ASSIGNMENT QUESTIONS Through its many initiatives, BRICS seeks to reshape the world's existing international financial architecture and systems of trade and investment so as to strengthen the economic performance of countries in the Global South. Since the first high-level meetings of Brazil, Russia, India and China in 2006, its first summit in 2009, and the inclusion of South Africa in 2010, BRICS has become QUESTION 1 [40 MARKS] an important grouping in the global economy. BRICS has also faced certain inevitable challenges as the global environment has changed over ANALYSIS | Kenneth Creamer: In a changing world, BRICS must remain true to its mission the past two decades or so. For example, there was a broad policy consensus as to the benefits of global trade and globalisation at the time when China joined the World Trade Organisation (WTO) The global environment in which BRICS operates is challenging. An important compass for BRICS in 2001. in navigating through these ever-changing waters is for the body to remain true to its original mission and to work to transform the world economic order into one that is fairer and more inclusive. In more recent years, policies in support of globalisation and global cooperation have been on the decline and nationalism and narrower country-specific policy making has been on the rise - some When I teach my students about the powerful impact that economic growth can have in transforming have described this as a process of "deglobalisation". people's lives, and when I talk to them about the policy discipline that governments need to adopt in order to achieve and sustain high rates of economic growth over a long period, I inevitably include President Cyril Ramaphosa recently explained South Africa's strategic approach on this issue, as in my lectures reference to the role of the great Chinese leader, Deng Xiaoping- follows: South Africa has... used its membership of... international forums like the G20 and BRICS... to advance the views and interests of countries in Africa and the rest of the Global South. Deng's policies helped to accelerate the rate of economic growth in China in the 1980s and 1990s Throughout, we have been firm on this point: South Africa has not been, and will not be, drawn into to well above the world and OECD growth rate average. This period of rapid economic growth a contest between global powers completely changed China and, in many ways, helped to create the world as we know it today. South Africa currently chairs BRICS, following China in 2022, and South Africa is preparing to host Deng is reminding us to be pragmatic and to allow both the state and the market to play their the BRICS Summit in August this year. In the build-up to the BRICS Summit, under the auspices of respective roles in advancing economic development. The state's role is to articulate a vision of the South African BRICS Business Council, there has been ongoing engagement with six business inclusive development and provide effective governance, services and infrastructure. The market's councils and business chambers of other BRICS member states in order to explore economic role is to develop and deploy new technological applications and promote higher levels of efficiency opportunities. Through this process, a number of working groups have been established focusing in production and exchange on such makers as knowledge sharing in agricultural technologies, the boosting of fertiliser production, plans for increased agricultural trade between BRICS countries, as well cooperation on BRICS - Brazil, Russia, India, China and South Africa - is a geopolitical grouping of countries health care, vaccine development, and malaria control and elimination. working together for their mutual benefit and with the aim of rebalancing economic and political power in the world. Broadly speaking, BRICS countries are from the Global South, with most These are positive developments, and it will be important that the upcoming BRICS Summit in BRICS countries having for some time been colonised or dominated by Western countries as a August should build on these detailed and practical economic engagements. Such engagements result of past Western expansion and colonisation. are the very building blocks through which the vision of increased South-South cooperation will be attained. It is through this kind of detailed and practical work by business and government leaders BRICS countries represent about 3.2-billion people, over 40%% of the world's population. BRICS that the system of global finance, trade and investment will begin to be reconfigured, and a fairer, member countries have several programmes for fostering international cooperation. A BRICS more inclusive world achieved. Business Council was established in 2013 in order to promote economic cooperation and deepen trade, investment and economic ties between the business communities of the BRICS member In as much as South Africa's participation in BRICS is about promoting South-South economic states. cooperation and reshaping the global economic system, South Africa's entry into BRICS is consistent with the country's commitment to opening trade and investment flows with as many parts The New Development Bank (NDB), also known as the BRICS Bank, was established to mobilise of the world as possible and is in line with the vision that South Africa should serve as a gateway finance for infrastructure investment in BRICS countries and other emerging market countries. The for trade and investment in other parts of the African continent. NDB is headquartered in Shanghai and has a regional office in Johannesburg. BBA2_ECO_ASG_2024 @ Regenesys Business School 2 BBA2_ECO_ASG_2024 @ Regenesys Business School 3From time to time, there are anti-dumping investigations by the South African authorities concerning goods sourced from China, and not too long ago, the Chinese authorities temporarily blocked the export of South African beef into China due to a local outbreak of foot and mouth disease. These are the kind of normal trade disputes that should be expected as trade between South Africa and China continues to grow. Such issues, while very difficult for those involved, should pose no systemic risk to South Africa and China's strategic relationship, particularly if such makers are dealt with efficiently and fairly by the authorities in both countries. As is well known, South Africa is facing a major electricity crisis that is having a seriously negative impact on the country's economic performance. This crisis is as a result of planning failures over a number of years, including the poor management of the country's energy transition to new energy technologies. It would be very useful, given South Africa's current challenges, for the Chinese government and Chinese businesses in South Africa to position themselves to play a role in helping the country to overcome its electricity shortage. Perhaps China or China working together with the New Development Bank, could also consider mobilising concessional finance and grants to assist South Africa's just energy transition? Or perhaps Chinese capabilities could be used to help to strengthen South Africa's national electricity grid and extend the national grid into areas with high solar and wind power potential, which is an urgent national priority for South Africa. The importation of solar panels and bakeries into South Africa has increased dramatically in recent years. For example, for the whole of 2022, South Africa imported USD345-million worth of solar panels, and already in the first quarter of 2023, South Africa imported USD200-million worth of solar panels. . Creamer, K. (May 22, 2023). In a changing world, BRICS must remain true to its mission. News24. https://www.news24.comews24/opinions/analysis/analysis-kenneth-creamer-in- a-changing-world-brics-must-remain-true-to-its-mission-20230522 (accessed 12 March 2024). Examine the influence of globalisation and the significance of economic forums like BRICS on the South African economy. Evaluate the opportunities and challenges that arise for businesses operating within member countries. Make use of this rubric when providing your response: BBA2 ECO ASG 2024 @ Regenesys Business School 4