4th BRICS Summit: Playing Crucial Role at World Level

The BRICS (Brazil, Russia, India, China and South Africa) is a grouping of the world’s emerging economies, representing five continents. The BRICS countries together account for 40 per cent of global GDP ($18.49 trillion). Intra-BRICS trade is worth $212 billion, and is growing at 28 per cent a year. It has set itself a trade target of $500 billion by 2015.
The importance of BRICs in the world economy has increased manifold since the acronym was first coined approximately seven years ago. Few could have imagined then how the US economy would collapse and bring down with it much of the rest of the world. It is worth revisiting the original formulations on the significance of these four major countries that were made by representatives of a major US investment bank
Some member countries in the organization are among the fast emerging economies in the world. At the same time, the world has come to realize that to bring an end to the unipolar world and to maintain the power balance, the importance of Russia cannot be ignored. Countries such as China and Brazil not only want to maintain close relations with the United States, but with Russia as well.
However, the aim of the BRICS is to enhance cooperation among member countries and working together at the international forums. Clearly, it is an opportunity for India to improve and strengthen its relations with China and strive to get their disputes resolved.
The fourth BRICS Summit was held in New Delhi on March 28-29. The summit’s theme was “BRICS partnership for Global Stability, Security and Prosperity.” The participants included Presidents Hu Jintao of China, Dmitry Medvedev of Russia, Jacob Zuma of South Africa and Brazil’s Dilma Rouseff. Prime Minister Manmohan Singh hosted the summit, and also held a series of bilateral sessions with his guests, including China’s Hu Jintao.
The summit held against the backdrop of continued profound and complex changes in the international situation, uncertain prospects in world economic recovery and the steadily rising status and role of emerging markets and developing countries in international affairs. It was yet another important event in the ongoing BRICS cooperation. India has worked effectively in preparing for the summit. China tried to work with other BRICS members to push for positive outcomes. On the summit’s eve, the five nations resolved to resist protectionist tendencies worldwide.
The leaders of five emerging economic powerhouses affirmed not just their growing economic clout but also their impact on the global political order.
Delhi Declaration
At the end of the summit, BRICS leaders issued a Delhi Declaration. The Declaration hinted at backing an alternative candidate for the World Bank president's post which has always been appropriated by an American and exhorted the Bank and the International Monetary Fund (IMF) to quickly realign their priorities and approach to the needs of the developing world. This is an agenda the five countries intend pursuing at the coming G20 meeting in Mexico as well.
The leaders also weighed the consequences of setting up a “BRICS Bank” and opted for a more contemplative approach by asking their Finance Ministers to examine its feasibility and report back at the next summit in Russia. They agreed that the bank should in no way emerge as a competitor to the World Bank and the IMF but provide funds for projects that do not find favor with these institutions.
In line with their professed commitment to multilateralism in economic and political problem solving, the leaders agreed to invest more in the United Nations Conference on Trade and Development (UNCTAD) which played a major role in catering to the interests of developing countries in the run-up to the setting up of the World Trade Organization (WTO).
Seeking to reinforce their growing economic heft with diplomatic clout, the BRICS grouping pitched for a bigger say in global governance institutions, including the United Nations and the IMF, and told the West that dialogue was the only way to resolve the Iranian nuclear issue and the Syria crisis.
The leaders of BRISC’s formulation on Iran came close to condemning the West's pressure tactics to make other countries obey their latest restrictions on trade ties, especially in the energy sphere. Saying that a conflict would have disastrous consequences, it wanted the two antagonists to resolve suspicions over Iran's nuclear program through talks on multilateral fora.
