A REPLY –OR BETTER ADDITION TO MS RACHEL GYABAAH’S ARTICLE IN THE BUSINESS&FINANCIAL TIMES DATED NOVEMBER 20,2024 “BRICS: THE NEED FOR AFRICA TO CAREFULLY BALANCE THE GLOBAL FINANCIAL ARCHITECTURE AMID GLOBAL POWER STRUGGLES”
AUTHOR: HANS PETER RECKLING
ORGANISATION: GHANA RESEARCH
WEBSITE: https://www.recklingenterprise.com
SUBMITTED: 20/01/25
CONTENTS
INTRODUCTION
BEGINNING AND DEVELOPMENT OF NDB
2ND NDB STRATEGY 2022-2026
MISSION OF NDB
PROFILE OF NDB
NDB WITHIN THE FINANCJAL SYSTEM – PRESENT AND FUTURE
LINKAGE BETWEEN NDB AND BRICS
CONDITIONS FOR A MEMBERSHIP OF GHANA AND OTHER AFRICAN NATIONS IN BRICS AND NDB
ADVANTAGES AND DISADVANTAGES FOR GHANA AND OTHER AFRICAN NATIONS OF AN NDB AND BRICS MEMBERSHIP
CONCLUSION
INTRODUCTION
FIRST OF ALL, I WANT TO THANK MS. GYABAAH FOR HER INTERESTING ARTICLE. IF ANYTHING, IT BRINGS TO MIND OF THE GHANAIAN READER THE EXISTENCE OF THE BRICS ORGANISATION AND ITS SUCCESS SINCE ITS INAUGURATION.
HER CONCLUSION, HOWEVER, WAS A LITTLE BIT TOO CAUTIOUS FOR MY TASTE. AFRICA IN GENERAL, AND GHANA IN PARTICULAR, MUST SEIZE THE OPPORTUNITY. A MEMBERSHIP IN BRICS – OR FOR THE MEANTIME AT LEAST AN OBSERVER STATUS, AND THEREFORE AN APPROACH TOWARDS THE ORGANISATION – WOULD BRING TO THE COUNTRY AND THE CONTINENT AT LARGE.
AS MS. GYABAAH FOCUSSED MORE ON THE POLITICAL SITUATION A POSSIBLE MEMBERSHIP FOR GHANA WILL BE CONFRONTED WITH – AND UNDERSTANDABLY POINTED OUT THE GEOPOLITICAL RISKS – I WILL STRESS MORE THE FINANCIAL AND ECONOMICAL FACTORS, AND LOOK AT THE “NEW DEVELOPMENT BANK” (FOLLOWING CALLED NDB) WHICH WAS FOUNDED BY THE FOUNDING MEMBERS BRAZIL, RUSSIA, INDIA, AND CHINA PLUS THE LATER JOINING SOUTH AFRICA. FIRST OF ALL, I WILL INTRODUCE A BRIEF HISTORY OF THE NDB WHICH I TOOK FROM ITS STRATEGY PLAN 2017 TO 2021:
BEGINNING AND DEVELOPMENT OF THE NDB
FIRST OF ALL, I WILL INTRODUCE A BRIEF HISTORY OF THE NDB WHICH I TOOK FROM ITS STRATEGY PLAN 2017 TO 2021:
Trajectory of NDB’s Creation
NDB was established by Brazil, Russia, India, China and South Africa in the context of the BRICS mechanism, along with the BRICS Contingent Reserve Arrangement. At the March 2012 New Delhi Summit, the leaders of BRICS countries directed their finance ministers to examine the feasibility and viability of setting up a new development bank that would support economic growth in BRICS and other emerging economies and developing countries. One year later, in the Durban Summit in March 2013, BRICS leaders announced the start of formal negotiations to establish NDB. The Agreement on the New Development Bank was signed during the BRICS Summit held in Fortaleza on July 15, 2014. Following ratification by all five founding members, the Agreement entered into force on July 3, 2015. The inaugural meeting of the Board of Governors of NDB was held in Moscow on July 7, 2015.
CURRENTLY, THE NEW DEVELOPMENT BANK (FOLLOWING, I ‘LL USE THE ABBREVIATION “ NDB”) IS IN THE SECOND FIVE-YEAR TERM OF STRATEGY PLANNING.
IN THE AGREEMENT ABOUT THE FOUNDING OF NDB THAT WAS SIGNED BY THE FIVE BRICS MEMBERS, IT IS STATED THAT THE SIGNING MEMBERS ACKNOWLEDGE THE CONSTRAINTS DEVELOPING COUNTRIES AND EMERGING ECONOMIES FACE IN TODAY’S GLOBAL ECONOMY.THE PURPOSE OF THE BANK SHALL BE TO MOBILISE RESOURCES FOR INFRASTRUCTURE AND SUSTAINABLE DEVELOPMENT IN BRICS COUNTRIES AND OTHER DEVELOPING COUNTRIES. THE MEMBERSHIP IN NDB IS OPEN TO ALL MEMBERS OF THE UNITED NATIONS AS BORROWING AND NON-BORROWING MEMBERS. THE NON-BORROWING MEMBERS ARE CLASSIFIED AS DEVELOPED NATIONS, WHOSE MEMBERSHIP IS LIMITED TO 20% OF ALL MEMBERS, TO AVOID A CONTROL OF DEVELOPED NATIONS IN THE BANK. THE BANK WAS THEN LAUNCHED ONE YEAR AFTER THE AGREEMENT IN 2016.
