Samohin A.V. – Summit ‘SCO – BRIX 2015’ – another ‘G8’?

Andrei Samokhin

Held in July double BRICS Summit and SCO in Ufa became the clear signal that Moscow is doing its own turn toward Asia and wants to provide the non-Western world as alternative civilizational model as opposed to the West.

The foreign media promoted by Western media organizations right before the summit was full of anti-Russian thesis that Russia is not ready for such large-scale international forums, low investment attractiveness of Russian industrial, energy and banking sectors, high economic and political risks in realization of joint with Russia infrastructure and energy projects, also of aggressive foreign policy, the Russian government harassment of civil rights and freedoms of the population etc. So what was revealed by Summit in Ufa.

The Summit in Ufa gave start practical work financial institutions – the new Bank and legend Pool of foreign exchange reserves with a combined capital of 200 billion dollars.It was agreed before the end of the year to prepare a ‘road map’ with the list of major projects and run virtual secretariat. The meeting, in the framework of the Shanghai Cooperation Organization has other results: for the first time in 15 years, it was decided to increase the number of participants:signing of the documents on the early admission procedures between India and Pakistan. “Six” (Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan and Uzbekistan) has turned into the G8.Leaders also have agreed to raise the status of Belarus up to a level of the observer; partners on dialogue became Armenia, Azerbaijan, Cambodia and Nepal.

One of the priorities of SCO still remaines security. It was decided to implement a program of cooperation in the fight against terrorism and separatism and to start elaboration of a convention on the fight against extremism. At the same time the leaders of the SCO member consistently emphasized that the organization is not directed against other countries and it is not a military-political alliance. Leaders also approved the development strategy of the SCO up to 2025 and Ufa Declaration.

During the meetings, it was decided to expand the economic direction, Putin invited the representatives of the SCO countries to East Economic Forum in Vladivostok.Summing up the results of the summit, leaders signed a declaration in which it reaffirmed their readiness to continue work on the establishment of a Development Bank and Development Fund in the framework of the SCO and supported China’s proposal on the establishment of a zone of the Great Silk Road-the economic zone, which will pass through all the SCO member States.

At the summit was also mentioned the theme of Ukraine. Participants unanimously agreed that there is no other solution to the problem of Ukrainian except as opportunities to resolve it peacefully through a full and unconditional fulfillment of the agreements reached in Minsk.

From our point of view, the most significant was the speech made by the head of the Chinese State, which stressed that the strengthened partnership the BRICS should make efforts in the following areas:

First of all, building partnership in support of world peace. BRICS countries should work together to defend the results of the victory in World War II, to uphold international justice, to abandon the mentality of ‘cold war’ and the zero-sum game.

Secondly, building partnership for joint development. It is necessary to establish closer economic partnerships, in parallel promoting the construction of the headquarters and the African Regional Centre of New Development Bank duly implement the strategy of economic partnership BRICS. It is necessary to protect the general interests of the states with emerging markets and developing countries.

Thirdly, building partnerships aimed at promoting multicultural civilizations. It is necessary to establish an active dialogue and exchanges with other BRICS countries and international organizations  to intensify cooperation with other States with emerging markets and developing countries in order to enhance the representativeness and the impact of BRICS.

Fourthly, building a partnership aimed at strengthening the role of the BRICs in global economic governance. It is necessary to joint efforts to improve the status of the members of the BRICS in global governance, support for the multilateral trading system, strengthen exchanges and interactions in cyberspace, on migration issues and in other areas.

Vladimir Putin in his speech stressed that BRICS is one of the most important mechanisms of the modern system of international relations. After the formation of the BRICS participating countries continuously strengthen cooperation in trade, economic, investment, humanitarian and other areas, the scope of their cooperation continuously expanded.The creation of a new development bank BRICS and the pool of foreign exchange reserves helps to strengthen economic ties and strengthening their influence in the international arena.

Thus, the results of the summit can be described as a quite successful.

The foreign press has responded to Ufa Summit by numerous articles. Almost all of them have one common denominator: integration of the five countries which the West called “developing”  is a compelling contrast to the model that the world impose in recent years both in politics and in the economy.

‘Alternative development philosophy,’ ‘new world order’ – such terms are used by journalists. That is the thesis of the German press BRICS could become a serious counterweight to the ‘Group of Seven’.A ‘Washington Post’ analyzes the implications of the currency pool, and the Development Bank and then concludes, ‘This is an attractive alternative to institutions headed by United States. The British The guardian” examines the consequences geopolitically: Moscow and Beijing pose a “multi-polar world”, the authors remind us that without these players it would be impossible to make a decision on Iran or Syria.The others express in the same way.

Russian President Vladimir Putin sends the United States and the Europeans two messages: Russia is not only the State views of which should be considered, but also a country which entering into new alliances, drawing its attention to the East, particularly to China and the Silk Road, as well as towards the southern powers»— informs the French Edition.