On Afghanistan, BRICS exhorted the international community to stay the course on the development front for 10 years after the West withdraws most of its combat troops by 2014-end and, on Russia's insistence, made a mention of checking narcotic trafficking.
In a fresh assertion, BRICS asked the West to implement the 2010 governance and quota reform before the 2012 IMF/World Bank annual meeting, as well as the comprehensive review of the quota formula to better reflect economic weights. They asked for enhancing the voice and representation of emerging market and developing countries by January 2013, followed by the completion of the next general quota review by January 2014.
In a signature step, the BRICS decided to create their first institution in the form of a BRICS-led South South Development Bank that will mobilise "resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries." The leaders directed their finance ministers "to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back by the next summit."
The development banks of the five countries signed two pacts, including a master agreement on extending credit facility in local currency and BRICS multilateral letter of credit confirmation facility agreement, which could help scale up bilateral trade from $230 billion to $500 billion.
India’s Major Points
Addressing the summit, Prime Minister Manmohan Singh also said that the grouping has agreed to examine in "greater detail" a proposal to set up a South-South Development bank, funded and managed by BRICS and other developing countries.
Singh also urged member countries to speak in one voice on key issues such as the United Nations Security Council (UNSC) reforms. He suggested that BRICS countries should speak in one voice on issues such as reforms of the international body.
On UNSC reforms, Singh suggested that BRICS countries should speak in one voice on issues such as reforms of the international body.
He also said in their restricted session, the grouping also discussed the ongoing turmoil in West Asia and agreed to work together for a peaceful resolution of the crisis.
Touching upon the issue of terrorism, Singh said the countries should enhance cooperation against terrorism and other developing threats such as piracy, particularly emanating from Somalia.
UN Millennium Development Goals
BRICS nations are the defender and promoter of the interests of developing countries. In their cooperation, BRICS countries have committed to promoting South-South cooperation and North-South dialogue, endeavored to implement the UN Millennium Development Goals, worked for early realization of the goals set out in the mandate for the Doha development round negotiations, strived to secure a greater say for developing countries in global economic governance and fought all forms of protectionism.
Cooperation among BRICS countries is made necessary by the ongoing economic globalization and democratization in international relations. It is consistent with the trend of the times characterized by peace, development and cooperation, and fully conducive to building a harmonious world of durable peace and common prosperity.
Role of China
An impression is sought to be created that with its massive monetary reserves and political clout, China may exert undue influence in this bank. This is unlikely. Such a bank will not require too much paid-up capital (relative to the average size of respective sovereign reserves) if intelligent financial engineering can help sequester foreign reserves. This would mean that the smallest BRICS economy, South Africa, could easily commit an amount similar to that of China in the capital structure. Such doubts could be further allayed with the institution of a rotating Presidency of, say, a two-year term that could initially be restricted to the BRICS countries alone.
India-India Strategic Ties
The China-India strategic and cooperative partnership has made all-round progress in recent years. A sustained, sound and steady growth of relations between China and India, the two large developing countries sharing borders with each other, will serve not only the well-being of the two peoples but also peace, stability and prosperity in Asia and the world as a whole.
The Delhi Summit will be remembered forever for one major achievement, at least. Its expected decision to set up a BRICS bank on the lines of the World Bank may change the course of economic activity in the member-countries. The setting up of this new financial institution by the bloc that has brought together half of the world’s population may speed up infrastructure development programs in the BRICS countries and serve as a second line of financial defense in times of economic crisis as is being faced by Europe today.