THE FIRST AND FOREMOST INTENTION OF THE NDB – ACCORDING TO THE AGREEMENT – IS TO MOBILISE RESOURCES FOR INFRASTRUCTURE AND SUSTAINABLE DEVELOPMENT PROJECTS.
THE FIRST STRATEGY PERIOD OF THE BANK DATED FROM 2017 TO 2021. IN THIS PERIOD, THE MISSION AND THE TARGETS WERE MANIFESTED. THESE TARGETS WERE IN PARTICULAR:
— BUILDING NEW RELATIONSHIPS WITHIN THE MEMBERS OF THE BANK AND EXTERNALLY;
— DEVELOPING NEW PROJECTS AND THE INSTRUMENTS TO FINANCE THEM;
— DEVELOPING NEW APPROACHES FOR FINANCING IN THE EMERGING ECONOMIES.
(NDB’S GENERAL STRATEGY 2017-2021, P.3F.)
BUILDING NEW RELATIONSHIPS MEANS DEVELOPING TRUST BETWEEN THE BANK AND THE MEMBER STATES.
DEVELOPING NEW PROJECTS AND NEW FINANCIAL INSTRUMENTS MEANS THE BANK LAYING EMPHASIS ON SUSTAINABLE PROJECTS. FURTHERMORE, BUILDING SUSTAINABLE INFRASTRUCTURE IS AT THE CORE OF THE BANK, AS MOST OF DEVELOPING COUNTRIES AND EMERGING ECONOMIES LACK MODERN INFRASTRUCTURAL BASICS. REALISING THAT THERE IS A GAP IN THE FINANCIAL ARCHITECTURE, THE BANK IS READY TO FILL IN THIS GAP FOR THE BETTER OF THE EMERGING ECONOMIES.THAT INCLUDES LOW INTEREST RATES AND OFFERING LOANS IN LOCAL CURRENCIES.
ADDITIONALLY, THE BANK ENVISAGED NEW APPROACHES, ESPECIALLY CONCERNING THE HANDLING OF LOAN DISBURSEMENT. THE BANK USES A TWO-WAY APPROACH TO RISK MANAGEMENT: LOW RISK PROJECTS ENJOY A FAST TRACK APPROVAL AND OVERSIGHT, WHILE HIGH RISK PROJECTS ARE PUT UNDER MORE SCRUTINY IN APPROVAL AND OVERSIGHT.
THESE ARE THE MOST IMPORTANT BASICS THE BANK INTENDED TO INTRODUCE IN ITS BUSINESS ACCORDING TO THE GENERAL STRATEGY 2017-2021. NOW WE WILL SEE HOW THE BANK PUTS THESE UNDERLININGS INTO REALITY DURING THE SECOND GENERAL STRATEGY 2022-2026.
2ND NDB STRATEGY 2022-2026
THE SECOND STRATEGIC PLAN OF THE NDB IS CHARACTERISED BY THREE MAJOR ISSUES: THE MISSION OF NDB, THE PROFILE OF NDB, AND THE POSITION OF NDB WITHIN THE FINANCIAL SYSTEM – HOW DOES IT LOOK LIKE NOW, AND WHAT WILL NDB’S POSITION IN THE SYSTEM IN FUTURE.
MISSION OF NDB
THE TITLE OF THIS SECOND STRATEGY PAPER FORMS ALREADY THE BASE FOR THE MISSION OF NDB: “SCALING UP DEVELOPMENT FINANCE FOR A SUSTAINABLE FUTURE”. IT CONTAINS TWO ELEMENTS: DEVELOPMENT FINANCE AND SUSTAINABLE FUTURE. THE BANK SETS ITS TARGET TO BECOME A LEADING MEMBER OF THE FINANCIAL SYSTEM TO SUPPLY EMERGING MARKETS AND DEVELOPING COUNTRIES WITH RESOURCES FOR SUSTAINABLE PROJECTS. THUS, AFTER IN ITS FEW YEARS OF EXISTENCE, NDB HAS ALREADY FOUND ITS PLACE WITHIN MULTILATERAL DEVELOPMENT BANKS (MDB’S).
THE BANK REALISES THAT THERE IS A GAP BETWEEN DEVELOPED AND EMERGING ECONOMIES, AND THAT THE EXISTING MDBS CANNOT FILL THIS GAP. CONSEQUENTLY, NDB SETS AS ITS MISSION THE SUPPORT OF THESE EMERGING ECONOMIES, IMPROVE THE INFRASTRUCTURE IN ITS MEMBERSHIP COUNTRIES AND SUSTAIN THEIR FINANCIAL STRUCTURE.
