brics: the 2012 new delhi summit

7/29/2019 BRICS: The 2012 New Delhi Summit

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NEW dElhi SUMMiT2012

Contributors include

Tejendra KhannaSudhir VyasSergey Lavrov

Nursultan NazarbayevMichel Sidib Vadim Lukov

Jim ONeillYoginder Alagh Maxim Medvedkov

Yu YongdingJoo Pontes Nogueira Francis Kornegay

Prabeer Basu Nitin Desai Alexander Bedritsky

Stability,security andprosperity


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NEW dElhi SUMMiT2012

4|BRICS NEW dElhi 2012

2012. Te entre contents of ts pubcaton are protecte by copyrgt. A rgts reserve. No part of ts pubcaton may be reprouce, store n a retreva system, or transmtte n any form or by any means:

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te BRiCS Researc Group of proucts or servces referre to teren.

Editors Marina Larionova, John Kirton

Deputy editors Madeline Koch, Mark RakhmangulovGuest editor Yoginder Alagh

Researcher Andrey Shelepov

Editor-in-chief Colette Doyle

Managing editor Barry Davies

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Production and distribution manager Malcolm Green

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Managing director Andrew Howard

Chief executive Alan Spence

Chairman Paul Duffen

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contents

BRICS new delhi 2012 |5

editors foreword

8 fm m :g h ky glbl

Marina Larionova and John Kirton

Leaders perspectives

10 Brics: m h Recent reflections from the five leaders of the

BRICS countries on the key issues affecting

their developing economies

introductions

12 Brics: -g mh glbl hSergey Lavrov, minister of foreign affairs,

Russian Federation

14 wlm dlh: glbl xhg Tejendra Khanna, lieutenant governor

and administrator of national capital

territory of Delhi

16 th Brics n dlh smm 2012Sudhir Vyas, secretary (economic relations),

Ministry of External Affairs, Government of

India, and Indian sherpa for the BRICS summit

18 Brics h glbl :g ghYoginder K Alagh, chair, Institute of

Rural Management Anand; guest editor,

BRICS New Delhi Summit 2012

speciaL perspective

20 Kzkh h g Nursultan Nazarbayev,

president of Kazakhstan

BuiLdinG tHe Brics institutions

24 Blg Brics: m lgy g ly

Jim ONeill, Goldman Sachs

26 wh h Brics h?Nitin Desai, former under-secretary-general,

United Nations

28 tm Brics l xl l gyVadim Lukov, ambassador-at-large,

Russian Ministry of Foreign Affairs;

Russias BRICS sous-sherpa

30 ag bly Brics gElla Kokotsis, BRICS Research Group

participatinG powers

32 r x y:lkg h Maxim Medvedkov, director, Department

of Trade Negotiations, Russian Ministry of

Economic Development

c


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contents

6|BRICS new delhi 2012

34 cia a a lbal i pwrYu Yongding, Chinese Academy of

Social Sciences

36 t kk- ff f ciaai rl i wrl raTu Xinquan, China Institute for WTO Studies

of the University of International Business

and Economics

38 t lbal ifl f BRIcs:a Brazilia prpi

Joao P Nogueira, International Relations

Institute, Pontifical Catholic University of

Rio de Janeiro, and general coordinator,

BRICS Policy Center

40 Brazil a a lbal rai parr: bi i BRIcs lp?Fatima Berardinelli, Adriana de Queiroz,

Leonardo Paz, Renata Dalacqua and

Andressa Maxnuck, Brazilian Centre for

International Relations

42 s Afria ak i pla wrl a a lbal pwrFrancis A Kornegay, Institute for

Global Dialogue

the summIt AgendA

PRosPeRIty

44 Ai i pwra pial f BRIcsYV Reddy, former governor,

Reserve Bank of India

46 Pial b prfraa a i f lbal rwMikhail Titarenko, director, Institute of Far

Eastern Studies, Russian Academy of Sciences

48 t all f bi aib f kwl a iaiMarcos Troyjo, co-founder and director, BRICLab,

Columbia University, US

50 Iraial prai:a fr apai biliGeorgy Toloraya, executive director,

National Committee of BRICS Research,

Russia; chair, Regional Projects Department,

Russkiy Mir Foundation

52 ca a BRIcs ar arrari g7 wall f ?Martin Gilman, former assistant director, policy

department, International Monetary Fund

54 Rr rri a

iraial ar Sergei Guriev, rector, New Economic School,Moscow, Russia

56 Pl ai fr rifiaial lik a BRIcsVladimir Dmitriev, chair, Vnesheconombank

58 Flli ia BRIcs riLeonid Grigoriev, deputy director general,

Russian Energy Agency; head, chair of global

economy, Higher School of Economics, Russia;

and Alexandra Morozkina, chief specialist,division of analysis of investment and financial

problems, Russian Energy Agency

60 Bili a BRIcs frawrk fri, l a iaiLeonid Gokhberg, Tatiana Kuznetsova and

Anna Zaytseva, National Research University

Higher School of Economics, Russia

BRIcs: A PRIvAte-sectoR PeRsPectIve

62 grai lbal rwi BRIcs a bAn interview with Shanker Ramamurthy,

president, Global Growth Organisation;

member, executive board, Thomson Reuters


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contents


Development, HealtHanD agriculture

66 l h aiDs

d hh d dMichel Sidib, executive director,Joint United Nations Programme on

HIV/AIDS (UNAIDS)

68 th f Brics fdd dPrabeer Kumar Basu, secretary,

Department of Agriculture and Cooperation,

Government of India

70 cb dhh d d

Peter Draper and Elizabeth Sidiropoulos,South African Institute of International Affairs

72 Hw dhh bf h d hdManoja K Das, Kiranmala Devi and

Narendra K Arora, the INCLEN

(International Clinical Epidemiology

Network) Trust International

74 th Brics b h fh dSiphamandla Zondi, University of South Africa

and Institute for Global Dialogue

76 m h h faf fd

Jay Naidoo, Global Alliance for

Improved Nutrition

energy, environment anDsustainaBle Development

78 c h f c Db d bd

Alexander Bedritsky, advisor to the presidentof the Russian Federation and special envoy

for climate; president emeritus of the World

Meteorological Organization

80 Hw bd k Bricsd h f bMikhail Komarov, director, Russian Institute of

Economy and Mineral Resources Exploration;

Evgeny Kozlovsky, vice-president, Russian

Academy of Natural Sciences; and Rudolf

Makrushin, Russian Institute of Economy and

Mineral Resources Exploration

82 Wh f fch ?Xu Ting, University of International

Business and Economics, China

peace anD security

84 c Brics f h b shRamesh Thakur, Asia-Pacific College of

Diplomacy, Australian National University

86 s f b f Vladislav P Sherstyuk, aide to the

secretary of the Russian Federation

Security Council; director, Lomonosov

Moscow State University Institute of

Information Security Issues

inDias Business opportunities

88 th id b wb d R Gopalakrishnan, director,

Tata Sons Ltd

91 id ff fBK Chaturvedi, Planning Commission,

Government of India

94 ld f

Biographies of the five BRICS leadersattending the New Delhi Summit


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editors foreword


muc s 2012. Ty aso offr attractv opportuts forvstors a xportrs vryr.

T n d Summt arss a avac may of t kyssus cofrotg t goba commuty, by cotug to tratt topcs o t BRiCS but- aga, ag t prorts of tsia ost a ag t t crtca goba crss tat ars.

T but- aga as xpa to cu a broa rag oftms. Ts bg t aca a macrocoomc maagmt,vstmt, tra, scc, tcoogy a ovato. Tymbrac vopmt, at, agrcutur, rgy, t vromta cmat cag. Ty xt to prssg pac a scurtycags, from trrorsm, pracy a ucar o-profrato torgoa scurty nort Afrca a t M east.

Across a ts ssus t tasks of rformg for t21st ctury t stabs goba sttutos tat govr tosssus, otaby t itratoa Motary Fu (iMF), t worBak a t Ut natos Scurty Couc (UnSC) from tor tat xst 1944-45. Aotr mportat task s bug sttutos t BRiCS, otaby a mrgg cooms

mutatra vopmt bak.equay mag ar t prorts tat ia, as ost, asst for ts summt 2012. Ts bg t sttg a og-rag vso for a , so BRiCS summt-ctr systm,cotag ts ctra vaus a prorts, accoutabtymcasms to mprov prformac, t xpaso of tssttutos, cv socty vovmt, a tr otrcoutrs sou jo t group at a approprat tm.

Strengthening sustainable developmentA sco prorty s mprovg t BRiCS crss rspos tUn a to ruptos wst Afrca, nort Afrca, t M easta Syra, abov a. A tr prorty s strgtg sustaab

vopmt, partcuary cmat cag, foo scurty aatr, bug o t durba Patform for eac Acto fromSout Afrca dcmbr 2011 a ag up to t Ro+20cofrc Braz Ju 2012. A fourt st of prortscotas t tratoa pars of vopmt: urbasato,uvrsa accss to atcar, ucato a sks vopmt,tcoogy sarg a ovato, a t possb for aBRiCS vopmt bak a mpact vstmt fu.

