March 29, 2012

FOR GROUP OF 5 NATIONS, ACRONYM IS EASY, BUT COMMON GROUND IS HARD

[When the group’s leaders meet in New Delhi on Thursday, their biggest achievement will have been adding an S: they took on South Africa last year. The five BRICS nations still rank among the fastest-growing economies in the world, and, even if growth has slowed, individually, their global influence continues to rise. But they have struggled to find the common ground necessary to act as a unified geopolitical alliance.]

Saurabh Das/Associated Press

From left, President Dilma Rousseff of Brazil, President Dmitri A. 
Medvedev of Russia, Prime Minister Manmohan Singh of India, 
President Hu Jintao of Chinaand President Jacob Zuma of South 
Africa in New Delhi  on Thursday.


NEW DELHI — As the shock waves of the global recession convulsed Europe and the United States three years ago, the leaders of Brazil,RussiaIndia and China gathered for a meeting that seemed to signal a new era. They had global buzz as rising economic powers, a catchy acronym, BRIC, and an ambitious agenda to remake an international monetary system long dominated by the West.
The new BRIC era has yet to arrive.
When the group’s leaders meet in New Delhi on Thursday, their biggest achievement will have been adding an S: they took on South Africa last year. The five BRICS nations still rank among the fastest-growing economies in the world, and, even if growth has slowed, individually, their global influence continues to rise. But they have struggled to find the common ground necessary to act as a unified geopolitical alliance.
“The real issue for them is to come up with agreed objectives, and also agree on common actions,” said Brahma Chellaney, a foreign affairs analyst with the Centre for Policy Research in New Delhi. “That is a tough nut.”
The BRICS are still a new group, and some analysts argue that with time they could become a more cohesive alliance. But for now, they are troubled by internal rivalries and contradictions that have stymied the group’s ability to take any significant action toward a primary goal: reforming Western-dominated international financial institutions.
Since its inception, the group has discussed creating a development bank to rival the World Bank, and on Wednesday a Chinese official expressed hope that a breakthrough might come this week. Yet to date the proposal has been stalled, partly over worries that China would dominate the new institution.
Last year, the five countries could not agree on a new leader for the International Monetary Fund. Nor have they endorsed a candidate to replace Robert B. Zoellick as head of the World Bank. (President Obama recently proposed Jim Yong Kim, president of Dartmouth College.)
In other spheres, the group has been splintered. National security and terrorism are common concerns, yet the members are not always in alignment, the most recent division being Iran’s nuclear ambitions. (Reports in the Indian news media this week indicated that the group might try to carve out a joint position on Syria.) India is actively lobbying for a permanent seat on the United Nations Security Council, a move China has resisted endorsing.
“It’s not a policy bloc at all,” said Yasheng Huang, a professor of global economics and management at the Massachusetts Institute of Technology. “It’s really a photo op. It is really this idea that the West is no longer or should no longer be viewed as the only center of gravity.”
Deep internal political and economic differences complicate the prospects for unity. India, Brazil and South Africa are democracies and have already used their own separate trilateral group, IBSA, as a primary platform for coordinating positions on several major diplomatic issues.
Russia, however, has drifted away from democracy toward strongman rule under Vladimir V. Putin. China is the world’s largest authoritarian state and has by far the largest and most powerful economy in BRICS, which creates a complicated dynamic. China is the heavyweight, and thus the natural leader of the group, except that it is the political outlier.
As such, distrust is high between India and China, whose border dispute, which goes back decades, is fueling a quiet military buildup on both sides. The two countries differ sharply on Pakistan and the Dalai Lama, the exiled Tibetan spiritual leader. Trade is growing rapidly, but India complains that China has done too little to open its market to Indian firms. China, meanwhile, is suspicious that India is pursuing a containment policy, in league with the United States, through its diplomatic outreach to East Asian nations like South Korea, Japan, Australia and Indonesia.
“The real story is there is a contradiction between China and India,” said C. Raja Mohan, a leading strategic affairs analyst in New Delhi. “As long as you don’t solve that, what collective rhetoric you talk about will have limited value.”
The BRICS alliance has existed as a concept since 2001, when Jim O’Neill, a Goldman Sachs economist, identified Brazil, Russia, India and China as rising economic powers and argued that they should play larger roles in global economic policymaking, perhaps by joining the established Group of 7. Earlier, in the 1990s, Russia had already organized a triangular group with India and China — known as RIC — but the attention generated by Mr. O’Neill’s formulation apparently prompted these three to add Brazil and create a new political club.
The first BRIC summit meeting was held in Yekaterinburg, Russia, in 2009, amid the uncertainty of the global economic downturn, with subsequent meetings held in Brazil and China. Last November, Mr. O’Neill predicted that the group’s combined economies, now worth almost $13 trillion, would double in the coming decade, eventually surpassing the size of the economies of both the United States and the European Union.
A consistent theme has been to push for changes in the monetary system, including advocating an alternate global reserve currency to reduce the dominance of the dollar. China in particular has used the group as a platform to promote its currency, the renminbi, as an international currency.
After arriving on Wednesday, leaders of the five nations held bilateral talks before attending a state dinner. At Thursday’s summit meeting, they are expected to announce agreements that would enable the nations to extend each other credit in local currencies while conducting trade, sidestepping the dollar, a substantive move if not yet the kind of game-changing action once expected from BRICS.
Sreeram Chaulia, an international affairs analyst in India, said many smaller, poorer developing countries, especially in Africa, are watching to see if the five nations can evolve into true advocates for non-Western interests or if BRICS merely becomes a platform for the interests of a new elite.
“At the end of the day, they will have to get into coordinating their positions on international security and global political issues,” said Mr. Chaulia, who teaches at the Jindal School of International Affairs in Sonipat, India. He said many developing countries want a multipolar world, rather than one dominated by the United States “or, for that matter, by China.”
Indeed, some analysts see BRICS mostly as an annual meeting between China and its most important suppliers. Brazil, Russia and South Africa all sell rising amounts of commodities to China. China lobbied aggressively to include South Africa in the group at a time when state-owned Chinese firms were buying up raw materials across Africa.
“I see BRICS as more about China trying to have more ready access to commodities in Brazil and South Africa,” said Mr. Huang, the M.I.T. economist, adding that the other countries were then trying to use the group “to exercise influence on China.”
Finally, even though the group was conceived as an alternative to American power, none of the five member nations are eager for confrontation with the United States. As their leaders, including President Hu Jintao of China, gather in New Delhi, the United States is also quietly in town. Commerce Secretary John Bryson spoke at a business round table on Tuesday, bringing along an American trade group to visit the vast industrial corridor under construction between Mumbai and New Delhi.
“For all five of the BRICS countries,” said Mr. Chellaney, “their most important relationship is with the United States.”

