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Understanding BRICS, WHO and COVID-19

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BRICS

By Kester Kenn Klomegah

The World Health Organization (WHO), establish to tackle global health problems, is mobilizing for additional funds to overcome coronavirus which it declared pandemic late January 2020.

The coronavirus pandemic has, undoubtedly, changed the ways of life, impacted on the capacities of health infrastructure and has disrupted the economic supply value chain with attendant negative impact on global economies. As the world grapples with the challenges of the coronavirus, there is a need for solidarity, unity of purpose and better coordination to overcome this common enemy.

In order to find long-term and sustainable solutions to the pandemic, WHO has been collaborating with the United Nations, the International Monetary Fund and the World Bank, and regional organizations such as African Union, G20 and BRICS. Besides, there is a strong cooperation in the format Russia-India-China (RIC). It is also making ways through bilateral and multilateral mechanisms.

Foreign countries are contributors to the functioning of World Health Organization. For example, U.S. is the single largest funder of the organization, providing more than $400 million each year – about 15% of its total budget. WHO has come under criticisms. Many countries especially the United States and Britain, believe that WHO’s reluctance to confront China over its handling of the coronavirus outbreak is the reason it has now become a pandemic.

As the world leaders pledged to accelerate work on tests, drugs and vaccines against COVID-19 and to share them around the globe, the United States stayed away from an initiative launched on April 24 by the World Health Organization.

According to Reuters report, French President Emmanuel Macron, German Chancellor Angela Merkel and South African President Cyril Ramaphosa were among those who joined a video conference to launch what the WHO billed as a “landmark collaboration” to fight the pandemic. Leaders from Asia, the Middle East and the Americas also joined the videoconference, but several big countries did not participate, including China, India and Russia.

The aim is to speed development of safe and effective drugs, tests and vaccines to prevent, diagnose and treat COVID-19, the lung disease caused be the novel coronavirus – and ensure equal access to treatments for both rich and poor. “We are facing a common threat which we can only defeat with a common approach,” WHO Director General, Tedros Adhanom Ghebreyesus, said as he opened the virtual meeting.

South African leader Cyril Ramaphosa is the chair of the African Union. Currently, Russia holds the rotating chair of BRICS. BRICS is also coordinating efforts of its members to help in finding solution to COVID-19. Russia, India and China are in very strong positions in the group or association. China and India have huge population. Despite its vast territory, Russia’s population is slightly higher than Japan in the Pacific Ocean.

China, a leading global player and business footprint, said it would donate a further $30 million to the World Health Organization, which is seeking more than $1 billion to fund its battle against the coronavirus pandemic that has killed more than 180,000 people worldwide. “At this crucial moment, supporting WHO is supporting multilateralism and global solidarity,” Hua Chunying, spokeswoman of China’s Foreign Ministry, said on Twitter.

The donation aimed to support the global fight against COVID-19, in particular strengthening health systems in developing countries, she said, adding that China had already donated $20 million to the WHO on March 11.

According to an executive decree posted to Kremlin’s website, Russia will contribute $1 million to the World Health Organization (WHO) to fight the coronavirus. “Allocate budget funding of $1 million from the federal budget for one-time voluntary contribution to the World Health Organization for coronavirus infection fight measures implementation,” the document reads.

The same decree earmarks about $804,795 to fund expenses of the Vector Institute and the Central Research Institute of Epidemiology, “connected to production and shipment of tools for laboratory diagnosis of the novel coronavirus infection, and material and technical support to countries of Eastern Europe, Trans-Caucasus, Central and Southeast Asia, the Middle East, Africa and South America.”

As stipulated by the guidelines, Russia assumed the rotating presidency of the BRICS (Brazil, Russia, India, China and South Africa) regional association since January, 2020. BRICS has established as a multilateral structure, and as reliable association pushing for fair, democratic and multipolar world order.

Russia continues to expand strategic partnership of the organization, working on strengthening foreign policy coordination on various multilateral platforms. Russian Foreign Minister Sergey Lavrov heads the foreign ministers of the BRICS association of countries. On April 28, this group plans to hold an extraordinary videoconference to exchange opinions on possible joint measures to oppose the coronavirus pandemic.