Ts ast a ou ot oy bu t BRiCS sttuto practca, opratoa ays, but ou aso a to t arrayof mutatra vopmt baks a tratoa acasttutos r rform as b so. i n d, t ars cosr o to ast mpmtato of t G20-

voc a quota rform of t iMF to gv mrgg pors trpropr pac a to sur tat t as of t iMF a worBak ar actuay sct, as agr, o t bass of goba mrtratr ta t rstrctv atoaty prcp tat as prva t past. Ty arss t bst ay to xpa t rsourcs

fm m c pn:

ang h ky glbal u

th paculaly gncan umm n

N dlh ll cv a ang

pc, nclung mng xng glbal

nun, bulng n n hn BriCs,

an mpvng c pn

By Marina Larionova and John Kirton, co-directors,

BRICS Research Group

t summt of t BRiCS coutrs of Braz, Russa,ia, Ca a Sout Afrca, c tak pac n d o 29 Marc 2012, promss to b a

xcptoay sgcat vt svra ays. it st rst tm tat t aua BRiCS summt b

ia, foog t rst Russa 2009, t sco Braz 2010 a t tr Ca 2011. T n d Summttus marks t compto of t rst fu ostg cyc amog trapy rsg pors tat ar t orga mmbrs of ts oso a xpag cub. it marks t sco apparac att summt for Sout Afrca, t st mmbr, a t rst tmtat t coutry as b fuy vov summt prparatos.

T Asa ocato of t BRiCS summt broa abaac summt-v goba govrac 2012, byo tnort Amrca om of t G8 summt, to b at Camp dav May, a t G20 summt to b los Cabos, Mxco,

Ju. wt t major stabs cooms st struggg tocop t suggs grot, g sca cts a bts, asubstata umpoymt, t bg mrgg pors BRiCS o rprstg about a quartr of t ors proucto av a ky ro govrg t goba coomy a


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editors foreword


of t iMF to rspo to goba aca crss, urstaabysstg tat rgoa sttutos suc as t europa Uomust rst pay tr propr part, a tat govrac rform att iMF s rqur for t rsourcs to b us t mostffctv a gtmat ay. Ty aso scuss t UnSC o to us t mor ffctvy to protct cvas Syra a

sr rsposby, a o to rform t to gv mrggpors suc as ia, Braz a Sout Afrca a ac ro.

Looking to future summitsT a cso to b aouc at n d s o ost tBRiCS summt 2013. T ky coc of Sout Afrca, t stmmbr, ou sgfy tat BRiCS as bcom a guy gobaactor a gograpc a coomc ss, by brgg t summtto Afrca a to t most rcogsaby vopg coutry tgroup. T coc of Russa, c probaby ost 2014, start a sco ostg cyc by trustg t BRiCS summt to t

foug mmbr. T forums sttutoasato yamcs avr-xpag aga, so tat t BRiCS summt s r to stay.

BRiCS as vov ts goba govrac fuctos, movg fromts focus o brato to rcto-sttg, cso-makg,vry a t vopmt of BRiCS govrac sttutos. Att 2011 summt, t ars sa ty r trm to trasat

tr potca vso to cocrt actos, a tus go forarfrom rtorc to ra actos. Ty ors a acto pa to srvas t fouato for futur cooprato a agr to rvts mpmtato urg t xt ars mtg. w otambtous, t pa s a strumt for vopg cooprato.i n d, t ars to rvst t commtmt.

Cosoatg t aga am at cratg goba pubcgoos, strgtg cso-makg a vry, acug mts of accoutabty cotrbut to tffctvss a trasparcy of t BRiCS as a group aac ts ro goba govrac.

Tcoogy sarg a ovato ar amog

ias prorts for scusso n d


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LEADERS PERSPECTIVES


BRICS: a view from the top

Manmohan SinghPrime minister of IndiaFrom a gopotca prspctv, tBRiCS cooms occupy a stratgccoomc posto. Ty possss asgcat prctag of t orsamass a a v mor cosrabprctag of t goba popuato. Tvouto of BRiCS a ts broa appa

amog a our pops s a rcto ofmrgg rats, a fu of op.

T cag bfor us s to arsst vast potta tat xsts amog us.Our prorty s t rap sococoomctrasformato of our pop a tosof t vopg or. Our coopratos tr rct agast or at txps of ayo.

w av t opportuty to gvcocrt mag to t cocpt ofsustaab a baac vopmt, aprouc ovatv mos of vopmt.

w ca cooprat ca a atratvsourcs of rgy a tcoogs.

w v a ag scc atcoogy a t grot of umakog ar bcomg major

trmats of t por a at ofatos. w sou sar our xprcs capacty-bug, ucato ask vopmt.

As arg a vrs socts, arvurab to a mrgg trats toour scurty. it s our uty to our ctzstat cooprat t gt agasttrrorsm, xtrmsm a torac a

otr o-tratoa trats k pracy.

Dmitry MedvedevPresident of RussiaOur task s to us vry opportuty totrasform our or to a ortat s mor just for t vast majortyof ctzs, a or c succsss trm by tat a ar orkratr ta famy backgrou, a orr bos of pop b ab tocommucat rcty t ac otr, aor r pop ar ot afra of t

govrmt, a tratoa ratosar fr from oub staars aypocrsy, a or r t b asra mor fct to ork togtr,to ork joty. espcay sc a

grato of ars as com to por may coutrs, potcas os vs

r form aftr t Co war. w cascuss a ras our rams togtr, ar ray for tat a i say i ma Russa. A ts sou compus to mov toars a gratr v oftrasparcy a coorato.

it s mportat tat t BRiCS group,as mo by coomsts som tm ago,as acqur ug crbty a t statusof a truy fct orgasato. At ast t to xpa our fforts tat format.Ts ar coutrs tat sta vrycac to bcom t ars of goba

vopmt a to sour rsposbtyfor tat procss. i bv tat o suca cou b mpmt vry sorty: tocu t currcs of BRiCS coutrs t iMF SdR baskt.

Hu JintaoPresident of Chinaw sou avour to strgtt BRiCS partrsp for commovopmt. Ovr t past v yarssc ts cpto, BRiCS coopratoas ma stay aay. T scop of

t cooprato as b broag at vs crasg. A mut-tr a-ragg cooprato structur astak sap. Facts av so tat BRiCScooprato as cotrbut ot oy to

Recent reflections from the five leaders of the BRICS countries

on the key issues affecting their developing economies


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LEADERS PERSPECTIVES


t coomc a soca vopmt ofour v coutrs, but aso to or pac

a vopmt.w sou bu o at avacv a pa for t futur. wsou stck to t basc prcpsof soarty, mutua trust, opss,trasparcy a commo vopmt.lt us ac mutua trust trougcooprato a aays b goo frsa goo partrs. Our cooprato s opa traspart, a s am at mutuabt a commo vopmt.

w sou stay rmy commtt tot commo trsts of BRiCS coutrs,

stp up coorato t tratoacoomc, aca a vopmt sa strgt t stag a ro ofmrgg markts a vopg coutrs goba coomc govrac. w soucotu to p practca cooprato,vgorousy tap our cooprato potta coomy, tra, at a sstr-ctyratosps, a strv for frutfu rsutsof our cooprato varous s so as tofurtr strgt t coomc a socafouato for BRiCS cooprato.

Dilma RousseffPresident of Brazil

lk otr mrgg coutrs, Brazas tus far b ss af fct by tgoba crss. But ko tat our capacty

to rsst t s ot umt. w arg a ab to p, tr s

st tm, tos coutrs r tcrss s aray acut. A k ofcooprato, bt mrgg avop coutrs, s a storcaopportuty to r, t soartya rsposbty, t commtmts tatgovr tratoa ratos.

T or facs a crss tat s at tsam tm o of coomcs, govrac,a potca coorato. Tr otb a rtur to coc a grot ut tsfy coorato fforts btt mmbrs of t Ut natos a

otr mutatra sttutos. T Utnatos a ts orgasatos musturgty s out car sgas of potcacoso a macrocoomc coorato.

T souto of t bt crss mustb comb t coomc grot. Trar garg sgs tat may avaccooms ar o t trso ofrcsso, c sgcaty rt sovg of tr sca probms.

it s car tat, rgt o, t prortyof t or coomy must b rsovg tprobm of tos coutrs facg sovrg

bt crss a turg back t currtrcssv t. T vop coutrsmust put pac coorat pocs tostmuat t cooms tat ar xtrmyak by t crss.

Jacob Zuma

President of South Africa

wat stguss ac of t BRiCScoutrs s t vau a mportac attac to vopmt. w sar tcommtmt of surg tat our popbt at t broast v from gobagrot a tat t bts of coomcxpaso ar sar qutaby.

