Former Indian High Commissioner Ajay Bisaria has called for the BRICS grouping to establish a permanent secretariat and appoint a secretary general, proposing that India could host the new headquarters in New Delhi. Bisaria highlighted that the bloc has operated for nearly two decades without a formal institutional structure, despite its growing influence and expanding membership.
The Call for a Permanent Structure
Speaking at an India Today BRICS Roundtable, Bisaria, who previously served as India's High Commissioner to Canada, emphasized the need for BRICS to evolve beyond being merely a forum for meetings. He argued that a dedicated secretariat, a secretary general, and a permanent city as its base would enable the grouping to achieve more substantive outcomes.
"This club has been around for 18 years. It's been functioning. People are meeting there. There are more members who want to join in," Bisaria stated. "And I think the time has come to think seriously of having a secretariat, a city, and a secretary general."
His suggestion underscores a strategic move to institutionalize BRICS, potentially enhancing its operational efficiency and global standing.
India's Potential Role
Bisaria specifically suggested that India could take a proactive role by offering New Delhi as the permanent home for the BRICS secretariat and proposing the first secretary general. This move would signify India's commitment to strengthening the multilateral organization and positioning itself as a central player within the expanded bloc.
Debate on Common Currency vs. Local Currencies
The discussion also touched upon the economic dynamics within BRICS, particularly regarding currency matters. Ashok Malik, Partner and Chair of the India Practice at The Asia Group, who was also part of the panel, expressed skepticism about the prospect of a common BRICS currency.
Malik contended that most BRICS members, with the likely exception of China (as the largest economy), would not support a common currency, fearing it could become yuan-dominated. Instead, he noted that countries like India, the UAE, and Saudi Arabia favor diversification away from the US dollar through increased use of local currencies in trade.
"This is not anti-dollar or anti-West. It's this diversification. Where you can trade in local currencies, why not?" Malik explained.
However, both Malik and Bisaria acknowledged the practical limits of such arrangements. They pointed out challenges like Russia accumulating rupees from trade with India, which it cannot always utilize for its economic needs. Bisaria concurred that complete de-dollarization is unrealistic, affirming that local currency trade will remain largely bilateral, requiring intricate technical arrangements between central banks.
Tactical Moves, Not a Common Currency
Bisaria clarified that while local currency trade is a growing trend, it represents "tactical moves" rather than a concerted push for a common BRICS currency. He emphasized that the focus remains on facilitating bilateral trade in national currencies rather than creating a unified monetary system for the bloc.