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THE BRICS AS A SELF-FULLFILED PROPHECY AND ITS IMPLICATIONS

IN THE SOCIAL CONSTRUCTION OF THE INTERNATIONAL REALITY

Major : International Relations (IR)

Focus : Discourse analysis

Supervisor : Professor Lu Jin (Ph.D)

Candidate : Guadalupe Ximena Garca Hidalgo

2015

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DECLARATION

I hereby declare that this thesis is my original work and it has been written by me in its

entirety. I have duly acknowledged all the sources of information which have been used in

the thesis.

This thesis has also not been submitted for any degree in any university previously.

Guadalupe Ximena Garca Hidalgo

Beijing, June 2015.

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ACKNOWLEDGEMENTS

I want to thank my mother, the greater example of love and strength in my life, for being

always with me despite the distance.

I want to thank all my friends, within China and abroad, who directly and indirectly

accompanied me through all this time.

I want to thank the Peoples Republic of China and the China Foreign Affairs University for

giving me the opportunity to conclude this Master program.

I want to thank the universitys staff for all the help.

I want to thank all the professors who taught me much more than what I expected to learn.

I want to thank Professor Wen Zha for all the support and my thesis supervisor, Professor Lu

Jing, for guiding my research and allowing me to be creative at the same time.

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TABLE OF CONTENTS

Declaration. 1

Acknowledgements.....2

Summary..4-5

Introduction..6-7

Chapter 1. Theoretical Framework.....8-22

1.1. The Social Construction of Reality..8-12

1.2. Constructivism in International Relations.12-16

1.3 The Self-Fulfilling Prophecies in International Relations..18-22

Chapter 2. The Origin, Consolidation and Expansion of the Concept..23-39

2.1. Goldman Sachs as a Social Constructor of Reality....23-29

2.2. The Adoption of the Concept by the Member Countries..29-36

2.3. The Inclusion of South Africa36-39

Chapter 3. The Implications of the Self-Fulfilled Prophecy in the International Order...40-64

3.1. The Dominant Discourses of the International Economic System...40-44

3.2. The Discourse of the BRICS..45-55

3.3. Implications of the BRICS in the International System.56-60

3.4. The Benefits of Being a BRICS.60-64

3.5. Final Considerations..65-68

Conclusion...69-82

Bibliography83-89

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SUMMARY

This thesis aimed to show that the concept of BRIC became a self-fulfilling prophecy which,

despite demanding reforms and changes, provides stability and legitimacy to the current

international system. For developing this hypothesis, this work is divided into three

chapters. The first describes in broad terms the main theoretical tools for developing the

hypothesis of this work. In order to do so, it starts with an overview of the conception of

reality as a social construction and the processes involved in it; followed by a brief

explanation of the constructivist approach in International Relations; and finally,

considerations regarding the operations of the self-fulfilling prophecies in the social world.

The second chapter explains how the origin of the concept and its dissemination

turned it into a self-full filed prophecy. The first part describes the emergence of the acronym,

how it became a legitimate concept to describe realities in the international financial context,

the role played by the different actors involved and the processes of social construction of

reality and of self-fulfilling prophecies they unleashed through their actions. In the second

part, it points out the similarities in the foreign policy discourses that facilitated the adoption

of the concept by Brazil, Russia, India and China, as well as the manner in which the process

of appropriation was carried out, followed by the way in which it intervened in the social

construction of reality. Finally, it narrates the expansion of the concept by the inclusion of

South Africa, as well as its implications.

The third chapter describes the characteristics of self-fulfilling prophecy for the

international system. To begin with, it presents the various speeches that have been created

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to explain and legitimize the international economic system, in order to explain the context

in which the BRICS are inscribed. Subsequently, it summarizes the discourse of the BRICS,

based on the main speeches and documents published by the group and representatives of the

member states. Then, through an analysis between the discourse and the actions of the group,

it explains the main implications of the BRICS in the international system. To continue, the

contributions of the different members of the group, and the benefits they get from being part

of the BRICS. Finally, it presents final considerations on the differences between the group

and its relationship with the West and the international system.

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INTRODUCTION

The BRIC bloc is one of the most visible symbols of the new world order currently taking

shape; one of its stronger brands

Marcos Galvo

Since the acronym appeared for first time in 2001 in a report by Goldman Sachs, but

especially since the group became a reality and a mechanism for economic and political

cooperation among Brazil, Russia, India, China in 2009 and later included South Africa in

2011, the BRICS have become the most visible forum for advancing the interests of the

developing world, as well as the main voice for modifying the international economic and

political institutions in order to increase the representation of the South. Subsequently, many

articles, papers and books have been written about them. However, most of them focus on

their economic aspects, specifically, in enumerating their economic strengths or limitations.

On the other side, some studies have been written about the political implications of the

group. Little has been written about the meaning of the concept and its implications on the

identities of the member states, as well as in the social construction of the international

reality.

This thesis is an effort to compile the existing papers from this perspective and, based

on them, analyze the discourse and production of social knowledge carried on by the BRICS.

That way, this work offers the opportunity to study the institutions, interests and interactions

of the different actors from a constructivist point of view. Accordingly to what has been

stated above, the hypothesis of the thesis is, that the BRICS concept became a self-fullfiled

prophecy which, despite demanding changes and reforms, provides stability and legitimacy

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to the international system. It was decided to base the methodology of this work in the

constructivist approach and hermeneutical positions, because, as explained in the later

chapters, the possibility that countries that had so little in common came together in a forum

for multilateral cooperation of such a magnitude can only be explained through the

similarities of their identities and the symbolic benefits from being part of the group all of

which cannot be explained by the realist or liberal traditions: mainly, the possibility to

influence the social construction of reality and exercising symbolic power .

This work is divided in three chapters. The first one describes the theoretical

framework, through an overview of the conception of reality as a social

construction, followed by a brief explanation of the constructivist approach in International

Relations and considerations about self-fulfilling prophecies in the social world. The second

chapter explains the origin of the BRIC, its adoption by the member states and its further

expansion with the inclusion of South Africa; in a few words, how the origin of the concept

and its dissemination turned it into a self-full filed prophecy. The third chapter is responsible

for describing the content of the speech of the BRICS and its implications for the international

system. In short, the characteristics of self-fulfilling prophecy.

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CHAPTER 1. THEORETICAL FRAMEWORK: THE SOCIAL CONSTRUCTION OF REALITY,

CONSTRUCTIVISM AND SELF-FULFILLING PROPHECIES

We construct worlds we know in a world we do not

Nicholas Onuf

This section describes in broad terms the main theoretical tools for developing the hypothesis

of this work, according to which the emergence of the BRICS became a self-fulfilling

prophecy which, despite pledging for a reform of the international order, it actually

strengthens its stability and legitimacy. In order to do so, this chapter starts with an overview

of the conception of reality as a social construction and the processes involved in it; followed

by a brief explanation of the constructivist approach in International Relations; and finally,

considerations regarding the operations of the self-fulfilling prophecies in the social world.