Annual UN Climate Change: India Feels Heat

Two-week international climate conference with participants from more than 190 nations plus the European Union (EU) has already begun in Durban, South Africa on November 28. The conference is seeking ways to curb ever-rising emissions of climate-changing pollution, which scientists said last week have reached record levels of concentration in the atmosphere.
Addressing the conference, South African President Jacob Zuma said that global warming already is causing suffering and conflict in Africa, from drought in Sudan and Somalia to flooding in South African, urging delegates at an international climate conference to look beyond national interests for solutions. He added that for most people in the developing countries and Africa, climate change is a matter of life and death.
Talks Failed
Talks at the climate change conference have predictably bogged down over funding and over the insistence of the first world countries that emerging economies like India and China also commit to legally binding and higher reduction of carbon emission.
Nations like Japan, Canada, Russia and New Zealand have decided to back out of the Kyoto Protocol, the only legally binding treaty that requires 37 developed countries to reduce amount of CO2 they released. The European Union has made it clear that it would agree to more carbon reduction only if emerging economies like China and India also undertake some form of binding cuts to bring down their gases that trap heat and make the climate warm.
Government delegates from 194 countries have gathered in Durban to agree to the next steps to combat climate change. The talks have been bogged down by disagreements on the kind of actions that need to be taken by developed and developing nations.
Another area of disagreement is on the design of a Green Climate Fund, which will provide $100 billion a year from 2020 to developing countries to combat climate change. The report of the UN committee on how to set into motion such a fund is now being debated at the talks. The South American nations of Colombia, Venezuela, Nicaragua (representing the ALBA nations) as well as Saudi Arabia and the U.S have objected to its contents.
There is, however, an overall urgency for the Fund to be adopted at Durban so that money begins to flow. Tomasz Chruszczow, the Polish envoy whose country is currently presiding over the EU, told reporters that the report was a “good compromise.” “In its current form it would attract significant funding,” he said. “We believe it would be counterproductive to undertake technical decisions on the instrument.”
The Africa Group also supported India, which “is doing its fair share in the context of its own challenges,” said Nafo, the spokesperson of the Africa Group to The Tribune. The diplomat from Mali further noted that China was taking the lead in investing in renewable energies that do not pollute the environment.
As large developing economies release more CO2 in the atmosphere because of rapid economic growth in the past decades, it has also led to divisions within the bloc of G77 + China. Both have argued that their overriding priority remains poverty eradication.
Emission Reduction Obligations
Even before the annual UN climate change negotiations are formally kicked off in Durban, India was warding off pressure to commit to legally binding CO2 emission cuts. Developed countries are threatening to abandon the 1997 Kyoto Protocol, which imposes emission reduction obligations on 37 industrialized countries, if all major emitters don’t do more to curb their greenhouse gases.
The Indian delegation here has reiterated its stand that it was indeed absurd to expect India and other developing nations to undertake reductions on the lines of developed nations. The developing countries, says the Indian delegation, have the overriding priority of eradicating poverty and sustain development. Indian negotiators added that they have already taken on voluntary commitments to reduce emission by 20 per cent by 2020.
The Indian delegation cited the Stockholm Environment Institute’s Report, released in 2011, which said that pledges to reduce carbon emissions from developing countries are more than the targets set by the developed countries. The study, commissioned by Oxfam, estimates that over 60 per cent of emission cuts by 2020 are likely to be made by the developing countries. The emission reductions of China, India, South Africa and Brazil - the BASIC countries - could actually be more than the combined efforts of the seven most developed countries or zones, namely the US, the European Union, Japan, Canada, Australia, New Zealand and Russia.
Already there are concerns that talks over the next two weeks will fail. The 2010 talks in Cancun skirted around the issue with Japan and Canada asserting their opposition to the 1997 Kyoto treaty. The US had also backed out of the agreement in 2001, claiming that it was unfair. Developing countries, including India, want these talks to result in developed countries renewing their pledges, since the first phase of the treaty expires at the end of 2012.
But the European Union, Japan, Canada and Russia are not willing to be part of a treaty that neither includes the US nor emerging economies like China and India. But with mounting Republican opposition, the Obama administration cannot act decisively until the 2012 presidential elections.
Some countries have also hinted that another treaty could take as much as 10 years to work out. In Durban, the US has already made it clear that it would not agree to any legal instrument that did not put obligations on all major emitters.
The efforts to continue the North-South differentiation under the Kyoto Protocol is led by India, China, Brazil and South Africa (BASIC) countries. “The Kyoto Protocol is the cornerstone of the climate regime,” a Chinese spokesperson told delegates. “We call upon the developed countries to rise up to their historical responsibility and take the lead up by undertaking ambitious and robust commitments consistent with science.”
China is now the largest producer of carbon emissions followed by the US. Indian delegates maintained that the BASIC statement by China at the start of the conference testified to the group’s solidarity. The bloc of developing countries, however, is more fragmented due to the immediate danger faced by small island nations, which are most vulnerable to rising sea levels. The International Energy Agency report, released this month, said the world had five years before the consequences of climate change will become irreversible. The goal is to stop the Earth’s temperature from increasing more than 2 degree Celsius from pre-industrial levels. Despite the deadlock over the Kyoto Protocol, delegates from 194 countries will attempt to find solutions on issues like adaptation, finance and technology sharing.
On a positive note, however, the Indian delegation was pleased that it garnered some support for its three-point agenda - equitable access to sustainable development, unilateral trade measures (in response to the European Union aviation tax), and intellectual property rights - two of which were left out of previous Cancun agreements. India’s lead negotiator Jayant Mauskar said: “We are not talking about the Himalayas, Mumbai or the Ganges. These three issues are important for all developing countries.”
Saving Financial Costs
The UN's top climate scientist says global warming will lead to human dangers and soaring financial costs and that containing carbon emissions will have a host of benefits.
Addressing the conference, Rajendra Pachauri, head of the Intergovernmental Panel on Climate Change (IPCC), said that heat waves experienced once every few decades will happen every other year by mid-century.
Coastal areas and islands are threatened with inundation by global warming, rain-reliant agriculture in Africa will shrink by half and many species will disappear.
Pachauri said: "Many impacts can be avoided, reduced or delayed by reducing emissions. The costs of action would be offset by improved health, greater energy security and more secure food supplies.”
Weather Data Released
On the sidelines of the UN-sponsored climate change talks, the World Meteorological Organization (WMO) stated that the global average temperature in 2011 was down from the record high in 2010 because of it being a La Nina year, but it was still higher than previous La Nina years.
The latest weather data highlight the conundrum of the negotiations as governments spar on whether developed or emerging countries should bear the brunt of emission reductions. Few attendees expect a breakthrough on the talks, which come amid growing warnings about the likelihood and severity of global warming.The UN weather group stated 2011, still with one month left, was the 10th warmest year on record. While the temperature was down from 2010, the WMO said it was higher than previous La Nina years. La Nina typically has a cooling influence on temperatures.

