L3 - Gx/BRICS & OECD

Question 1

G7/8, G20, BRICS are…

Answer 1

all examples of informal intergovernmental organisations = major power groups

Question 2

Short history of the G7/8

Answer 2

1973 informal meetings of G5 financial ministers (UK/US/DE/FR/JA)

1975 formal

G8 Era (1998–2014): Russia joined

Return to G7 (2014–present):

Russia suspended after the annexation of Crimea,

G7: Canada, France, Germany, Italy, Japan, the UK, the US, and the EU.

Question 3

Changes in G7/8?

Answer 3

Origins in context of 1. 1970s economic crises 2. deepening multipolarity - evolved to include 1. global economy 2. foreign affairs/security 3. terrorism 4. environment

Question 4

Outreach to non-members (G7)

Answer 4

Select countries are invited as guests to summits based on shared interests.

Guest Participation: Outreach 5 (G8 +5) China, India, Brazil, SA

2019 Biarritz = FR presidency engages with australia, chile, india… (regional)

Question 5

G7 interaction with the multilateral system

Answer 5

Complementary Role: The G7 works alongside the UN and other bodies but is not part of the formal UN system, focusing on policy coordination on global issues.

Collaborations: The G7 supports UN initiatives and partners with organizations like the World Bank, WTO, and WHO on global challenges.

Global Governance Influence: The G7 influences global policy through its economic and political power, shaping multilateral discussions.

Outreach & Advocacy: It uses outreach to align with and influence multilateral frameworks while pushing for global policy changes.

Question 6

short history of BRICS

Answer 6

Emerged from 2001 GS report on BRIC economic potential - 2006 meetings - 2009 annual summits - BRIC+S 2011

Question 7

Convergence of BRICS

Answer 7

pro multipolar world, pluralism of political + economic systems, state-permeated economies, sovereignty, multilateral reform

Question 8

Divergences of BRICS

Answer 8

Bilateral tensions (CH-RU, CH-IN), Chinese dominance, UNSC reform, confronting the West

Question 9

Creation & set-up of NDB

Answer 9

2014 - Equal shares, focus on infrastructure…

Question 10

Functions of BRICS

Answer 10

1. status enhancement
2. soft-balancing
3. global influence lever
4. trust-balancing
5. learning
6. joint production
7. national policy coordination
8. identity building

Question 11

Membership expansion of BRICS?

Answer 11

2023 + Egypt/Ethiopia/Iran/SA/UAE - CH-RU project for more influence - division from BR + IN = enlargement alters identity, diminishes status, don’t want BRICS to be anti-west

Question 12

BRIC interaction with multilateral

Answer 12

Independent Platform: BRICS engages in global governance but is outside the formal UN system.

Collaborations: Works with the UN, WTO, IMF, and World Bank on trade, development, and climate change.

Influence: Advocates for reforms in global institutions to better represent emerging economies.

Alternative Networks: Established the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) to support development outside traditional systems.

Question 13

How does the NDB work?

Answer 13

2014 to support infrastructure and sustainable development projects.

Function: Provides loans and financial support for projects in BRICS countries and other emerging economies.

Focus Areas: Infrastructure, renewable energy, urban development, and social development.

Governance: Each BRICS member has equal voting power, with a Board of Governors and a President overseeing operations.

Funding: Primarily funded by BRICS countries, with additional resources from global financial markets.

Question 14

Short history of the OECD

Answer 14

Organisation for European Economic Cooperation 1948 - Marshall Plan - 1961 OECD Paris - 1990s ‘democratic members’ today 38 members (mexico, poland, hungary…)

Question 15

OECD Mission

Answer 15

Setting standards for policy makers to run a present day industrialised country - solving transnational problems - covering all policy domains

Question 16

Outputs

Answer 16

Level playing field, international exchange, domestic outcomes and well being (fair competition)

‘Hard’ law = i.e 1961 code of liberalisation of capital movements

‘Soft’ law = recommendations/guidelines/dissemination of knowledge

Question 17

OECD features

Answer 17

technocratic atmosphere, voluntary co-opt + soft law, learning, pressure, consensus building

Question 18

PISA example

Answer 18

Education = human capital - Programme for International Student Assessment - survey of 15 y/o.

soft governance through hard fact - data collection - comparison - naming and shaming - national authority pressure - reform

Question 19

GG ambitions of OECD

Answer 19

influencing policies in an age of GG

influence and socialise to smooth trade+investment - stabilise word economy, create ‘level’ playing field

Question 20

Membership expansion? Why do countries want to join?

Answer 20

new members (Argentina, Brazil, Bulgaria, Croatia) need to meet political criteria. some do not want to adopt BRICS, and some major emerging economies insist on sovereignty

OECD can give legitimacy, stability, transparency, rule of law - legitimate for citizens, attractive for investment

Question 21

MAI story

Answer 21

1990s failed ‘multilateral agreement on investment’ supposed to be a multilateral agreement for FDI of multinationals, 1994 draft leaked = protests over NL content, unbalanced, FR + BE pull out

Question 22

Relationship between G20 + OECD

Answer 22

They work closely together for policy prep and implementation - OECD as G20 ‘Secretariat’

G20 gives political impulse
OECD gives intellectual input for machinery and follow up

Question 23

Comparison of BRIC + OECD expansion process

Answer 23

OECD Expansion:

Targets advanced and developing economies with high standards (economic stability, governance).
Recent members: Latvia (2016), Costa Rica (2021). Slow expansion, with China and India interested but not yet joining.
Uses outreach to engage non-members via partnerships and peer reviews.

BRICS Expansion:

Focuses on emerging economies with regional influence.
Recent discussions include countries like Iran, Argentina, and Saudi Arabia.
Outreach promotes cooperation on trade, development, and reforming global institutions.