“At Russia’s initiative, the foreign policy chiefs of the BRICS countries will hold an extraordinary conference in a video format under Russian Foreign Minister Sergey Lavrov’s chairmanship on April 28,” the Foreign Ministry said in a statement.

The foreign ministers will “focus on aspects of the influence of the crisis prompted by the outbreak of the coronavirus infection on international relations. The ministers will exchange opinions on possible joint measures the five countries could take to oppose Covid-19 and address the financial, trade-economic, and social consequences of the pandemic,” the statement said.

“The parties will also consider relevant aspects of the development of a five-sided strategic partnership, including a calendar of events during Russia’s presidency of the BRICS this year,” it said.

Russian Deputy Foreign Minister Sergey Ryabkov said during an online launch of the Moscow-based Higher School of Economics’ report on Russia’s foreign policy, “Our organization keeps an eye on the fight against COVID-19. Russia considers various aspects of the issue during its chairmanship of BRICS. Health experts maintain contacts. We will also consider various political aspects of the situation within BRICS.”

The Russian diplomat added that BRICS was an appropriate platform for such cooperation, “given the scientific capabilities of its members, particularly in the fields of healthcare and pharmaceutical industry.” “Each of the countries is making its own contribution to these efforts. We will bring it all together during our chairmanship so that at the end of the year we can say that BRICS has made another step forward,” Ryabkov emphasized.

On April 23, TASS report said that BRICS member states could increase their funding of the World Health Organization and expand medical cooperation with other states due to the US decision to withdraw its contributions to the organization.

“A few days ago, the US announced that it would withdraw or suspend funding of the World Health Organization. BRICS states could make a statement, in which they would announce their increased contributions to this organization that plays a central role in the global anti-pandemic governance,” according to Dmitry Suslov, deputy head of the Center for Comprehensive European and International Studies of the Higher School of Economics National Research University. “BRICS states could announce further coordination in their approaches to aiding other states, states with weaker healthcare systems than those of BRICS states.”

The expert stressed that the spread of the disease in less developed countries would threaten the security of BRICS member states. Suslov, however, noted that BRICS is interested in strengthening the healthcare system in such states.

Cui Zheng, deputy head of the Research Center for the Economies and Politics of Transitional Countries at Liaoning University, expressed a similar opinion. He noted that China actively helps their partners within BRICS to combat the novel coronavirus pandemic.

“The most important thing for us is international cooperation within BRICS. The member states have clearly stated their solidarity, uniting in the fight against the coronavirus,” the expert stated. “Not only do China and Russia actively help each other, they are supplying materials needed to combat the coronavirus to other states.”

While coronavirus is currently the urgent task, reiterating here that, besides all, the BRICS is interested in increasing financial and economic cooperation among the participating countries, effective industrial interaction and practical cooperation in developing and implementing new joint energy, telecommunications and high-tech projects.

The coronavirus disease appeared first in 2019 in Wuhan city in China. The disease was, first identified in Wuhan and Hubei, both in China early December 2019. The original cause still unknown, it remains a puzzle and an enigma for the world scientific community. Since then, cases of the novel coronavirus – named COVID-19 by the WHO – have spread around the world.

According to the latest statistics, over 2,700,000 people have been infected worldwide and more than 191,000 deaths have been reported. In addition, so far, over 750,000 individuals have recovered from the illness across the globe.

The BRICS member countries (Brazil, Russia, India, China and South Africa) collectively represent about 26% of the world’s geographical area and are home to 3.6 billion people, about 42% of the world’s population and a combined nominal GDP of $16.6 trillion.

Kester Kenn Klomegah writes frequently about Russia, Africa and the BRICS.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

World

Moscow: World-Renowned Fashionable City

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South African entrepreneur Stephen Manzini

By Kestér Kenn Klomegâh

Moscow is increasingly becoming popular among foreigners due to multiple reasons among them is its fashionable architecture and friendly people. Moscow’s architecture is world-renowned. In addition, Moscow’s status as the spiritual center of Russian orthodoxy and metropolitan buildings attract tourists from around the world. For much of its architectural history, Moscow is dominated by Orthodox churches.

