "liberal" nature of the current global multilateral institutions, but can also support or strengthen the liberal order as the U.S. contribution to these institutions on continuous decline. However, there emerge two problems: first, in the view of the United States and other Western countries, non-western countries entry into the order does not mean the liberal order expanded or strengthened, but the liberal order becomes more mixed, or even not liberal any more.7Second, the "pragmatic" cooperation from the BRICS members indicates that the power and position of all countries in the BRICS cooperation are absolutely on equal footing, and there is no dominant or hegemonic state as in the Bretton Woods system. This is cooperation without hegemony. Such rules actually lead to the BRICS cooperation that is not a "liberal" cooperation. If too much emphasis is put on power and competing for power, then, many small and medium-sized countries may find it difficult to participate in its cooperation. In addition, China's super economic strength in the BRICS, the absolute equality of the BRICS internal governance rules may become special arrangements to restrict China’s leadership or limit China's leadership.

In a word, the order demands of the BRICS members seem to work for a more improved liberal international order, but from motives and actions of the BRICS member countries, and what the BRICS members pursue is only a realist "(realism) international order". If it is not in the pursuit of global (open, inclusive and fair) liberal world order, but only a realist (pragmatic) international order, then, which is not the liberal world order in the era of globalization. The BRICS members are indeed beneficiaries of liberal world order. But, unfortunately, some people mistakenly equate the liberal world order to the U.S.-led or West-led (indeed, some Americans also have such narrow understanding and recognition of the liberal order) order, so the BRICS member countries hesitate to openly and comprehensively support liberal global order.

On January 17, 2017, Chinese President Xi Jinping called for support of free trade and globalization at the World Economic Forum in Davos, Switzerland, which is an extremely correct understanding and action. This thinking and action point to the direction for the BRICS "second decade" in the future. A series of Xi Jinping's speeches, especially the speeches on the Belt and Road Initiative state that the Belt and Road Initiative is "open" and "inclusive", so he believes that only these openness and inclusiveness can eventually last stably.8As one of the BRICS members, China finally voices what the BRICS cooperation must say, a "pursuit" by the "realist (realism)" international order, after all, cannot stably last. The future of the BRICS depends on its embrace of the global liberal order.

What the BRICS members disagree should not be the "global liberal order", but should be the control of the liberal order by the world leadership role of those countries including the United States .

The UK’s decision to secede from the European Union (Brexit) has exposed the serious problems of the European integration that is pivotal in the current world order. The European Union (EU), without Britain, will be a EU’s reform in failure, and its role in the world order will be on decline. The EU was once a direct or indirect example of integration for other regions of the world. The EU crisis will have a negative impact on the integration process of other regions of the world. And if economic nationalism (the United States First) is applied to guide the relationship between the United States and the world, the existing multilateral systems (such as the World Trade Organization) and the global governance process (such as global climate governance) will be greatly impacted.

In the future "second decade", can the BRICS members reach frank consensus on the world order,? If the BRICS members can hardly reach an agreement on the world order, the current operation of the international institution (such as the BRICS NEW Development Bank), or its demand for a just, fair and reasonable international order in the world cannot make real progress. Different from the beginning, nowadays a decade later, the West has noticed and acknowledged the existence of the BRICS cooperation. Can the BRICS members and the Western countries coordinate and achieve consensus on the issue of world order and establish a truly mixed or hybrid (mixed or hybrid) world order in the global framework, including the BRICS, such as the G-20?

It is not the BRICS forum, cooperation covering almost everything, that is the most striking, but its international financial cooperation, similar to the Bretton Woods system, institutionalized and newly born, while the goal and function restricted by its self. These new international financial institutions are different from the Bretton Woods system and, in theory, may contribute to the reform of the international financial system. BRICS members in the international financial system demand their decision-making power (voting rights) in conformity to their economic strength. The BRICS institutions (such as New Development Bank) in the future are to last steadily - sustainably, and must comply with the logic of this international cooperation.

In addition to the backbone of international financial cooperation, the BRICS must have another pillar, this pillar is one of the central points of this article, i.e. the global governance for global peace and global security, concretely speaking the global coordination (global concerts of powers).

The BRICS once establishes and operates a global concert of powers (global coordination), which is important supplement and contribution currently to the Security Council of the United Nations system and other global governance systems, and will play a crucial role in the maintenance of world peace.

At present, the BRICS countries pay attention to a series of major global issues. But the real coordination of these issues, that is to solve these problems is not enough, still far away from the goal to provide the "BRICS solutions" decided by the BRICS framework.

To contribute to the new world order and play a role in addressing global major challenges, the existing BRICS membership is inadequate, and more members (stakeholders) will be required to participate. Therefore, expansion of BRICS membership is necessary and urgent. However, expansion cannot only admit qualified ones economically, attaching importance not only to economies scale, but to admit those important countries identifying with the BRICS concept of world order (the principles and values). The expanded BRICS framework is more conducive to global coordination ( concert of powers).