PROFILE OF NDB
SINCE ITS START AS AN IDEA IN FORTALEZA, NDB HAS ALREADY ESTABLISHED ITSELF AS A MAJOR PLAYER IN SUPPORT OF ITS TARGET GROUP. IT HAS A SOUND FINANCIAL FOUNDATION WHICH IS RECOGNISED BY MAJOR RATING AGENCIES. FITCH RATES NDB WITH “AA+” = OUTLOOK STABLE – FROM NEGATIVE IN 2023. S&P GLOBAL AFFIRMED ITS RATINGS OF NDB ON 10TH OF MAY, 2024 AS “AA+/A-+”. UNLIKE SEVERAL WESTERN ECONOMISTS THAT DECLARE NDB “TOO SMALL” TO PLAY A MAJOR ROLE IN THE FINANCIAL SECTOR, THE “INTERNATIONAL BANKER” ACKNOWLEDGES ON ITS WEBSITE https://internationalbanker.com THAT NDB IS A REFLECTION OF DEVELOPING NATIONS BEING UNHAPPY WITH THE CURRENT SYSTEM. THIS DESIRE TO HAVE A FINANCIAL INSTITUTION THAT PUTS THE DEVELOPMENT OF EMERGING MARKETS INTO THE CENTER OF ITS OPERATIONS IS REFLECTED IN THE SERVICES OF NDB AND ITS TARGET MARKET: FINANCING SUSTAINABLE INFRASTRUCTURE AND OTHER SUSTAINABLE PROJECTS IN DEVELOPING COUNTRIES.
AND JUST LIKE MODERN TECHNOLOGY IS INTEGRATED IN THE DAY-TO-DAY OPERATIONS OF THE BANK, THIS MODERN TECHNOLOGY ALSO FORMS PART OF THE SERVICES OF THE BANK. INFORMATION AND COMMUNICATION TECHNOLOGY IS AT THE CORE OF PROJECTS FINANCED BY NDB.
BY THAT, WE GET TO THE POSITION OF NDB IN THE PRESENT AND THE OUTLOOK FOR THE FUTURE. GEOPOLITICALLY, THE WORLD IS MORE AND MORE DIVIDED INTO THE “DEVELOPED” NORTH AND THE “DEVELOPING” SOUTH. THIS POLITICAL DIVIDE IS MIRRORED IN THE ECONOMICAL SITUATION. THIS IS BECAUSE ECONOMY AND POLITICS HAVE A DIALECTICAL RELATION, WHICH MEANS THAT ECONOMY DEPENDS ON POLITICS, AND VICE VERSA. NDB GETS MORE AND MORE REGOGNITION IN THE FINANCIAL AND POLITICAL WORLD, AS ELABORATED BEFORE IN VIEW OF THE RATING AGENCIES AND THE INTERNATIONAL BANKING SYSTEM. MEANWHILE, FOUR NEW COUNTRIES HAVE BECOME MEMBERS OF THE NDB IN 2021, NAMELY BANGLA DESH, EGYPT, AND URUGUAY AS BORROWING MEMBERS, AND THE UNITED ARAB EMIRATES AS NON-BORROWING MEMBER. THIS SHOWS THE GROWING ATTRACTION NDB AND ITS FINANCIAL STRATEGIES ENJOY IN THE EMERGING MARKETS. THIS GROWING ATTRACTION WILL SURELY LEAD TO A FURTHER EXPANSION, AS IT IS ALREADY INCORPORATED IN THE SECOND STRATEGY OF THE NDB 2022-2026.
OF COURSE, THERE ARE CHALLENGES AND DOUBTS FOR POTENTIAL FUTURE MEMBERS OF NDB. THESE ARE BASICALLY THE SAME AS THEY ARE CONCERNING THE BRICS ORGANISATION. THE MOST IMPORTANT CONCERNS ARE THE ECONOMICAL AND POLITICAL INFLUENCE OF CHINA IN THE BANK, AND POSSIBLE INTERNAL CONFRONTATIONS BETWEEN NDB MEMBERS, LIKE CHINA AND INDIA. WE WILL LOOK AT THESE CONCERNS IN THE NEXT CHAPTER. APART FROM THAT, THERE ARE MORE TECHNICAL ISSUES WHICH I ADMIT, I CANNOT LOOK AT FURTHER, SIMPLY I LACK THE KNOWLEDGE TO COMMENT ON THOSE. BUT I AM SURE THAT THERE ARE PEOPLE WITHIN BRICS AND THE NDB WHO CAN SOLVE THESE ISSUES AS THEY APPEAR.
LINKAGE BETWEEN NDB AND BRICS
AS WE ALL MEANWHILE KNOW, THE BRIC ORGANISATION WAS FOUNDED BY BRAZIL, RUSSIS, INDIA, AND CHINA, LATER JOINED BY SOUTH AFRICA TO BECOME BRICS. THE BRICS ORGANISATION THEN LAID THE FOUNDATION FOR NDB IN 2015, WHICH WAS THEN LAUNCHED IN 2016. AS THE FOUNDING MEMBERS OS BRICS AND NDB ARE THE SAME, THERE ARE SURELY LINKAGES BETWEEN BOTH.
