/ 2 July 2017

ANC wants Brics ratings agency as policy

The bloc’s new development bank seems to be working hand in hand with global institutions such as the World Bank. Photo: Danish Siddiqui/Reuters
The bloc’s new development bank seems to be working hand in hand with global institutions such as the World Bank. Photo: Danish Siddiqui/Reuters

The ANC’s international relations subcommittee plans to push for the establishment of a Brics (Brazil, Russia, India, China, South Africa) ratings agency to be official party policy.

Speaking to the Mail & Guardian at the ANC’s national policy conference, subcommittee chairperson Edna Molewa said it was “quite a necessity” to act on suggestions for a rating agency for emerging economies.

“We now need it to be policy of the ANC so that we can move on with implementation of that in government.”

The suggestion of an alternative ratings agency was made at last year’s Brics summit and was reignited earlier this year by the Black Business Council.

The council accused Western ratings agencies such as Moody’s, S&P and Fitch of being unfair towards emerging economies and finding spurious reasons to support ratings downgrades.

In its international relations policy discussion document, the ANC raises concerns about the unfair dominance of the global North over the South.

The International Criminal Court, World Bank and International Monetary Fund are mentioned for their “stubborn persistence of imperial designs”.

Molewa said, in addition, the ANC-led government’s plan to improve South-South relations would see it reaching out to other countries to ward the threat of the North that was becoming increasingly conservative.

“South America must be strengthened and our relations with them must be strengthened because we need all those kinds of forces together to deal with this fast-changing sand underneath us,” Molewa said.