T BRiCS coutrs gra ava arg savgs poo, ras tAfrca cott s ray for arg-scavstmts. Ovr t xt 10 yars, Afrca $480 bo for frastructurvopmt, c sou trst t

BRiCS busss commuts. Afrca sprojct as t tr fastst-grogcoomy t or, t BRiCScoutrs o costtut t argst tragpartrs of Afrca a argst vstors.

Ts coomc ratosp bfurtr strgt as Afrca forgs aatoars rgoa coomc tgrato. Tsmov op up opportuts for morforg rct vstmt a xpagtra ratos t BRiCS coutrs.

Sout Afrca stas to bt fromt cocrt projcts of BRiCS. Ts ar

aras suc as agrcutur, scc,statstcs, vopmt-ac sttutos,scurty a justc. As ts s a yamcratosp, mor aras of cooprato o oubt b a as tract.


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INTRODUCTION


T stabsmt of BRiCS, tat by Russaprst Vamr Put 2006, as b o oft most sgcat gopotca vts sc tbgg of t ctury. it as qucky bcoma porfu uc o or potcs a t

coomy. T vouto of t BRiCS group cotus t

tr toar a mutpoar systm of tratoa ratos acrasg coomc trpc. Suc a systm rqursgoba govrac a tork pomacy.

BRiCS uc t tratoa ara s a rsut of tsmmbrs grog coomc por a tr mportat cotrbutoto goba mograpy a t suppy of atura rsourcs. i 2011,BRiCS coutrs accout for 25 pr ct of goba gross omstcprouct (GdP) (bas o t purcasg por party of atoacurrcs), 30 pr ct of goba a ara a 45 pr ct of tors popuato. Ovr t past ca, tr cooms avgro by 4.2 tms, compar t 61 pr ct grot tvop coutrs. Bt 2001 a 2010, t BRiC coomsGdP ros muc mor sarpy ta i a tougt possb v t

most optmstc scaro, amts Jm On, t coomst oco t trm BRiC. T BRiCS cotrbuto to goba coomcgrot as o rac 50 pr ct, makg ts group tprcpa rvr of goba coomc vopmt.

i trms of potca uc, Russa a Ca ar prmatmmbrs of t Ut natos Scurty Couc (UnSC), a aBRiCS mmbrs pay a promt ro ag tratoaorgasatos: t Un, t G20, t G8, t no-AgMovmt, t G77. i rgoa trms, Russa s a mmbr of tCommoat of ipt Stats, t Coctv ScurtyTraty Orgazato a t eurasa ecoomc Commuty.Russa a Ca ar mmbrs of t Saga Co-opratoOrgasato a t Asa-Pacc ecoomc Cooprato forum.

Braz s a mmbr of t Uo of Sout Amrca natos aMrcosur. Sout Afrca s a mmbr of t Afrca Uo a tSout Afrca dvopmt Commuty. ia s a mmbr oft Sout Asa Assocato for Rgoa Co-oprato.

Tipping the global balanceAccorg to Braza Caros Prra, t BRiCS group s o oft ky pcs o t goba cssboar. On cocus tatBRiCs rap grot tps t goba baac.

log-sar trsts brg t BRiCS coutrs togtr. Os tr sr to rform t outat goba aca arctctur,c os ot rct t cras coomc gt of tBRiCS a otr mrgg cooms. T groups commtmt to

tratoa a a rjcto of por potcs a frgmto otrs sovrgty ar quay mportat. BRiCS mmbrs faca muttu of commo cags rat to coomc a socamorsato. Compmtarts amog may sctors of BRiCScooms aso cotrbut to tr stratgc rapprocmt.

BRICS: a new-generation orum

with a global reach

The BRICS group has evolved so much sinceits establishment that it now has a real

chance to use its political inuence and to

reorm outdated global fnancial architecture

By Sergey Lavrov, minister of foreign affairs,

Russian Federation


13/96

INTRODUCTION


It is important to develop mutual support

for proposals of primary concern to the

BRICS countries at the United Nations

General Assembly and its agencies

For t Russa Frato, cooprato t BRiCS s a kyog-trm forg pocy prorty. w com t stp-by-stptrasformato of ts cooprato to a mutatra stratgcpartrsp mbracg far-ragg ssus of t goba coomya potcs. Morovr, Russa supports postog BRiCS as a mo of goba ratos ovrrg t o east-wst or nort-

Sout barrrs. A assocato of stats popuat by amosttr bo pop s ot ky to mt tsf to t ro of brgor mator bt t nort a t Sout, or of opratgoy t t Sout-Sout potca spac. Suc a approacou ty rstrct t opportuts for BRiCS to pursupt pocs tratoa affars.

As a group, t BRiCS mmbrs av aray ga vauabxprc cooratg tr actos o major tratoassus, spcay a v coutrs r mmbrs of tUnSC smutaousy 2011. Our coutrs av tak commoor smar postos o ssus suc as t stuatos lbya,Ct ivor, Sua a Somaa.

Maintaining peace and securityTr ar goo prospcts for mor actv gagmt to prsrv astrgt t UnSCs ro matag pac a scurty aprvtg t Un, spcay t Scurty Couc, from bgus by t wst for sgusg attmpts to ovrtro uatrgms or mpos uatra soutos for coct stuatos. it smportat to cotu a vop mutua support for proposasof prmary cocr to our coutrs at t Un Gra Assmbya ts agcs cug t huma Rgts Couc, t ecoomca Soca Couc, UneSCO, t Un iustra dvopmtOrgazato a t Un dvopmt Programm.

Russa cas upo ts BRiCS partrs to aopt t foogprorts for tratoa scurty.

Frst, BRiCS must coorat ts posto a formuat jotproposas for stratgc stabty, tratoa a rgoa scurty,t o-profrato of apos of mass structo as as forrsovg rgoa cocts a matag rgoa stabty.

Sco, BRiCS sou gag jot fforts to strgtt Uns ro t gt agast trrorsm, surg tmpmtato of ts Goba Coutr-Trrorsm Stratgy auvrsa at-trrorsm covtos, as as strct compact rvat UnSC rsoutos.

Tr, BRiCS sou coorat ts approac to combatgct rug trafckg a tak jot stps t Uns framorka rat rgoa orgasatos.

Fourt, BRiCS tracto sou support tratoa

formato scurty, t gratr cooprato combatgcybrtrrorsm a cybrcrm.

Fft, BRiCS sou ac ts cooprato t stakors gtg martm pracy, a cras fforts to crat atratoa mcasm for proscutg a pusg prats.

Rformg t tratoa motary a aca systm rma a ky og-trm prorty of BRiCS cooprato.BRiCS sou focus o surg strog, sustaab abaac goba coomc grot, comptg t currtrforms of t itratoa Motary Fu (iMF) accorg tot as a cotos agr upo by t G20 a tiMF, a avacg rforms t tratoa motary systmto bu a mor rprstatv, stab a prctab systm oftratoa rsrv currcs.

Ts tasks ca b acv may troug t G20. Tus,t s cruca for t BRiCS mmbrs to ac tr tracto

t t G20. Togtr, sou o vrytg possbto strgt t G20s ctra ro rspog to gobaaca socks a rformg t goba aca acoomc arctctur.

Russa attacs grat mportac to usg t stabsstructurs of cooprato t BRiCS to mmbrs fu potta orr to accrat t morsato of our cooms,sur foo a rgy scurty, a arss soca ssus. it sssta to ras mutua aarss of our cuturs a tratos, orr to xpa pubc support for t purposs a pocs oft mmbrs as a group. A commo formato spac for BRiCSmmbrs cou p to accomps ts objctv.

Som cocusos ca b ra from BRiCS xprc tus

far. For t xt tr or four yars, t sms approprat for tv coutrs to coctrat o promotg commo trsts ac, coomy a potcs, as as o t sttutoastrgtg of BRiCS to rac a v of cooprato.

i Russas opo, forma mcasms sou aycu summts; rguar mtgs of hg Rprstatvs forScurty issus; mtgs of forg a ac mstrs, ctrabak govrors, a sctora mstrs a agcs; orkggroups; a a vrtua scrtarat. Rguar srpa a sous-srpamtgs sou srv as a BRiCS cooratg mcasm.

it s mportat to am at vopg t forums xtraratos. w sou mpass a aogu t major mrggcooms a vopg coutrs, t Un a ts bos, as

as t ky rgoa orgasatos.T progrss tat as b acv by ts youg group at a

ary stag, as as t momtum of ts vopmt a tsprospcts, so tat BRiCS bcom crasgy mportat g t trust of goba vopmt t 21st ctury.