BUT OF COURSE, THE LINKAGE BETWEEN BRICS AND NDB IS NOT REDUCED TO WHO FOUNDED WHOM. LINKAGES BETWEEN POLITICS AND ECONOMY ARE RECOGNISED BY MAINSTREAM WESTERN ECONOMISTS (POLITICAL ECONOMY!) AS WELL AS BY MARXIST ECONOMISTS.
POLITICAL ECONOMY IS DEFINED AS FOLLOWS:
Political economy is an interdisciplinary branch of the social sciences. It focuses on the interrelationships of individuals, governments, and public policy.
Political economists study how economic theories such as capitalism, socialism, and communism work in the real world. Any economic theory is a means of directing the distribution of a finite amount of resources in a way that benefits the greatest number of individuals.
o Political economy is an interdisciplinary branch of the social sciences. It focuses on the interrelationships of individuals, governments, and public policy.
Political economists study how economic theories such as capitalism, socialism, and communism work in the real world. Any economic theory is a means of directing the distribution of a finite amount of resources in a way that benefits the greatest number of individuals.
(INVESTOPEDIA: WHAT IS POLITICAL ECONOMY?)
HERE WE SEE ALREADY HOW ECONOMY IS RELATED TO POLITICAL SYSTEMS. OF COURSE, THE DEFINITION IS INCORRECT, AS FAR AS CAPITALISM, SOCIALISM, AND COMMUNISM ARE NO THEORIES (PERHAPS COMMUNISM, AS THERE IS NO COMMUNIST COUNTRY IN THE WORLD), BUT CAPITALISM AND SOCIALISM ARE POLITICAL SYSTEMS.
PERHAPS THE BEST KNOWN PHRASE CHARACTERISING THE RELATIONSHIP BETWEEN POLITICS AND ECONOMY IN A PRACTICAL WAY IS THE ONE ATTRIBUTED TO JAMES CARVILLE, ADVISOR TO BILL CLINTON IN THE ELECTORAL CAMPAIGN IN THE U.S.A. IN 1992: “IT’S THE ECONOMY STUPID.” (OFTEN, THIS SENTENCE IS WRITTEN AS “IT’S THE ECONOMY, STUPID.”) IT SHOWS HOW IMPORTANT ECONOMY IS CONSIDERED IN THE POLITICAL LIFE.
MARXISM-LENINISM SEES THE RELATIONSHIP BETWEEN POLITICS AND ECONOMY EVEN CLEARER, ALBEIT PERHAPS MORE DRASTCALLY IN THE DEFINITION OF DIALECTICAL MATERIALISM:
As a materialist philosophy, Marxist dialectics emphasizes the importance of real-world conditions and the presence of functional contradictions within and among social relations, which derive from, but are not limited to, the contradictions that occur in social class, labour economics, and socioeconomic interactions.[3] Within Marxism, a contradiction is a relationship in which two forces oppose each other, leading to mutual development.[4]: (WIKIPEDIA;; DIALECTICAL MATERIALIM)
HERE WE SEE CLEARLY THAT BETWEEN POLITICS AND ECONOMY THERE IS A RELATIONSHIP BASED ON CONTRADICTIVE FORCES (MARX AND ENGELS MORE OR LESS LIMIT THESE CONTRADICTIVE FORCES TO POLITICAL CLASSES!) WHICH OPPOSE EACH OTHER OVER ECONOMICAL CONDITIONS.
AND EXACTLY THESE CONTRADICTIVE FORCES WE NOW HAVE GLOBALLY, NOT WITHIN ONE COUNTRY. AND THESE CONTRADICTIONS ARE NOT (YET) THOSE OF CAPITALISM AND SOCIALISM, BUT THOSE OF THE “DEVELOPED NORTH” AND THOSE OF THE “DEVELOPING SOUTH”.
THE BRICS NATIONS HAVE RECOGNISED THAT WITHOUT A SOUND FINANCIAL FOUNDATION, THE BEST POLITICAL CONCEPTS ARE LEADING TO NOTHING. FOR THE “DEVELOPED WEST”, THE U.S.A. PRACTISES THIS FOR A RATHER LONG TIME, PRACTICALLY SINCE THE END OF THE SECOND WORLD WAR. ONLY IN THE LAST YEARS, IT IS BECOMING MORE OBVIOUS. IN HIS FIRST TERM, TRUMP HAS INTRODUCED TARIFFS WHICH WERE CONTINUED UNDER THE BIDEN ADMINISTRATION. AND FOR HIS SECOND TERM, TRUMP PROMISED MORE AND HIGHER TARIFFS, NOT ONLY ON COUNYTIES WHICH ARE OPPOSED TO U.S.A. POLITICS, BUT ALSO ON ALLIES LIKE CANADA, THE EU AND MEXICO. MARTYNOV HAS REALISED THAT VERY WELL IN HIS ARTICLE “THE BRICS: PARADIGM SHIFT IN DEALING WITH NEW CHALLENGES”. HE POINTS OUT THAT THE AIM OF THE U.S.A. IS TO BE THE “POLICE OF THE WORLD”. HE CITES MOVEMENTS IN ECONOMIC AND POLITICAL ACADEMIC LITERATURE WHICH PROPOSES A “CIVILIZATION OF MODERNITY” WITH SEVERAL NEW CIVILISATIONS WHICH ARE “SUPERVISED” BY ONE WHICH IS MORE EQUAL THAN THE OTHERS – THE ANGLO-AMERICAN. THIS ASIDE: THE UNITED KINGDOM DOES NOT SEEM TO REALISE THAT THE ROLES HAVE BEEN REVERSED. THE U.S.A. IS NO LONGER A COLONY OF THE UK, BUT IT IS THE OTHER WAY ROUND.
