Introduction
BRICS is a grouping of the five emerging economies of Brazil, Russia, India, China and South Africa. Mooted in the year 2001 by Goldman Sachs, these five emerging countries from different regions of the world are increasingly seen as the centre of global power transition.i Coinciding with the Global Financial Crisis (GFC) of 2008-9 the main aim of the grouping is to foster cooperation, policy coordination and political dialogue regarding international economic and financial matters. However, and since its inception, the BRICS has expanded its activities, particularly in conducting regular meetings of the group, coordinating positions in international organisation and the development of an agenda for multi-sectoral cooperation among its members. The group was consolidated with the first Summit at the Heads of the State level in 2009. Thereafter, the group continued to meet once every year to discuss varied issues of global importance.
As the BRICS prepares to enter its tenth year with the BRICS Summit on July 25-27, 2018 in Johannesburg, South Africa, the paper attempts to look into the major areas of BRICS socio-economic cooperation since its inception. In the process, a comparative analysis of the Summit Level declarations has been undertaken to take a stock of the progress in terms of the commitments as well as implementation on important issues.
Genesis and Significance: From BRIC to BRICS
The acronym BRIC(S) was first mooted by Jim O’ Neill of Goldman Sachs to represent Brazil, Russia, India and China in the year 2001 while projecting that the economies of Brazil, Russia, India and China would individually and collectively occupy far greater economic space and would be amongst the world’s largest economies in the next 50 years or so.ii However, the group met for the first time after the meeting of the leaders of Russia, India and China in St. Petersburg on the margins of G8 Outreach Summit in 2006. The group became formalised during the 1st meeting of BRIC Foreign Ministers on the margins of United Nations General Assembly (UNGA) in New York in 2006. Thereafter, the 1st BRIC Summit was held in Yekaterinburg, Russia, in June 2009. The group expanded to include South Africa at the BRIC Foreign Ministers’ meeting in New York in September 2010. Accordingly, South Africa attended the 3rd BRICS Summit in Sanya, China in April 2011.iii
BRICS Members
Source: NDB Annual Report, 2016.
Together these five emerging economies of BRICS represent over 40% of the world population, more than 30% of the world GDP and 17% share in the world trade.iv The group started essentially as a platform for discussion of economic issues of mutual interests. However, the agenda of BRICS has considerably expanded in it scope over the years to encompass important global issues. BRICS cooperation is embedded on two pillars – consultation on issues of mutual interest through meetings of Leaders as well as of Ministers of Finance, Trade, Health, S&T, Education, Agriculture, Communication, Labour, etc. and practical cooperation in a number of areas through meetings of Working Groups/Senior Officials.v
According to statistics of the World Trade Organisation (WTO), the participation of BRICS in global exports more than doubled between 2001 and 2011, from 8% to 16%. In these years, their total exports have grown more than 500%, while total global exports grew 195% in the same period. Between 2002 and 2012, intra-BRICS trade increased 922%, from US$ 27 billion to US$ 276 billion, while between 2010 and 2012, BRICS international trade rose 29%, from US$ 4.7 trillion to US$ 6.1 trillion dollars.vi
BRICS Summits: An Analysis of Socio-Economic Cooperation
So far nine BRICS Summits have taken place. First BRICS Summit was held in Yekaterinburg, Russia on June 16, 2009; the second in Brasilia, Brazil on April 16, 2010; the third in Sanya, China on April 14, 2011; fourth in New Delhi, India on March 29, 2012; the fifth in Durban, South Africa on October 26-27, 2013; sixth in Fortaleza, Brazil, July 14-16, 2014; seventh in Ufa, Russia on July 8-9, 2015; eighth BRICS Summit was hosted by India during its Chairmanship on October 5-6, 2016; and the ninth summit was held in Xiamen, China on September 3-5, 2017.
Over the years, BRICS cooperation has expanded in its scope in terms of its meetings, number of stakeholders and agenda. It has now come to include an annual programme of over 100 sectoral meetings encompassing three levels of interaction, involving formal diplomatic engagement between the national governments, engagement through government-affiliated institutions, e.g. state-owned enterprises and business councils and civil society and “people-to-people” engagement. In terms of its agenda, the engagement is now multi-sectoral.
Table 1 below indicates the areas of cooperation among BRICS countries, which has been underlined in various summit declarations, including health, education, science and technology, agriculture and economic and financial cooperation. All these areas have come to be incorporated under the umbrella of Strategy for BRICS Economic Partnership adopted in 2015. The progress in each of these areas since its first summit in 2009 has been tardy. The only concrete progress can be seen in the establishment of the New Development Bank (NDB) and Contingent Reserve Arrangements (CRA). On agriculture, the coordinating centre of the BRICS Agricultural Research Platform was set up in April, 2017. The most recent development is seen in the establishment of the NDB Africa Regional Centre (ARC) in August, 2017. On other issues like health, education and science and technology, progress has been modest.