India, South Africa Agree To Strengthen Bilateral Cooperation

India and South Africa have agreed to strengthen bilateral cooperation in the medium, small, and medium enterprises (MSME) sector. This was agreed in a bilateral meeting between Jyotiradiya M Scindia Minister of state Commerce and Industries and Scindia is on a one day visit to South Africa heading a Confederation of Indian Industries (CII) business delegation to South Africa. Scindia held wide ranging discussions with Elizabeth Thabethe, Deputy Minister for Trade & Industry. During the discussions Scindia referred to the historical ties and their common struggle against colonialism and apartheid. Addressing the press after the meeting the Minister for State for Commerce & Industry said, "South Africa houses many prominent centers of learning and excellence. There is a scope for the universities and research and scientific institutions to enter into R&D collaborations.
The MSME sector accounts for a large share of industrial output, employment and exports in both countries. There are immense opportunities of cooperation and strategic alliances in MSME sector, which could be in the form of joint ventures, technology collaborations or marketing tie-ups."
Bilateral Trade in 2010-11
The total trade between the two countries in the financial year 2010-11 was $10.6 billion, higher than bilateral trade target of $10 billion by the year 2012, set during the visit of South African President Jacob Zuma to India in June, 2010. A revised bilateral trade target of $15 billion has been set for the year 2014 during the meeting of Minister of Commerce and Industry, the Indian Government and the Minister of Trade and Industry, South African Government held on 10 January 2011. Scindia expressed hope that the India-SACU Preferential Trade Agreement (PTA) will be concluded soon, which will give a considerable boost to our exports in the Southern African region. South Africa is India's 2nd largest trading partner in Africa. There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods.
Addressing the business conference "India-South Africa: Developing Partnerships for Future" at Johannesburg, Scindia said "Our economies are placed in similar positions in the global economic order, and both our governments are faced with similar socioeconomic imperatives. It is imperative for us to step up the bilateral cooperation, intensify knowledge sharing and jointly address developmental issues, leading to inclusive growth in our respective economies. "Speaking about the potential areas of cooperation he mentioned that there are tremendous prospects for South African diamond mining companies to enter into long term contracts with the Indian diamond companies/rough purchasers like DIL, MMTC etc. and there exists tremendous scope for co-operation and JVs between Public Sector undertakings of the two countries in the coal sector. He mentioned about the significant contribution made by 1.5 million strong Indian Diaspora in South Africa. The business conference was jointly organized by the CII and the Business Unity South Africa (BUSA).
Structured Engagement and Interaction
Addressing the conference he mentioned that the 1st India-Africa Forum Summit in New Delhi in 2008, and the 2nd Summit, recently held in May 2011 at Addis Ababa, have designed a new architecture for a structured engagement, interaction and cooperation between India and Africa in the 21st century. At the 2011 Summit, our Prime Minister Manmohan Singh, made several announcements for the next three years, including the availability of $5 billion Lines of Credit; more than 22,000 scholarships and an additional $700 million to establish new institutions and training programs in consultation with the African Union and its institutions.
In a meeting organized by the Indian High Commission, he also interacted with the leading CEOs of Africa and explained to them the opportunity India offers due to its unique democratic and demographic dividend.
There is active contact between India and South Africa in multilateral fora, particularly at the NAM, Commonwealth, G77, G20, New Asian-African Strategic Partnership (NAASP), and World Trade Organization (WTO). Both countries are part of the India, Brazil and South Africa (IBSA) trilateral initiative. Both countries are currently non-permanent members of the UN Security Council (2011-2012). South Africa rendered pro-active support in the NSG decision to enable full civil nuclear cooperation with India. South Africa recently participated in the BRICS summit held in China in April 2011.

China Invites RSA To Join BRIC States As Full Member

Minister Maite Nkoana-Mashabane informed by the Minister of Foreign Affairs of the People's Republic of China, Yang Jiechi that BRIC (Brazil, Russian Federation, India, China) invites Republic of South Africa into BRICS (Brazil, Russian Federation, India, China, and South Africa) as a full member.

Agreement Reached
The Minister of International Relations and Cooperation of the Republic of South Africa, Maite Nkoana-Mashabane, received a telephone call from the Minister of Foreign Affairs of the People's Republic of China, Yang Jiechi informing her that China, in its capacity as the rotating chairperson of the BRIC formation, based on agreement reached between the BRIC Member States, invites South Africa as a full member into BRICS.

