Participants for Theme 1: BRICS and multilateral reform
Dr André de Mello e Souza, Senior Research Fellow, The Institute of Applied Economic Research (IPEA), Brazil
Dr Victoria V. Panova, Director, Oriental Studies Institute, Russia
Ms Ruchita Beri, Senior Research Associate, Institute of Defence Studies and Analyses (IDSA), India
Dr Shen Yi, Director and Professor, BRICS Research Centre of Fu Dan University, China
Dr Philani Mthembu, Executive Director, Institute for Global Dialogue (IGD), South Africa
Moderator: Amb H.H.S. Viswanathan, Distinguished Fellow, ORF
In the post-war era, the functions of the global order and world economy came to be largely managed by the Bretton Woods institutions such as General Agreement on Tariffs and Trade (GATT) (later World Trade Organisation) and the United Nations (UN). The post-Cold War era saw a rise of the multilateral governance system, overlaid by a liberal hegemonic system. However, with the rise of the economy and security of nonwestern nations such as China, India, and Brazil, the global order has repositioned itself. With growing interdependence, the change in dynamics has shifted the Global South from the peripheral to the centre of the global governance system; emerging economies are now seeking more involvement in international organisations. Amidst the changing geopolitical and geoeconomics landscape, complex questions are arising about the current role of multilateralism and whether the world is transforming into a new form of the posthegemonic multilateral governance system. Against this backdrop, the panel discussed the future of the existing multilateral institutions and global governance forums. The panel reflected on the need to make multilateral institutions more inclusive and reflective of the needs of nations and the current geoeconomics realities of the world.
It was in this context that André Souza, Senior Research Fellow at the IPEA in Brazil, highlighted the increasing need for multilateral and plurilateral institutions to create global public goods and contingency plans. For instance, plurilateral institutions such as the BRICS have attempted to create global financial governance through the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA). According to him, the COVID-19 pandemic has posed a global health and environmental emergency—both of which reflect the increasing need to provide public goods. These global public goods are necessary to address regional fragmentation and the scramble for public resources.
Furthermore, Victoria V. Panova, Director at the Oriental Studies Institute in Russia, emphasised the importance of sharing the best frontline knowledge through Memorandums of Understanding (MOUs) of cooperation and effective inclusive development by plurilateral institutions like the BRICS. She noted the need for multilateral institutions to offer international law instead of a mere rules-based order, controlled by a handful of developed countries. Philani Mthembu, Executive Director at the IGD in South Africa, highlighted that international cooperation is essential for shaping the reform of multilateralism. According to him, cooperation must not be limited to state-state diplomacy, but also must include Track II and Track III cooperation.
BRICS in a new governance paradigm must promote and support multiple narratives and ideas from across the spectrum of the global community in the spirit of inclusivity and oppose the dominance of a single vision and approach. André Souza remarked that there is a need for input and output legitimacy—the new entrants to the system must have a say in the process of decision-making but also must not be impacted by the decisions not made by them. According to Ruchita Beri, Senior Research Associate at the IDSA in India, it is imperative that multilateral groups reaffirm their commitment to multipolarity so that they can balance the asymmetry of power.
However, HHS Viswanathan, Distinguished Fellow at ORF, observed that albeit multilateralism is beneficial to international communities, the system has become outdated and is out of touch with current geopolitical realities of the world. According to him, there is an urgent need for reforms in the multilateral system where the emphasis is laid on representation and effectiveness. On a similar note, Shen Yi, Director of BRICS Research Centre of FuDan University, China, highlighted that different nations refer to multilateralism in different contexts. He observed that too many stakeholders lower the efficiency of the multilateral system; therefore, it is difficult to find practical models that reflect the ‘multilateral spirit’. According to him, BRICS needs a shared, common understanding of multilateralism, wherein nations clearly define multilateralism.
With a rise in global interdependence, global governance through multilateral or plurilateral cooperation in the realms of economics, security, and politics is necessary. It is crucial that global governance is not bound by a binary vision but as a shifting balance between multilateralism and plurilateralism. Either way, it is now clear that in order to build an effective global governance leadership, it is imperative to include emerging economies in the governance groups
