When Jim O'Neill, then Chairman of Goldman Sachs Asset Management, published the report Building Better Global Economic BRICs in 2001, he pointed out that the GDP of Brazil, Russia, India and China accounted for 23.3 percent of the world total and that the weight of the four countries would continue to expand over the next decade, raising important issues about the impact of their fiscal and monetary policies on the world economy. In line with these prospects, world policy-making forums should be reorganized and in particular, the Group of Seven (G7) should be adjusted to incorporate BRIC representatives.

Five years after the report came out, the foreign ministers of the four countries met in New York in September 2006 on the sidelines of the General Debate of the UN General Assembly, in a prelude to a series of high-level meetings. A summit meeting was held in Yekaterinburg, Russia, on June 16, 2009, and then with the inclusion of South Africa in 2011, the BRICS cooperation with its current five member states was launched.

Bearing fruit

The BRICS countries account for 26 percent of the world's land area, 42 percent of the world's population, nearly a quarter of the world's economy, and more than 10 percent of the world's total foreign trade and investment. In addition, they account for well over 10 percent of the world's voting power in the World Bank and the International Monetary Fund, which all together demonstrates the huge impact of the BRICS cooperation on the world.

Remarkable achievements have been made over the past years. The leaders of the five countries hold a summit once a year and informal meetings on other occasions for dialogue and consultation on major international issues of common interest. In addition, government departments within the group have held numerous meetings on how to cooperate further. Amid rising uncertainties in the world, such dialogue and consultation are conducive to promoting pragmatic cooperation.

The New Development Bank (NDB), which was founded by the BRICS countries and officially opened on July 21, 2015, has financed 35 projects totaling $9.3 billion. On August 17, 2017, the NDB launched its Africa Regional Center in Johannesburg. The bank will reportedly approve at least $32 billion in loans by 2021, along with bond issuance in more countries.

Critical issues

The prospects for BRICS cooperation are promising; however, the five nations should take several issues into consideration.

A number of priority areas need to be identified. During the First BRICS Summit, a joint statement containing only 15 articles was issued. But in recent years, joint statements and declarations issued at the end of leaders' meetings usually contain 100 articles, covering almost every aspect of international and national affairs.

The expansion of cooperation areas is, of course, to be congratulated and encouraged, as the determination of the BRICS countries to strengthen cooperation continues to grow. At the same time, they must decide on priorities to avoid the possible fragmentation of the BRICS cooperation.

It should be noted that BRICS has yet to create a charter, and there is no legally binding mechanism, no permanent secretariat and not even a clear purpose for cooperation.

Along with identifying priorities, the progress and implementation of various projects should be monitored to minimize the discrepancies between top-level designs completed at the leaders' meetings and actual results.

The BRICS mechanism should be moderately institutionalized to increase the effectiveness of cooperation. Establishing a permanent secretariat, as a first step toward becoming institutionalized, is necessary to coordinate different views and monitor the implementation of projects. A permanent secretariat can also handle administrative affairs that are closely related to the functioning of BRICS, avoiding the predicament where the rotating presidency has the most input and say.

As its international prestige continues to grow, BRICS may attract other emerging economies, especially since its member states have always adhered to the principle of openness and inclusiveness and are willing to strengthen cooperation with them. It's very conceivable that a number of like-minded economies will be invited. Since the Xiamen Summit in 2017, the cooperation has adopted the BRICS Plus initiative, which invites leaders of relevant countries as guests to join the discussions.

There are 11 emerging economies within the Group of 20, including the BRICS countries and excluding the European Union, the G7 countries and Australia. BRICS could consider reaching out to the other six emerging economies.

Hi-tech focus

The upcoming November summit to be held in Brazil is themed BRICS: Economic Growth for an Innovative Future. Four priorities will be on the agenda: strengthening cooperation in science, technology and innovation; enhancing cooperation of the digital economy; invigorating cooperation against transnational crime, especially organized crime, money laundering and drug trafficking; and encouraging collaboration between the NDB and the BRICS Business Council.

One important feature of the current international landscape is the rapid advance of the technological revolution. The extensive application of the Internet of Things, virtual reality, artificial intelligence (AI) and robotics has changed almost every aspect of human society, provided new impetus for economic development and brought about changes in the main battlegrounds of competition among countries.

Scientific and technological capabilities have become increasingly important factors in determining the competitiveness of a country. BRICS countries have different but complementary advantages in scientific and technological innovation; therefore, the importance of strengthening cooperation in this field cannot be underestimated.

To promote BRICS cooperation in science, technology and innovation, some necessary measures need to be taken.

The most productive areas of cooperation should be better identified. This can include the application of certain technologies, while basic or theoretical research could also be an option. In terms of the current frontiers of world science and technology, AI and 5G are undoubtedly the best areas for joint efforts.

A principle acceptable to all five countries is needed. Based on the experience of the BRICS cooperation over the past decade, as well as the different states of science and technology development in the five countries, discussions on the future development, joint efforts in research and development and the sharing of the fruits of success can be the guiding principles for BRICS cooperation in the field of science and technology.

The five BRICS members should unequivocally oppose hegemony. Some developed countries use their strength to suppress the development of science and technology in emerging economies. The BRICS countries should unite in strong condemnation of such practices.

In the past few decades, BRICS countries have developed rapidly in science and technology. But in some areas such as chip making, there is still a high reliance on products from developed countries. It restricts the improvement of the scientific and technological capacity as well as the overall national strength of these countries.

Hence, members need to integrate innovation capabilities and initiate more key projects like the BRICS Institute of Future Networks. The five countries should set up a BRICS chip research institute as well, aiming to make breakthroughs in chip development and manufacturing.

While formulating or revising international rules guiding cooperation in science and technology, the five nations should also strengthen consultation and communication with other countries. Some current international rules are not necessarily neutral and may even be unfavorable to emerging economies or developing countries, while rules have yet to be established in certain areas. BRICS countries should communicate more with other emerging economies and take the initiative to voice their views.

At the same time, the group needs to properly handle the relationship between bilateral and multilateral approaches. While they complement each other, the real BRICS cooperation should be the integration of the scientific and technological strength of all five countries or collaboration involving all of them.

The author is a professor at Shanghai University and vice president of the China Society of Emerging Economies

Copyedited by Rebeca Toledo

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