He further indicated that President Hu Jintao also issued a letter of invitation to President Jacob Zuma to attend the 3rd BRICS Leaders' Summit to be held in China. Minister Yang conveyed that China believed that South Africa's accession would promote the development of BRICS and enhance cooperation among emerging market economies.

Communication and Coordination
On behalf of President Zuma and the South African Government, Minister Nkoana-Mashabane expressed South Africa's sincere appreciation for the invitation to join BRICS, as well as the invitation from President Hu to attend the Summit. The Minister emphasized that South Africa was ready to step up communication and coordination with China and other BRICS Member States for mutually beneficial cooperation.

Minister Nkoana-Mashabane wrote to her BRIC counterparts in 2009 to raise the possibility of South Africa's BRIC membership. President Zuma subsequently met with BRIC leaders in the course of 2010. The rationale for South Africa's approach was in consideration of a matter of crucial importance to BRICS Member States, namely the role of emerging economies in advancing the restructuring of the global political, economic and financial architecture into one that is more equitable, balanced and rests on the important pillar of multilateralism.

Relations With Emerging Powers
In fact, the approach to intensifying relations with emerging powers and other countries of the South is, of course, through active and strong bilateral engagement. In addition, however, BRICS also see the NAM (Non-Aligned Movement) and the G77 as important for South-South interaction, especially within the framework of the United Nations.

At another level, it is seen the formation of the IBSA (India, Brazil, South Africa) and our membership of that body as a mechanism not only for enhancing our trilateral partnership with India and Brazil, but also as an important pillar for strengthening the muscle of the South in global affairs.

Enhanced Cooperation Efforts
It is believed that the IBSA will get a better balance, and become even stronger, with South Africa now as a member of the BRICS. However, it remains convinced that South Africa's diversified foreign policy objectives and interests allow for both groupings (IBSA and BRICS) to co-exist. It is the belief that the mandates of BRICS and IBSA are highly complementary.

South Africa and BRICS Member States already collaborated and will continue to collaborate closely in various international organizations and formations such as the United Nations, the G20 and the IBSA Dialogue Forum. All BRICS countries will serve on the UNSC [United Nations Security Council] in 2011 as permanent (China, Russian Federation) or non-permanent members (Brazil, India and South Africa), which augurs positively for enhanced cooperation efforts in terms of the salient issues of common interest.

IBSA, BRIC Summits Call For Cooperation Between Nations

India on 15 April joined Russia, Brazil, China and South Africa in holding back-to-back summits of IBSA (India-Brazil-South Africa) and BRIC (Brazil-Russia-India-China) that underscore a shared quest for greater collective influence within the changing geometry of the international system.

Building Strong Moral Force
The two groupings -- of which Brazil and India are common members -- were originally meant to meet here over two days in the rising powers' answer to the G7 platform of top industrialized countries. But with China's President Hu Jintao cutting short his visit because of an earthquake in Qinghai, the IBSA forum and the BRIC group both met within hours of each other on April 15.

Calling IBSA "a strong moral force in today's unsettled world," Prime Minister Manmohan Singh, who arrived here from Washington on 14 April, said the significance of the grouping extended well beyond the bilateral ties between its three members. Among the areas he identified for coordination within IBSA were greater access to developed markets, reform of the United Nations, climate change and terrorism. Brazil was represented at the summit by President Lula da Silva and South Africa by President Jacob Zuma.

Iran's Nuclear Issue
The IBSA nations further advocated a peaceful and negotiated solution to Iran's controversial nuclear programme and asked Tehran to fully cooperate with the IAEA and UN Security Council Resolutions.

Prime Minister Manmohan Singh along with Lula and Zuma recognized the right of Iran to develop nuclear programs for peaceful purposes in keeping with its international obligations.

They called upon Iran to fully cooperate with the International Atomic Energy Agency (IAEA) and comply with the relevant UNSC resolutions. They also reiterated the need for a peaceful and negotiated diplomatic solution of the issue.

Coherent International Commitment on Afghanistan
With regard to Afghanistan, the leaders expressed concern at the continuing deterioration of the military and political situation in Afghanistan, the growth of terrorism, including cross-border terrorism promoted by Taliban and Al-Qa'ida, and its links with international terrorism. They reiterated, in this context, that a coherent and a united international commitment, both in its developmental and security/military aspects, remained of paramount importance.

In this context, they also emphasized the need to strengthen the Afghan National Security Forces. They agreed to continue to cooperate and coordinate their efforts to impart greater strength to the process. They reaffirmed their commitment to a democratic, pluralistic and stable Afghanistan. They underlined the centrality of the regional aspect in the reconstruction and development process in Afghanistan.