1.1 THE SOCIAL CONSTRUCTION OF REALITY

In the study of human systems, there are two different dominant positions. The first

one considers the social world as a given and as an objective reality. Inspired by the natural

sciences, it aspires to objectivity, scientific precision and the identification of universal laws

with some degree of predictability. On the other hand, the other approach sees the world as

a socially constructed reality and focuses on understanding rather than explain the different

meanings of human action. Unlike the positivist, the latter approach associated with

hermeneutics, critical theory and constructivism does not conceive the researcher as an

outside observer who studies the object, but as part of it. The contrasts between the two have

important consequences and, while using different methods, they emphasize or ignore and

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interpret differently the characteristics of social reality. And most importantly, they also

sustain opposite philosophical and normative implications. Positivism, for example, is more

related to the search for certainty and universal values, as well as the exaltation of rationality,

while hermeneutical approaches favor relativism, sensitivity and plurality. For some authors,

positivism, considering the social world as an objective reality governed by immutable laws,

promotes a conservative and determinist view of it. For others, the hermeneutical methods

lack the scientific approach for a systematic study of the social. Having explained this

division, and to begin developing the hypothesis of this thesis through a theoretical sphere,

this section will proceed with a description of the process of social construction of reality,

whose design is based on hermeneutical positions. To do this, it presents a brief summary of

the book The Social Construction of Reality, written by Peter L. Berger and Thomas

Luckmann, which, besides being one of the most influential works in contemporary social

sciences, addresses the issue of systematically and from a sociological perspective.1

For Berger and Luckman, reality is defined as the quality assigned to phenomena that

are recognized as independent of human will, which is created and maintained in and through

the thoughts and actions of the members of society. Through this quality, the everyday world

is taken for granted. This means, that it presents itself as self-evident and compelling without

requiring verification. It is differentiated from other realities that are also accessible to human

consciousness through its intersubjectivity, what means, that it is shared with

others. Intersubjectivity is possible thanks to the ability of the objectification of

intersubjective processes of men, defined as the manifestation and expression of these in

products of human activity, which are available to other people besides their creators. These

1 Peter L. Berger and Thomas Luckman, The Social Construction of Reality. A Treatise in the Sociology

of Knowledge , London, Penguin Books, 1966.

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products are converted into objects that make the reality of everyday life possible.2 The

everyday reality is apprehended through characterizations on different members of society,

which affect the interactions between them and determine appropriate actions in specific

situations.3 When they get repeated and internalized, they become progressively anonymous

and routinized. Thus, human interactions become patterns based on an economy of

effort. However, they are not rigid, but subjected to negotiations between the actors. In

consequence, they must be understood as a continuum, rather than as rigid and inflexible

classifications. The social structure is the sum of these characterizations and patterns of

interaction that are established through these products and interactions.

Oral language defined as a vocal system of signs, plays a key role, perhaps the most

important, in the social construction of reality, because it is through it that the objectifications

and characterizations are made. Besides, its structures the social world spatially and

temporarily, an order that makes it possible to make sense. This way, it channels the thoughts

and actions of the members of society within their patterns, a function which standardizes

and economizes the practices of individuals, and also allows their effective allocation and

identification. All this, in addition to ordering the social world, provides language with the

ability to control and coerce the socially constituted actors.

The more actors and actions are typified and the more this characterizations spread

and become routine, more social knowledge is produced and accumulated, that is, the

certainties shared by the members of society. Social knowledge serves as a channel for the

2 In addition to describing the processes by which reality is socially constructed, the authors consider

plausible their argument because the human fetal period extends until the first year after birth. By then, they

argue, the child continues to develop while biologically related to the outside world in various complex forms,

which enables the social construction of reality, in ibid , p.68. 3 One could understand the characterizations also as "tags", which determine, for example, if a

particular social actor is treated as male / female; young / old; employee / employer, etc. Ibid p. 45

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externalization of subjective processes of men. The process of accumulation of social

knowledge produces complex and detailed information on the sectors within men conduct

their actions and present reality in an integrated when they structure knowledge in terms of

relevancies, which means: differentiated between areas of familiarity and

remoteness. Through this process, certain areas of reality are enlighten, while others remain

opaque and the totality of the world remains neglected.

One of the main pillars of reality are socially constructed institutions, which occur

when the characterizations become reciprocal. It is important to emphasize that reciprocity

does not only happen between the actions of the different actors involved but also in the

recognition of their identities, also typified. As a result, all institutionalized behavior involves

creating roles. These take on different degrees of importance and represent the integration of

institutions in a world capable of making sense for members of society. The roles assigned

to the different actors established within institutions help to maintain the notion of sense in

the world and play a special role in legitimizing the social apparatus. Thus, institutions define

and channel the actions of individuals, which limits the possibilities of their actions, increases

predictability and reduces the danger to others.

This way, human activity becomes a subject to social control when it becomes

institutionalized. The ultimate aim of the institutions is to convert the actions of the actors in

routines taken for granted, which explains that institutions need to be translated into human

behavior to keep on existing. Consequently, the expansion of the construction of social reality

is achieved when more and more aspects of human life become subject to the scope of

institutions. Through the explanation of the processes of objectification, standardization and

institutionalization, describe how man builds every day the social order in which it operates,

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whose characteristics are not predetermined biologically or by the natural environment.4 It

is not part of the nature of things and is not derived from natural laws. Therefore, the social

world exists only as a product of human activity.

2.2 CONSTRUCTIVISM

Constructivism introduced the conception of reality as a social construction to the

study of international relations.5 As you it can be inferred, it is based on hermeneutical

methods and focuses on the historicity of the systems and institutions, as well as the

importance of ideas and meanings in the actions of the states. Its appearance is explained

largely through the questioning of the binomial science-progress which served as base for

Modernity and contributed to the weakening of the positivist position in the social sciences

during the decades of the seventies and eighties.6 Suspecting that materialism was not enough

to explain the complexity of international phenomena, constructivism emerged as an

alternative to realism and liberalism as well as its derivations, approaches that occupied a

dominant place since the founding of the discipline. Constructivism not only offers different

understandings on the main concepts of international relations, but represents an ontological

and epistemological revolution that changed the way in which reality is conceived, as well

as the methods to apprehend it.7

4 While recognizing that the natural environment does have some influence on technological or

economic arrangements of the social world. Ibid, p.69. 5 In international relations, constructivism is part of the sociological approaches, together with the

English School, as well as other critical and postmodern theories. It is considered that its foundational works

are World of Our Making (1989) by Nicholas Onuf and Anarchy is What States Make of It (1992) by Alexander

Wendt. 6Jonathan Arriola, El constructivismo: su revolucin onto-epistemolgica en las Relaciones

Internacionales [Constructivism: the onto-epistemological revolution" in international relations], Revista

Opinio Filosfica, Vol. 4, No. 1 (2013), p. 383. 7Op.cit., p. 378.

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Since its consolidation in the early nineties as a legitimate approach to study

international relations, different schools and debates have developed within constructivism.

However, it is not the intention of this section to provide a description of them, but to present

a general overview of the approach. To begin, it is worth mentioning that it is based on the

ontological assumption that inter-subjective understandings are constitutive not only of

action, but of the actors and the structures in the international level, while it also focusses on

the historicity of them. Having said that, the main positions regarding the central concepts of

the approach are presented main positions.

The relationship between structure and agency is one of the major debates of

International Relations.8 Its importance is such, that some authors propose a division between

theories that consider the opportunities and limits determined by the structure as the

determining factor in international relations and on the other hand, the ones that emphasize

the role of actors and units. Regardless of which part is considered more influential, both

positions conceive the structure and agency as separate and demarcated entities, although

they influence each other. Constructivism overcomes this debate by arguing that the agent

and the structure are mutually constituted through practice. For constructivists, the structure,

in fact, channels the practices of individuals. However, its efforts would be meaningless

without a set of rules and intersubjective meanings internalized by the actors. At the same

time, the actors reproduce and through it strengthen the structures when they act respecting

their parameters, or weaken them when they do not.9 Consequently, the institutions that are

8 Structure is understood as the distribution of capabilities of the different parts in the international

system; as agency, they actors or representatives of political units, mainly States. 9 For example, the appeasement of Vietnam by the United States was an unviable option, although it

was probably the most pragmatic, because the prerogative to intervene militarily was a mainstay in the

constitution of the United States as a great power during the War Cold. With the military intervention, the

United States reproduced its identity as a great power and at the same time, it also reproduced the structure that

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part of the structure are also originated the interaction of the actors and their participation in

collective consciousness. So, they are cognitive entities that do not exist independently of the

ideas of the actors about the way the world works. Thus, the relationship between structure

and actors becomes no longer unidirectional, but reciprocal and mutually constitutive,

allowing a wider understanding of the complexity of phenomena at the international level.10

