PANGXINGLEILeadersofBRICSmembersandsomedevelopingcountriesposebeforetheirdialogueduringtheNinthBRICSSummitinXiameninSeptember2017TheBRICSpartnershiphasproventhatitismorerelevanttodaythaniteverhasbeen,giventhatthepolarizationandprotectionismoftraditionalglobalpowersisatanall-timehigh.ExpertsbelievethatthistrajectoryhasparticularlynegativeconsequencesforemergingeconomiesandthedevelopingSouth,whichneedtocollaboratemoreeffectivelyinordertooffsettheeffectsofthisnewreality.AsSouthAfricapreparestohostthe10thBRICSSummitinJohannesburgonJuly25-27,itseekstofostergreaterunityamongtheBRICSpartners,andworktowardamoreequitableandinclusiveglobalenvironment.
“BRICStranscendsthementalityofdrawinglinesaccordingtoideologyinazerosumgame,butadoptsanewconceptofwin-wincooperationforcommondevelopment,”saidLinSongtian,ChineseAmbassadortoSouthAfrica.
Atthisjuncture,BRICShasbecomethemainenginedrivingworldeconomicgrowth.ArecentreportreleasedbytheStandardBanksaysthatBRICScountriescontribute50percenttotheworldeconomicgrowth.Beinghometo40percentoftheworld’spopulation,threeoftheBRICSeconomiesarerankedinthetop10byGDPsize,namelyChina(second),India(seventh)andBrazil(ninth).
ThecontributionofBRICScountriestoglobalGDPhasincreasedfrom8percentin2000to24percenttoday,accordingtoSouthAfricaeconomicportalFin24.
SouthAfrica’sadvantage
SouthAfrica’smembershipinBRICSgivesitanimportantadvantageastheonlyAfricancountryinthegroup,anditisviewedasaleaderandabridgeinconnectingBRICSdevelopmentcooperationwithAfrica.StatisticsshowthatthepartnershiphasalsoseenSouthAfrica’stradewithotherBRICSmembersescalateexponentially,increasingby54.7percentbetween2011and2016.
Ashostofthisyear’sBRICSSummit,SouthAfricahastheopportunitytosettheagenda,anditsprioritiesspeakdirectlytoAfrica’surgentneeds.SouthAfrica’sMinisterforInternationalRelationsandCooperationLindiweSisuluhassaidthatthecountrywillproposefivenewareasforBRICScooperation:AworkinggrouponBRICSgenderandwomenforum,astrategicpartnershiptowardprogressoftheFourthIndustrialRevolution,andtheestablishmentoftheBRICSTourismTrackofCooperation.
“SouthAfricahasdeterminedthatanoutreachwilltakeplacewithAfricanleaders,whichwillensurecontinuityfrom2013,aswellassupportAfricanindustrializationandinfrastructuredevelopment,”SisulutoldparliamentduringherMaybudgetspeech.“Forthisoutreach,variousAfricancountrieshavebeeninvited[totheBRICSSummit]invariouscapacities,includingRwandaasthechairoftheAfricanUnion,NamibiaastheincomingchairoftheSouthernAfricanDevelopmentCommunity,andTogoasthechairoftheEconomicCommunityofWestAfrica.”
TheheadoftheNewPartnershipforAfrica’sDevelopmentagencyandthepresidentoftheAfricanDevelopmentBankhavealsobeeninvitedtothesummit.SouthAfricawillhostaspecialeventonthesidelinesofthe10thBRICSSummit-theBRICSPlusOutreach-toensuremaximumcooperationandcontinuitybetweentheSouthAfricanChairshipofBRICSandtheChineseChairshipin2017.CountrieslikeArgentina,Indonesia,EgyptandTurkeyhavebeeninvitedtotheBRICSPlusOutreach,aswellasAntónioGuterres,SecretaryGeneraloftheUnitedNations.