From the above-understanding, the author proposes the following few points:

(1) BRICS member countries should hold a special summit on world order. The BRICS is born as the world is moving to disorder, and the BRICS does not exacerbate the world's disorder and causes conflicts between world orders. The BRICS is not to reinvent the wheel. To restart means overturning the basic international system such as the United Nations system and others formed after the Second World War The aim of the BRICS is to improve the current world order so that it becomes global, multilateral, open, inclusive and fair.

(2) Under the circumstances that the world disorder may be accelerated, policy coordination on the world order by the BRICS members should be accelerated rather than slowed down, and should be strengthened rather than weakened.

(3) The BRICS member countries should leverage its collective position in international cooperation such as the United Nations and the G20, call on western countries to hold a global conference on the world order under the framework of the United Nations, and to soon possible reach consensus on what the new world order is and how to prevent world disorder, so as to prevent emergence of a world order conflict.

(4) The international financial system under the BRICS framework is inadequate, and there must be a global concert of powers for long-term peace for the world under the BRICS framework. Economically and financially, the new emerging international financial institutions in operation and under construction such as the BRICS "New Development Bank" and "Stringent Reserve Arrangement" should become a pilot project of the global economic governance with "new development" as the goal. Regarding world peace and international security, the BRICS cooperation should be further institutionalized and become a pilot project of global security governance - global coordination (concert of powers) with "lasting peace" as the goal.

II. The global challenges faced by BRICS cooperation

For most countries, globalization means more profound challenges and it is necessary to respond to the challenges of globalization from all perspectives. International cooperation has long been regarded as a fundamental solution to the challenges of globalization.

It is not nowadays that globalization generates some problems in the West and elsewhere. The emergence of the BRICS mechanism provides a solution to the difficulties or challenges met by globalization driven by Western developed countries. In 2001, economist Jim O'Neill, having worked for Goldman Sachs and the British Conservative Party Administration, proposed the "BRICs" (excluding South Africa then) concept, as people’s optimistic view of globalization after the end of the Cold War was being replaced by a more cautious view of realism. In 1999, the first high-profile anti-globalization social protests broke out in places like America and Europe (such as Seattle).

The author has not interviewed O’Neill and in no way knows whether he took into account the "anti-globalization" social protests staged in Seattle and other places while he put forward this concept. However, a neglected situation is that the reason that he-proposed concept attracts so much attention is just because this concept points to a way to meet the difficulties encountered by globalization in the United States and Europe, which can be seen from the fact that the G20 forum after 2008 was upgraded to political summit.

O'Neill's concept is indeed an excellent solution. Actually, Russia became a member of G8 in 1998. In 2001, China joined the World Trade Organization (WTO). In 2003, G8 invited China and India, etc. for dialogue (G20 predecessor). This trend developed into 2008 when globalization with the United States as the center finally met with crisis, in fact, it is the BRICS members that help the United States and other Western countries to respond to this crisis.

For a while, many people enjoy the honeymoon of globalization. The "global capital" from the west and rapid progress of technology strike a strategic alliance with the current BRICS members "labor dividend" and "ecological environment (including land) dividend", greatly deepens and extends the globalization, creates super prosperity hitherto unknown in human history. This process is once thought to have affected almost all regions and all peoples on earth ever before.9

However, the expansion of connotation and extension of globalization can only temporarily alleviate the plight of globalization. Since 2008, the following situations have occurred: First, China and other BRICS members have also experienced different economic decline, and the so-called "quality of the BRICS" is not good.10The transformation of China's economic growth mode has not been realized, and the "MIT" has not yet been overcome, the aging population and climate change challenge the sustainability of the economic growth. Second, the West has been trying to settle the imbalance posed by globalization through politics (democracy), and solve those problems incubated by globalization, but old politics are hard to cope with new economic problems. The U.S. response to the challenge of globalization through political change did not start with the year 2016. American voters regard Barack Obama as a "hope of change", and Barack Obama is elected under the banner of "change". After Obama came to power, his health care reform and climate change policies are all in response to the challenges of globalization. However, Obama Administration's 8 years of adjustment had not fundamentally solved the problem.

Global governance is universally pushed as globalization is considered "inevitable". In the 1990s, the then U.S. President William J. Clinton and British Prime Minister Anthony C. L. Blair were talking bombastically about the "globalization’s" inevitability. In fact, global governance is the answer to the challenge of globalization, i.e. global challenges and global solutions. In the theory and practice of global governance, international norms, human-centered international standards, rules and institutions are the main body, such as "more humanized globalization" (global economic governance), "human rights" (the global human rights governance), "human security" and "protection responsibilities" (global security governance), "human development" (global development governance), etc. However, in the context of globalization across the board, these "human-centered" global governance norms, rules and institutions are not truly implemented.