Anarchy is also one of the central concepts of the discipline. The predominant

approaches define it as the absence of a central authority, which results in a permanent state

of threat and insecurity in the international arena. Given the urgency to ensure its survival,

the primary interest of states is to increase their safety through power politics and attitudes

of "self-help". Positivist approaches consider anarchy an immutable property of the

international system. For some, it can be managed, but never changed. In this case,

constructivism also offers a more complex response, conceiving anarchy as a result of the

practices of states. As part of this reasoning, power politics are regarded as institutions

socially constructed within the framework of anarchy, which could change if states would

modify their actions, thereby altering the intersubjective knowledge that constitutes the

system.11 That's why Alexander Wendt defined anarchy as "what states make of it.12

The next concept to be addressed is identity. Realism and its branches have given

little importance to identity as an explanatory variable, while interpreting state interests as a

gave meaning to its actions, in Ted Hopf, "The Promise of Constructivism in International Relations

Theory," International Security, Vol. 23, No. 1 (summer 1998), p. 172. 10 H. Leonardo Carvajal, El constructivismo: su utilidad para analizar la poltica exterior

colombiana" [Constructivism: its utility for analyzing the Colombian foreign policy], OASIS , No. 14 (2009),

p. 207. 11Jonathan Arriola, El constructivismo: su revolucin onto-epistemolgica en las Relaciones

Internacionales [Constructivism: the onto-epistemological revolution" in international relations], Revista Opinio Filosfica, Vol. 4, No. 1 (2013), p. 381.

12H. Leonardo Carvajal, El constructivismo: su utilidad para analizar la poltica exterior colombiana"

[Constructivism: its utility for analyzing the Colombian foreign policy], OASIS , No. 14 (2009), p. 205.

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result of their physical attributes. Liberalism and its branches tend to explain the differences

in attitudes of states based on the division between democratic and non-democratic

ones. Again, constructivism represents a turning point in the discipline considering the

identity of a state as variable and decisive in defining its interests and the actions they choose

to achieve them.13 It is also important to mention the multi-directionality that constructivism

recognizes in this regard, as considering that the practices of a state, at the same time, have

the ability to strengthen or weaken the construction of their identity. The explanation of this

argument lies in the social function of identity stating to oneself and others who one is and

who the others are, through which it allocates values, norms and action parameters. It is

important to mention that states do not have full freedom in defining their identity, as the

consolidation of it depends on the interaction with others. As explained by Ted Hopf, "an

actor cannot act according to its identity until the community of meaning with the power to

do so recognizes the legitimacy of its action."14 Another advantage of the constructivist

conception of identity is that it is capable of studying ts historicity. That is, the manner in

which the different identities of one or more states emerge, consolidate, modify or disappear

according to their practices and interactions with others. Positivist approaches are unable to

explain the lack of interests and practices which, although they may represent a benefit, for

states, are not adopted by them. Constructivism is able to fill this theoretical void considering

that the absences are also a product of intersubjective understandings and constitutive of

action, as the acting of states cannot be based on interests that are not consistent with the

13 Ibid. 14Ted Hopf, "The Promise of Constructivism in International Relations Theory," International

Security, Vol. 23, No. 1 (summer 1998), p. 178.

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practices and structures that constitute their identity without representing a higher cost,

whether symbolic or material.15

The change in the international system is also a phenomenon that has been poorly

studied by the positivist approaches that dominated the study of international relations over

the past century, in part because its consideration of reality as given and independent of social

actors reduces the ability to recognize the historicity and temporality of them. By contrast,

constructivism gives change an important role in the international system and proposes

considerations of how and when it occurs. At this point, it is important to mention that one

of the factors that influenced the consolidation of constructivism was the fall of the Berlin

Wall and the Soviet Union, not only because the precepts of neorealism and neoliberalism

were based on the conditions of War Cold, but also because the failure of both traditions to

conceive and explain changes of such magnitude revealed the lack of capacity of this to study

the historicity of structures and enable variables to change.16 As a result of the events,

historicity became important, not as an accident or emergency, but as an intrinsic part of the

international systems. However, it is worth clarifying that, despite conferring it an important

place, constructivism considers changes as possible, but not easy to achieve, because the

structures are maintained by real interests and material capabilities. Besides, actors also play

their limitations through their daily practices.17 Identity politics are not a neutral, but a

struggle for control over the need and power to produce meanings within a community. The

change is explained when actors with sufficient material and symbolic resources engage in

15Ibid., p. 176. 16Jonathan Arriola, El constructivismo: su revolucin onto-epistemolgica en las Relaciones

Internacionales [Constructivism: the onto-epistemological revolution" in international relations], Revista Opinio Filosfica, Vol. 4, No. 1 (2013), pp. 379-80.

17 Ted Hopf, "The Promise of Constructivism in International Relations Theory," International Security, Vol. 23, No. 1 (summer 1998), p. 180.

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practices that can alter the intersubjective structures successfully. As long as there is

difference, there is potential for change.

Finally, constructivism also offers a wider and complex proposal for conceiving

power. Positivist approaches usually consider it a significant and causal intervention. That

is, the ability of A to establish its will on Bs actions, even despite its resistance. Power, for

them, is mainly based on the material resources of a state such as economy, military

capacities, territory, natural resources, etc. On the other hand, constructivism and its precepts

recognize and are able to study a different conception of power: the symbolic power. This is

understood as the ability to define a specific situation, to turn a vision of things and the world

as obvious and indisputable and thus influence the actions of others in a subtle or even

invisible way. Its purpose is to legitimize a social order and determine intersubjective

meanings established through shared knowledge.18 This type of power is exercised through

ideas, culture, ideology, speech and language.19 Likewise, constructivism reveals the power

that is exercised through social practices, which are able to produce and reproduce or modify

and question intersubjectivity meanings that are constitutive of social structures and actors.

Social practices authorize, discipline and exert surveillance, and therefore have the power to

replicate entire communities, in this case, the international community. Therefore, through

their daily practices, states appropriate or limit themselves, as well as structures in which

they operate.20

18 Steven Lukes, El poder, un enfoque radical [Power, a radical approach], trans. Jorge Deike,

Mxico, Siglo XXI, 1985, pp.15-16. 19 Ted Hopf, "The Promise of Constructivism in International Relations Theory," International

Security, Vol. 23, No. 1 (summer 1998), p. 177. 20 Ibid. p. 179.

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2.3. THE SELF-FULFILLING PROPHECIES IN INTERNATIONAL RELATIONS

As explained in previous sections of this chapter, the hermeneutical positions, in

which constructivism is included, consider that the intersubjective knowledge not only

reflects the social reality but has also the capacity of creating and shaping it. Therefore, the

ideas, when formulated by actors with the material and symbolic resources necessary to

disseminate and made them legitimate, have the power to get registered within the

intersubjective meanings and knowledge, and thus reproduce the realities they

propose. Similarly, when they have a negative or preventive intention, they are capable of

suppressing actions and results. That is, to become self-fulfilling or self-denying

prophecies.21 It is necessary to clarify that an idea does not have to be "right" or "wrong" to

become a self-fulfilling prophecy. Although its proximity with reality makes it easier to

acquire materiality, what matters is its ability to modify the behavior of social actors in order

to make them act in accordance with them.

Economic life is very often guided by self-fulfilling prophecies, originated by

concepts or perceptions. For example, in the case of predictions regarding the alleged

weakness of a currency or the shortage of a product shortage.22 In the social level, stereotypes

and relations between ethnic groups are usually established through mechanisms of self-

fulfilling prophecies. In international relations, some authors have studied the security

dilemma as a self-fulfilling prophecy, recognizing that the belief in the inevitability of

conflict can become one of its main causes. Similarly, some studies have shown how the

21A self-fulfilling prophecy is understood as a specific kind idea that contains and generates its own

confirmation. Consequently, a self-denied prophecy is a specific kind of idea containing and denying its own

confirmation. 22 For example, when beliefs about the weakness or instability of a currency are propagated, its demand

decreases and therefore, its price also. In the second example, the expectation of some product shortages rapidly

increases its demand, which also raises its prices and ultimately, the shortage occurs. Similar situations also

happen with stock market crashes and economic depressions.