Situated on the banks of the popular Moskva river, cultural parks and recreational centers offer an additional attraction especially during spring, summer and autumn seasons. The city has a population estimated at over 13 million. And public transport system is excellent for easy and fast connection to any part of the city. Today, the Moscow Metro comprises twelve lines, mostly underground with a total of 203 stations.

Moscow mayor Sergei Sobyanin shares in an interview with local Russian media that Moscow is becoming the world’s best megacity. But for South African Fashion entrepreneur, Stephen Manzini, Moscow’s contrasting features make it more fashionable to explore for fun and entertainment. Read Stephen Manzini’s impressions here:

Would you describe Moscow as a ‘fashionable’ city, if fashion is not limited to clothes and bags?

Moscow can be described as a fashionable city if it wasn’t for the weather. We would see beautiful display of runway pieces on the streets, however we do see this in indoor spaces it’s just overshadowed outdoors by the winter coats and jackets. Walking about Moscow does give you a European fashion appeal.

But Moscow as a fashionable city, do you think it is inaccessible from consumers, from tourists?

Moscow the fashionable city can be accessible to consumers. However when it comes to tourists, it’s a bit inaccessible as it takes on-site education to understand the dynamics. It cannot be understood from a distance due to the neo-propaganda that overshadows it.

Do you mean to conclude that cities such Venice, Miami, New York and London are more fashionable and attract more customers, tourists than Moscow?

Moscow’s tourism industry is barely in existence. To no fault of it’s own. Unfortunately, global online search engines are very unkind in referring to it as an undesirable tourist destination.

How then would you suggest rebranding Moscow?

The rebranding of Moscow would have to be intentional and would not happen overnight. It will have to start at a political level and then cascade it’s way to media and tourism.

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Shockwaves Over Trump’s Tariffs Reverberate Across Africa

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Vsevolod Sviridov High School of Economics

By Kestér Kenn Klomegâh

After taking office early 2025, U.S. President Donald Trump has embarked on rewriting American foreign policy and plans to create a new geopolitical history under the “America First” doctrine.

The first three months have seen efforts to implement tariffs, which finally was splashed early April world-wide, including on a grand scale across Africa.

Seemingly, a blanket of tariffs is one of the standout actions of the new administration. Trump’s changing approach to the world, using geoeconomic tools, including tariffs has now sparked extensive debates and discussions.

Our media chief, Kestér Kenn Klomegâh, took a quick chance and asked Vsevolod Sviridov, deputy director at the High School of Economics (HSE) University Center for African Studies, a few questions pertaining to the aspects and implications of the U.S. tariffs for Africa. Here are the interview excerpts:

How would you interpret trade war between China and the United States?

There has been a global trend towards overspending over the last two decades. We have seen commodity boom, rise of  China with  its global  investments drive  and infrastructure development projects like BRI, excessive budget   spending by the OECD countries during COVID-19, etc. Now   countries are trying to optimize their spending. Considering that there is a certain trend towards deglobalization, external trade and deficits are the first to fall victims to this policy. While China almost halved its lending, US are trying to cut their ODA (see South Africa’s case) and adjust their trade deficit, which is fuelling their vast debt.

What could be the reasons for Donald Trump to extend that kind of economic policy, trade tariffs, to Africa?

His latest actions indicated that was possible. Trump has imposed increased tariffs on 14 African countries, including South   Africa (30%), Madagascar (47%), Tunisia (28%), Côte d’Ivoire (21%), and others. The primary selection criterion was the trade deficit with the U.S., though there are exceptions, such as Libya, which was left off the list despite a US$1 billion deficit. Additionally, seven more countries, including Egypt, Morocco, and Kenya, will face a base tariff of 10%, meaning that for Washington stable relations with them are more important.