Of course, the results was not spared the journalists of participating countries of the BRICS. Press of South Africa, for example, writes of the Development Bank, calling it an important complement of the global financial architecture. Indian reporters expresses more sharper, talking about the “reply to the dominance of the dollar”. And Chinese newspapers reflects on the fact that the meeting in Ufa – a refutation of the concept of a unipolar world.

The Brazilian professor Fatima Mello, a historian and master of international relations of the Pontifical Catholic University of Rio de Janeiro, a member of the Coordinating Council, and the Executive Secretary of the Brazilian network for the integration of peoples (Rebrip). In his interview to the Brazilian Institute of socio-economic relationships (Inesc) explains that the block has great potential, but its level of institutionalization still rather low. This is obvious, because the scope of cooperation is rather new subject for BRIX.

According to Fatima Mello, “for further enhancement of cooperation BRICS countries needs significant advance in substantive and organizational matters. Judging by the profiles cooperation presented by each of participating country, common problem is the lack of a legal framework, consolidated organizational structures, information, transparency, monitoring and accountability mechanisms, as well as public control and citizen participation.The lack of an institutional framework with the necessary mechanisms of democratic functioning, creates serious obstacles for analysis, monitoring, coordination between programmes and projects in recipient countries and to consolidate cooperation in the BRICS, is through the democratic reform of the international system of cooperation.”

The press highlighted the diplomatic rapprochement between India and Pakistan at a Summit in Ufa. Meeting Narendry MODI, Indian Prime Minister, and his Pakistani colleague Nawaz Sharif brought a warming in relations between the two powers.

On the other hand, some Western media since the mechanism of BRIX was created, it continuously mixed with dirt. It is stresses that in recent years due to various internal and external factors in the countries-members of the group has been a recession, some participants with bad business economy, in the end again there is a wave of negative comments about the BRICS. That both the Summit in the Urals pursued a dual objective: on the one hand, accelerate growth and increase the competitiveness of the BRICs, as well as confront the neoliberal economic model. On the other hand, participants in Ufa seek to establish a new “multi-polar world” in which there would be no diktat from the West. To this end, the idea of Putin should be merged the Eurasian Union and Chinese initiative to revive the Great Silk Road. In the West, traditionally laugh about these ideas. Claiming that the Russian economy due to low oil prices and Western sanctions is in crisis. As for China, the stock market collapse has questioned embodied in the life of the model developed by Beijing’s ‘communist capitalism.’ Brazil still can not overcome the economic downturn; the same goes for South Africa. India, in spite of all his considerable progress continues to be a kind of combination of high technology and hopeless hunger. In addition, the GDP of the five countries is very different from each other so that China’s GDP is 28 times greater than the GDP of South Africa and four times – the GDP of Russia and India.

It is emphasized that the countries included in the BRICS and SCO are not politically minded. ‘Communist-capitalism’ in China, the pseudo-democratic system in Russia and the Indian democracy can not be called ‘shared values.’ In addition, these countries are not connected geographically or historically. And their interests in terms of world politics are very different. Russia and China seek to obtain a review of the world order that emerged after 1945; India and Brazil only dream about, to get their own place ‘at the table’ with world powers; India thus aims to please everyone and demonstrates its own openness to all.For the rest, all worried about the rise of China, because it is unlikely that the world is ready to trade the current global dominance of Washington’s dominance in Beijing.

BRICS countrieshave been subjected to serious criticism in the same way for their minor progress. It is noted that they agree on their actions in the voting in the UN, but it would not have been able to nominate a candidate, when WB and IMF had changed last time. Disagreements between members of the BRICS, internal factors and inertia would inevitably hamper collective action. For example, Russia is seeking to expand and more formalize activities Brix India operates more selectively. Brazil same fears that the BRICS will take biased anti-Western stance, because considers himself part of the West.hese three countries plus South Africa, want to get the Chinese to support their individual interests.

Western press focuses on the fact that the economic success of the BRICS also went into decline: commodity boom ended, Chinese GDP growth went down. According to OECD,  in 2015 the two countries BRICS Russia is waiting for the recession (-3.1%) and Brazil (-0.8%).South Africa will show relatively weak growth for the African continent (1.9 % ), And China will slow down even more (6.8 %) and will relinquish India (6.9 % ). South Africa will show relatively weak growth for the African continent (1.9%), And China will slow down even more (6.8 %) and will relinquish India (6.9 % ).

American and British publications write that BRICS stands for reduction of the international role of the dollar, which is a stronghold of the superiority of the United States, but the NBI will initially denominate loans in dollars, and only then go to the multi-currency basket.This new mechanism of BRICS  in case of  his appearance will strengthen independence of member countries from the Western system. Long-term risk to other BRICS countries (and they are fully aware of it) is that competition in financial institutions and staying away from Western financial architecture will not strengthen the autonomy will not lead to the strengthening of the independence and the growth of well-being, as well as prevents a leading Indian expert, trap them the new order, which will be dominated by China.