BUT BACK TO BRICS AND THE NDB: UNLIKE DOOMSAYERS HAVE SUGGESTED WHAT WILL HAPPEN AT THE LONG RUN, BOTH ORGANISATIONS HAVE SURVIVED, AND EVEN BECAME STRONGER IN THE LAST YEARS. FOR THE NDB, THIS IS SHOWN – AMONG OTHER SIGNS – BY THE JUDGMENT OF THE RATING AGENCIES, AND FOR BRICS BY THE ATTENTION THE LAST BRICS SUMMIT ENJOYED IN THE WESTERN MEDIA AND IN OTHER COUNTRIES THAT SHOWED INTEREST IN JOINING BRICS. PERHAPS THE MOST VALUABLE RECOGNITION OF BRICS AND THE NDB COMES FROM TRUMP HIMSELF WHO WARNED COUNTRIES THAT EXCHANGE THE DOLLAR WITH A BRICS CURRENCY WITH SERIOUS MEASURES. WELL, A BRICS CURRENCY IS NOT (YET) ON THE AGENDA, BUT WHAY IS ON THE AGENDA IS TRADE AMONG BRICS MEMBERS IN NATIONAL CURRENCIES. WHICH IS IN LINE WITH THE POLICY OF NDB TO INCREASINGLY DISBURSE LOANS IN NATIONAL CURRENCIES,
ALL THESE DEVELOPMENTS AND THE REACTIONS OF THE WESTERN MEDIA TO IT SHOW THAT DESPITE MANY CHALLENGES (FOR EXAMPLE DIFFERENT FORMS OF GOVERNMENT, DIFFERENT LEVELS OF DEVELOPMENT, MISUNDERSTANDINGS BETWEEN FOR EXAMPLE INDIA AND CHINA), BRICS AND THE NDB ARE ON THE RIGHT TRACK TO BECOME NAJOR PLAYERS IN THE POLITICAL AS WELL AS IN THE FINANCIAL SECTOR. ALWAYS KEEP IN MIND THAT BOTH ORGANISATIONS ARE RELATIVELY YOUNG, AND WHAT THEY HAVE ALREADY ACHIEVED IN THAT SHORT PERIOD OF TIME IS REMARKABLE.
CONDITIONS FOR A MEMBERSHIP OF GHANA AND OTHER AFRICAN NATIONS IN BRICS AND NDB
AS THERE ARE CONDITIONS FOR ANY OTHER ORGANISATION, THERE ARE ALSO CONDITIONS FOR A MEMBERSHIP IN BRICS. MOST OF THESE CONDITIONS ARE BASED ON THE GUIDING PRINCIPLES OF BRICS. TOGETHER THEY ARE CALLED THE “BRICS SPIRIT”, AND THEY ARE IN PARTICULAR:
MUTUAL RESPECT, UNDERSTANDING, SOVEREIGN EQUALITY, SOLIDARITY, DEMOCRACY, OPENNESS, INCLUSIVENESS, COLLABORATION, AND CONSENSUS.
MOST PEOPLE WON’T HAVE PROBLEMS WITH MOST OF THESE GUIDING PRINCIPLES, EXCEPT FOR ONE: THAT IS THE PRINCIPLE OF DEMOCRACY. ESPECIALLY IN THE WESTERN HEMISPHERE, COUNTRIES LIKE CHINA AND RUSSIA ARE CONSIDERED AN AUTOCRACY.
LET’S HAVE A LOOK AT CHINA FIRST. CHINA IS A SOCIALIST COUNTRY, BASED ON THE PRINCIPLES OF MARX AND LENIN. ACCORDING TO THESE PRINCIPLES, DEMOCRACY HAS A DIFFERENT DEFINITION FROM THE WESTERN INTERPRETATION. REAL DEMOCRACY FOR MARXISM-LENINISM IS THE DEMOCRACY OF THE WORKING CLASS, LED BY THE PARTY OF THE WORKING CLASS, THE COMMUNIST PARTY. THIS KIND OF DEMOCRACY IS COMPLETELY DIFFERENT FROM THE DEMOCRACY IN THE WESTERN FORM, WHICH IS A DEMOCRACY OF THE CAPITALIST CLASS. IF WE ACCEPT THIS DIFFERENT INTERPRETATION OF DEMOCRACY – WHICH IS IN LINE WITH THE OTHER GUIDING PRINCIPLES -, THEN THERE IS REALLY NO PROBLEM WITH CHINA’S DEMOCRACY.