To strengthen and enhance intra-BRICS cooperation, the Strategy for BRICS Economic Partnership was adopted during the Ufa Summit in July 2015. It has come to encompass all areas of cooperation including trade and investment, manufacturing and mineral processing, energy, agricultural cooperation, science, technology and innovation, financial cooperation, connectivity, ICT cooperation and coordination in multilateral and regional organisations. In these three years since its adoption, BRICS has increasingly endeavoured to institutionalise its cooperation at different levels on the different areas identified under the BRICS partnership. In this direction, various seminars, workshops, and meetings are being conducted on regular basis.vii
Since it very existence, the leaders of BRICS has been committed to coordinate positions in improving global governance to foster a more just and equitable international order. The leaders have consistently reiterated their commitments to advance reform of international economic and financial institutions so as to reflect the changes in world economy, particularly providing greater voice and representation to the developing countries in these institutions. To this end, BRICS has succeeded in bringing incremental changes in the International Monetary Fund (IMF) over the years. The joint efforts of BRICS culminated in the 2010 Reform Proposal on Quota and Governance. Subsequently, the quota of the IMF was doubled, with a total 6% share transferred to the emerging and developing countries. The votes of China, Russia, Brazil, and India was increased and reached a total of 14.18%.viii
They have also reiterated their commitments for a comprehensive reform of the United Nations (UN) to make it more efficient, along with extending support to the aspirations of India and Brazil to play a greater role in the system. However, there is no direct reference of extending support to the expansion of the permanent membership of the UN Security Council (UNSC). It is reflective of the intransigent positions of Russia and China to reform the UNSC. This belies prospects for substantial reform because reforming the UNSC requires an affirmative vote and domestic ratification by two-thirds of UN member states, including all of the Security Council’s permanent members (the P5, consisting of China, France, the United Kingdom, the USA and Russia), which have consistently opposed any measures at expanding the permanent membership.ix
The leaders have recognised the primacy of G20 as an important player and as a forum for international economic coordination and cooperation among all its member states. At the G20 Summits, BRICS is seen as an influential player in shaping macroeconomic policies. In this direction, BRICS is working towards strengthening international taxation policy, including base erosion and profit shifting (BEPS), exchange of tax information, tax capacity-building of developing countries and tax policies to promote growth and tax certainty. To this end, members have committed to strengthen cooperation and coordination through the existing mechanisms, including the BRICS Heads of Revenue Meeting. For instance, at the 4th Meeting of BRICS Heads of Revenue held in December 2016, and which was hosted by India, leaders reached consensus to strengthen the BRICS tax cooperation, and all members agreed to implement the G20’s consensus on tax governance and help the developing countries to improve their taxation capacity. In July 2017, during the 5th Meeting of BRICS Heads of Tax Authorities in Hangzhou the Memorandum of Cooperation (MoC) between the BRICS tax authorities was signed.x
The BRICS leaders have also reaffirmed their support for an open, inclusive, non-discriminatory, transparent and rule based multilateral trading system with continued efforts to the effective conclusion of the Doha Round of World Trade Organisation (WTO) negotiations. At the WTO, BRICS countries have cooperated as part of different coalitions such as G20 and G33 to influence the ongoing Doha Round of negotiations. The importance of implementing the decisions taken at the Bali and Nairobi Ministerial Conferences as well as the need to advance negotiations on the remaining Doha Development Agenda (DDA) issues as a matter of priority has been stressed in the declarations, including the Xiamen Declaration.xi
On education, BRICS Network University (BRICS-NU), aimed at engaging 12 universities from each of the five countries in education research and innovation, is an important initiative. Under this, there are five areas of cooperation which have been prioritised. These include communication and IT, economics, climate change, water resources and pollution, and BRICS study.xii In terms of progress, during the meeting of International Governing Board (IGB) of BRICS-NU and meetings of International Thematic Group (ITGs) of BRICS-NU held in Zhengzhou, China on July 1-3, 2017, the participating countries signed the regulation for the IGB and the statutes for the ITGs, thus completing the structure of the BRICS-NU.xiii Additionally, the BRICS University League has been conceived in 2013 to encourage participation of universities from the five countries. The leaders at the 8th BRICS Summit held in 2017 reiterated their support for BRICS University League and BRICS Network University in conducting education and research cooperation. They also welcomed the formulation of a BRICS action plan to advance practical cultural cooperation and the establishment of the BRICS Alliance of Libraries, Alliance of Museums, Alliance of Art Museums and National Galleries as well as Alliance of Theatres for Children and Young People.xiv
On agriculture, the establishment of the Coordinating Centre of the Agriculture Research Platform in August 2017 at the National Agricultural Science Complex (NASC) in New Delhi can be seen as an important achievement of BRICS. The Centre is expected to facilitate multilateral interaction for sharing knowledge and acquiring overall experience and exposure to the latest research, technology, policy, innovations, extension and technology transfer, training and capacity building. This will help to address various challenges, including climate change, sustainable utilisation of resources, managing new pests, pathogen and invasive plants, promoting value addition for producing safe and nutritive food and food products, avoiding wastage and knowledge sharing among BRICS countries.xv
Building BRICS Institutional Mechanisms
As has been mentioned, the most tangible achievement of BRICS is the establishment of institutional mechanisms. Conceived in the 2012 BRICS Leaders’ Summit, the NDB and the CRA became operational in 2015. After several rounds of negotiations and Finance Ministers’ meetings, the leaders signed the agreement for the establishment of the BRICS NDB as well as CRA worth US$ 100 billion each during the sixth BRICS Leaders Summit in Fortaleza, Brazil in July 2014.