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Global War on Terrorism, conducted by the United States after September of 2001, coincides

with an exponential and unprecedented increase in the recurrence of violence and terrorism-

related attacks. While the military offensive of the United States and its allies aimed to ensure

global security and weaken terrorist groups, attacks soared in Iraq and Afghanistan when

they military operations of the West began, a phenomenon which also extended to the Middle

East, Africa and Asia.23 The prophecy of the Global War on Terrorism, based on the

assumption that the inevitable increase in power and activities of terrorist groups required

military action by the international community, came true after the beginning of the military

operations. In addition, certain authors believe that some of counterterrorism legislation in

Western countries could increase the marginalization of Muslim communities, and thus feed

the feelings of violent extremist groups.24

By moving this reasoning to the academy, it is possible to recognize that concepts and

theories have the potential to unleash the potential these same mechanisms. Investigations

are not only explanatory, but also have inherent constitutive and creative abilities. In this

case, academic communities are primarily responsible for the processes of diffusion and

legitimation. However, decision makers and ordinary people are usually not aware of

academic theories and do not act in accordance with them; the chain of causality is more

complex and difficult to trace. First, they may be transmitted through the media, Internet,

publications and opinion leaders, until they are internalized in the consciousness of the elite

and later, of the people. As a result, research findings are interpreted as a reality and actors

23 The think tank Global Research published in 2013 a report on the increase in terrorist attacks in

different parts of the world. In Iraq, Afghanistan, and the Middle East in general, as well as Africa and Asia,

there was an exponential increase from 2002, accessed in 2015 in http://www.globalresearch.ca/u-s-war-on-

terror-has-increased-terrorism/5355073 24David Cortright, "Could New Laws to Fight Terrorism Actually Help Fuel It?" IPI Global

Observatory , March 31, 2015, accessed on April 2015 in http://theglobalobservatory.org/2015/03/terrorism-

financing-civil-liberties/

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modify their behavior in response to the dominance of a theory. To investigate mechanisms

of self-fulfilling prophecies produced by academic ideas reveals how humans can also change

the laws of the social sciences in the process of socially constructing their reality; another

difference with the study of the natural world. Adapting the famous words of Alexander

Wendt to this context, "every theory is what actors make of it".25

Previously, this section described cases of self-fulfilling prophecies in international

relations. However, to understand the mechanism by which the creation of the BRICS

triggered a mechanism of self-fulfilling prophecy, it is prudent to mention other cases of

academic concepts that showed a similar development. For example, internationalist

Alexander Wendt and John Vazquez consider the realistic approach as a self-fulfilling

prophecy. The structures and mechanisms of the international system in which it is based on

such as anarchy, the security dilemma and the policies of "self-help" is based and its

dissemination through the most prestigious epistemic communities of the world allows them

to get internalized by scholars and policy makers as precepts, prescriptions and lines of action

in the interactions between states. Consequently, when they get translated into action, they

become a reality, a process which, at the same time, increases in the relationship between

realism and reality.

Ted Hopf argues that the theory of democratic peace in international relations, is also

a self-fulfilling prophecy. For this, he starts through the argument that there is no plausible

explanations that connect the characteristics of democracy within a state and its alleged

peaceful behavior, considering that the former can show quite aggressive and bellicose

behavior internationally. To Hopft "democratic theory is an empirical reality in search of a

25 David Patrick Houghton, The Role of Self-Fulfilling and Self-Negating Prophecies in International

Relations, International Studies Review, vol. 11, no. 3 (September, 2009), p. 552.

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theory." Arguments about the externalization of national beliefs, as well as the predominance

of the rule of law also result unconvincing. Similarly, the manner in which the administration

of George W. Bush effectively mobilized an entire population which decided to go to war,

shows that institutional arguments of democratic peace theory have little empirical

support. Despite their theoretical and empirical weaknesses, it is a legitimate theory widely

accepted and reproduced in the academy, even slightly questioned and mostly considered as

legitimate. Its predominance is also explained by its usefulness for the legitimation of the

identities and actions of Western powers, because it implies that their institutions are

preferable to the ones of other countries, which represents a major asset for the exercise of

soft and at the same time justifies their dominance in international institutions, as well as

their eagerness to intervene and modify the internal policies of other countries. As for how it

affects the actions of the actors, it is likely that the leaders of the so-called democratic states

believe that liberal democracy has, indeed, peaceful properties and therefore increase their

trust on other liberal democracies, which increases trust and confidence and promotes

cooperation between them. For Ted Hopf, the theory that links economic interdependence

with peace is also a self-fulfilling prophecy, with similar characteristics of the ones of the

democratic peace theory.26 In his article, Ted Hopf proposed at least four stages or

preconditions for an idea or theory to become a self-fulfilling prophecy in international

relations and within the social world in general. First, the idea or theory must contain specific

expectations or predictions about the behavior of certain actors or political outcomes. Second,

it must be related to "institutional" facts, as opposed to natural events. Third, the idea must

be articulated and widely disseminated within the community; and finally, the actors must

26 This example also lacks a convincing causal mechanism between the two variables.

22

change their behavior consistently with the predictions of the theory.27 Having explain all

this, the next chapter proceeds with describing and analyzing the origins and existence of the

BRIC in their different dimensions.

27 David Patrick Houghton, The Role of Self-Fulfilling and Self-Negating Prophecies in International

Relations, International Studies Review, vol. 11, no. 3 (September, 2009), p. 563.

23

2. THE ORIGIN, CONSOLIDATION AND EXPANSION OF THE CONCEPT

This chapter explains the origin of the BRIC, its adoption by the member states and

its further expansion with the inclusion of South Africa. The first part describes the

emergence of the acronym, how it became a legitimate concept to describe realities in the

international financial context, the role played by the different actors involved and the

processes of social construction of reality and of self-fulfilling prophecies they unleashed

through their actions. In the second part, it points out the similarities in the foreign policy

discourses that facilitated the adoption of the concept by Brazil, Russia, India and China, as

well as the manner in which the process of appropriation was carried out, followed by the

way in which it intervened in the social construction of reality. Finally, it narrates the

expansion of the concept by the inclusion of South Africa, as well as its implications. In a

few words, this chapters objective is to explain how the origin of the concept and its

dissemination turned it into a self-full filed prophecy.

2.1 GOLDMAN SACHS AS A SOCIAL CONSTRUCTOR OF REALITY

The story is well known: the acronym first appeared in November 2011, when the

multinational financial consulting firm Goldman Sachs published a report written by Jim

O'Neil, then head of Global Economics Research, entitled "Building Better Global Economic

BRICs." The text proposed that the development of global economic policies should be

reorganized to increase the representativeness of the BRIC, taking into account the size of

their economies, measured in terms of GDP growth and predictive models, according to

which Brazil, Russia, India and China would gain more and more weight in the international

24

economy, with a chance to match or surpass the G-7.28 Subsequently, the concept of BRIC

was strengthened through the publication of more reports.