THE SITUATION IS A LITTLE BIT DIFFERENT WITH RUSSIA, WHICH IS THEORETICALLY A DEMOCRACY IN THE WESTERN SENSE (THE “DUMA” IS THE RUSSIAN PARLIAMENT WITH VARIOUS PARTIES OCCUPYING SEATS IN IT), BUT FOR WESTERN IDEOLOGISTS IT IS ONLY PUTIN WHO HAS THE COMMAND IN RUSSIA, NOT THE PARLIAMENT AS “REPRESENTATIVES OF THE PEOPLE”. NEVERTHELESS, AS RUSSIA IS AT LEAST A DEMOCRACY IN THE FORMAL SENSE OF THE WORD, AND, ON THE OTHER HAND, BRICS AND THE NDB DON’T HAVE ANY PROBLEMS WITH THE STATUS OF RUSSIA, WE SHOULD ACCEPT THAT. FURTHERMORE, BOTH ORGANISATIONS ARE OPEN TO ANY KIND OF FORM OF GOVERNANCE; THEREFORE, WE CAN ARGUE THAT THE COMMITMENT TO DEMOCRACY AS A GUIDING PRINCIPLE IS MEANT AS DEMOCRACY WITHIN THE ORGANISATION. AND WITH THIS ONE, RUSSIA OBVIOUSLY DOES NOT HAVE ANY PROBLEMS.
THE GUIDING PRINCIPLES ARE THE MOST IMPORTANT CONDITIONS FOR A MEMBERSHIP IN BRICS. OTHERS – WHICH ARE SURELY CONNECTED WITH THE GUIDING PRINCIPLES – ARE AS FOLLOWS:
— COMMITMENT TO STRENGTHENING BRICS,
— BE AN EMERGING OR DEVELOPING COUNTRY WITH REGIONAL INFLUENCE,
— ALIGN WITH FOUNDING VALUES OF BRICS,
— HAVE DIPLOMATIC AND FRIENDLY RELATIONS WITH ALL MEMBERS OF BRICS,
— BEING COMMITTED TO SUPPORT REGIONAL AND INTERNATIONAL PEACE AND SECURUTY,
— SUPPORTING REFORM OF THE UNITED NATIONS AS AN ORGANISATION, AMONG OTHERS.
(FOR A COMPLETE OVERVIEW OF THE GUIDING PRINCIPLES, THE CONDITIONS FOR EXPANSION, AND THE PROCEDURE OF ACCEPTING NEW MEMBERS, GO TO http://www.brics.utoronto. ca)
GHANA – AS MANY OTHER AFRICAN NATIONS – WOULD SURELY FULFILL THE CONDITIONS FOR A MEMBERSHIP IN BRICS. GHANA IS COMMITTED TO SUPPORT REGIONAL AND INTERNATIONAL PEACE AND SECURITY, WHICH IS SHOWN BY THE LONG=LASTING CONTRIBUTION OF GHANA TO THE UNITED NATIONS PEACE KEEPING FORCE. GHANA SUPPORTS – ON ITS OWN AND THROUGH THE AFRICAN UNION – A REFORM OF THE UNITED NATIONS.AND GHANA IS A DEVELOPING COUNTRY WITH REGIONAL INFLUENCE – AS SHOWN BY RUNNING THE SECRETARIAT OF THE AFRICA CONTINENTAL FREE TRADE AREA. AS GHANA ALSO HAS DIPLOMATIC AND FRIENDLY RELATIONS TO ALL BRICS MEMBERS – OLD AND NEW – THERE SHOULD ALSO NOT FROM THIS SIDE ANY PROBLEMS FOR GHANA BECOMING A MEMBER OF BRICS.
WHAT ARE NOW THE ADVANTAGES AND THE DISADVANTAGES OF GHANA BECOMING A MEMBER OF BRICS AND THE NDB?
ADVANTAGES AND DISADVANTAGES FOR GHANA AND OTHER AFRICAN NATIONS OF AN NDB AND BRICS MEMBERSHIP
THE ADVANTAGES OF GHANA – AND OTHER AFRICAN NATIONS – IN THE NDB ARE OBVIOUS. THEY WOULD GET BETTER FINANCING CONDITIONS FOR INFRASTRUCTURE AND OTHER SUSTAINABLE PROJECTS. AS I ALREADY MENTIONED, THERE WOULD EVEN BE THE POSSIBILITY OF GETTING LOANS IN THE LOCAL CURRENCY, WHICH WOULD MAKE THE COUNTRY LESS DEPENDENT ON DOLLAR-DENOMINATED FINANCIAL INSTRUMENTS. ONE DISADVANTAGE WOULD BE THAT GHANA HAS TO CONTRIBUTE TO FINANCING NDB, BUT THAT IS PROBABLY A PROBLEM THAT CAN BE SOLVED THROUGH NEGOTIATIONS.