Table A: Total Capital of NDB and CRA (billion)
Contingent Reserve Arrangement (BRICS) |
Total Capital ($100 billion) |
New Development Bank (NDB) |
Total Capital ($100 billion) |
Country |
Capital |
Country |
Capital |
China |
USD 41 billion |
China |
USD 20 billion |
India |
USD 18 billion |
India |
USD 20 billion |
Brazil |
USD 18 billion |
Brazil |
USD 20 billion |
Russia |
USD 18 billion |
Russia |
USD 20 billion |
South Africa |
USD 5 billion |
South Africa |
USD 20 billion |
Source: http://brics.itamaraty.gov.br/media2/press-releases/220-treaty-for-the-establishment-of-a-brics-contingent-reserve-arrangement-fortaleza-july-15 and http://brics.itamaraty.gov.br/agreements (accessed on August 17, 2017)
Decision-making in NDB is defined in Article 6 of the Agreement establishing the bank which states that all matters before the Bank shall be decided by a simple majority of the votes cast. Article 6 reads, xvi
“Except as otherwise specifically provided for in this Agreement, all matters before the Bank shall be decided by a simple majority of the votes cast. Where provided for in this Agreement, a qualified majority shall be understood as an affirmative vote of two thirds of the total voting power of the members. Where provided for in this Agreement, a special majority shall be understood as an affirmative vote of four of the founding members concurrent with an affirmative vote of two thirds of the total voting power of the members.”
As far as CRA is concerned, decision-making is defined at two levels: the Governing Council and the Standing Committee. Article 3 of the CRA Treaty provides that decisions at the level of the Governing Council will take place by consensus. Among its responsibilities, the council has the authority to review and alter the size of the pool and its components, and to approve changes to access limits, multipliers, interest rates, maturity periods, preconditions and sanctions. At the Standing Committee Level, there is a weighted voting system at the level of the Standing Committee for decisions related to requests for support. Other decisions are to be taken by consensus. The weighting system is explained in Article 3(e) which underscores that while 5% of voting power is equally spread among participants; the distribution of the remaining 95% depends on the value of each participant’s commitment to the CRA. Article 3 emphasises, however, that ‘as a matter of principle, the Standing Committee shall strive for consensus on all matters’xvii
NDB, headquartered in Shanghai, has been established with the purpose of mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging and developing countries. However, the projects approved so far have not been extended to non-members countries and are concentrated in the BRICS member countries (Table B). In the three years of its operation, substantive progress can be seen in the implementation of the projects under NDB. Until 2016, the main focus of the bank was renewable energy. However, it has now diversified to include water supply, sanitation, irrigation, agriculture and others. Till 2016, NDB has approved and invested in 7 projects worth US$ 1.5 billion.xviii Out of the seven, six were renewable energy projects. Six projects aggregating over US$ 1.8 billion were approved by the Board in 2017. The total amount approved since inception was $ 3.4 billion as at the end of 2017, including US $900 billion which were appraised but were not put up for Board consideration (Table B). xix The 14th Meeting of the NDB Board of Directors (BoD) in May 28-29, 2018, approved six projects from all five member countries of the NDB with loans aggregating US$ 1.6 billion. These include Petrobras Environmental Protection Project (Brazil) (US$ 200 million), Development of Water Supply and Sanitation Systems Project (Russia) (US$ 320 million), Small Historic Cities Development Project (Russia) (US$ 220 million), Bihar Rural Roads Project (India) (US$ 350 million), Chongqing Small Cities Sustainable Development Project (China) (US$ 300 million), and Durban Container Terminal Berth Reconstruction Project (South Africa) (US$ 200 million).xx
NDB is also working in collaboration with the established multilateral and regional financial institutions for global growth and development. The bank has signed MoUs with other multilateral and regional banks like European Bank of Reconstruction and Development (EBRD), European Investment Bank (EIB), World Bank, International Development Association (IDA) and International Finance Cooperation (IFC), Asian Development Bank (ADB) and Asian Infrastructure Development Bank (AIIB).xxi
The CRA has been set up to facilitate short-term liquidity pressures, promote BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements. It intends to provide liquidity through currency swaps in response to actual or potential short-term balance of payments crisis.xxii As per the treaty establishing the CRA, the currency swaps can be accessed by the ‘Parties’ i.e. BRICS member countries through their central banks.xxiii Towards this end, the BRICS Central Banks have also established the CRA System of Exchange in Macroeconomic Information (SEMI) and are further working to strengthen the research capabilities of the CRA.xxiv
