by Porimol Palma in The Daily Star, June 22, 2023
Bangladesh’s move to join the BRICS can provide a boost to trade and investment in the post-LDC world but the authorities should be wary of any geopolitical traps, said experts.
Since 2021, Bangladesh has been a member of the New Development Bank established by BRICS — an alliance of Brazil, Russia, India, China and South Africa since 2001 — as an alternative to the World Bank and International Monetary Fund, both of which have a strong Western influence.
However, the issue of Bangladesh joining the BRICS came under the spotlight recently when Prime Minister Sheikh Hasina called on South African President Matamela Cyril Ramaphosa in Geneva on June 14. South Africa is the current president of BRICS.
Foreign Minister AK Abdul Momen then told the media that Ramaphosa invited Bangladesh to join the BRICS, which is now expanding its membership.
Talking to The Daily Star yesterday, he clarified that Bangladesh has not yet formally applied for the membership, but expressed the desire to join it when the South African president extended the invitation.
Bangladesh virtually attended a meeting of the BRICS recently as a guest and Hasina will attend this year’s BRICS summit to be held in August in South Africa.
“We need economic development. We need funds, trade and investment. We need them for the development of our people. Therefore, we think BRICS can be a good platform,” Momen said.
Bangladesh can also have its policymaking authority as a BRICS member, he said.
Asked about public perception that Bangladesh is joining BRICS as the relations with the US have somewhat strained following visa policy and sanctions on RAB, Momen said: “Some may think that way but it is not right. We maintain and will maintain relations with all. That is our foreign policy.”
The BRICS group has China and India, both major trading partners of Bangladesh, said M Humayun Kabir, president of the Bangladesh Enterprise Institute.
“These two countries have a lot of issues in their relationship. So, it is not very clear yet how we can benefit from the fact that we are in BRICS in the near future. However, in the midterm and long run, we will have new opportunities.”
Bangladesh’s deeper engagement with future BRICS members such as Saudi Arabia, Indonesia, the UAE and South American countries can be of great benefit, he said.
In the long run, BRICS intends to introduce a common currency and push for de-dollarisation.
“The US would not like it,” said Kabir, also a former ambassador.
The neutral position of South Africa and Brazil is also not liked by the West.
“These are some issues that we need to keep in mind. There might be a message that Bangladesh is moving close to China. So, we need to make our message clear so there is no misunderstanding,” he added.
Joining the BRICS in the wake of an economic downturn is a welcome move, especially for South-South cooperation, said Selim Raihan, a professor at the University of Dhaka’s economics department.
“It is also important as Bangladesh will be needing huge investment, export diversification and funding for development activities.”
Though China and India — two major Asian economies of BRICS — are Bangladesh’s largest trading partners, Bangladesh’s exports to these two countries are much lower in comparison to imports.
“They are also making big investments in other countries, but not in Bangladesh,” said Raihan, also the executive director of the South Asian Network on Economic Modelling.
Whether BRICS can help obtain funding, investments and export diversification should be the driving factors for Bangladesh.
“Dhaka needs to be careful that it is not in any geopolitical trap. For that, we need to have a national consensus — maintain a balanced relationship with all countries.” https://www.thedailystar.net/news/bangladesh/politics/news/move-join-brics-be-wary-the-geopolitical-traps-3352516