@ The New York Times

[A spokesman for the NATO-led International Security Assistance Force, Master Sgt. Russell Bertke, said that the coalition ran two close-air-support strikes against the attacking Taliban in support of Afghan forces, but no civilians were killed. “Numerous insurgents were killed and several vehicles and motorbikes were damaged or destroyed,” he said. The incident was still under investigation, so authorities did not have information about guards killed, he said.] 

By Rod Nordland And Jawad Sukhanyar
KABUL, Afghanistan — A NATO supply convoy came under heavy attack by Taliban insurgents in western Afghanistan, with 37 dead reported in the firefight and NATO airstrikes that ensued, Afghan officials said Thursday. 

The victims included seven private security guards with two firms guarding the convoy, according to an official at one of the companies, plus two Afghan National Army soldiers and numerous Taliban. 

Fayaz Jailani, the regional operations manager for GFI Security, said the convoy came under attack late Wednesday night by 70 to 80 insurgents with heavy machine guns and other weapons, killing one guard from his company and six from a second company protecting the convoy, Aria Security. The victims were all Afghans, he said. 

The attack took place in the Gulistani District of Farah Province, and the convoy was en route from Herat Province to a NATO base in Helmand Province, Mr. Jailani said. 

The head of security for the Farah provincial police, Muhammad Ghus Mayaar, said the fighting began Wednesday afternoon and continued for eight hours, with 28 Taliban attackers killed by the time it ended. 

A spokesman for the NATO-led International Security Assistance Force, Master Sgt. Russell Bertke, said that the coalition ran two close-air-support strikes against the attacking Taliban in support of Afghan forces, but no civilians were killed. “Numerous insurgents were killed and several vehicles and motorbikes were damaged or destroyed,” he said. The incident was still under investigation, so authorities did not have information about guards killed, he said. 

A spokesman for the Taliban, Qari Yousuf Ahmadi, claimed that only five Taliban fighters had been killed by airstrikes, and that the insurgents had killed 40 guards and Afghan soldiers guarding the convoy. 

“It was a major fight and difficult for security guards who only have light weapons to resist a Taliban attack,” Mr. Jailani said. “The Taliban are always stalking NATO convoys. Thank God that the national army came and fought them.” 

Also on Wednesday, two people were assassinated because of government connections by unknown gunmen in Kandahar City, according to Zalmai Ayoubi, the spokesman for the governor. One was an official of the National Directorate of Security, the Afghan intelligence service, and the other was the father of a security guard in the governor’s office, Mr. Ayoubi said. 

Taimoor Shah contributed reporting from Kandahar, Afghanistan.