14/96

introduction


it gvs m grat pasur to xt a arm com to tstgus as of stats a otr gats o b our cty for t BRiCS summt. Ovr may ma,d as stoo at t crossroas of goba xcags ofas, cuturs, ays of f a tra a commrc. i

our act rgous a posopca rtgs, t Vas, tr

s a xortato to vryo to kp t os of tr msop so tat s of som ca b rcv from a rctos.ias gt sprt of goba fratrty s captur byt Saskrt sokas Vasuava Kutumbkam a Sarv BavatuSuka, mag tat t or s o famy a sk t-bg a appss of a.

ia as vr ft trat by vrsty, but as sctvybt from vrs goba tratos to rc ts osk of vg. it s t capacty to v pac, armoy atorac, spt t grat vrsty trms of aguags,cuss, accoutrmts a ays of orsp, tat costtuts afuamta aspct of ia-ss. w bv rspctg popt ffrg pots of v a rsovg ffrcs troug

aogu a scusso. Ts propsty for vuasm tkg a artcuato, coup t rspctg t from oftougt a acto of otrs, as b portray succctya braty by t nob Prz-g ia coomst,Amartaya S, s book The Argumentatve indan.

By urtakg massv rguato of coomc actvty t ary 1990s, ia uas a pro of gt coomcgrot a toay raks amog t ors top mrgg mga-cooms. w t furtr strgtg a xpaso of tcoutrys pysca frastructur by ay of roas, arports, porgrato a strbuto, ra ks a rap mtro trasportfacts ar aras tat cotu to rqur arg vstmtsa tm-bou mpmtato, substata progrss as aray

b acv ts aras a pocy masurs ar pac toaccrat t pac of ts actvts.

T rmarkab surg t proucto of automotvvcs, t umbr of mob po usrs a t gobarcogto of ias strog capabts t computrsoftar sctor ar som xamps of t postv outcoms oft coutrys coomc brasato procss.

Peace and progressi ts ag of goba tr-pc, t uma commuty aso opto but to ork togtr for goba pac a progrss. its oy ur cotos of pac tat t fruts of vopmtca b joy by pop rvr ty v. ecoomc grot

sou brg about bttrmt vg cotos for a. Tspra of vocatoa a sk ucato to ab youg popto gag gafu coomc actvty o tr o, a argtmat voos tout avg to p o govrmtor corporat sctor jobs, s mportat for matag soca a

Welme delh: a ssas

f glbal exhages f eas

Hsally, ia has beefe fm vesy

a has a a f hspaly was

he les ha s ap f s apals le

as hs hs yeas BricS smm

By Tejendra Khanna, lieutenant governor and

administrator of national capital territory of Delhi


15/96

introduction


the sge he p f amve

vehles, he mbe f mble phe ses

a eg f s sfwae se ae

examples f he psve mes f

ias em lbealsa pess

potca stabty. lks, gr quaty bg practsagast om bcaus of stort soca vaus a prorts may socts as to b grapp t a ffctvy ovrcomto ac armoy a appss t fams, tcorrspog postv ffcts o socts a atos.

i am cot tat t arragmts ma for t BRiCS

summt our atoa capta gv our vstg gtars agats a fg of rspct, cosrato a arm osptaty,a avac t caus of pac a progrss at t goba v.

n ds ia Gat. For ma, ia as

b a mtg pot for f frt cuturs


16/96


17/96

INTRODUCTION

BRICS NEW DELHI 2012 |17

The BRICS members collective weight,

both physical and economic, providesthem with an unparalleled capacity to

infuence the global discourse

ministers are a feature on the BRICS calendar. And there are otherareas where synergies of BRICS technological capabilities serve

the cause of its peoples, perhaps also contributing to evolvingglobal positions of contemporary relevance.

Intra-BRICS trade is increasing at an average rate of 28 per centannually and currently stands at about $230 billion. Bilateralinvestment ows among BRICS members are also increasing.Consumer expenditure in BRICS countries as a percentage of grossdomestic product ranges from 35 per cent to 61 per cent, and thereis a strong and growing middle class, with rising levels of income.The BRICS countries today comprise new growth poles in a multipolarworld. During the global economic and nancial crisis, the BRICScountries played a vital role as drivers of growth that helped theglobal economy emerge from the shadows of crisis. They are not athreat to global growth, but an opportunity for global growth.

The fourth summit in New Delhi is taking place against thebackdrop of several important developments, both economic andpolitical. A faltering global recovery made more complex by thecrisis in the eurozone is affecting growth; important internationalevents on climate change and sustainable development touch on

issues of high relevance to the BRICS agenda; the completion ofRussias accession process at the eighth World Trade Organizationministerial conference opens new strands of engagement; and so on.The summit offers the leaders an opportunity for consultations onthese issues and a broad slate of others of global concern.

The BRICS summit will focus on ways and means to deal withthe lingering shadows of the global economic and nancial crisis.

It may also touch upon the global governance architecture anda host of issues there that are increasingly relevant to BRICScountries. Patterns and a calendar of consultation and coordinationamong the BRICS members over the coming year may be expectedto gure on the summit agenda.

Sudhir Vyas addressed the fourth BRICS Academic

Forum, which was also held in New Delhi in March


18/96

introduction


coutrs foo tr o gt trsts. Asia gr fastr, t tgrat t t or. Caas a a start, a t otr BRiCS mmbrs araso pusg. i t at 1980s, Rajv Ga at to vop t cocpt tat ia ou

gro fast a gobasg or, foog a pocy of coctrc

crcs of uc. i kpg t ts, t BRiCS aga s otoy to cras cooprato t ac otr, but aso to pusfor a or t spac for tm a otrs to ours. Ts s asmportat as t objctvs of covtoa pomacy.

For ky mrgg ustrs a sctors, Cas currt 12tFv-Yar Pa as targts a tas of pocs o taxato,tarffs a omstc procurmt, but aso goba prspctvs. Tsctora prspctvs ar of a stratgc atur. ia aso tsto pursu as from goba coomc bats. T approac papro ts o 12t Fv-Yar Pa suggsts goba aspcts caot bgct. Gv t goba soo, Cs a ia grotat pr ct s ot to b smss but ca ty o bttr?

Ufortuaty, xprts a busss pop BRiCS ar

somtms pus by tr o agas. O sso from t2008 mto s tat traspart, arms-gt ratospsamog corporat, aca a cosutacy agcs oft oot xst. T ma t to opay t commts of srous,pt scoars a coomsts.

Rform caot ma a actvst stat, as t ary ays ofmaufacturg xpaso east Asa. Pocy as to b compatbt wor Tra Orgazato (wTO) rguatos. A uacapproac s cssary toays fast-cagg or. Succssfucoutrs ajust tr pocy to ts rqurmts. Tcoogypocs, motary a crt pocs, forg rct vstmt,tra a tarff pocs, a pocs for sma a mum-sztrprss a for stratgc a scurty sctors ar a possb at

t cor of t pocy tat a coutry ca foo.

Open and informed debateBut mor artcuat, assrtv pocy bats ar rqur. TBRiCS coutrs ko tat t s ot tat tr vocs ot bar, but tat t goba bazaar of as s fu of os gratby spca trst groups, oft ty sgus but ffctv usg commucato cas for tr o purposs. A morop, ffctv a form pocy bat p bot BRiCSa t or. Obsrvrs av atc ts uc gro fromt ays of a ca ago. i Reforming from the Top: a leaders20 Summit, t by Jo egs, Rams Takur a ArF Coopr, 2005 i ca for ia a Ca to b a part of t

G8. i argu tat ty ou ork togtr for a mor sustaabfutur. My v rmas rvat. As Jua Joka as rtt,ia as as Sout Afrca sa rstructurg as , but botmpass tat rstructurg of t G8 must ac coopratoamog vopg coutrs a tak to accout tr potta.

BricS he glbal fe:

eag spae f gwh

As BricS plays a bgge pa he glbal

sage, ees ake a ae appah

efm, psh f me pe a

aspae ebae, a bl a ae aevelpme famewk

By Yoginder K Alagh, chair,

Institute of Rural Management Anand;

guest editor, BRICS New Delhi Summit 2012


19/96

introduction


BricS es ae h ag-lma

vesy. Half a ey ag, vesy was

see a se. nw, ssaably

meas blg wha y have

wat ca b ar? Frst, tr must b omstc rcogtoof t pots og ma by BRiCS, as as by t G20 at ts 2010Sou Summt: t spac tat mrgg cooms to gro spossb oy f t goba coomy procs o a rasoabystab trajctory. T four pr ct ru for currt-accout ctsa t G20s Mutua Assssmt Procss ar o ogr uxurs.

Braz a Sout Afrca ar pac to pursu ts aga. ias too, bcaus of ts macro prformac a pocy xprc.Sco, tr s a for trasparcy aca assssmts.BRiCS ctra bakrs av pay a crtca ro t G20, fromt ays of formr Ctra Bak of ia govror Y VugopaRy. Tat ro s to b cout upo t futur.