In October 2003, an article entitled "Dreaming With BRICs: The Path to 2050",

released also by Goldman Sachs extended the scope of the predictions and the importance of

the five countries in the future of the world economy. Based on demographic projections and

models of capital accumulation and productivity growth, the report estimated that BRIC

could represent more than half the size of the economies of the G-6 by 2025 and that they

could even surpass the group in 2050.29 According to the text, the weight of the BRICs

economies could transform international financial flows, while increasing their importance

in investment portfolios and demand for capital. It also predicted that the increase in their

productivity would significantly appreciate their currency and that they could get

strengthened by 300% by 2050. It also estimated that the size of Chinese economy would

surpass the United States in 2041 and that India would overcome Japan in 2032.30

As a response to questions about the predictions and the accuracy of including so

different countries in a same group, the report "How Solid Are the BRICs'", published in

2005, re-evaluated the performance of the four, established that the predictions of the

previous reports would become a reality sooner than expected and assured that the BRIC

28 Furthermore, according to the report, if considered through the percentage of world GDP values

based on purchasing power parity, China represents the second largest market in the world, while India the

fourth, in Jim O 'Neill, "Building Better Global Economic BRICs " Global Economics Paper No. 66 , London,

Goldman Sachs, November 30, 2001, consulted online in February 2015 in http://www.goldmansachs.com/our-

thinking/archive/archive-pdfs/build-better-brics.pdf 29 Dominic Wilson and Roopa Purushothaman, "Dreaming with BRICs: The Path to 2050," Global

Economics Paper No. 99, London, Goldman Sachs, October 1, 2003, Consulted online in February 2015

in http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/brics-dream.pdf 30 The predictions were based on a long-term model and 2003 prices to avoid biases in the economic

cycle, as well as inflation, op.cit.

25

were on the lead of the developing countries.31 Although the document also described the

limits and challenges the countries would face for maintaining their economic growth, it

justified the utility and importance of the concept through numbers and indicators, according

to which the four countries had been contributing for years with almost one third of the global

growth and with almost half of international trade. Similarly, it estimated that they counted

on about a third of global foreign exchange reserves and that the surplus in their current

accounts granted them a growing role as a suppliers of world savings.32 It was approximately

afterwards that the concept began to be mentioned more often as a reality of international

finances in specialized newspapers, magazines and blogs. It is noteworthy to mention that

the Wall Street Journal and the Financial Times, two of the most widely read specialized

journals worldwide, played a very important role in the proliferation of the concept, as well

as the blog Beyondbrics, in which also recurrently participated Jim O' Neil.33 In the financial

area, investment funds targeting the four countries proliferated significantly.

Although reports of financial consulting firms are presented as studies based on

objective information and methods with a high degree of scientific accuracy and claims of

infallibility, it is important to recognize that the consultants are also actors in the international

economic system, with visions, values and own interests. By studying the reasons for

Goldman Sachs to characterize the four countries within the same group and emphasize the

growing importance of their economies, different authors associate the appearance of the first

31 Anna Stupnytska, Dominic Wilson and Roopa Purushothaman Jim O'Neill, "How Solid Are the

BRICs?" Global Economics Paper No. 134, London, Goldman Sachs, December 1, 2005, Consulted online in

February 2015 in http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/how-solid.pdf 32 Ibid. 33 References to the BRIC increased exponentially since 2005, although with much more magnitude in

the Wall Street Journal, in Marion Fourcade, "The material and symbolic construction of the BRICs:

Reflections inspired by the RIPE Special Issue", Review of International Political Economy, Vol. 2, No. 2

(2013), p. 263.

26

reports with the strategy of the company to diversify its investments outside the Western

world.34 In the first articles published about the BRIC, the emphasis on the advisability of

investing in them rather than in other economic indicators is remarkable, as evidenced by one

of the opening paragraphs of the 2005 report: Higher growth may lead to higher returns and

increased demand for capital. The weight of the BRICs in investment portfolios could rise

sharply. Capital flows might move further in their favour, prompting major currency

realignments.35

According to the theory of the social construction of reality, discussed in the previous

chapter, the publication of the reports by Goldman Sachs represents a process of

objectification of their interests, by which these are manifested and expressed in human

products of human activity, available and visible to others. In this case, the product is the

concept of BRIC as a legitimate concept to describe reality. It is also important to mention

that the privileged position of Goldman Sachs, one of the largest and most powerful financial

consultants in the world, notably linked to governments and banks in industrialized Western

countries, influenced the legitimization and consolidation processes of the acronym, because,

as mentioned in the theoretical section, many aspects of economic life are based on

perceptions and feelings: In this case, the prestige and credibility of the company. Probably,

the BRIC would have received less attention and dissemination if the concept had originated

in the academy, and had been received with more skepticism if they had been an initiative of

one of the member countries.36

34 Op.cit., p. 264 and Mariano Turzi, Qu importancia tiene el BRIC? [How important is the BRIC],

Estudios Internacionales, Vol. 43, No. 168 (2011), p. 91. 35 Dominic Wilson and Roopa Purushothaman, Dreaming with BRICs: The Path to 2050, Global

Economics Paper No. 99, London, Goldman Sachs 36 Both in the press and in the academy, there are publications related to the links between Goldman

Sachs and the governments of the United States and European countries, as well as Western financial

institutions. Undoubtedly, the consultancy is one of the pillars of the status quo of the current economic

27

In addition to the process of objectification, Goldman Sachs participated in the

process of social construction of reality while presenting the results of its researches as given

facts and almost infallible predictions, based on scientific and objective methods. Despite the

sophistication of the tools used in reports, some authors doubt that all members of the group

had really been attractive destinations for foreign investment. One of the main criticisms

clarifies that the high growth rates do not automatically mean higher profits for foreign

investors, because they must take into account the protection of property rights and other

financial indicators.37 Accordingly, Goldman Sachs documents did not explain why an

investor would prefer Brazil over South Korea or Malaysia. It has also been criticized that

the reasoning of the reports was based on considering the size of the economies as

synonymous with dynamism. That means, they proposed that the enormous growth of the

domestic markets would mean a significant expansion of the middle class and therefore

consumption and demand. However, they focused on the idea that large markets tend to be

less vulnerable to external shocks, without taking into account that this is not the case of the

economies of Russia and China.38

Regardless of its relationship with givens and future results, the presentation of the

economies of the four countries as a natural group and as an unquestioned part of the

international situation represented an exercise of symbolic power by the multinational

system. Critical studies also denounce the predominance of white men of a certain socioeconomic background

in key positions of the company, "At Goldman Sachs, The Masters of the Universe are all White", The Journal

of Blacks in Higher Education, No. 21 (Autumn 1998), pp. 34. 37 Besides, just as growth stocks Have lower returns than value stocks, growth nations do so Have

lower returns than value nations; Often emerging markets returns to show disappointing Problems with

corporate governance, share dilution: such as unwarranted. In addition, the growth of the economies of the

BRIC was very different from 2000 and 2006; Brazil grew 3.1 percent; Russia and India, 6.7 percent, while

China, 9.4 percent in Leslie Elliott Armijo, "The BRIC Countries (Brazil, Russia, India, and China) as

Analytical Category: Mirage or Insight?" Asian Perspective, Vol. 31, No. 4 (2007), p.11. 38 Kaushik Basu, (ed.), The BRICS Report: A Study of Brazil, Russia, India, China, and South Africa

With special focus on Synergies and complementarities, Oxford University Press, 2012, p. 34.

28

consultancy, through which it re- narrated a specific cluster of large emerging economies

interpreted as secure and as long term financial asset providers through a comprehensive set

of financial, narrative and discursive tools.39 Specifically, it exercised power through the

categorization and promoting of characterizations about international actors based on their

interests, and through it influenced the definition of accurate actions in specific situations.

All this increased the power of Goldman Sachs to define the international economic situation

and its prestige among financial service providers. When creating a novel concept, it

extended the characterizations of economic actors, which also participated in the

accumulation of social knowledge the shared certainties and with the lighting and dimming

of different areas of reality; in this case they increased the visibility of the four countries and

darkened the one of other emerging economies that were not included in the group.