THE MAJOR PROBLEM FOR MOST PEOPLE – AS MS GYABAAH MENTIONED IN HER ARTICLE – IS WHETHER A MEMBERSHIP IN NDB AND BRICS WOULDN’T MAKE THE COUNTRY MORE DEPENDENT ON CHINA, AND THAT WOULD ONLY EXCHANGE THE DEPENDENCY ON ONE COUNTRY – THE U.S.A. – WITH THE DEPENDENCY ON ANOTHER – CHINA.
IN MY OPINION, THIS ARGUMENTATION MISSES THE REALITY ON THE GROUND. THERE ARE ESSENTIAL DIFFERENCES. AS ONE CONTRIBUTOR FROM A DEVELOPING COUNTRY – NOT CHINA! – PUT IT: THE U.S.A IS WORRIED ABOUT ENEMIES, CHINA IS WORRIED ABOUT FRIENDS. WHEREVER THE U.S.A. GOES, TGERE IS DESTRUCTION. LIBYA, SYRIA, AND AFGHANISTAN ARE THE BEST EXAMPLES FOR THAT. THE CONFLICT BETWEEN RUSSIA AND UKRAINE IS IN THE FOREMOST INTEREST OF THE U.S.A., BECAUSE THE MILITARY INDUSTRY GAINS A LOT OF PROFIT FROM IT. THIS HAS BEEN THE CASE UNDER THE FIRST TRUMP ADMINISTRATION, WAS CONTINUED UNDER THE BIDEN ADMINISTRATION – PERHAPS WITH OTHER WORDS, BUT IN REALITY THE SAME OUTCOME – AND WILL CONTINUE EVEN STRONGER UNDER THE SECOND TRUMP ADMINISTRATION. ON THE OTHER HAND, CHINA IS MORE INTERESTED IN COOPERATION BETWEEN COUNTRIES. CHINA IS NOT INTERESTED IN MILITARY CONFLICTS, AND ONLY TRIES TO DEFEND THE ONE-CHINA POLICY, WHICH IS HISTORICALLY BASED, AGAINST THE U.S.A. AND SOME OF THEIR ALLIES IN SOUTH-EAST ASIA. AND EVEN IF CHINA WOULD USE ITS ECONOMIC STRENGTH FOR ITS OWN INTERESTS: AS LONG AS IT ALSO BENEFITS OTHER DEVELOPING COUNTRIES AND EMERGING MARKETS, I DON’T SEE ANYTHING WRONG WITH THAT.
OTHER CHALLENGES FOR BRICS, WHICH COULD CAUSE DISADVANTAGES FOR GHANA AND OTHER AFRICAN NATIONS, IS THE ARGUMENTATION THAT BRICS IS STILL STRUCTURALLY WEAK, AND WOULD NOT BE ABLE TO SURVIVE AT THE LONG RUN. THIS ARGUMENTATION WAS FROM THE BEGINNING ON THE SAME FOR THE NDB.
I BELIEVE THAT REALITY HAS OUTPACED THIS ARGUMENTATION.THIS IS ESPECIALLY OBVIOUS FOR THE NDB WHICH HAS BECOME FINANCIALLY MUCH STRONGER FROM THE 1ST STRATEGY DOCUMENT 2017-2021 TO THE SECOND 2022-2026. THIS IS – AS I ALREADY MENTIONED – IN THE POSITIVE DEVELOPMENT IN THE RATINGS BY FITCH AND S&P GLOBAL. AND THIS ACCOUNTS ALSO FOR THE WHOLE BRICS ORGAINSATION. AS A YOUNG INSTITUTION WITH A LOT OF DIFFERENT APPROACHES WITHIN THE ORGANISATION, BRICS HAS ACHIEVED A LOT UNTIL TODAY. MANY COUNTRIES HAVE ALREADY JOINED BRICS AND THE NDB, OR SHOWN INTEREST IN A MEMBERSHIP. INTERESTINLY ENOUGH, AMONG THOSE SHOWING INTEREST IS NIGERIA, A MEMBER OF THE MINT COUNTRIES, WHICH MS GYABAAH SHORTLY CONSIDERED AS POSSIBLE ALTERNATIVE TO BRICS, BUT ALSO DISMISSED IT BECAUSE OF WEAK ORGANISATIONAL STRUCTURE.
AS WE NOW FOUND OUT THAT THERE ARE MORE ADVANTAGES THAN DISADVANTAGES FOR GHANA IN JOINING BRICS, SHOULD GHANA COMPLETE THE STEP AND BECOME A MEMBER? LET’S FIND OUT IN THE CONCLUSION.
CONCLUSION
NOW THAT WE HAVE SEEN THE MAIN ADVANTAGES AND DISADVANTAGES FOR GHANA AND OTHER AFRICAN NATIONS TO JOIN BRICS AND NDB (I INTENTIONALLY LEFT ANY TECHNICAL CHALLENGES FOR BRICS AND NDB OUT, BECAUSE MY KNOWLEDGE ABOUT THAT IS NEAR TO ZERO. HOWEVER, I AM CONFIDENT THERE ARE ENOUGH ICT EXPERTS WITHN THE TWO INSTITUTIONS TO SOLVE THESE PROBLEMS), IS IT ADVISABLE FOR THESE COUNTRIES TO JOIN THEM NOW?