Tr objctvs ar ort otg. T rst s to crat stabtyfor t mum-trm rform procss. Rforms to cras grotby stabsg rus a sttutos for cratg commucato,marktg a systms for stab aca ctvs caotproc voat cooms. T sco s to mprov ttratoa a atoa arctctur to p aca marktsfor cusv grot. T tr s to k t rst to objctvs

t tra a forg-xcag pocs. ia as ot tak amrcatst stac ts xcag pocs. dpg rform asb a goa. Ts r my objctvs as pag mstr tat 1990s: rform as to b protct from t uctuatos goba aca markts vt aftr t 1997-99 Asa mto.T ctra bak govror stat, at t 2002 G20 mtg ofac mstrs a ctra bakrs d, tat for t rsttm t tratoa commuty troug t G20 a orsvoutary prcps for prvtg a rsovg sovrg crss,c i a suggst t sovrg bt rstructurgmcasm appar to b fag. ia car t procss foracg trasparcy goba aca os.

T BRiCS coutrs spay a rfrsg youtfu mpass o

tcoogy. T orgasatos a soca sttutos tatsupport tat tcoogy ar t p s of t cags of ogrot, povrty a sufct rab rsourcs. Ts s abrak t t past opratoasg ctrasg paragmsof grot. T BRiCS coutrs, c ar grog fast, rforct or v at om. T or ot bv ts. At tbgg of ts ctury, ia as cosr a baskt cas.wtr ucato or t cosqucs of a mograpcv, t futur s ot automatc. it s for t BRiCS coutrsto bu. Projcto mos rv mograpc vs from tvtab cosqucs of frtty a agg pattrs, abourforc a savgs. Goba mbaacs rsut. wc rsuts arrobust a y? Som cosqucs may tur out corrct, but for

t rog rasos. notg s vtab, v toug ssus ofuma rsourc vopmt rma ctra.

Ca gags t t BRiCS, but s scptca. itsmutaousy foos ts atoa trsts a campos tvopg or. ia s aso somtms cosr scptca,

t t prm mstr rmarkg tat t structur os otprov for sovg probms. Braz as ot yt uas tsfu forc opg up or markts. Sout Afrca a tsrvoutoary cocpts of gatara cag o ot gt a arg.

dspt ts mtatos, BRiCS provs tat goba batst aguag of t otr must b urstoo. Ts coutrs aray pac to xpa a avocat ts aguag. T pursutof atoa trsts abroa must b part of a argr campag ofgoba cag at prst, say ackg. Tus a atratvrspos to suppg at t g tab s .

Framework to integrate developmentCa t BRiCS coutrs cotu to gro fast, aog t otrAsa cooms? Suc rbaacg cas for a macro aca-trapocy framork to coorat fforts to arss vopmtssus t mor comprsv pocs. Faca tra pocytratur gray orks t a mpct comparatv statcframork. dvopmt ssus t to b urpay tscotxt, v f ty ga urgcy crss. i, t tratur,t som rct xcptos, coctrats o xcag-ratvopmts a t cosqut mpcatos. Gv t voattyof ts trs, tr s cosrab zgzag suc bats.

T Foo a Agrcutur Orgazato a UneSCO pubs aagro-cmatc casscato of t ors agrcutura rsourcs,

bas o so, atr a cmat. T BRiCS coutrs ar rc agro-cmatc vrsty. haf a ctury ago, vrsty as cosra curs. no, sustaabty mas bug o at you av.Tm-oour practcs o t sop, t oo pa,t srt a t rvr vay ca b tgrat t mortcoogy a maagmt practcs for sustaab agrcutur.

Ts, fact, bcoms a porfu argumt for tra. eacrgo sou ook for at t ca o bst. Agrcutur a ruravopmt ou t spcas. Foo a br cts asurpuss ou b car t tra. Agrcutura grot baso agro-cmatc rsourc omts s sustaab bcaus tcosrvs atr, rgy a a. hovr, t caot occur a ustab macro vromt ufry to agrcutura tra.

eary arg systms must xpos trats to t cag procss.wtr t s agrcutur, sma ustry or tcoogy, rbaacgrqurs cooprato amog coutrs bas o mutua trst broa-bas vopmt. Tr must b attto to ta ratrta posturg. Tr ar o sort cuts a goba coomy.


20/96

special perspective


aca aftr ts crato, t cocpt of t BRiCS,brgg togtr Braz, Russa, ia a Ca a, sc ast yar, Sout Afrca as bcom araty or potcs a coomcs.

A optmstc forcast ma by Goma Sacsaaysts 2001 as xc a xpctatos. Ovr t past

10 yars, t BRiCS coutrs cotrbuto to or grossomstc prouct as rac $10 tro, quvat to 80 prct of t G7 cooms. Accorg to t wor Bak, Braz,Russa, ia a Ca b rsposb for ary 30 pr ctof or proucto by 2015.

Toay, v troubg coomc tms, t BRiCS fatastcv cotu to so mprssv grot rats, cotrast to tbt-strck ag cooms of t or. dyamc vopgcoutrs ca bcom a ky rvr of goba grot. By combgfforts, ty sou mak a major cotrbuto to t orcoomc rcovry. i bv tat Kazaksta, as o of t toptr rap-grot cooms t or 2011, s ray tocotrbut to ts procss. Ovr 20 yars of pc, av

but a ffctv coomy tat as gro tvfo. w ar oof t f coutrs ab to prov for oursvs a, quamasur, to vop t xport potta of our coomy.

Increasing political and trade linksit s otorty tat Kazaksta borrs to of t ma brcksof t BRiCS group Russa a Ca. Ts to coutrs ar asoour ky potca a tra partrs, a av sg stratgcpartrsp agrmts t bot of tm.

Our tra ts t ia a Braz ar aso gatrg pac. lastyar, Kazakstas trag turovr t t v BRiCS coutrsamout to ovr $46 bo. i my v, o of t most promsgaras for Kazaksta-BRiCS cooprato s t xctg potta to

ork togtr o goba foo a rgy scurty ssus.it s mor mportat ta vr tat ar pursug a pocy

of opss a vg t ffrt pacs of coomc grottroug mutuay bca coomc tgrato. As a coutry,Kazaksta supports t aspratos of t BRiCS mmbrsto vrsfy t goba coomc systm a to bu a mortraspart, mocratc a mutpoar or. Ufortuaty, tformats of t G20 a t G8 av so tt ffctvss.it s orryg tat t tratoa commuty as yt to startscussos o vopg a goba at-crss pa.

i propos to racay xpa t umbr of partcpats sarc of soutos to t goba crss. i propos tat cat commucatos patform t G-Goba projct. At our

tatv, a fuctog mcasm for t goba acasystm a a sg or currcy ar o bg vop.

locat t art of eurasa, Kazaksta urstasa sars ts rsposbty for t sustaab a progrssvvopmt of t tr cott.

Kzkhn h

g onno

Kzkhn dong onh

wh h Brics mmb nd xong h

on fo d nh nd g

ooon o h ommon obj

By Nursultan Nazarbayev, president of Kazakhstan


21/96

special perspective


Kzkhn uo Brics mmb

on o dfy h gob onom

ym nd o bud mo nn,

dmo nd muo wod

From t bgg, Kazaksta c to arss ts vastatura rsourcs to mprov t vg staars of a of tsctzs. eucato a soca far av aays b topprorts for our vopmt. As a rsut, sc 1994, avragcom pr capta as cras tvfo. T tracy rat Kazaksta s 100 prct, t umpoymt rat

rmas cosstty o.Sc act tms, Kazaksta as b a crossroas to tor as part of t Grat Sk Roa. Trars spakg mutpaguags travrs our trrtory for cturs carryg gms,spcs a go from t bazaars of Asa to t marktpacsof europ. Toay, Kazaksta aso joys armoous ratosbt ts mor ta 130 tc groups a 40 rgos a fatur bas o story, but aso a rcto of our commtmtto tr-tc a tr-rgous ratos. w av st up tAssmby of t Pop of Kazaksta, a ffctv sttutofor t tracto of t varous tc groups tat mak up tpopuato of our coutry. itratoa cogrsss of t arsof or a tratoa rgos ar rguary t coutry.

upo or ars for a op aogu a a jot ffort tobu a farr goba aca arctctur a strgt gobapac a scurty.

Tty yars ago, a far-racg cso to voutary

rouc t ors fourt argst ucar-mss arsa asut o t Smpaatsk ucar tst st a t fouatosof our succss story. w put forar a mpmt t a tostabs a nucar wapos-Fr Zo Ctra Asa.

Arssg t Goba nucar Scurty Summt wasgto 2010, i oc aga strss t mportac of usg tsxprc as sk to xpa t umbr of ucar apos-fr rgos t or.

Moving forward togetheri am cot tat troug strog potca a coctvcommtmt a jot souto to t most prssgssus facg t or toay, for t bt of a umak.

i am covc tat t rcovry of t or coomy ats trajctory of grot ra a arg a systmctrasformato. Toay, coutrs t t fastst-grogcooms av a ra opportuty to bcom t rvg forctat pus t goba coomy out of t crss.

Prst nazabayv coms s Cs

coutrpart hu Jtao (ft) to Kazaksta

urg a ofca stat vst Ju ast yar

i 2010 Kazaksta prouy car t Orgazato forScurty a Cooprato europ a ost t groups rstsummt 11 yars our capta, Astaa. Ts yar, Kazakstas ag t Orgazato of isamc Cooprato a s opg

to crat bttr urstag bt promaty Musmatos a t rst of t or.

