In 2014 China Central Television interviewed Victor Gao, director of the China Association of International Studies, about the potential role of Brazil, Russia, India, China and South Africa (BRICS) in international development. The five BRICS nations consist of 25% of the world’s GDP and 45% of the world’s population.
The current international financial framework, which was established in the immediate aftermath of the Second World War, is now outdated according to Gao. The Brazil, Russia, India, China and South Africa (BRICS) framework will supplement -- at least for the time being -- the existing international financial framework, which is no longer in line with the realities on the ground, Gao said.
He added that the BRICS development framework will not pose a direct challenge to the IMF, the World Bank and other global lenders, but those lenders can no longer provide all of the lending needs for international development on their own.
The BRICS development bank will provide lending for infrastructure development without attaching conditionalities to the loans, Gao said. In contrast to the practices of Western lenders. BRICS lending will be based more on financial considerations, as opposed to political and ideological criteria.
Gao pointed out that although each of the five member states of the BRICS enterprise have different political systems, cultures, demographics, economic interests and rates of growth they share common interests in maintaining domestic stability, international peace, and to create an environment that is conducive to industrialization, globalization, urbanization and modernization.
Gao said that the economies of the member states complement each other: China and India need to import raw resources and commodities, which Russia, Brazil and South Africa want to sell.
Gao said that despite the large size of China’s economy, each of the five BRICS countries will be equal partners in the development bank, which should provide a model for how the world’s emerging economies should be partners in development institutions.
The five BRIC country framework is not a “closed loop” concept, Gao said. It will eventually open up its membership for other countries to join. It will become larger and more substantive over time. In the future there will be greater opportunities for Turkey, Egypt, Argentina, Mexico and Indonesia to participate. Gao says that developed countries in Europe and North America should also consider joining the BRICS framework. He said that the door is open for them to do so.