Regarding the phases of the realization of a self-fulfilling prophecy, mentioned in the

previous chapter, the reports published by Goldman Sachs meet all the requirements

proposed by Ted Hopf. First, they are based largely on expectations and specific predictions

about the behavior of certain actors, as well as on the outcome of their actions. Second, they

are related to institutional facts unlike natural facts , such as indicators, models, economic

policies and interactions and processes of the international system. Third, with the

publication of more articles and diffusion through the media, the financial consulting and

other actors contributed to spreading it within the community of those interested in

international finances. Finally, different actors changed their behavior in line with the

predictions of the reports, given that, since 2005, with the consolidation of the concept as a

valid category to describe the processes of transformation of the international economy,

39 Cornel Ban and Mark Blyth, "The BRICs and the Washington Consensus: An introduction", Review

of International Political Economy", Vol. 20, No. 2 (April, 2013), p. 243.

29

products and funds directed towards BRIC proliferated, as well as investment and consulting,

branding and marketing activities, and also the profits of investment banks and credit ranking

agencies.40 In short, just five years after the first appearance of the concept, and thanks to the

favored position, resources and legitimacy of Goldman Sachs, the BRIC turned into a self-

fullfiled prophecy in international finances.

2.2 THE ADOPTION OF THE CONCEPT BY THE MEMBER COUNTRIES

It is rare that a concept consolidates and becomes a self-fulfilling as quickly and as

easily as the BRIC did in the financial field, which can be attributed largely to the reputation

of Goldman Sachs and the major specialized journals that contributed to its

spreading. However, few could have foreseen that the concept would transcend the financial

sphere and would be appropriated by member countries as part of their identity and foreign

policy, expanding the scope of self-fulfilling prophecy originated by the report of O' Neil to

the political international arena just within a few years. As mentioned above, these

phenomena do not occur often, as the viability of self-fulfilling prophecies also depends on

its relationship with the objective reality. Although the relevance and even consistency of the

concept has been questioned by several authors both economically and politically, the ease

with which the concept transcended the financial sphere and go adopted by Brazil, Russia,

India and China lies partly in the similarities the four countries had in their previous

identities, reinforcing the viability of the concept to become a self-fulfilling prophecy. This

section presents a brief descriptions of the main aspects that the foreign policies of the

40 Marion Fourcade, "The material and symbolic construction of the BRICs: Reflections inspired by

the RIPE Special Issue", Review of International Political Economy, Vol. 2, No. 2 (2013), p. 264.

30

different countries shared since the decade of the nineties and during the first years of this

century.

In the case of Brazil, the foreign policy of the administration of Fernando Henrique

Cardoso (1995-2002) was based on the promotion of democracy, free markets and social

justice. Its aim was to present the country as a responsible partner, able to be a leader in the

region and to promote the interests of Latin America in a peaceful way emphasizing the

importance of disarmament and the idea of not basing the power of states on their military

capabilities without demanding radical changes in the international economic order. It was

then that the identity of Brazil as a developing country, seeking prosperity for all countries

based on economic stability and sustained growth by overcoming the divisions between

North and South was consolidated. Although with different intensity, the Brazilian foreign

policy also denounced that developed countries imposed their interests unilaterally,

sometimes at the expense of developing countries and through the use of force, which

reiterated the importance of designing cooperation mechanisms to increase the representation

of the South and to promote joint profits. The foreign policy of the next administration, led

by Luiz Inacio Lula da Silva (2003-2010), was also based on the developmental rhetoric. The

country projected a new concept of geopolitics and became active in promoting cooperation

among developing countries. However, it clarified that it had no intention to confront the

centers of power, but to build a multipolar world, increasing the representativeness of the

South in international institutions. At the same time, it stated that liberalization should not be

a recipe imposed without taking into account the unique conditions of each country and that

it should not be an obstacle to the economic autonomy of the states.41

41 See John L., Hammond and Joo Roberto Martins Filho, "Introduction: Brazil under Cardoso", Latin

American Perspectives, Vol. 34, No. 5 (September 2007), pp. 5-8; Marcelo Fernandes de Oliveira. Timothy

31

The Russian Federation emerged after the traumatic collapse of the USSR in 1991.

Following the failure of Soviet communism, the new economic program and its foreign

policy were based on the support for democracy, market economy and the rejection of

confrontation with the Western industrialized countries. However, at the same time it rejected

the unipolar system and advocated the emergence of new global centers of power and growth

as well as global governance by a collective leadership, as opposed to the exclusive

leadership of the West. It is important to note the recognition given by the Russian foreign

policy to international institutions, mainly to the United Nations and its Security Council, as

legal multilateral structures for the protection of the rights of the states. Accordingly, one of

its major concerns since has been promoting the cooperation and integration of the country

within the international economy. Thus, as it can be observed in Russian foreign policy, on

the one hand, it defends its sovereignty and its regional and international geopolitical interests

and forms close relationships with countries not aligned with Western power centers; and on

the other hand, it also has and promotes deep links with the international economy and the

Western industrialized countries, mainly its relations with the European Union in the field of

energy. Although Russia could be considered as the BRIC with more potential to have

frictions with the industrialized North, it is worth recalling the significant contrast between

the present and the conflicts and tensions during the Cold War, when the Soviet Union was

Thompson, and Tullo Vigevani, "Brazilian Foreign Policy in the Cardoso Era: The Search for Autonomy

through Integration ", Latin American Perspectives, Vol. 34, No. 5, (September, 2007), pp. 58-80; Sean W.

Burges, "Self-Esteem in Brazil: The Logic of Lula's South-South Foreign Policy", International Journal , Vol

60, No. 4 (Autumn 2005), pp.. 1133-1151; Omar G. Encarnacion, "Lula's Big Win", World Policy Journal ,

Vol. 19, No. 4 (Winter 2003), pp. 73-77

32

identified as the opposite pole of the capitalist world and actively promoted a global

revolution in its favor.42

In the case of India, its foreign policy since the decade of the nineties also criticized

an unfavorable international economic environment for the developing countries. Unlike

Russia, it denounced that Western institutions, such as the United Nations, were to serve the

interests of a few, instead of representing the majority. Taking up echoes of the Non-Aligned

Movement, it promoted South-South cooperation and the importance of giving voice and

representation to previously colonized countries. In a similar way to Brazil, it emphasized

the link between peace and economic development and the tried to include it in the

international agenda through the multilateralism, especially in the United Nations. Although

the country did not abandon its old ties with the West, it sought new partners to diversify its

relations and promote economic development. As the new century began, India's foreign

policy assumed a more conciliatory and pragmatic tone, leaving behind the discourse of

confrontation with the West, while promoting the developmental policy of the South.43

The PRC was also guided by principles of the Non-Aligned Movement during the

decade of the nineties. Its foreign policy discourse denounced the prevalence of a unipolar

world, an unjust economic order and inequality between rich and poor countries, which

deepened the divisions between North and South. Politically, it rejected hegemonism and

unipolarity in the international system. As well as other members of the BRIC, China

encouraged the move towards multipolarity and tried to include the issue of development on

42 See Alex Pravda and Malcolm Neil, "Democratization and Russian Foreign Policy", International

Affairs , Vol. 72, No. 3 (July, 1996), pp. 537-552, and Paul Kubicek, "Russian Foreign Policy and the

West", Political Science Quarterly , Vol. 114, No. 4 (Winter 1999-2000), pp. 547-568. 43 See Sumit Ganguly, "India's Foreign Policy Grows Up", World Policy Journal, Vol. 20, No. 4

(Winter 2003/2004), pp. 41-47; Kamal Mitra Chenoy and Anuradha M. Chenoy, "India's Foreign Policy Shifts

and the Calculus of Power", Economic and Political Weekly , Vol. 42, No. 35 (September, 2007), pp. 3547-

3554.