Table B: Different Projects approved by NDB (million)
Projects |
Loan Amount |
Borrower |
Guarantor |
Target Sector |
Projects Approved in 2016 |
||||
Canara (India) |
US$ 259 mn |
Canara Bank |
Government of India |
Renewable Energy (wind, solar etc.) |
Liangang (China) |
US$ 81 mn |
PRC Government |
- |
Renewable Energy (solar rooftop PV) |
BNDES (Brazil) |
US$ 300 mn |
BNDES |
- |
Renewable Energy (wind, solar etc.) |
ESKOM (South Africa) |
US$180 mn |
ESKOM |
Government of RSA |
Renewable Energy (transmission) |
EDB/IIB (Russia) |
US$100 mn |
EDB/IIB |
- |
Renewable Energy (hydro-power & green energy) |
Madhya Pradesh (India) |
US$350 mn |
Government of India |
- |
Upgrading major districts (infrastructure) |
Pinghai (China) |
US$ 298 mn |
PRC Government |
- |
Renewable Energy (wind) |
Projects Approved in 2017 |
||||
Hunan (China) |
RMB 2 bn (US$ 300 m) |
PRC Government |
- |
Water, sanitation and flood control, environment |
Jiangxi (China) |
US$ 200 m |
PRC Government |
- |
Energy conservation |
MP Water (India) |
US$ 470 m |
Government of India |
- |
Water supply and sanitation, rural development |
Judicial Support (Russia) |
US$ 460 m |
Government of Russian Federation |
- |
Social infrastructure |
Rajasthan Water (India) |
US$ 345 m |
Government of India |
- |
Irrigation, Agriculture |
Ufa Eastern Exit (Russia) |
US$ 68.8 m |
Government of Russian Federation |
- |
Transportation |
Source: New Development Bank.
Africa Regional Centre of the New Development Bank
NDB Africa Regional Centre (ARC), launched on August 17, 2017, intends to contribute to sustainable infrastructure development in South Africa and act as a useful participant in the development agenda of the continent. Speaking at the opening ceremony of the ARC of the New Development Bank, Johannesburg, South Africa, President K. V. Kamath said,
“The establishment of the ARC, which is the first regional office of the NDB, is an important milestone for the Bank. It marks the fulfilment of a commitment made by the founders of the Bank in its Articles of Agreement.…The ARC will be the face of the NDB in Africa”.xxv
One of the major role of ARC’s will be to identify sustainable infrastructure and sustainable development projects in South Africa in line with South Africa’s National Development Plan adopted by the Government as a blueprint for future economic and socio-economic development strategy for the country. These projects will receive financial support from NDB. In this regard, the NDB members have agreed to lend $1.5 billion to South Africa for infrastructure projects over the next eighteen months, and have tasked the ARC to make sure that the amount is used in actual lending project.xxvi
India and BRICS
As a member of the grouping India’s role in the BRICS is significant, particularly in institution building. Noteworthy, the proposal to establish a BRICS Bank, NDB, was put forward at the 4th Summit by India in New Delhi in March 2012. The main idea was to set up a BRICS-led South-South Development Bank, mainly funded and managed by BRICS countries to recycle surpluses into investment in developing countries for infrastructure and sustainable development projects.xxvii At the Plenary session of the 7th BRICS Summit in July 2015, India proposed the creation of the BRICS Agriculture Research Centre. xxviii The Coordinating Centre of the Agriculture Research Centre was finally launched at the NASC, New Delhi in August 2017.
India is pushing for the creation of BRICS Credit Rating Agency with an aim to solve impediments for the emerging market economies posed by the present credit rating agency market that is dominated by western rating agencies, including S&P, Moody's and Fitch, which hold over 90 per cent of the sovereign ratings market.xxix So far, a Memorandum of Cooperation (MoC) among BRICS Export Credit and Insurance Agencies - Brazilian Guarantees Agency, OJSC (Russian Agency for Export Credit and Investment Insurance), China Export & Credit Insurance Corporation, P.R. China (SINOSURE), Export Credit Guarantee Corporation of India Ltd, India (ECGC) and Export Credit Insurance Corporation of South Africa Ltd, South Africa (ECIC) – has been signed in July 2014. These agencies have agreed to cooperate on projects, consultations and sharing of information. xxx
Additionally, India has taken the first initiative in holding several BRICS meetings and other BRICS related events, and thereby helping to regularise such processes. Subsequently, most of these meetings and other initiatives are being organised every year by the country hosting the Heads of the State Summit. For instance, India hosted the first BRICS Academic Forum meeting in New Delhi in May 2009 prior to the first BRIC Summit held in Yekaterinburg, Russia in June 2009. These meetings, which act as preparatory meetings to the BRICS Summit, generate ideas and recommendations that form part of the Summit agenda. Since the 2010 Summit these meetings are held every year, preceding the meeting of the Heads of State, and organised by the country that hosts the Leaders’ Summit.xxxi To strengthen intra-BRICS cooperation, India further proposed important initiatives at the 6th BRICS Summit in Brazil in July 2014 including a virtual BRICS university. xxxii The first BRICS Young Scientist Conclave under the framework of the BRICS Young Scientist Forum was held in India in September, 2016. The first BRICS Trade Fair and Exhibition, proposed by India in the BRICS Business Council, Ufa, 2015, was held in October 2016 to exhibit the state-of-the-art technologies and advances made in industrial development.xxxiii India coordinated the first meeting of BRICS Science and Technology Driven Entrepreneurship and Innovation Partnership in April 9, 2017.xxxiv
