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BRICS should counter unjust WTO rules
March 21, 2013, 6:41 am

Daria Chernyshova

David Kotz at the Moscow Economic Forum on 20th March 2013

The BRICS Post catches up with David Kotz, vice president of the World Association for Political Economy, at the Moscow Economic Forum.


Question: How do you see Russia’s role in the BRICS?

David: It’s rather unique, because unlike other BRICS members, Russia came down, Russia declined.  And then rose again. The other BRICS countries have grappled with poverty for a long time, and they are now developed. So Russia is in a rather unique situation, and I guess they also have more abundance of raw materials for the economy than other BRICS. So they are in a much different position.

Question: What benefits do you see from tighter cooperation of BRICS?

David: The biggest most powerful countries have tended to make all the key decisions about the world economy – the US, Germany etc. So BRICS could give a bigger voice to a broader section of countries. Hopefully the BRIC countries would represent not just themselves but other developing economies.

Question: What needs to be done for BRICS consolidation?

David: I can’t really say what the politics of BRICS are. I’m more knowledgeable about what the goals might be. I think their goals should be realistic and within purview of reason, that is:

1) To re-orient the global trading and investment system to give developing countries more rights to control capital movements in and out of other countries

2) To have the right to protect their industries when they need to.

3) To work against the World Trade Organization rules which are designed to benefit the most powerful.

Question: BRICS bank – What role do you think a new BRICS Bank could play in the revised economic order, considering that emerging markets are contributing to greater growth in the world?

David: It could be an alternative, to a great extent, to the IMF. It might enable countries under pressure to get loans without having to submit to stabilisation plans destroying their economy.

Question: Would either the US or EU get stakes in the BRICS Bank?

David: I can’t say, I don’t speculate. Hopefully they won’t get a controlling stake.

Question: How does BRICS differ from Western economies?

David: BRICS are countries in different stages of development. They are still in intermediate stages of development. The US and Western Europe are highly developed and diversified economies.