makingit_14_pp42-45_policybrief_print 16/10/2013 17:19 Page 44
POLICY BRIEF
Can intra-BRICS cooperation advance amid economic gloom? By OLIVER STUENKEL, Professor of International Relations at the Getulio Vargas Foundation in São Paulo, Brazil Since the 4th BRICS Summit in Delhi in March 2012, things seem to have largely gone downhill for the BRICS members (Brazil, Russia, India, China and South Africa). Brazil’s economy has lost its vigor, and stifling regulations keep it from becoming more competitive. Growth in China has fallen far below the 10% mark, potentially endangering political stability. India’s currency is hitting a “historic low” or a “lifetime low”, reflecting its sliding economy. Russia, for its part, is struggling to diversify its economy, while South Africa must be careful not to be overtaken by challengers that seek to turn into the continent’s economic hub, such as Nigeria or Kenya. While reigniting their economies is indeed the major challenge in the coming years, doubts about the utility of the BRICS acronym are misguided. The necessity to strengthen intra-BRICS ties, as well as the opportunity to articulate new narratives on how to best tackle global challenges, remains, and the BRICS leaders must continue to invest in the grouping. It is now time to begin developing a proactive agenda for the 6th BRICS Summit in Fortaleza in 2014. In the midst of all the economic gloom, business leaders from the BRICS met in Johannesburg in August 2013 to identify
44 MakingIt
specific measures to eliminate barriers to growing trade and investment. The BRICS Business Council was established during the 2013 BRICS Summit in Durban in March, with South African businessman, Patrice Motsepe, named chair of the body. South African President Zuma’s decision to address the meeting underlines that South Africa remains the perhaps most eager BRICS member: in 2012, South Africa’s total trade with other BRICS countries stood at over 290 billion rand (about 29bn US dollars), up 11% from the 2011 figure; and South Africa’s accession to the BRICS grouping in December 2010 remains one of Zuma’s major foreign policy achievements. In parallel, BRICS trade ministers have initiated a study on how to promote valueadded products and strengthen
“While China enjoys strong economic ties with all the BRICS countries, trade among the rest is far too low. Trade barriers, regulations and visa rules must be eased to promote economic activity between them.”
investment relations. The trade ministers formed the Contact Group on Economic and Trade Issues, which will meet in November 2013 in South Africa to discuss the study. At the 2014 Summit in Fortaleza, the following three issues should be on the agenda: First, efforts to strengthen intra-BRICS ties further need to continue, particularly those between the ‘BRIS’: While China enjoys strong economic ties with all the BRICS countries (it is Brazil’s, India’s and South Africa’s most important, and Russia’s second largest, trading partner), trade among the rest is far too low. Trade barriers, regulations and visa rules must be eased to promote economic activity between them. At the same time, diplomatic ties should increase: Brazil’s diplomatic presence in China and India, for example, remains far weaker than that in Italy and in France, something which no longer reflects economic realities. Finally, social and cultural relationships need to be strengthened: Indian universities are part of Brazil’s ‘Science Without Borders’ programme, which sends 50,000 Brazilian undergraduates and 50,000 PhD students to study abroad. Russian universities have begun to accept degrees from a number of Brazilian institutions. These are important first steps, but they need to take place in a more systematic fashion. Strengthening ties between the BRICS goes beyond economics. Getting to know each other better is crucial in order to turn into more effective geopolitical actors willing and able to develop constructive proposals on how to deal with global challenges such as climate change. In addition, the BRICS continue to face serious domestic challenges, and possibilities to learn from each other abound: Brazil’s Bolsa Família programme, for example, could help improve policies in India.