Table 1: BRICS Cooperation on Socio-Economic Issues: A Review
1st BRIC Summit - 16 June 2009 in Russia (Yekaterinburg) |
2nd BRIC Summit - 16 April 2010 in Brazil (Brasilia |
3rd BRICS Summit - 14 April 2011 in China (Sanya) |
4th BRICS Summit - 29 March 2012 in India (New Delhi) |
5th BRICS Summit – 26-27 March 2013 in South Africa (Durban) |
6th BRICS Summit - 14–16 July 2014 in Brazil (Fortaleza) |
7th BRICS Summit – 8-9 July 2015 in Russia (Ufa) |
8th BRICS Summit ˗5-16 October 2016 in India (Goa) |
9th Summit - 3-5 September, 2017 in China (Xiamen) |
|
Strategy for BRICS Economic Partnership |
|||||||||
Health |
Education |
Science & Technology |
Agriculture |
Global Governance |
CRA
|
NDB
|
Others |
Africa Regional centre |
|
Meeting targets of 90-90-90 HIV treatment by 2020
Health ministers from Brazil, Russian Federation, India, China and South Africa (BRICS) adopted the UNAIDS Fast-Track strategy to end the AIDS epidemic as a global health threat by 2030 during the Health Ministers meeting on 4 to 5 December 2014.xxxv The 7th Health Minister Meeting in Tianjin on July 6, 2017 reiterated their commitments for collective actions and sustained leadership to fully implement the 2016 UN Political Declaration to achieve the 90-90-90 targets and Ending AIDS by 2030.xxxvi
|
BRICS Network University (BRICS-NU)
BRICS Network University (BRICS-NU) was first mooted in March 2015 and was scheduled to be launched in 2016.xxxvii
During the meeting of International Governing Board (IGB) of BRICS-NU and meetings of International Thematic Group (ITGs) of BRICS-NU held in Zhengzhou, China on July 1-3, 2017, the participating countries signed the Regulation for the IGB and the statutes for the ITGs, thus completing the structure of the BRICS-NU.
International Governing Board (IGB) is the main governing body of the BRICS Network University, responsible for the activities, development and assessment of the outcomes of the BRICS-NU. The Board consists of the representatives of the national ministries of education and of the community of the university participants of the BRICS NU. Each country is represented in the BRICS- NU IGB by three members, atleast one each from National Education Ministry and BRICS-NU participants.xxxviii
International Thematic Groups (ITGs) help coordination of activities among BRICS-NU participants in the priority fields: energy, computer science and Information security, BRICS Studies, ecology, climate change, water resources, and pollution treatment, and economics.xxxix |
UNIDO-BRICS Technology Platform
Since its official launch in September 2016, the UNIDO project “Promote the development of SMEs between China and other BRICS Countries through e-commerce development” (or in short “UNIDO BRICS SMEs E-commerce project”) has started to devise cooperation mechanisms to develop SMEs through e-commerce, including consultation workshops and meetings in BRICS Member States.xl
|
MoU for Establishment of BRICS Agricultural Research Platformxli
BRICS Agricultural Research Platform aims to promote food security, sustainable agricultural development and poverty alleviation through strategic cooperation in agriculture among the member countries.
The Coordinating Centre of the BRICS* Agricultural Research Platform was inaugurated on April 16, 2017 by Dr. T. Mohapatra, Secretary (DARE) & Director General, ICAR, at NASC Complex, New Delhi as a follow up of the Memorandum of Understanding signed during the 8th BRICS Summit -2016 in India, by the Ministries of Agriculture of Brazil, Russian Federation, Republic of India, Peoples Republic of China and Republic of South Africa.xlii |
Consistent reiteration of commitments to advance reform of international economic, financial and security-related institutions so as to reflect the changes in world economy, particularly providing greater voice and representation in the international financial institutions
Reiteration of the primacy of G20 as an important player and as a forum for international economic coordination and cooperation among all of its member states.
Commitment to conclude the IMF’s 15th General Review of Quotas, including a new quota formula, by the 2019 Spring Meetings and no later than the 2019 Annual Meetings
|
The $100 billion BRICS Contingent Reserve Arrangement (CRA) has become fully operational following the inaugural meetings of the BRICS CRA Board of Governors and the Standing Committee in the Turkish capital of Ankara in September 2015.xliii
Agreed to the establishment of CRA System of Exchange in Macro-economic Information (SEMI) |
In 2016 approved seven projects in all member states, for a total of over USD 1.5 billion in the areas of renewable and green energy, and transportation.