33

the agenda of the United Nations, as well as to promote the reform of the Security Council

aimed at increasing the representation of developing countries.44 Economically, it tried to

eliminate protectionism and discrimination against the interests of the underdeveloped

countries, and increase the representativeness of the latter in international

institutions. Accordingly, it called on the developed countries to promote debt reduction,

technology transferences and access to their markets. Militarily, it denounced the expansion

of some organizations, such as NATO, as a reflection of hegemonism in international

relations. However, since the beginning of the process of economic reform and opening up,

China is aware that it cannot develop in isolation and that the best option for global stability

was to maintain cordial relations with the United States and the industrialized North. What

is more, since the beginning of the twenty-first century, China has emphasized pacifism as

the basis for its external relations. As the Russian Federation, the People's Republic has been

actively promoting its relations with the international economic system and has sought to

diversify its economic relations with different countries, both from the North and the South.45

As it can be seen, despite their remarkable historical differences, the foreign policies

of Brazil, Russia, India and China coincided in giving an important place to the promotion

of multilateralism and development during the decade of the nineties and the early years of

the XXI century, denouncing to a greater or lesser extent, the gap between the North and the

South, as well as its implications in the international economic system. However, the four

44 Even in 2009, President Hu Jintao stated that China supported the reform of the Security Council to

include countries in Africa. 45See Sheng Lijun, "China's Foreign Policy Under Discrepancy Status, Status

Enhancement", Contemporary Southeast Asia , Vol. 17, No. 2 (September 1995), pp. 101-125; Abanti

Bhattacharya, "Chinese Nationalism and China's Assertive Foreign Policy", The Journal of East Asian Affairs,

Vol 21, No. 1 (Spring / Summer 2007), pp.. 235-262 and Yi Xiaoxong, "Chinese Foreign Policy in Transition:

Understanding China's Peaceful Development", The Journal of East Asian Affairs , Vol 19, No. 1 (Spring /

Summer 2005), pp.. 74-112.

34

countries ruled out strategies of confrontation with the industrialized North. Instead, they

considered that their relations with them, specifically with the United States, played a key

role in their economic development strategies. At the same time, they kept the desire to

promote the representation of developing countries in international economic policies and

institutions as well as to promote South-South cooperation. These coincidences in the BRIC

assumed identities through their foreign policies enabled the concept to transcend the

financial sphere.

Thus, as the group received increasing attention in the media and academy, the leaders

of the four countries began to use it to increase their visibility in the international arena. In

2006, the Foreign Ministers of the BRIC countries met for the first time in New York in the

eve of a session of the United Nations General Assembly. A year later, the Finance Ministers

gathered in So Paulo and issued a joint statement before the meeting of the Ministers of

Finance and Governors of Central Banks of the G-20, where they discussed joint proposals

on the financial crisis and the need to reform international institutions.46 Since then, meetings

between representatives of the four countries proliferated significantly, until June 2009, when

BRIC consolidated as political and economic reality of the international system through the

First BRIC Summit in Yekaterinburg, Russia, attended by the heads of State of the four

countries. The main objective of the event was to coordinate positions on the summits of the

G-20 and G-8, which were scheduled for the same year. That way, the BRIC transformed

from being a concept of international financial arena to a mechanism of political coordination

among its members.

46 "Brazil, Russia, India and China First Meeting of BRIC Finance Ministers Joint

Communique", consulted in February 2015 in http://www.brics5.co.za/about-brics/sectorial-

declaration/financial-ministers-meeting/first-meeting-of-finance-ministers/

35

Thereafter, the foreign ministers of the BRIC have met seven times: twice in 2009 in

Yekaterinburg (concluding with the publication of a joint statement) and in New York; once

in 2010 in New York; twice in 2011 in New York and in Moscow (also concluding with the

publication of a joint statement); once in 2013 in New York; and twice in 2014 in The Hague

and New York. Finance Ministers have met twice in 2009 in the UK; once in 2001 in

Washington DC; in 2014 in Brazil; in 2014 in Australia; and again in 2015 in Washington

DC. Most meetings culminated with the publication of joint statements and were held in

reference to the G-20 summits, the IMF and the World Bank to coordinate the actions of the

four. Meanwhile, the agriculture ministers have met five times since 2010, producing

statements in each one of the events. It is important to mention that the 2011 meeting in

Chengdu produced an action plan for Agricultural Cooperation between BRIC Countries,

scheduled for 2012-2016, as well as a document on the working procedures of agricultural

cooperation. They has also been meetings between the Ministers of Education, Environment,

Health, Trade and Science and Technology. However, the most important and visible

meetings are those of the Heads of State during the annual summits that have taken place in

Brazil in 2010, in Sanya in 2011 in New Delhi in 2012; in South Africa in 2013; in Brazil in

2014 and soon in Russia in 2015.47 Since then, in addition to the joint declarations and the

coordination of actions to promote common interests, probably the most important

achievement of the BRICS it has been the creation of the New Development Bank BRICS,

in July 2014, as an alternative to the World Bank and the International Monetary Fund.

As it can be seen, the adoption of the concept by the member states is also a process

of objectification of their interests and certain characteristics of their previous identities, so

47 BRICS Official Documents and Meetings, BRICS Information Centre, Consulted in February 2015

in http://www.brics.utoronto.ca/docs/

36

that their actions like those of Goldman Sachs contribute to the social construction of

reality. Specifically, an international reality in which the BRIC represent the most advanced

efforts to promote multilateralism and the representativeness of the developed countries in

international institutions. With the internalization and reiteration of their new identities as

BRIC, they continue with the process of classification of states, which began with the report

of Jim O'Neil in 2001, and used the social function of identity to promote values, norms and

action parameters. The products of human activity in which the BRIC objectified their

interests and identities are the summits, meetings, joint communiques, working papers, since

these are visible and available to all other members of the international community, which in

turn contribute to the accumulation of social knowledge. It is also important to mention that

the concept gained increasingly materiality and thus more strength and even got

objectivized in an institution one of the pillars of the social construction of reality through

the creation of the new development bank. At the same time, the practices of the BRIC

reproduce the second, third and fourth stages of the self-fulfilling prophecies, as both its

consolidation as an economic-political group as their statements and actions are based on

institutional facts (opposed to natural events). At the same time, they promoted the

dissemination of ideas within the international community and modified the behavior of the

actors in such a manner consistent with the predictions of the theory. In addition to the above,

the group still gained more strength and independence of the reports of Goldman Sachs when

with the inclusion of South Africa, a process which is described in the following section.

2.3 THE INCLUSION OF SOUTH AFRICA

Beginning in 2010, the president of South Africa conducted negotiations and state

visits to prepare the request for the inclusion of the country in the BRIC, which was formally

37

presented during the G-20 summit of the same year in Seoul.48 Later that year, the South

African Foreign Ministry received a call from its Chinese counterpart, confirming the

invitation to the summit in Sanya. In February 2011, the Finance Minister of India confirmed

the entry of South Africa to the group and the process became official in April, through wich

the final "s" was added to the acronym. South Africa's entry to BRIC was controversial

because the country did not have the size of the population and economy of the other four

members. The same Jim O'Neil stated that it made no sense and said that Nigeria could have

been a better choice to represent the continent.49 In addition, two years before, the country

had been considered by The Economist the number 17 among the most risky emerging

markets to invest, because of the relationship between the characteristics of its foreign debt

and monetary policy,50 which contradicted the original reason for creating the

group. However, precisely for this reason and the fact that South Africa was chosen over

other countries, perhaps more akin to the financial profile of the four such as Mexico,

Turkey and Indonesia , is that the expansion of BRIC to BRICS represents a transition from

the financial to the economic sphere and mainly, to the political. Similarly, it consolidated

the adoption of the concept by the member states and its independency of the characteristics

and limitations imposed upon the concept by the reports of Goldman Sachs.

Particularly striking is the speed with which the process of inclusion of South Africa

to BRIC was conducted. This is partly explained by economic and political interests of the

five countries, but also because of discursive similarities with the identity of the other four;

48Carla Maria Morasso, Los intereses de Sudfrica como BRIC [The interests of South Africa as

BRIC], Conjuntura Austral, Vol. 4, No. 18 (June-July 2013), p. 12. 49 Ibid, p. 13. 50 Bond, Patrick, "Sub-imperialism as Lubricant of Neoliberalism: South African Within BRICS duty

deputy sheriff", Third World Quarterly, Vol. 34, No. 1 (2013), p. 252.