I CONCENTRATE MY ARGUMENTATION ON GHANA, AND ONLY REFER TO THE AFRICAN CONTINENT WHEN ITS SUITABLE FOR THE CONTENTS. I PERSONALLY DO NOT SEE AN PROBLEMS FOR GHANA TO APPLY FOR MEMBERSHIP IN NDB, BECAUSE THERE ARE ALMOST ONLY ADVANTAGES FOR GHANA. WE HAVE SEEN THE EXAMPLE OF URUGUAY WHICH IS A MEMBER OF NDB, BUT NOT OF BRICS. A LITTLE BIT MORE COMPLICATED IS THE QUESTION OF A FULL MEMBERSHIP IN BRICS+. I STRONGLY BELIEVE THAT THERE ARE TOO MANY INTERNAL PROBLEMS IN GHANA WHICH MUST BE SOLVED FIRST BEFORE THE CONCENTRATION ON A FULL MEMBERSHIP IN BRICS CAN BE FRUITFUL. THE LAST ELECTIONS HAVE IN MY OPINION SHOWN THAT TWO MANY PEOPLE PUT THEIR OWN INTERESTS BEFORE THE INTERESTS OF THE COUNTRY (POSING AS AN INDEPENDENT CANDIDATE AFTER LOSING THE PRIMARIES, E.G.). ANY COOPERATION BETWEEN THE MAIN POLITICAL PARTIES IS MORE OR LESS NON-EXISTENT, AND ONLY SUCH A COOPERATION CAN BE OF BENEFIT FOR THE COUNTRY. YOU CANNOT CLEAN YOUR NEIGHBOURHOOD BEFORE CLEANING YOUR OWN HOUSE;
AN ALTERNATIVE FOR GHANA WOULD BE – AND I WOULD RECOMMEND THAT STRONGLY, NO MATTER WHICH GOVERNMENT IS IN POWER – TO BECOME AN “INTEREST NATION” IN BRICS.
BRICS HAS A FOUR STEP MEMBERSHIP EXPANSION PROCESS:
— AN INTERESTED COUNTRY,
— A PROSPECTIVE BRICS MEMBER STATE,
— AN INVITED BRICS MEMBER STATE, AND
— A BRICS MEMBER STATE.
DETAILS ABOUT THE PROCESS CAN BE DERIVED FROM “BRICS MEMBERSHIP EXPANSION GUIDING PRINCIPLES, STANDARDS, CRITERIA AND PROCEDURES”. HERE I WILL ONLY MENTION THE PROCEDURE TO BECOME AN INTERESTED COUNTRY.
“A country is considered interested when its Leader or Foreign Minister formally communicates its interest in becoming a new BRICS member state to the BRICS Chair,”
THIS APPROACH IS RATHER EASY TO PERFORM, AND CAN ONLY BE BENEFICIARY FOR THE COUNTRY. FROM BRICS, THE LEADERS OF THIS COUNTRY MIGHT EVEN LEARN HOW TO SOLVE PROBLEMS BETWEEN ORGANISATIONS WITH DIFFERENT KINDS OF LEADERSHIP. IT IS INTERESTING TONOTE THAT ACCORDING TO MY INFORMATION,
IN ALL WE CAN SAY THAT THERE IS WIDESPREAD INTEREST IN AFRICAN COUNTRIES TO BECOME MEMBERS IN BRICS, BUT WE MUST ALSO REALISE WHAT IS ELABORATED MAINLY IN THE SOUTH AFRICAN LITERATURE ON BRICS: EVEN WITHIN THIS ORGANISATION – AS POSITIVE AND FUTURE-ORIENTED IT MAY BE – AFRICA MUST LEARN TO SPEAK WITH ONE VOICE TO REPRESENT AFRICA’S INTERESTS ON THE WORLD STAGE – AND OF COURSE ALSO ON THE BRICS’S STAGE – BETTER.
PERHAPS THE AFRICAN UNION SHOULD APPLY FOR MEMBERSHIP IN BRICS…
REFERNCES:
AGREEMENT ON THE NEW DEVELOPMENT BANK, FORTALEZA, JULY 15, 2015;
NDB’S GENERAL STRATEGY: 2017-2021;
NEW DEVELOPMENT BANK GENERAL STRATEGY FOR 2022 TO 2026;
THE FUTURE OF GLOBAL PAYMENTS: BRICS PAY AND THE EVOLVING FINANCIAL ORDER;
IQBAL; BRICS AS A DRIVER OF GLOBAL ECONOMIC GROWTH AND DEVELOPMENT;
INTERNATIONAL MONETARY FUND; BRICS’ PHILOSOPHIES FOR DEVELOPMENT FINANCING AND THEIR IMPLICATIONS FOR LICS;
NO AUTHOR; THE BRICS;
MARTYNOV; THE BRICS: PARADIGM SHIFT IN DEALING WITH NEW CHALLENGES;
KATZENSTEIN P.; CIVILIZATION IN WORLD POLITICS, BOOK 1-3;
THE BRICS ALLIANCE: CHALLENGES AND OPPORTUNITIES FOR SOUTH AFRICA AND AFRICA