Six projects aggregating over US$ 1.8 billion were approved by the Board in 2017
|
BRICS Roadmap for Trade, Economic and Investment cooperation, 2020.
The main target areas of the Roadmap are: Energy and environmental protection; manufacturing and mining industry; mechanical engineering,; agriculture; transport and logistics; High-tech manufacturing, information and communications technologies; Science and technology, human resources development; Insurance and rating activity; and Elimination of excessive administrative barriers (deregulation).xliv
|
Establishment of NDB Africa Regional Centre in South Africa on August 17, 2017 in Johannesburg, South Africa.xlv |
|
Establishment of BRICS network on TB Research*
The idea was floated at the First WHO Global Ministerial Conference on Ending TB in The Sustainable Development Era: A Multisectoral Response, held in Moscow, 16-17 November 2017. Moscow Delration adopted at the end of teh conference called upon WHO to ‘consider developing a Global Strategy for TB Research taking into consideration ongoing and new efforts, such as the TB Research Network stated in the BRICS Leaders Xiamen Declaration’xlvi
|
BRICS University League (BRICSUL) |
BRICS STI Framework Programme – selection of BRICS research and development projects underway.
The second call for projects launched in August 2017 |
|
Deepening cooperation on addressing Base Erosion and Profit Shifting (BEPS), promoting exchange of tax information and improving capacity-building in developing countries |
|
First green bond for RMB 3.0 billion (USD 450 million) issued in July 2016.
|
|
|
|
|
The 5th BRICS Education Ministers Meeting (EMM) took place in Beijing, China on July 5, 2017. It was preceded by a BRICS Senior Officials Meeting on Education on July 4, 2017. Beijing Declaration on Education was signed during the BRICS Education Ministers Meeting.xlvii |
BRICS Global Advanced Infrastructure Network (BRICS-GRAIN)* |
|
|
|
NDB signed Memoranda of Understanding with multilateral and national development banks, including World Bank and Asian Development Bank as well as leading commercial banks from the NDB member states.xlviii |
BRICS Business Council (BBC)
Bilateral Social Security with BRICS nations was discussed at the meetings of the BRICS Labour & Employment Ministers held on June 9, 2016 in Geneva and on September 27-28, 2016 in New Delhi respectively.
As a follow up to the Goa Declaration, the Ministry of External Affairs, India has sent communications to the relevant authorities in all BRICS nations for commencing negotiations on the social security agreements. Brazil has responded favourably.xlix
Eventually, Bilateral Social Security Agreement between India and Brazil concluded on March 16, 2017.l |
|
|
|
Agreed to the establishment of the BRICS Alliance of Libraries, Alliance of Museums, Alliance of Art Museums and National Galleries and Alliance of Theatres for Children and Young People.
BRICS Research and Exchange Fund* |
Explore the establishment of BRICS Institute of Future Networks* |
|
|
|
|
Establishment of BRICS E-Port Network and BRICS E-Commerce Working Group
In the Xiamen Summit, 2017 Terms of Reference (ToR) of BRICS E-Port Network and BRICS E-Commerce Working Group was adopted.
In the Xiamen Summit, 2017, the leaders agreed to explore the development of BRICS Local currency Bond Markets and BRICS Local Currency Fund. *
|
|
|
Source: Compiled by the author from various resources.
Notes: *No detailed information on the progress is available
Conclusion
The summit level analysis shows growing intra-BRICS cooperation to contribute to global stability, development and cooperation in a positive manner. Established at a time of global recession, the BRICS has expanded its spheres of cooperation, becoming a platform of dialogue and coordination for the promotion of global governance reform as well as multi-sectoral engagement. In the nine summits held so far, BRICS has not only coordinated in various multilateral and plurilateral initiatives but also has expanded its intra-BRICS cooperation to encompass new areas to facilitate market linkages, financial integration, infrastructure connectivity and people-to- people contacts. It is also evident that the grouping has been an important force for the incremental change and reform of the global governance, including the reform of IMF to make it more representative and inclusive. The main focus of the first five summits of BRICS was to consolidate its positions in the international economic and financial issues to foster strong, sustainable and balanced growth. Starting from the sixth summit in 2014, BRICS has come to play a significant role in promoting social development particularly addressing poverty and inequality.
In terms of progress, the main achievement of BRICS can be seen in the building of institutional mechanisms, including NDB, CRA and ARC. In this process of institutionalising, the role of India is notable, particularly in the development of NDB. India has also facilitated further institutionalisation of the forum by organising various meetings, workshops and other related events.
It is seen that BRICS has evolved to be recognised as an important grouping. However there remains certain area which needs to be prioritised for the group to maintain its relevance. First, the world economy is witnessing increasing trends towards protectionism inducing fear of ‘trade wars’ among countries. In such a fluid situation, BRICS needs to work jointly to expedite the implementation of the commitments at different summits, particularly upholding an open and inclusive global economy with its edifice of non-discrimination, transparency and rule-based multilateral trade system.
