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Turkey’s bid for BRICS both strategic and symbolic step, analysts say

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4 months ago

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Turkish Foreign Minister Hakan Fidan attends the BRICS+ session on a two-day BRICS foreign ministers summit held in Nizhny Novgorod, Russia on June 11, 2024.

Sefa Karacan | Anadolu | Getty Images

Turkey’s request to join the BRICS alliance is a move seen as both strategic and symbolic as the Eurasian country of 85 million makes increasing strides in its influence and leverage on the global stage.

“Our president has already expressed multiple times that we wish to become a member of BRICS,” a spokesperson for Turkey’s leading AK Party told journalists earlier in September. “Our request in this matter is clear, and the process is proceeding within this framework.”

BRICS, which stands for Brazil, Russia, India, China and South Africa, is a group of emerging market countries that seek to deepen their economic ties. This year, it gained four new members: Iran, Egypt, Ethiopia, and the UAE. 

It’s also seen as a counterweight to Western-led organizations like the EU, the G7 and even NATO, although it lacks formal structure, enforcement mechanisms, and uniform rules and standards. 

Tanto Capital Partners discusses Turkey's BRICS bid

For Turkey, a longtime Western ally and NATO member since 1952, the move to join BRICS is “in line with its broader geopolitical journey: positioning itself as an independent actor in a multi-polar world and even becoming a pole of power in its own right,” George Dyson, a senior analyst at Control Risks, told CNBC.

“This is not to say that Turkey is turning away from the West entirely,” Dyson added, “but Turkey wants to foster as many trading ties as possible and pursue opportunities unilaterally without being constrained by Western alignment. It is definitely symbolic in that Turkey is demonstrating exactly this — that it is not constrained by its good ties with the West.”

Diversifying alliances

Despite decades of being aligned with Europe and the U.S., Turkey has faced consistent rejection from joining the EU, which has long been a sore spot for Ankara.

Ambassador Matthew Bryza, a former White House and Senior State Department official currently based in Istanbul, said that Turkish President Recep Tayyip Erdogan and his government “seem to be motivated mostly by two factors: A strategic tradition of securing national interests… and a desire to spook the West a bit, both out of emotional spite and as a negotiating tactic to extract concessions.”

CNBC has contacted the Turkish presidency’s office for comment.

Turkey has in the last few years expanded its role in global diplomacy, brokering prisoner swap deals and leading other negotiations between Ukraine and Russia, for instance, while also mending previously strained relations with regional powers like Saudi Arabia, the United Arab Emirates and most recently, Egypt.

Russian President Vladimir Putin shakes hands with Turkish President Recep Tayyip Erdogan during their joint press conference on September 4, 2023, in Sochi, Russia.

Getty Images News | Getty Images

Ankara also refuses to partake in sanctions against Russia — a stance that irks its Western allies but helps it maintain an independent position as a so-called “middle power,” which it sees as beneficial to its relationships with China and the Global South.

To that end, “any new BRICS member is obviously eager to take advantage of stronger ‘togetherness’ of emerging economies in order to reduce dependency on developed economies, mainly the United States,” said Arda Tunca, an independent economist and consultant based in Turkey.

Standing up to the West?

Tunca noted, however, that Turkey’s unique position in the world is a “delicate discussion point” as the country has “serious political problems with the EU and the United States” despite its western alliances.

Turkey’s governing party, which has run the country for 22 years, is “ideologically closer to the East than the West,” Tunca said. “Turkey wanted to hop on the BRICS train before it was late. It is too early to mention that the BRICS can become an alternative to the West, but the intention is clearly to stand up against the West under the leadership of China.”

Importantly, being part of BRICS allows its members to trade in currencies other than dollars. This aims to reduce dependency on the U.S.-led system and usher in a more multi-polar world. The fact that it’s led by China makes some in the West wary, who see this as a potential win for Beijing. 

Turkish President Recep Tayyip Erdogan (not seen) is welcomed by Chinese President Xi Jinping as part of the 11th G20 Leaders’ Summit in Hangzhou, China, on September 3, 2016.

Mehmet Ali Ozcan | Anadolu Agency | Getty Images

“I don’t think there is any enforcement of their [BRICS’] decisions, it’s more of a geopolitical thing, sort of a symbolic counter to the G7,” Dyson said. He also noted: “It’s interesting that Iran and UAE are both in it. It’s a bit like the anti-West team.” 

Erdogan has spoken of his desire to join BRICS since at least 2018, but the issue was never formalized. In June, Turkish Foreign Minister Hakan Fidan visited both China and Russia, the latter for a BRICS+ summit, during which Russian President Vladimir Putin said he “welcomed” Turkey’s interest in joining the bloc.

At the time, the then-U.S. ambassador to Turkey, Jeff Flake, said in an interview that he hoped Turkey wouldn’t join the group, but added that he did not think it would negatively impact Turkey’s alignment with the West.

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Accounting

Business Transaction Recording For Financial Success

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2 hours ago

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January 18, 2025

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Business Transaction Recording For Financial Success

In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.

The Importance of Detailed Transaction Recording
At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.

Establishing a Robust Chart of Accounts
A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.

Leveraging Modern Accounting Software
Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.

The Power of Double-Entry Bookkeeping
Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.

The Role of Timely Documentation
Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.

Regular Reconciliation for Financial Integrity
Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.

Conclusion
Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.

With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.

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Economics

A protest against America’s TikTok ban is mired in contradiction

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8 hours ago

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January 17, 2025

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

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1 day ago

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January 16, 2025

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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