Advancing international cooperationw av vop a carfuy baac forg pocy op toorkg t may coutrs a av crat orgasatosto fostr cooprato, cug t 24-ato Cofrc oitracto a Coc-Bug Masurs Asa.

Taks to our coomc succsss, Kazaksta as trasformtsf from a a-rcvg to a oato-provg coutry,offrg assstac to Kyrgyzsta, Afgasta a Somaa.

itratoa ratg agcs av stay upgraKazaksta. T wor Bak raks us amog t top 50 coutrs

c to o busss. Just k t BRiCS cooms, ours, bycarfu sg, s morsg a vrsfyg from ts ary raco o to agrcutur, maufacturg a tcommucatos.

As t ar of t coutry, c cbrat t 20tavrsary of ts pc ast yar, i av aays ca


22/96

Jones Lang LaSalle World Winning Cities research series

BRICS cities compete for places on world stage

Jeremy KellyDirector, Global ResearchJones Lang LaSalle

Rosemary FeenanDirector, Global ResearchJones Lang LaSalle

Anuj PuriChairman and Country HeadJones Lang LaSalle India

Over the next two decades, more than 500 million people (greater than the current population of eitherNorth America or Western Europe) will migrate to cities in the BRICS.

City building on the fast track

The magnitude of the task facingthe built environment in absorbing

this wave is extraordinary: To accommodate the new work

force, Grade A office stock isprojected to grow by more than10 percent per year over the nextdecade, from 90 million sq m todayto more than 220 million sq m.

Consumer demand will reshape theretail landscape. While there arenow 1,000 modern shopping mallsacross the BRICS, by 2020 therecould be well over 2,500. Thats anew mall opening every two days.

For BRICS cities to take up themantle of world winning, they willhave to show skills in innovative andintelligent financing; put significantresilience and sustainabilitystrategies in place; and demonstrateimproving transparency aroundlegal systems, commercial codesand business practices.

The race for recognition willaccelerate as many more cities seeka place on regional and world stages.

Competing for finance or

financing for competitiveness?

Across the BRICS markets,

successful municipalities will bethose that manage the demands ontheir infrastructure while cultivatingtheir appearance to the outside worldas attractive investment destinations.

Investors are extending their horizonsto a range of more than 300 globalcities. Robust economic growth rates,deepening real estate transparency,and improved quality of real estatestock in emerging and middle-weightcities will be compelling pull factors. Atthe same time, investors will track the

real estate demands of internationalcorporate occupiers, who are pushingfurther into new geographies.

Only thirty cities account for half theworlds total real estate investmentvolumes. The top five cities aloneLondon, Tokyo, New York, HongKong and Parisaccount for nearlyone-quarter of volumes.

Shanghai, Beijing, Moscow, SoPaulo and Rio de Janeiro haveall become top-30 investment

destinations since 2008, while theBRICS overall contribution to globalreal estate investment volumes has

increased from less than one percentin 2004 to nearly 10 percent in 2011.

In India alone, the market value ofinvestment-grade real estate assetsunder construction across the office,retail and residential sectors is morethan US$160 billion, over 60 percentof which is residential.

Building beyond sustainability

to resilience

Alongside this massive buildingprogramme India is making strideson the sustainability of its real estate,

which has progressed from twocertified projects in 2004 to 292 in2011. The quality of of fice stock isalso improving and is increasinglybeing built to internationallyrecognised standards.

The property sector recognises it hasan important part to play in creatingthe conditions to accommodate thisshift in economic power and citygrowth patterns. To fulfil this role,it needs to design spatial footprints

that can both absorb growth andmeet carbon reduction commitments.It needs to look at the social impact

of development as well as its locationand design. Finally, it needs to workwith city authorities to deliver thesustainable physical and socialinfrastructure that will best match theneeds of residents and businesses.

Urbanisation on this scale happensonly once. The legacy of todays realestate development will last for manydecades to come.

Jones Lang LaSalle (NYSE: JLL) isa financial and professional servicesfirm specialising in real estate.


23/96

From So Paolo to St. Petersburg, Chennai to Chengdu, all cities have one thing

in common.

Governments, developers and investors understand the value of creating places

that are sustainable, resilient and competitive.

Combining a global perspective on real estate with insight into what makes alocation unique, Jones Lang LaSalle works with clients to make the connection

between opportunity and real valuein every square foot, metre and deal.

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Bringing sustainable value to cities.One square at a time.


24/96

BUILDING THE BRICS INSTITUTIONS


All four countries, including Russia, have surpassedmy initial expectations especially China, which has

overtaken Japan some six years earlier than I anticipated

It s o mor ta 10 yars sc ia t goo uck of ramg up to acroym BRiC to scrb trsg coomc mportac of Braz,Russa, ia a Ca. To cbrat

ts avrsary a to xpor at mgt aa for t or ur a crasgBRiC uc, ast dcmbr i pubs

Th Growth Map: economc Opportunty nth BRiCs and Byond. i t, i scuss mayof toays cags, spcay as tyrat to goba coomc govrac at ro of t varous Gs.

By t of 2011, t BRiC coomcstory a b muc mor porfu tai a propos back 2001, as ascompar t 2003 rst ookat t potta for ts four coutrs 2050. i t most optmstc of fourscaros ra 2001, i suggst acomb BRiC sar of 14 pr ct of

goba gross omstc prouct (GdP). i2003 t as cos to 20 pr ct. By 2011,t a go ay byo.

Outstripping the United StatesT a tas of a fours oma GdPar st to com, but tr coctv GdPs ky cos to $13 tro. Ts mastat t t xt tr yars, trcomb sz bcom bggr ta tUt Stats, c rma mportat

gopotcay as as trms of ssussuc as coctv votg rgts at titratoa Motary Fu (iMF) a tro of spca rag rgts (SdRs).

A four coutrs, cug Russa,av surpass my ta xpctatos spcay Ca, c as ovrtakJapa som sx yars arr ta i

atcpat, a s aray amost oubt sz of Grmay. At t of 2011, tscoomy s aray at $7.3 tro, c,astosgy, cras by $1.4 tro

just 12 mots. As i am fo of sayg, t cotxt of t currt europa crss,Ca crats t quvat of aotrGrc vry 12 ks. i 2011, t crataf t quvat of a Ut Kgom

just o yar, or cos to t quvat ofto Austraa cooms.

Braz, p by t surg t vauof t ra, bcam bggr ta itay

10 yars arr ta i xpct. Russa asb sappotg oy f o focuss ot coutry sc 2009. i fact, f ot forc of ts coomy sc t, Russaas ag to outprform ts four BRiCpartrs ratv to my 2001 xpctatos.

T ca aa promss to bxtrmy trstg for t rvac oft BRiC coutrs. Barrg a sastroussock tat ou affct tm a partcuary Ca tr comb GdP s

ky to xc tat of t US by 2020, fot soor. Tat crtay carry mucsymboc gt.

As ty gt argr, by to trcotrbuto to goba grot gts bggr.Accorg to som basc aayss, a

cotrary to prsstt a sprawstr pssmsm, goba GdP grot sky to b bt 4.0 a 4.5 pr ctts ca, amost xcusvy bcausof ts coutrs, so sury ty souxpct to av mor uc.

Growing fnancial inuencei ts cotxt, t crasgy smsvtab tat tr ro t iMF sto rs v mor, aog praps tt otr so-ca o-vop G20cooms, spcay Kora, iosa,

Mxco a Turky, a praps SoutAfrca (atoug, coomc trms,Sout Afrca jog t BRiC coomsmaks tt ss).

it aso sms mor a mor ky tatt SdR b qut ffrt by 2015, t s xt u for a rvso to tscosttuts. it ou b rcuous for trmb ot to b a crtca part, a t scocvab tat cug t roub b just. i fact, Russa s aray costo mtg t rg tos stpuatby t iMF. wtr t SdR bcom

mor ta a accoutg currcy for iMFtrasactos rmas to b s, but tts to currcs, t ou b mucmor ky tat t .

As for BRiCS as a potca group, i oot bv tat t as a prmat ro spcay gv my scptcsm aboutSout Afrca as a mmbr. T four BRiCcooms ar so bg tat soo ty bamog t 10 argst but byo bgbg, avg arg a masss a ots ofpop, ty sar tt s.