Second, there is a need to equally stress on the reform of the UNSC permanent membership, along with the reform of other economic and financial institutions in achieving its mandate of an equitable international order in the true spirit. While there is a greater stress on reform of international financial institutions – IMF and the World Bank - since BRICS emerged as a grouping to address some of the challenges in the global governance processes during the GFC, the reform of UN, particularly the expansion of permanent membership in UNSC finds no direct reference in the declarations.
Overall, there should be sustained effort by the BRICS countries to maintain a united stand on several issues of socio-economic importance, including the reform of the global governance for greater representation of the developing countries, agriculture, science and technology, education and health, and further coordinate positions on several international fora, including the WTO, G20 and others, particularly to arrest the rising tide of protectionism.
****
* The Authoress is a Research Fellow, Indian Council of World Affairs, New Delhi.
Disclaimer: The views expressed are that of the Researcher and not of the Council.
Endnotes
i Goldman Sachs, “Building Better Global Economic BRICs”, Global Economics, 66, 2001, http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/build-better-brics.pdf (accessed on May 15, 2018); Goldman Sachs, “Dreaming with BRICS: The Path to 2050”, Global Economics, 99, 2003, http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/brics-dream.pdf (accessed on May 15, 2018); Goldman Sachs, “The BRICs 10 Years On: Halfway Through The Great Transformation”, Global Economics, 208, 2011, http://blogs.univ-poitiers.fr/o-bouba-olga/files/2012/11/Goldman-Sachs-Global-Economics-Paper-208.pdf (accessed on MAy 15, 2018); PwC, “World in 2050 The BRICs and beyond: prospects, challenges and opportunities”, PwC economic, 2013, https://www.pwc.com/it/it/publications/assets/docs/world-2050.pdf (accessed on May 2013)
ii Jim O’Neill (2001), “Building Better Global Economic BRICs”, Global Economics Paper No: 66, Goldman Sachs, http://pro790512df.pic10.websiteonline.cn/upload/building-better-pdf_geEM.pdf (accessed on November 3, 2017)
iii “(B R I C S): BRAZIL, RUSSIA, INDIA, CHINA & SOUTH AFRICA”,
http://brics2016.gov.in/content/innerpage/about-usphp.php accessed on November 3, 2017)
iv Ministry of External Affairs, India nd BRICS”, https://www.mea.gov.in/Portal/ForeignRelation/BRICS_02_may_2016.pdf (accessed on May 15, 2018)
v “(B R I C S): BRAZIL, RUSSIA, INDIA, CHINA & SOUTH AFRICA”,
http://brics2016.gov.in/content/innerpage/about-usphp.php accessed on November 3, 2017)
vi Government of Brazil, Itamarty, “Economic and Trade Statistics”, http://brics.itamaraty.gov.br/about-brics/economic-data (accessed on November 3, 2017)
vii See for detail, “Progress Report on the Implementation of The Strategy for BRICS Economic Partnership”, August, 2017, https://www.ranepa.ru/images/media/brics/2017/BRICS%20Strategy%20Progress%20Report_25.08.2017.pdf (accessed on may 15, 2018)
viii “Progress Report on the Implementation of The Strategy for BRICS Economic Partnership”, August, 2017, https://www.ranepa.ru/images/media/brics/2017/BRICS%20Strategy%20Progress%20Report_25.08.2017.pdf (accessed on May 15, 2018)
ix Jesus Rodriguez, “The UN Security Council”, Council on Foreign Relations, September 7, 2017, https://www.cfr.org/backgrounder/un-security-council (accessed on May 15, 2018); Jakkie Cilliers, “The UN Security Council: From a 20th century relic to effective security governance”, https://www.sef-bonn.org/fileadmin/Die_SEF/Publikationen/GT-ANALYSEN/GT-A_2018-02_en.pdf (accessed on May 15, 2018)
x See for detail, “Progress Report on the Implementation of The Strategy for BRICS Economic Partnership”, August, 2017, https://www.ranepa.ru/images/media/brics/2017/BRICS%20Strategy%20Progress%20Report_25.08.2017.pdf (accessed on may 15, 2018)
xii “Memorandum of Understanding on the Establishment of BRICS Network University”, November 18, 2015, https://nu-brics.ru/media/uploads/filestorage/documents/MoU_SU_BRICS.pdf (accessed on May 15, 2018)
xiii Press Information Bureau, Government of India, “5th Meeting of BRICS Education Ministers held in Beijing, China today”, July 5, 2018, http://pib.nic.in/newsite/PrintRelease.aspx?relid=167148 (accessed on May 15, 2018)