Critics of the BRICS can be divided into two types. The first are those who do not have a full understanding of the situation. They know that the Organization faced difficulties, but don’t think about its huge reserves and potential for development cooperation.Such people are short-sighted, so mix the BRICS with dirt. Another type of people, on the contrary, is jealous of the rise of the BRICS countries, they do not like the fact that these countries cooperate with each other, so they do not attach importance to the enormous contribution that the BRICS contributes to global development.

The numbers are in the best way to describe how the things are really work in the organization.  At the moment, the country-members of the group account for 1/5 of the world economy. Over the past ten years, their contribution to its growth exceeded 50%. If we start from purchasing power parity, in 2013 the total volume of the BRICS economy exceeded 30.1 trillion. The organization has given way to a ‘big seven’ with its economic volume of 33.2 trillion dollars. According to IMF forecasts, in 2030 the rate of economic growth of the group will be higher than in developed countries and emerging economies. Although the members of the association are now experiencing some economic difficulties, they still remain a huge market potential and freedom of action for the implementation of the plan.

BRICS is continually strengthening its base. Now the main mechanism of the Organization — the meeting of leaders of countries. Ministers also held the meeting about the security and meeting of foreign ministers. The multidimensional structure was established for the development of business cooperation in various areas. At the meeting held in Ufa it was adopted a strategy of economic partnership for the BRICS countries, and also developed a plan for economic cooperation in the coming years.

he BRICS have great prospects. A key feature of the group is that all its members are regional powers that have huge potential for cooperation. Negotiations between the leaders of the mutual benefits for countries constantly grows, the base for cooperation are continuously expanding, growing cooperation. All States support each other and cooperate on important issues such as the reform of the world financial system, trade, global climate, foreign policy. BRICS has already become an important force that pushes forward global economic growth, improving the system of global economic governance, promote the democratization of international relations.

Some of those who deliberately criticizes the BRICS, do not want to see how it grows stronger with each passing day. These people look at things only from the one side, feel that the organization is a threat to the domination of the West and the existing international order. In fact these fears are unfounded. BRICS countries cannot and do not intend to oppose the current system, or dethrone it.

The new Development Bank BRICS (a decision on its formation was made at a meeting in Brazil in July of the year 2014, and its headquarters will be located in Shanghai) finally, has passed a way of realization. It received initial capital and will finance major infrastructure projects without putting the Borrower covenants, as does the International Monetary Fund or the World Bank, with which it intends to compete directly.

Thus the situation develops not in the worst way: Countries deepen interaction, Develop a huge potential of the organization and cooperation mechanisms. It is said that Member countries of the BRICS still have excellent prospects.

Now, after the summit, the BRICS increased through their own institutions, which should operate in parallel order under the leadership of the United States, established in 1944 at Bretton Woods.

At the same time, “narrow” experts notice how seriously the changed geopolitical situation in the space between the Ural mountains and the Pacific Ocean. Russia and China are engaged in building a new world order, in which America and Europe will no longer play a leadership role. Anyway, this is the main message, coming from the from Russia’s South Urals city of Ufa.

The seventh summit of the BRICS past in Ufa, wich gathered the leaders from Brazil, Russia, India, China and South Africa showed that  Moscow has not got in isolation due to Western sanctions. This summit has shown that the BRICS club is becoming a non-Western concert of great powers focused on their own priorities, rather than on the aims of Washington or Brussel. It is known that the ‘concert’ means deeper international cooperation among the major powers, but it differs from the alliance and does not exclude the controversial methods of power politics.

Experts agree that the occurrence of concurrent non-Western economic architecture in part blame the United States and the European Union. The main dissatisfaction with the BRICS countries, expounded in all the communiqué is that the US and Europe are deprived of their access to management, commensurate with their growing economic weight in the world. But until the US Congress blocking the reform of 2010 on the voting shares in the IMF, which would help to remove these objections, Brazil they will be less than in Belgium, even though its economy is five times more than the Belgian. In China the number of shares amounts to only 60 percent of Japanese, though he overtook Japan’s economy back in 2010, and now accounts for 12 percent of global GDP. Together, the BRICS accounted for over 20 percent of global economic activity, but the IMF owns only 11 per cent of the voting shares.

Russian President Vladimir Putin with the help of ‘double summit’ showed the world – we can do without the West. Russia will shift the center of economic development in the Far East, China and called a friend and the leading partner.

At the Summit, President Putin stated that SCO’S development reached a new level. Moscow, having not the easiest of times because of the crisis and of the United States and EU sanctions, was able to increase its influence on the international stage and makes it clear that the attempts of Western countries to isolate Russia failed. At the same time after the talks with the Chinese leader Xi Jinping attracts attention the statement of Vladimir Putin that Russia is aware of the difficulties faced by the economy and foreign policy, but to join forces with China, will be able to overcome them.

Russia, excluded from G8, took revenge. One year after the cancellation of the G8 Summit , which should have been held in Sochi,  the Russian president has surrounded himself with fifteen leaders on the occasion of the SCO and BRICS summits ended July 10. Thus, Russia manages to avoid international isolation.

Samohin A.V

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