Meet the failures club

[mahnmut]

BRICS. These countries were supposed to be the future economic superpowers that would eventually overcome the clumsy Western economies. But China is now pursuing goals of its own, Russia is pressed against the wall, Brazil and South Africa are lagging behind... What happened?

The BRICS meeting in China was a good chance for the host country to demonstrate their prowess right before the 19th congress of their Communist Party. To show off both to the world and at home. The sensitive topics were to be ignored for a while, lest any unrest be caused before the umpteenth re-grouping of the ruling elite. Only topics where relative consensus exists are to be touched, like free trade, climate change, and protection from cyber terrorism. Oh, and the challenges to the digitalized economy, a subject that's of particular importance for the Indian chairmanship of BRICS. Except, the big summit and the demonstrations of like-mindedness can't conceal the fact that China has long abandoned the main purpose of BRICS. With their New Silk Road initiative, they've shown they pursue their own goals and they want to increase their domination of the Asian continent.

The situation in Brazil is no less dramatic. Initially a beacon of light and hope for Latin America, now it can't rid itself of constant political and economic turmoil. Dropping oil prices have meant a weakened economy, domestic consumption is shrinking, unemployment is growing. The treasury was empty long before the political crisis, as the whole world witnessed during the 2014 FIFA World Cup.

Another former World Cup host, my country South Africa is also stumbling at a relatively low level. During the 2010s, the economic growth steadily shrank, and now imports exceed exports significantly, public debt nearing critical levels. The bad economic conditions are coupled with political instability and inane governing. All of these factors are driving foreign investors away, and right now, we badly need them.

So far, India remains the only ray of light for the BRICS club. The economy of the sub-continent is developing well. The IMF forecasts about 7.6% growth for this year and the next one. India has held its inflation in check, it used to be two-digit before. The country is becoming more attractive for investment by the day. The government is trying to remove the excessive bureaucratic barriers and harmonize the regulations across the 29 states. This gives some hope. Although India still faces serious challenges, 2/3 of its vast population still failing to feel the benefits of economic growth and prosperity directly.

India rightfully plays an important role for BRICS. If this group really wants to be something more than just an acronym, it needs an important issue it could unite around. That's why it's important that India and China should overcome their recent tensions. Both countries are expected to give strong indications in that respect in the following weeks and months. India doesn't want (and shouldn't) leave the whole initiative to China, which has become a lot more assertive. India should be particularly alarmed by the Chinese attempts for domination, including through the New Silk Road initiative. That road shouldn't be turned into a one-way street, because that would pitch the BRICS members against each other, and that would be the end of what started as a very promising global project.