BRICSPlus
GivenChina’sinitiativeattheBRICSXiamenSummitlastyeartocreateBRICSPlus,itmaybethattheeventualexpansionofthegroupisonthecards.WhileSouthAfricawouldwelcomeaninclusiveapproach,aformalexpansionofthegroupingatsomepointwouldmeanSouthAfrica’sinfluenceintermsofsettingtheagendamaybediluted.Thismakestheagendaandoutcomesoftheupcomingsummitallthemoreimportant,andSouthAfricawillleveragethisopportunitytothemaximuminordertopushforwardtheAfricanagenda.
ThesummitisalsoanopportunitytofurthercapitalizeontheinteractionoftheprivatesectorundertheaegisoftheBRICSBusinessCouncil,whichischairedbyIndependentMedia’sIqbalSurve.Itisexpectedthataround1,000businesspeoplewillattendthebusinessforum,anditpresentsagoldenopportunityforSouthAfricanexecutivestonetworkandestablishrelationswithexecutivesfromtheBRICScountriesontheirhometurf.
“TheBRICSBusinessCouncilmeetingpresentstheidealopportunitytomeettherequirementssetbyPresidentCyrilRamaphosatoattractsignificantforeigninvestmenttothecountryandthecontinent,”Survesaid.“TheBRICSBusinessCouncilthemesforthisyearincludetheFourthIndustrialRevolution,youthentrepreneurshipandfoodsecurity.”
BRICSbank
OneofthemostimportantaccomplishmentsofBRICStodatehasbeenthecreationoftheNewDevelopmentBank(NDB)inShanghaiin2015,whichepitomizesthedesireofmajordevelopingcountriestoplayabiggerroleinglobalgovernance.
ThecorepurposeoftheNDBistomobilizeresourcesforinfrastructureandsustainabledevelopmentintheBRICScountries.“ItisahugeaccomplishmentthattheNDB,whichisthreeyearsold,hasapprovedloanstodateof$5.1billion,”LeslieMaasdorp,VicePresidentoftheNDB,toldChinAfrica.TheNDBisplanningtoreach$15billionworthofloansby2021.
“TheNDBhascompleteditsfirstloanstoentitiesinkeepingwithitspolicythat30percentofitsloansshouldgotonon-sovereignoperationsortheprivatesector,while70percentoftheloansshouldhaveasovereignguarantee,”saidMaasdorp.
TherecentmeetingoftheBoardofDirectorsandGovernorsoftheNDBhasreachedanimportantmilestone,havingapprovedabudgetforsixnewprojects.OneimportantloanwhichtheNDBhasbeencommittedtoisfor$200milliontofreighttransportcompanyTransnetinordertoenhancethecapacityofitsportinDurban,throughtherehabilitationofitscontainerterminalberthsthatarecurrentlyoperatingbeyondtheiroriginaldesign,andtheupgradingofportinfrastructuretoprovideadditionalslotsforlargervessels.Sixty-fivepercentofSouthAfrica’sIGNOREthrough-putgoesthroughthePortofDurban,butitslackofcapacityisakeyinhibitorofGDPgrowthinthecountry.WhileTransnetis100-percentownedbytheSouthAfricanGovernment,thegovernmentisnotunderwritingtheloanasitisbeingmadedirectlytoTransnetinanefforttoreducethenumberofsovereignguarantees.
Similarly,thestateoilcompanyinBrazil,Petrobras,isbeinggivenasizeableloantoimproveitsenvironmentalfootprint,buttheloanisnotbeingunderwrittenbytheBrazilianGovernment.Theloanof$200millionistoassistPetrobrasincomplyingwithnewenvironmentalregulatoryrequirements,throughtheupgradingoftheinfrastructureoftwoexistingrefinerieswiththeobjectivesofreducingharmfulemissionsandpreventingwaterandsoilcontamination.
TheNDBhasalreadyproventhatitishelpingfillanimportantgapintheglobaldevelopmentfinancearchitecture,asfinancingforinfrastructuredevelopmentislimited,despitegrowingdemand.ObserversbelievethatinfrastructureisAfrica’stoppriority,andtheinfrastructurebuiltacrossthecontinentwillhelpreversethelowlevelsofintra-regionaleconomicexchange,therebyincreasingAfrica’sshareofglobaltrade.SuchdevelopmentsareindicativeoftherealrelevanceofBRICSforemergingeconomiestoday.
**ReportingfromSouthAfrica
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