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- Liu Zongyi
- Associate Research Fellow
- Center for Asia-Pacific Studies
- Institute for International Strategic Studies
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- US efforts to isolate China from solar industry to end in futility
- Time for New Delhi to reconsider its anti-China economic policy
Jun 01 2012
Western efforts to break BRICS will only harm global economy
By Liu Zongyi
There are many controversial voices over the development of the BRICS group. Some hold a pessimistic attitude toward its future, forecasting it will either break down or be replaced by other groups. And some even call for other countries to try to break BRICS unity.
When Goldman Sachs economist Jim O'Neill put forward the idea of "BRIC" in 2001 for the first time, he never thought the concept would have become a major international economic and political group in 10 years, or added South Africa to become "BRICS." O'Neill was far-sighted, but the emergence of the group is also a result of mutual efforts and cooperation among the BRICS countries.
The BRICS countries evolving from a concept into a group is in essence a protest by the developing countries against the Western-dominated international order. But even under the backdrop of a severe economic crisis in the West, the BRICS countries don't make use of the time to demand overthrow of the current international order. Instead, they cooperate with the West to seek a gradual improvement of the existing order's deficiencies. However, they still cannot avoid hostility from the Western countries.
The Western countries have tried to disunite and suppress the BRIC countries since the BRIC group first took shape. The West makes use of the inherent contradictions and conflicts related to interest allocation in the international order reform, to foment dissent and stir up confrontation among the BRICS countries.
The BRICS countries have many differences over political and economic systems, culture and values. Some even have historical disputes. The West tries to magnify these conflicts and differences and weaken the cooperation and solidarity of the BRICS countries.
For example, the West is attempting to create competition by hyping the conflicts between China and India. They blame China for blocking India and Brazil from becoming permanent members of the UN Security Council.
The Western countries also adopt financial and trade methods to suppress the emerging economies especially the BRICS countries. Since the outbreak of the financial crisis, the Western countries, led by the US, transfer their own problems to other countries through expansionary monetary policies, which creates economic difficulties for developing countries, the emerging markets in particular.
They try to make China a scapegoat, blaming China for manipulating the exchange rate and stimulating conflicts between China and other emerging economies. Brazilian President Dilma Rousseff criticized the US and other Western countries for initiating a "currency war." Developed countries also set trade barriers to restrain the exports of emerging markets such as China.
Using ideological tools to discredit the economic model of BRICS countries is also a preferable way. Since the beginning of this year, mainstream Western media like the Economist have begun to label the economies of China and Russia as state capitalism.
They reproach these countries for using state-owned enterprises or private enterprises supported by the government to merge and acquire foreign enterprises and compete for resources. They claim this poses a severe threat to Western free capitalism and is one of the important reasons for the current international economic crisis.
The West claims state capitalism will lead to countries' corruption and failure and thus threaten the free market economy and the democratic system. But the blind criticism is just an excuse to defend the crisis of neo-liberalism, suppress the new emerging competitors and create new rules that benefit themselves.
Through the tactics the Western countries use to suppress the BRICS countries, we could see that the West is attaching more and more importance to the growing cooperation among BRICS countries. They are adopting escalating methods to block the BRICS countries, even rising to new ideological heights. However, cooperation among BRICS countries is becoming mature in the proces
s.
On this year's BRICS Summit in New Delhi in March, the BRICS countries passed a proposal to establish a South-South development bank. In the future, they should promote the setup of this bank. The BRICS nations should also promote complementary cooperation in the field of energy to solve the need for resources and capital.
Some Westerners feel uncomfortable when seeing a quickly growing BRICS group and the gradual shift of the world's economic and political focus. But the BRICS countries have become the main engine for global economic growth and driver of a global economic governance reform. They contribute over 50 percent of world global growth.
As the global economy is now closely interdependent, if the Western countries go too far in attempting to break the BRICS, there will be a big question mark over when they will escape the financial crisis.
When Goldman Sachs economist Jim O'Neill put forward the idea of "BRIC" in 2001 for the first time, he never thought the concept would have become a major international economic and political group in 10 years, or added South Africa to become "BRICS." O'Neill was far-sighted, but the emergence of the group is also a result of mutual efforts and cooperation among the BRICS countries.
The BRICS countries evolving from a concept into a group is in essence a protest by the developing countries against the Western-dominated international order. But even under the backdrop of a severe economic crisis in the West, the BRICS countries don't make use of the time to demand overthrow of the current international order. Instead, they cooperate with the West to seek a gradual improvement of the existing order's deficiencies. However, they still cannot avoid hostility from the Western countries.
The Western countries have tried to disunite and suppress the BRIC countries since the BRIC group first took shape. The West makes use of the inherent contradictions and conflicts related to interest allocation in the international order reform, to foment dissent and stir up confrontation among the BRICS countries.
The BRICS countries have many differences over political and economic systems, culture and values. Some even have historical disputes. The West tries to magnify these conflicts and differences and weaken the cooperation and solidarity of the BRICS countries.
For example, the West is attempting to create competition by hyping the conflicts between China and India. They blame China for blocking India and Brazil from becoming permanent members of the UN Security Council.
The Western countries also adopt financial and trade methods to suppress the emerging economies especially the BRICS countries. Since the outbreak of the financial crisis, the Western countries, led by the US, transfer their own problems to other countries through expansionary monetary policies, which creates economic difficulties for developing countries, the emerging markets in particular.
They try to make China a scapegoat, blaming China for manipulating the exchange rate and stimulating conflicts between China and other emerging economies. Brazilian President Dilma Rousseff criticized the US and other Western countries for initiating a "currency war." Developed countries also set trade barriers to restrain the exports of emerging markets such as China.
Using ideological tools to discredit the economic model of BRICS countries is also a preferable way. Since the beginning of this year, mainstream Western media like the Economist have begun to label the economies of China and Russia as state capitalism.
They reproach these countries for using state-owned enterprises or private enterprises supported by the government to merge and acquire foreign enterprises and compete for resources. They claim this poses a severe threat to Western free capitalism and is one of the important reasons for the current international economic crisis.
The West claims state capitalism will lead to countries' corruption and failure and thus threaten the free market economy and the democratic system. But the blind criticism is just an excuse to defend the crisis of neo-liberalism, suppress the new emerging competitors and create new rules that benefit themselves.
Through the tactics the Western countries use to suppress the BRICS countries, we could see that the West is attaching more and more importance to the growing cooperation among BRICS countries. They are adopting escalating methods to block the BRICS countries, even rising to new ideological heights. However, cooperation among BRICS countries is becoming mature in the proces
s.
On this year's BRICS Summit in New Delhi in March, the BRICS countries passed a proposal to establish a South-South development bank. In the future, they should promote the setup of this bank. The BRICS nations should also promote complementary cooperation in the field of energy to solve the need for resources and capital.
Some Westerners feel uncomfortable when seeing a quickly growing BRICS group and the gradual shift of the world's economic and political focus. But the BRICS countries have become the main engine for global economic growth and driver of a global economic governance reform. They contribute over 50 percent of world global growth.
As the global economy is now closely interdependent, if the Western countries go too far in attempting to break the BRICS, there will be a big question mark over when they will escape the financial crisis.
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