Renato Baumann, Director of Studies on Economic and International Policy Relations at the Institute of Applied Economic Research (IPEA), Brazil.
To start with, it is difficult for Brazil – and probably also South Africa – to consider themselves as non-Western: geography matters. With this clarification, I understand that the question refers to how the main economies – the U.S. and Western Europe – see the BRICS initiative.My guess is that the economic agents in those countries view the BRICS right now with a mix of curiosity and skepticism. Curiosity, because the group comprises some of the most important economies. But since it is very recent, it is still to be seen how the group will evolve and consolidate. Skepticism, because it is a set of five countries with different histories and objectives, with lower rates of growth now than when the group was formed.
The very reason for forming the BRICS has always been the joint perception by the five countries with regard to the needed changes in global governance. This has led to a demanding position, sometimes rather critical of the status quo. This has also led to a number of initiatives to try and increase mutual knowledge. More importantly, the group has initiated a substantive, unprecedented initiative, with the creation of a joint institution – the New Development Bank – that will allow for some degree of freedom in having an additional source of resources for investment projects in infrastructure. At the same time, it will be a big challenge to joint action by the five countries.
This means that the BRICS countries hardly see “the West” as rivals, with perhaps the exception of one or other members, involved in specific conflicts. As a group, the overall sentiment is that this is a “building up exercise,” and not a contest.
Russia Direct, July 13, 2015