xiv “BRICS Leaders Xiamen Declaration”, September 4, 2018, https://www.mea.gov.in/Uploads/PublicationDocs/28912_XiamenDeclaratoin.pdf (accessed on May 10, 2018)
xv Indian Council of Agricultural Research (ICAR), “BRICS agricultural Platform Inaugurated in India”, https://icar.org.in/node/8241 (accessed on May 15, 2018)
xvi “Agreement on the New Development Bank”, http://brics.itamaraty.gov.br/agreements (accessed on May 15, 2018)
xvii “TREATY FOR THE ESTABLISHMENT OF A BRICS CONTINGENT RESERVE ARRANGEMENT”, http://brics.itamaraty.gov.br/agreements (accessed on May 15, 2018)
xxNDB, “NDB Board of Governors and Board of Directors Meetings Held in Shanghai, China”, Press Release, May 28, 2018, https://www.ndb.int/press_release/ndb-third-annual-meeting-unveils-key-updates-technology-backed-development/ (accessed on May 20, 2018)
xxi NDB, “Agreements and MoUs”, https://www.ndb.int/partnerships/agreements-memoranda/ (accessed on May 15, 2018)
xxii BRICS, “Sixth Summit – Fortaleza Declaration 2014”, http://brics2016.gov.in/upload/files/document/57566d35a13456declaration.pdf (accessed on May 15, 2018)
xxiii “Treaty for the Establishment of a BRICS Contingent Reserve Arrangement”, http://brics.itamaraty.gov.br/press-releases/220-treaty-for-the-establishment-of-a-brics-contingent-reserve-arrangement-fortaleza-july-15 (accessed on May 15, 2018)
xxiv Department of Economic Affairs, Ministry of Finance, Government of India, “Annual Reports 2017-18”, https://dea.gov.in/sites/default/files/Final%20Annual%20Report%20English_0.pdf (accessed on May 15, 2018)
xxvii Manmohan Agarwal, “New Development Bank: A Contribution to Development Finance”, RIS Policy Brief no. 68, May 2015,
http://www.ris.org.in/images/RIS_images/pdf/RIS%20Policy%20Brief-70%20Dr.%20Manmohan%20agarwal.pdf
xxix “India pitches for BRICS credit rating agency “, Economic Times, April 20, 2018, https://economictimes.indiatimes.com/news/economy/policy/india-pitches-for-brics-credit-rating-agency/articleshow/63845652.cms (accessed on May 15, 2018)
xxx “Memorandum of Cooperation (MoC) among BRICS Export Credit and Insurance Agencies”, July 15, 2014, http://brics.itamaraty.gov.br/agreements (May 15, 2018)
xxxii Indian Embassy, Dublin, “INDIA IN BRICS”,
http://www.indianembassydublin.in/docs/India%20in%20BRICS.pdf (accessed on May 15, 2018)
xxxiii FICCI, “First BRICS Trade Fair gets under way in New Delhi” Press Release, October 12, 2016, http://ficci.in/pressrelease-page.asp?nid=2544 (accessed on May 15,2018)
xxxiv ““The 4th BRICS Science, Technology & Innovation (STI) Ministerial Meeting”, Jaipur Declaration, October 8, 2016, http://brics.itamaraty.gov.br/images/4thbrics.pdf (accessed on May 15, 2018); “The 5th BRICS Science, Technology & Innovation (STI) Ministerial Meeting”, Hangzhou Declaration, July 18, 2017, https://www.brics2017.org/English/Headlines/201708/P020170825391206316687.pdf (accessed on May 15, 2018)
xxxvi “Tianjin Communiqué of BRICS Health Ministers Meeting”, July 6, 2018., http://brics.itamaraty.gov.br/images/documentos2017/Tianjin-Communiqu-of-BRICS-Health-Ministers-Meeting.pdf (accessed on May 30, 2018)
xxxviii “Regulation for the International Governing Board (IGB) of BRICS Network University”, July 2, 2017, https://nu-brics.ru/media/uploads/filestorage/regulations.pdf (accessed on May 30, 2017)s
xxxix “Statutes for the BRICS Network University International Thematic Groups”, July 2, 2017, https://nu-brics.ru/media/uploads/filestorage/statute__1.pdf (accessed on May 30, 2017)
xl UNIDO, “UNIDO-BRICS Cooperation Quarterly Report: Partnership for prosperity”, January–March 2017, Issue 2, https://www.unido.org/sites/default/files/2017-07/UNIDO_BRICS_Report_27.4.2017_0.pdf (accessed on May 15, 2018)
xliv “BRICS Roadmap for Trade, Economic and Investment Cooperation until 2020”, http://www.unido.ru/upload/files/b/brics_roadmap.pdf (accessed on May 30, 2018)
xlvi WHO, “First WHO Global Ministerial Conference on Ending TB in The Sustainable Development Era: A Multisectoral Response, held in Moscow, 16-17 November 2017”, http://www.who.int/tb/features_archive/Moscow_Declaration_to_End_TB_final_ENGLISH.pdf?ua=1 (accessed on May 30, 2018)
xlvii Press Information Bureau, Government of India, “5th Meeting of BRICS Education Ministers held in Beijing, China today”, July 5, 2018, http://pib.nic.in/newsite/PrintRelease.aspx?relid=167148 (accessed on May 15, 2018)
xlviii Government of India, : Multi-Lateral New Development Bank to Aid India” http://pib.nic.in/newsite/printrelease.aspx?relid=160263 (accessed on May 11, 2017)