At present across the world, many countries and non-state actors (such as the United Nations) become more and more aware of disastrous consequences such as the increasingly expanded inequality among humankind and the deteriorating environment on which future human generations to come should survive, the earth resource depletion and others caused by globalization.11

BRICS members and BRICS cooperation must be fully aware of the deep relationship between BRICS and globalization, and identify the BRICS cooperation as a collective action plan to respond to the challenges of globalization.

Not only European and American countries have to face the problems brought about by globalization, the BRICS member countries also need to face the problems brought about by globalization. The challenges of globalization to the BRICS members are more severe than that to the European and American countries. Compared with the BRICS members, European and American countries take the lead to solve the global challenges, and may go out of the predicament of globalization earlier. Many Western countries through political reform correct the problems of globalization, the BRICS member countries should have sense of more urgency, not only deepen the reform from the domestic perspective, but also correct the imbalances in the globalization disorder from the global mutual cooperation perspective. Thus, the globalization promoted by the BRICS is a real "New Globalization", Otherwise, the BRICS will continue to maintain the outdated globalization full of problems.

Similar to the issue of world order, the future of BRICS cooperation will depend on new consensus about globalization and its direction among member states. Globalization from yesterday's "inevitability" to today's globalization in retreat and to even de-globalization in some sectors and places “make the BRICS members obtain collective heating from a common market”. What this collective efforts needs to avoid is to drive globalization to go into a direction that must be avoided today. Or, even if such globalization is given a "new" name, it is ultimately unsustainable.

The Chinese government has launched the Belt and Road Initiative in attempt to pave a path for "new globalization". It is well-done and has been recognized by the international community. The "new globalization" is first of all to solve seriously neglected problems of the real basic economy of the globalization in the past, China attempts through infrastructure investment around the world, especially to connect Asia, Africa, Europe, and even Latin America. If this connectivity achieved, this will be the world's largest development of interrelationship. China is not only in the world, but also among the BRICS members, to take the lead in rectifying (balancing) globalization. In this sense, the BRICS cooperation needs to respond to China's new globalization policies and actions. Can the BRICS cooperation and the Belt and Road Initiative complement each other?12

The actual situation may not be so optimistic. Within the BRICS, its members such as Brazil, which is still perplexed by the problems of the globalization in the past - all new political and economic crisis are continuation of the old ones. While India, however, always considers and responds to any international initiative sponsored by China from a geopolitical perspective, and adopts a competitive and confrontational posture. The predicament of China-India bilateral relations would affect the cooperation effectiveness between the two countries in the multilateral framework, including the BRICS.

From the above understanding, the author proposes the following few points:

(1) The BRICS needs to reconfirm the correct direction of globalization, BRICS member countries should individually and collectively try to solve the challenges of globalization over the past few decades at domestic, regional and global levels, respond to the negative side of the globalization, and set up examples in their respective countries and within the BRICS to avoid the beaten track of the globalization and pursue a brand new globalization.

(2) Take the "new development", i.e. reducing human inequality, promoting human free development, maintaining human common security, achieving lasting peace, safeguarding human basic rights, building responsible society, keeping ecological sustainability, etc. as globalization goals commonly pursued the BRICS.

Ending comments

The BRICS cooperation is the biggest kinetic energy in the current world order and globalization changes, but its prospects are still impacted by some uncertainties. In the first decade, the BRICS is an important factor affecting the world situation. In its second decade, where will the BRICS develop? Can the BRICS member countries reach the common denominator in shaping a new world order and a new globalization? It has to redouble its efforts in this historical process.

(Excerpts of the article from theNo. 4, 2017)

1.See 2016 Goa Declaration by the 8thBRICS Leaders Meeting.

2. See 2014 Fortaleza Declaration by the 6thBRICS Leaders Meeting.

3. See 2013 Durban Declaration by the 5thBRICS Leaders Meeting.

4.See Pang Zhongying, “BRICS Cooperation and the World Order in Transition”,, September, 2014.

5.There are lots of similar comments, such as W. P. S. Sidhu, “Brics: Shaping a New World Order, finally”, https://www.brookings.edu/opinion/brons-shaping-a-new-world-order-finally/

6. See 2014 Fortaleza Declaration by the 6thBRICS Leaders Meeting.

7.See https://www.wiltonpark.org.uk/wp-content/uploads/WP1534-Report.pdf.

8.Xi Jinping, “Speech at the Opening Ceremony of the Belt and Road International Cooperation Forum, Beijing, 14 May 2017.

9.Robert O. Keohane, “Governance in a Partially Globalized World: Presidential Address, American Political Science Association, 2000,https://www.princeton.edu/system/files/research/documents/finalapsrpaper.pdf.

10.See Wu Jinglian, “Supply-side Reform: Reshaping China’s Layout in Economic Transformation, Beijing, China Wenshi Press, 2016, P.3.

11.SeeAntonio Guterres speech at Opening Ceremony of the Belt and Road International Cooperation Forum.

12. See Pang Zhongying, “Where will the BRICS Cooperation Go?”,, No.6, 2017.