The hardest-hit country will be Lesotho (50%), where the textile industry, heavily reliant on the U.S. market, will suffer. However, South Africa will bear the greatest overall impact, as it accounts for 70% of the U.S.-Africa trade deficit. In addition to the 30% base tariff, there will be an extra 25% duty on imported cars. This will affect factories operated by VW, Toyota, BMW, and other automakers, whose exports to the U.S. total US$2-3 billion annually. Angola, which had backed the Democratic Party, is also facing penalties (32%).

If these tariffs take effect as announced, they could lead to the collapse of African Growth and Opportunity Act (AGOA). However, the U.S. has not needed AGOA as much since the 2010s when it reduced dependence on African oil and gas. AGOA is set to expire in September 2025, and Trump’s actions make its renewal highly unlikely.

Trump has suggested that affected countries relocate production to the U.S., but this is difficult for African nations that mainly export raw materials. The new tariff preference system is expected to consider political and economic factors, making it less  predictable and less favourable for African suppliers. On the other  hand, this shift could encourage African countries to focus on regional markets and develop industries tailored to their domestic economies.

It could be excellent, from academic perspectives, to evaluate and assess the impact of AGOA in relation to Africa?

For Africa, the African Growth and Opportunity Act (AGOA) meant establishment of several mainly export-oriented industries, like textile or car manufacturing. For instance, almost 2/3 of cars manufactured in RSA are being exported to US and Europe, with only 1/3 being sold on the local market and tiny part exported to other African countries (20k out of 600k prod).

They created employment opportunities for locals but never contributed to local markets and industries development, technology and knowledge sharing. Collapse of AGOA would mean additional opportunities for African industries and producers to target local and regional markets and develop industrialization strategies considering their national interests first (like Trump does).

Assessing the reactions over the tariffs world-wide, and talking about the future U.S.-Africa trade, and the African Continental Free Trade Area (AfCFTA), what next for Africa?

The African Continental Free Trade Area (AfCFTA) gives Africa a chance to embark on the hard and long journey of developing intraregional trade. Still this emerging market could be easily used by non-African suppliers as a tool to expand their presence, given that without protection nascent African industries are hardly able to compete in price and from time to time in quality. Especially now, when we are clearly seeing that the US are more interested in selling then buying. So any external aid and knowledge sharing assistance in this sphere should be received with caution.

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Trump’s Tariffs Will Affect Global Trade—Okonjo-Iweala

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Green Hydrogen Ngozi Okonjo-Iweala

By Adedapo Adesanya

The Director-General of the World Trade Organisation (WTO), Mrs Ngozi Okonjo-Iweala, has said the recent tariffs announced by the United States would have substantial implications for global trade and economic growth prospects.

Mrs Okonjo-Iweala said this in a statement in reaction to recent tariffs imposed on goods from other countries by US President Donald Trump.

The WTO DG added that the organisation was closely monitoring and analysing the measures announced by the United States on April 2, 2025.

She noted that many members have reached out to the WTO and the organization is actively engaging with them in response to their questions about the potential impact on their economies and the global trading system.

“While the situation is rapidly evolving, our initial estimates suggest that these measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1 per cent in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections.

“I’m deeply concerned about this decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that lead to further declines in trade,” the WTO DG stated.

She, however, noted that despite the emerging tariffs war, the vast majority of global trade is still being conducted under the WTO’s Most-Favored-Nation (MFN) terms.

“Our estimates now indicate that this share currently stands at 74 per cent, down from around 80% at the beginning of the year. WTO members must stand together to safeguard these gains,” the former Nigeria’s Finance Minister said.

Nevertheless, Mrs Okonja- Iweala urged caution while advising members to utilise the platform of WTO to prevent the tariff war from escalating.

“Trade measures of this magnitude have the potential to create significant trade diversion effects. I call on Members to manage the resulting pressures responsibly to prevent trade tensions from proliferating.

“The WTO was established to serve precisely in moments like this — as a platform for dialogue, to prevent trade conflicts from escalating, and to support an open and predictable trading environment. I encourage Members to utilize this forum to engage constructively and seek cooperative solutions,” she remarked.

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