SPECIAL FEATURE tinue to move forward together. Although the BRICS countries are at similar stages of development, they have a wide range of opportunities that they can take advantage of. China has a broad market, strong innovative ability and a relatively strong economic foundation. Russia is rich in natural resources while India, South Africa and Brazil also have unique advantages. As long as an appropriate cooperation methodology is adopted, they will be able to achieve the result of 1+1 being greater than 2. Accordingly, mutual political trust will need to be strengthened in order to bridge the gap between BRICS countries and reinforce cooperation in various areas such as the economy, culture, finances, communications and trade. The next step will be to bolster this level of cooperation amongst BRICS countries in order to improve the relationships between personnel, trade, economic investment and the exchange of information to a level whereby they can develop ideas that they can eventually convert into action. By developing a new cooperation regime, efficiency can be facilitated and their dependence on western countries can be reduced. Focus areas must be determined to maximise these cooperative benefits. For example, this has already been demonstrated in the establishment of the BRICS Development Bank in 2014, which is a result of BRICS cooperation in the financial sector. To create additional opportunities in economic collaboration, this strategy should be aimed at developing infrastructure in the energy, transport and communication sectors. Lastly, BRICS countries should openly engage with each other and intensify cooperation, but this cannot be done if the parties are narrow-minded and ring-fence themselves from developed economies when opportunities arise. In addition, cooperation with the rest of the world will be beneficial to member states so long as it does not harm the mutual interests of BRICS. Regardless of development or cooperation issues, the BRICS countries should always aim for a win-win outcome. This is a philosophy that China adheres to and for which it is advocating. Being the world’s second biggest economy (although some analysts have confirmed China as the world’s larg-
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est economy), and having its economic development placed at the centre of the world stage, China is a key powerhouse to drive the BRICS countries towards success. Despite China’s economic growth having slowed down, it remains within the bounds of the rules of economic development. The Chinese economy still shows signs of new opportunities, business innovation, quality economic development and social harmony, as well as improved living standards. In future, China will be able to pass its successful experience on to other BRICS countries, strengthen its influence, and promote the development of all BRICS members.
BRICS countries should openly engage with each other and intensify cooperation, but this cannot be done if the parties are narrow-minded and ring-fence themselves from developed economies when opportunities arise. The future of economic development in BRICS countries is looking extremely bright and the current difficulties faced by these countries should not deter hope. The world economy post the economic meltdown now faces a reshuffle. As America, Japan, Europe and other developed economies remain in their state of recovery and are showing signs of lag, it is likewise inevitable that the developing BRICS countries may also experience a certain degree of struggle. However, as long as they are resolute in their aims for cooperation and joint economic development under a win-win strategy, and each country takes advantage of its potential to drive economic development, they can succeed in turning these goals into reality. • Kenny Chiu is an Executive and head of ENSafrica’s China Practice Group; Wil Huang is a Senior Transactions Manager in ENSafrica’s China Practice Group. SOUTH AFRICAN BUSINESS 2016