Uk t G7 coutrs, tr at

s qut ffrt, ragg from $15,000pr capta Braz a Russa to bo$2,000 pr capta ia. Sout Afrcas about o-ft t sz of Russa aia, a ty compar to Ca. A,

Building BRICS: from conceptual

category to rising reality

When the original BRIC acronym was coined in 2001, the

economic potential of its four countries Brazil, Russia, India

and China was considerable. But the scale of their growth

has far outstripped even the most optimistic predictions

By Jim ONeill, Goldman Sachs


25/96


26/96



Coutrs com togtr toform groups tratoaaffars f t acs trcapacty to protct aprojct tr trsts. T

BRiC ars rst cam togtr 2008at t stgato of Russa, a coutry tat

otrs ot bog to ay sgcatgroupg goba gotatos a tato ogr xrcs t sort of port a t t commust boc.T otr BRiC mmbrs bog to tG77, r tr cor trsts r otaays coct t t trsts of t

may smar vopg coutrs oscocrs cam to omat G77 postos.Sout Afrca as a 2011, tusag to t ato of t S a tsstc tat t groupg sou ot bcofus t t Goma Sacs papr

tat trouc t acroym.T v coutrs tat costtut tBRiCS group Braz, Russa, ia, Caa Sout Afrca ar mportat ougto xrcs uc goba affarsvuay. Yt ty av com togtr att summt v tr tms aray a b mtg for a fourt tm n d.

wat ar t sar trsts tat tsgroupg ca avac? Ty caot b t of tra, as t mmbrs cortrsts ar qut ffrt. To of tm,

What interests do the

BRICS countries share?

The interests of BRICS members seem to diverge in several

areas. But the group gains cohesive force from its challenge

to the influence of the North Atlantic community and its ally

Japan in which it stands a good chance of success

By Nitin Desai, former under-secretary-general, United Nations

Atoug t BRiCS coutrs sar may commo goas, tr opos

vrg ovr prmat mmbrsp of t Ut natos Scurty Couc


27/96



Braz a Russa, ar major commotyxportrs, to, Ca a ia,ar major commoty mportrs. i tsara at ast, tr trsts vrg. Toof tm ar major bcars of ttratoasato of suppy cas, for

maufactur goos t cas of Caa srvcs t cas of ia. Totrs ar ss affct by vopcoutry pocs o outsourcg.

Foreign investment autonomyT mmbrs staks goba acaos ar mor comparab. Ty a oarg rsrvs of forg xcag aav rcv substata os of forgvstmt. But ty aso ar strogbvrs matag atoa autoomy t pocy rgm o forg vstmt.

T oy jot trst ty ou projct sto sur tat ts autoomy s ot ro.T goba gotatos o cmat

cag ar a ara for coutrygroupgs. But r t BRiCS mmbrs arot aays o t sam pag. Russa s aAx i coutry tat as accpt aobgato, atoug t aoac t asgv ur t Kyoto Protoco s sogrous tat Russa s bascay off took t coms to cmat acto. Totr four mmbrs ar ur prssur asfast-grog cooms to tak o

obgatos, but av vrgt trsts ossus suc as forstry a ucar rgy.

T BRiCS coutrs ar a stabsrgoa pors t aspratos togoba uc, but v r trar ffrcs. Russa a Ca arrcogs ucar pors t substatamtary capacty a prmatmmbrsp t Ut natos (Un)Scurty Couc. T otr tr avcams to prmat Scurty Coucmmbrsp tat av ot b accptv by BRiCS partr Ca. O of tm,

ia, s a car ucar por osstag as suc as ot yt b accptby som of ts BRiCS partrs.

Yt, spt ts vrgc of trsts,t coutrs cocr vot a

sgcat amout of arsp tm apomatc ffort to pursug t BRiCSprojct. A at s ts projct? Qutsmpy, t s to cag t prvgposto of t nort Atatc commutya ts astr ay, Japa, tmaagmt of goba trpc.

T forma structur of t goba orrtat prvas at prst mrg aftr tSco wor war ur t tutag of

t US, t oy coutry t sgcatcapacty to projct por gobay 1945.it srv ts broar a og-trmtrst to accommoat wstr europa, atr, Japa t gr rcto oft mutatra systm tat as a partof ts orr. For arou 40 yars, from1949 to 1989, Russa xrcs ffctvcoutrvag por, mor t sprof scurty ta coomc mattrs. Somvouto took pac t Un, t tmrgc of vopg coutrs out oftr arr mpra subjugato.

Unequal international infuenceTs procss ot ray atr tgoba baac of por. T forums c t o-wstr coutrs ruta r qucky margas t maagmt of goba coomctrpc r t ocus ofcso-makg as t wst-omatsttutos suc as t itratoaMotary Fu (iMF) a t worBak. T Gra Agrmt o Tarffsa Tra, spt ts mocratc votg

structur, as omat by t wsttroug t structur of ts gotatgprocss. Potca a scurty ssus ra may a oc procsss tM east pac procss bg a typca

xamp. T Un as us oy occasoay tr as o rsk of t wst avgto comproms o ts cor trsts.

T BRiCS groupg s sstay acag to ts systm. Tat s y tscor aga s about mocratsg gobagovrac. Morovr, gv t vrgcof vs o mattrs suc as ScurtyCouc rform, t focus s vry muc oa gratr ro for t BRiCS sttutos

suc as t iMF a t wor Bak. Tmutatra tra systm as arayvov to gv BRiCS a substata ro t a-makg. BRiCS uoubtyma t opg of t scto of txt wor Bak cf to a atoats.

Widening the global oligarchyi som ays, t BRiCS coutrs arpusg o a op oor. T rap grotof BRiCS, a t ratv stagato oft wst a Japa, av mat tat tstac trms of t coomc bass

for t xrcs of por as arrocosraby. Morovr, tr ar ssurs t o aacs, as t guf bt tUS a europ s a Japa ss somcommoaty of trst t ia aCa for stac, o goba acapocy ssus. Parsg t pomatcaguag us by BRiCS coutrs, o casay tat at ty ray at s a gof t goba ogarcy of por a trcuso ts. T justcato s ot tprcp of mocratc cuso, but t to rcogs t cagg rats

of goba por. Tat s y tr mostprojct may succ. A o ogarcy aays t asr to accommoat ogarcs ta to cop t masfor mocracy cso-makg.

The focus is very much on a greater role for the BRICS

in institutions such as the IMF and the World Bank.

The multilateral trade system has already evolved to

give BRICS a substantial role in the deal-making


28/96


28|BRICS NEW DElHI 2012

Contemporary internationareations are characterisedby the rapid deveopment ofnetwork dipomacy. On theone hand, this deveopment

is a sign of the democratisation of theinternationa system and its rising

poycentricity. On the other hand, itindicates the increasing interdependencyof states and integration. Everyintergovernmenta aiance needs to

deveop its externa reations to strengthenits internationa status and increase itsefciency for the members.

BRICS is no different. As an associationon a goba scae that unites countriespaying important roes in eadinginternationa organisations and in a range

of regiona structures, it shoud startdeveoping an externa reations strategy.What coud be the key features of such

a strategy? The most important thing

is a thoughtfu seection of partners. Ininternationa reations, a man is knownby the company he keeps. The emphasisshoud be on engaging with the emergingeconomies and major deveoping countries;with speciaised agencies of the United

Nations (UN) such as UNESCO, the WordHeath Organization (WHO), the Foodand Agricuture Organization, the UNIndustria Deveopment Organization andthe UN Environment Programme; withregiona structures such as the ShanghaiCooperation Organisation (SCO), theCommonweath of Independent States,the Eurasian Economic Community, theAfrican Union (AU), the Arab league,the Union of South American Nations,Mercosur, the Guf Cooperation Counci,the Association of Southeast Asian Nations

(ASEAN); and with other groups, bringingtogether new economies.The diaogue coud address, in

particuar, overcoming the consequences

Time or BRICS to develop an

external relations strategy

As network diplomacy becomes increasingly important,

BRICS needs a strategy in this feld. This should eature links

to several partners perhaps starting with the Shanghai

Cooperation Organisation, with which it shares interests

By Vadim Lukov, Ambassador-at-Large, Russian Ministry of Foreign Affairs;

Russias BRICS sous-sherpa

The inaugura BRICS heath ministers meeting

in China, in 2011, represented the rst step in

deveoping an externa reations strategy


29/96



Members of the SCO and BRICS stand up for the

supremacy of law in international relations and for

strengthening the role of the UN and its Security Council

xprts from vopg coutrs atratoa orgasatos.

T G8 as ga a rc xprcof cooprato t sttutoastratoa orgasatos. Suc aaogu aos ts partcpats to takto accout ac otrs postos omportat csos, rct traftr t rvat ocumts. Suc xcagsof xprc ag t spcccoomc, soca a umataraprobms ar mportat. At ts vts,

a t partcpats ca form ac otrrcty of tr cocrs a commucatrqusts for varous typs of assstac.

Outreach meetingsFour forms of aogu bt BRiCS at SCO ca b suggst o t bass ofxstg tratoa practcs. Frst, ta of stat or govrmt of t BRiCScar sou b vt to t SCO summt,a vc vrsa. Ts typ of cotact maytak t form of outrac, as a spcayassg mtg. Sco, tr sou

b smar outrac vtatos to tmstra mtgs of ac group. Tr,mmbrs sou b vt to partcpat spcas orkg groups opratgt t framork of bot sttutos.Fourt, jot xprt rports sou bprpar o ssus of sar trst.

