34 Chapter Two
arrangement in which China has provided US$ 41 billion, Brazil, India
and Russia US$ 18 billion each, and South Africa US$ 5 billion. The total
amount is US$ 100 billion. The arrangement is intended to help BRICS
members “tide over the currency crisis.”^49 The next step is the anticipated
establishment of a BRICS Development Bank, on which the BRICS
countries are presently conducting negotiations. When, rather than if, the
Bank becomes commercially operational, it could well challenge the
dealings of the International Monetary Fund (IMF) and the World Bank,
specifically within the developing world.
One hundred years ago the victors of the First World War formulated
the Treaty of Versailles. The US, UK and France, then representing 10%
of the world’s population, made decisions on behalf of the remaining 90%.
When BRICS members interact and meet the grouping is highly
representative due to the fact that BRICS represents 40% of the world’s
population. This reflects how the international system has progressed and
theoretically become more representative.
Former Australian Prime Minister Kevin Rudd (himself a fluent
Mandarin speaker) stated, “History teaches us that where economic power
goes, political and strategic power usually follows.” The much publicized
US pivot to Asia is being countered by China and the backlash is still the
underdeveloped Chinese pivot to Eurasia and Africa. It is interesting to
note that America borrows 40 cents for each dollar it spends. The country
owes China a trillion dollars and has a US$ 14 trillion deficit, as well as
the US$ 4 to US$ 6 trillion cost of the Iraq and Afghan war. The absolute
irony is the developing fact that America will have to borrow from China
to counter China globally.^50
China as the leader of BRICS will attempt to use the organisation as a
vehicle for dominance and control. The West will see this as a threat to
existing arrangements and will try to bring the organisation down before
that happens. It is interesting to note that, should China become the
world’s largest economy it will be the first time in 250 years that the
global economy will be led by a non-English speaking, non-Western and
undemocratic country.
(^49) Pretoria News, 6 September 2013, 2.
(^50) Stood, “BRICS: A Wall for some and a Platform for others.”