By outdoor-nature-child.com On October 25, 2023, the 16th BRICS summit concluded in Beijing, marking a significant step forward in the economic and trade cooperation among BRICS nations. The post-summit Kazan Declaration underscored the group’s commitment to addressing the pressing questions of our time and opened new avenues for collaboration.
**Opposing Unilateral Protectionism**
The current global trade environment remains tense, with rising economic frictions and an increase in unreasonable trade barriers. The China Council for the Promotion of International Trade reported that the global economic friction index was at 102 in July, indicating persistent high levels of tension. With a choice between promoting free trade or succumbing to the intensification of protectionism, the implications for global trade are profound.
In response, the Kazan Declaration provided a clear stance: BRICS nations reaffirm their support for a multilateral trade system centered around the World Trade Organization (WTO), built on rules and consensus, characterized by openness, transparency, fairness, predictability, inclusiveness, equality, and non-discrimination. Furthermore, the declaration emphasized a united front against unilateral protectionist measures that do not comply with current WTO regulations.
Comprising about 30% of the global economy and one-fifth of global trade, BRICS stands firmly in favor of multilateralism, opposing trade protectionism, which is a significant development for the future of global trade. Additionally, during the meeting, China announced the establishment of a BRICS Special Economic Zone Cooperation Center, intended to enhance trade and investment collaboration.
This initiative encompasses various forms of special economic zones, such as free trade zones and free ports. As Chinese Ministry of Commerce spokesman He Yadong noted, this innovative measure aims to boost practical cooperation among BRICS countries in the realm of economic and trade through industry connection, policy research, experience sharing, and capacity building.
**Enhancing Digital Economy Cooperation**
The declaration also devoted considerable attention to the collaboration in the digital economy. It highlighted the rapid digitalization of life in the 21st century and emphasized the critical role of data in development. BRICS countries were encouraged to explore joint initiatives in digital infrastructure and engage in policy dialogues concerning artificial intelligence.
Steps have already been taken in this direction, including the establishment of the China-BRICS AI Development and Cooperation Center, along with plans to create a BRICS Industrial Capability Center in China and a BRICS Digital Industry Ecosystem Cooperative Network.
Analysts suggest that historically, a nation’s industrialization and modernization hinge on technological advancement, particularly keeping pace with or leading technological revolutions. Addressing the challenge of adapting to new technological shifts is vital for BRICS countries looking toward the future.
Ren Lin, a researcher at the Chinese Academy of Social Sciences, pointed out that amid developed countries’ strategies of decoupling and disrupting the productivity of emerging industries, BRICS nations’ emphasis on collaborating in the digital economy reflects their strong commitment to opposing unilateralism and a proactive approach to harnessing technological advancements and fostering high-quality growth among member states.
**Encouraging the Use of Local Currencies with Trade Partners**
Navigating the spillover effects of external shocks, particularly the fluctuations in financial and monetary policies from developed economies, is a critical challenge for the global South.
In terms of financial collaboration, the Kazan Declaration encouraged BRICS nations to use their local currencies in financial transactions with trading partners. It also promoted the strengthening of a network of correspondent banks among BRICS countries and advocated for a voluntary, non-binding initiative for cross-border payments in local currencies.
Moreover, the declaration mentioned that BRICS nations agreed to consider discussing the feasibility of establishing a “BRICS Securities Custody and Settlement Infrastructure” to complement existing financial market infrastructures, based on voluntary participation.
Wang Youxin, a senior researcher at the Bank of China Research Institute, emphasized that deepening monetary cooperation is crucial for creating a favorable monetary and financial environment for BRICS industrial collaboration and enhancing their collective ability to address international financial crises and liquidity challenges.