38

during the nineties, South Africa also expressed concerns about the marginalization of

developing countries. In foreign policy, it sought to increase the visibility of disadvantaged

countries in the international system and to promote South-South relations. However, it

maintained good relations and a friendly tone with its traditional partners and urged the

establishment of mechanisms for cooperation between developed and developing countries

to reduce the gap between them.51 Moreover, since it proposed its request for joining the

group, South Africa carried out modifications to align the country with the new identity and

functions of the BRIC. Economically, it instituted policies to encourage business with other

countries and to increase economic penetration into its territory.52 In foreign policy, the

"Strategic Plan 2001-2014" emphasizes the development, cooperation, and participation in

the system of global governance through multilateralism, strengthening South-South

relations and ties with strategic partners in the North as well as the recognition of the United

Nations as guarantor of regional and international peace.53

As for the processes of the social construction of reality, the inclusion of South Africa

also constitutes an objectification, because through it interests of both the four original

members as of the African country were expressed and materialized.54 This did not only

strengthened the characterization of states promoted through the idea of BRIC while

contributing with its repetition and internalization and strengthened the legitimacy of the

51Leslie Elliott Armijo, "The BRIC Countries (Brazil, Russia, India, and China) as Analytical

Category: Mirage or Insight?" Asian Perspective, vol. 31, no. 4 (2007), p.29. 52 Bond, Patrick, "Sub-imperialism as Lubricant of Neoliberalism: South African Within BRICS duty

deputy sheriff", Third World Quarterly, Vol. 34, No. 1 (2013), p. 263. 53 Carla Maria Morasso, Los intereses de Sudfrica como BRIC [The interests of South Africa as

BRIC], Conjuntura Austral, Vol. 4, No. 18 (June-July 2013), p. 13. 54 As mentioned in the theoretical chapter, an objectification is the manifestation and expression of

intersubjective processes into products of human activity, available to other subjects in addition to the

creators. Material and symbolic benefits of Brazil, Russia, India, China and South Africa through their

memberships to the BRICS are described in the following sections.

39

identity of the BRIC countries as the most advanced representatives of the developing world,

but it also expanded the characterization and thus the accumulation of social knowledge to

a territory where the concept had no presence: an area that had been sentenced to opacity by

the Goldman Sachs reports brightened. Finally, the inclusion of South Africa shows how the

concept of the BRIC continued to operate as a self-fulfilling prophecy, as it was conducted

through institutional mechanisms, in opposition to natural facts; continued spreading the idea

within the international community and modified the actions of the actors, especially those

of South Africa. Although it could be argued that the inclusion of the country opposes the

predictions of the reports that created the BRIC, it also meant its independence of the limits

set by Goldman Sachs and its appropriation by the member states, which also represents a

renewal and expansion of expectations on the translation of economic dynamism and political

representation to other poles of international geography.

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3. THE CHARACTERISTICS OF THE SELF-FULFILLED PROPHECY AND ITS IMPLICATIONS IN THE

INTERNATIONAL ORDER

The second chapter of this work described the origin of the BRIC and the way in

which they became a self-fulfilling prophecy. This one is responsible for describing the

content of the discourse of the BRICS and its implications for the international system. In

short, the characteristics of self-fulfilling prophecy. This develops the second part of the

investigations hypothesis, according to which the BRICS are a self-fulfilling prophecy that

gives stability and legitimacy to the international order. To begin with, this chapter presents

the various speeches that have been created to explain and legitimize the roles and differences

among the countries of the center, the periphery and semi-periphery in the international

economic system, in order to explain the context in which the BRICS are inscribed.

Subsequently, this chapter describes the discourse of the BRICS, based on the main speeches

and documents published by the group and representatives of the member states, through

which they define their identity and actions, as well as various aspects of the international

system. Then, through an analysis between the discourse and the actions of the group, this

section explains the main implications of the BRICS in the international system. To continue,

the contributions of the different members of the group, and the benefits they get from being

part of the BRICS. Finally, this chapter presents final considerations on the differences

between the group and its relationship with the West and the international system.

3.1 THE BRICS AND THE DOMINANT DISCOURSES OF THE INTERNATIONAL ECONOMIC SYSTEM

Economic life is governed not only by numbers, processes and objectives laws, but

these, while being expressed through language, acquired a symbolic and emotional

dimension that influences the perceptions and actions of social actors. As a result, economy

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is also interpreted through a moral dimension, in which the actors individuals, corporations

and states, institutions and processes are grasped not only through numbers, but also

through categories that evoke the desirable or reprehensible, the virtues or vices, and what is

considered good or bad. Therefore, concepts are not isolated evocations, but exist in relation

to other within discursive positions.55 The BRIC are no exception. As mentioned in the

previous chapter, the scientific methodology of the reports of Goldman Sachs, its prestige

and relations with financial institutions and governments, as well as the dominant position of

the media which contributed to the spreading of the concept were factors involved in its

acceptance, consolidation and legitimation, whereby the financial consulting firm captured

the imagination of investors and decision-makers worldwide. However, these elements are

not sufficient to explain the speed and success of the idea of the BRIC, as these are also

explained based on the emotional evocations of the narratives within which the concept is

inscribed. Therefore, to understand the role of BRIC within the dominant discourse of the

international economic system, it is necessary to describe the narratives that preceded it and

the way in which they interpreted the relationship between the countries of the core, the semi-

periphery and the periphery of the world.56

Each established order, or status quo, uses speeches to justify their existence and

permanence. In the case of the international economic system, much of its legitimacy lies in

different explanations presented to explain the inequality between the core countries and the

periphery. During the sixties and seventies, the dominant discourse both in politics and in

55 Marion Fourcade, "The materials and symbolic construction of the BRICs: Reflections inspired by

the RIPE Special Issue", Review of International Political Economy, vol. 2, no. 2 (2013), p. 262. 56 For the theorist Immanuel Wallerstein, the world economic system is divided into the center the

industrialized countries, the semi-periphery and periphery. The division is based on trading goods and the

earnings of the world economy, in Immanuel Wallerstein, World systems analysis, an introduction, Mexico,

Siglo XXI Editores, 2005, p. 10.

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social sciences was based on the theory of modernization, according to which any country in

the semi-periphery or periphery could move towards the center i.e. achieve its

industrialization as long as it was able to allocate and use resources efficiently, largely

through market liberalization, trade and financial flows. On the other side, although they were

never part of the dominant discourse, the theories of dependency and imperialism emerged

to challenge the theory of modernization, arguing that underdevelopment was the result of

the unequal exchange between center and periphery, and that the liberalization of economic

relations both inside and outside the State carried the potential to generate and strengthen

economic inequality between countries and between individuals. Given the weakening of the

modernization theory, the neoliberal counteroffensive arrived, which went even further in its

endeavor to deregulate the economy and minimize the role of the State. This new discourse

became legitimized through the industrialization of the four "Asian tigers" in the early

seventies, representing their success as the result of neoliberal policies. However, a decade

later, with the arrival of the debt crisis in Latin America, neither the World Bank nor the

International Monetary Fund the two most representative institutions of neoliberal thought

were able to avoid the two lost decades in the subcontinent. Then came the discourse of

globalization, which is based largely on the precepts of neoliberalism, but coated with

optimism and new politically correct concepts.57

As it can be seen, the international economic system based on the hegemony of the

United States and its industrialized allies the center of the international economy generated

dominant discourses which became spread and reproduced by the academia, the media and

57Radhika Desai, "Dreaming in Technicolour? India as a BRIC Economy ", International

Journal, vol.62, no. 4 (2007), pp. 783-786.

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political statements about the position and the possibilities of the countries of the periphery

and