Ts ar crtay ot t oy optosfor vopg BRiCS xtra ratos.Russas partrs BRiCS s ky to putforar tr o tatvs, rctg trats of vopg tgrato tro rgos. T most mportat ssu

toay, ovr, s to start t substatvscusso o rctos a stags ofBRiCS xtra ratos vopmt,as as o t cott of t forumsaogu t t outs or.

of t goba aca crss a prvtga rcurrc, rformg t tratoaaca arctctur, acvg tMum dvopmt Goas, surgfoo a rgy scurty, maagg cmatcag a coomc a soca aaptato

to ts cosqucs, strgtg ttratoa vromt govracsystm, promotg t covrgca vrsty of cuturs t procssof gobasato, a cosoatg tcutur of pac a o-voc as a oogy tratoa ratos.

Chinese initiativeT rst stp vopg a BRiCSxtra ratos stratgy as ma 2011. T Cs prscy vt asof whO, t Ut natos Programm o

hiV/AidS (UnAidS) a t Goba Fu toFgt AidS, Tubrcuoss a Maara to tBRiCS at mstrs mtg. it s tmto tak t xt stp o.

O suc stp cou b stabsgratos bt BRiCS a t SCO, gvtat tr mmbrs sar a ragof commo or smar stratgc trsts.A comparso of ofca ocumtscorroborats t, as foos.

At t 2011 summt, t BRiCS arssa: Bas o orms of tratoaa a a sprt of mutua rspct a

coctv cso-makg, goba coomcgovrac sou b strgt,mocracy tratoa ratos soub promot, a t voc of mrgga vopg coutrs tratoaaffars sou b ac.

T Astaa dcarato, ssu ot 10t avrsary of t SCO tomots atr, sa: T SCO stas up formatag pac, stabty a prosprty t Asa Pacc rgo, favour offormg a op, traspart a quaarctctur of scurty a cooprato

bas o t orms a prcps of ttratoa a, boc-fr mtaty au rgar for t gtmat trsts ofa stats T SCO mmbr stats bvtat t mpmtato of jot masurs

o ovrcomg t ffcts of t gobaaca coomc crss a surg astay baac grot of t atoacooms must rma a top ssu o torgasatos aga. T SCO mmbrstats sta up for furtr rformgt tratoa aca rguato,strgtg t coorato of pocsa cooprato t of acarguato a cotro.

Mmbrs of bot sttutoscosstty support t profou rform

of tratoa aca a coomcarctctur to rct t formato of ctrs of coomc por a makt tratoa motary a acasystm mor mocratc.

Mmbrs of t SCO a BRiCS sta upfor t suprmacy of a tratoaratos a for strgtg t ctraro of t Un a ts Scurty Couc ossus of tratoa pac a scurty.Mmbrs of bot sttutos fac commocags of morsg tr cooms,accratg coomc grot, rasg

vg staars a mprovg umavopmt. w stabsg avopg ratos, t SCO a BRiCSca ry o xtsv xprc of aogubt sttutoas tratoaorgasatos o t o a a formaassocatos of stats o t otr a.

For xamp, t Un scrtary-gra, t itratoa MotaryFus maagg rctor, t wor Bakprst, t rctor-gra of twor Tra Orgazato, a t carsof t AU a ASeAn rguary partcpat

G20 summts. T rprstatv oft Un scrtary-gra taks part t mtgs of G20 ars prsoarprstatvs, or srpas. SvraG20 orkg groups ar op to t


30/96



The success of BRICS can

be measured not only

on members ability to

reach consensus, butalso on their capacity to

implement commitments

T ars of ia, Braz,Russa, Ca a SoutAfrca cov nd, ia, o 29 Marc2012 for tr fourt forma

BRiCS summt sc 2009. For t rsttm, Sout Afrca b rprst asa fuy g mmbr, sofyg ts ro

a mportac at t BRiCS tab.durg t summt, obsrvrs fromarou t or pay cos atttoto at t BRiCS ca rastcay acvas a group, as t v ars covra broa rag of tratoa ssusspag t goba coomy, tra,foo, rgy a formato scurty,at a ovato, agrcuturavopmt a cmat cag.

To mostrat tr coctvarsp, a forg a mprsso urgts yamcay vovg ra of goba

govrac, t BRiCS mmbrs ava mportat opportuty to so tor tat ty ar capab ot oy ofracg cossus o t most prssga compx goba cags, but asoof mpmtg ffctvy t broa-spctrum commtmts ty rac tr n d carato.

Implementing commitmentsT bass of BRiCS uc ttratoa systm rcts t mmbrsvr-crasg coctv coomc a

mograpc por. wt arou 43 prct of t ors popuato covrg30 pr ct of t arts surfac, aproucg 25 pr ct of t ors sarof goba gross omstc prouct (GdP),

ts v coutrs av cotrbutcoctvy mor ta 50 pr ct of tors coomc grot ovr t pastca. By 2030 t cumuatv BRiCSGdP xc tat of t G8 majorustras coutrs. Ts carypacs t BRiCS a posto of gobacoomc arsp, abg t group

to rac cossus a craft csosacross a rag of pocy ssus.But t succss of BRiCS ca b masur

ot oy o t bass of t mmbrsabty to rac cossus, but aso o trcapacty to mpmt tr commtmts.wat os t rcor rva so far?

Gv t ata mtatos o compactrs spcc to t BRiCS coutrs,t bst gaug of succss assssg tmpmtato of t 100 commtmtsma by tr ars sc 2009 s tovauat t ratv succss of BRiCS

t t broar G20 framork, cac BRiCS mmbr s rprst quay.

Compac ata for t G20 summts wasgto, loo, Pttsburg, Torotoa Sou (from 2008 to 2010) suggsttat t BRiC groupg c otcu Sout Afrca ut t as

mpmt ts tratoa summtobgatos 19 pr ct of t tm,compar t a ovra G20 avragof 38 pr ct.

BRiC compac scors av crasfrom yar to yar, t t strogst rsuts

vr at t Sou G20 novmbr2010. hr, t BRiC mmbrs scora so 43 pr ct, compar t tovra G20 avrag of 50 pr ct, pacgt group squary t m rag abov t Ut Stats, iosa, Turkya Argta, but bo Austraa, teuropa Uo, Frac, itay, t UtKgom, Caaa, Japa a Mxco.

Successful areas of complianceT strogst BRiC compac as com t ara of ca rgy tcoogs

a sococoomc rforms (am atboostg a sustag goba ma,fostrg job crato a crasggrot potta), t tra axcag-rat maagmt proucg tpoorst ovra compac scors.

T BRiCS mmbrs coctv succss fug svra sococoomc argy commtmts s ot surprsg,gv t smar cags ty faca coct prorts ty sar,partcuary t ara of agrcuturarform a foo proucto.

Ts s ky to o tru for SoutAfrca as . At t most rct mtgof BRiCS agrcutura mstrs Octobr2011, a agrmt as rac tosupport t vopmt of t bomassrgy ustry to safguar goba fooscurty. T BRiCS coutrs ca upotr ustras coutrparts to offrfug a tcoogca support to tvopg or orr to acagrcutura proucto a capacty top guarat foo safty.

Atoug a upar compac tr

s rct t mt amout of ataavaab o t BRiCS mmbrs capactyto mpmt tr commtmts, tscoutrs ca tak a umbr of masurs atn d to mprov t mpmtato

Advancing accountability in

BRICS governance

Increasingly, the BRICS countries are finding their collective

voice and making joint commitments over a wide range of

policy issues, with data showing rising success rates in the

implementation of the decisions they have made

By Ella Kokotsis, BRICS Research Group


31/96



a accoutabty of t tasks o cty agr. dog so prmary vovs acossus o a car, spcc, targt-rva tm-bou st of vrabs, as as masurs a mcasms am rctyat mprovg vry a mpmtato.

T rst stp vovs a rcogtoo t part of t BRiCS mmbrs tatt commtmts cota trcaratos must b prcs, traspart,

quatab a targt-ort, asmasurab objctvs factat futurtrackg a rportg o rsuts.

Sco, a t to t rst pot, st for aquat motorg systms

to b put pac orr to provtmy a rab formato for rsuts-ort rportg.

Tr, ata mtatos must bovrcom, partcuary sctors rata quaty s poor a actvts arcarr out tout aquat attto tobas ata or a cosstt mtooogytat aos for rgorous assssmts.

Fourt, t BRiCS mmbrs sou

ackog t mportac of orkgt o-govrmta orgasatos(nGOs) to mpmt tr commtmts,catg a car pat for nGO a cvsocty put to t framork procss.

Fay, tr s to b a pa ofacto to rctfy aggg progrss o pastcommtmts, as as a cary stratgy to sp progrss aras mto b fag sort.

larsp at ay v bgs tpromss bg kpt. i ts rspct, BRiCSs o xcpto. To mak tr mark as agoba aga sttr, t BRiCS arssou sz t opportuty at n d

to forg a cossus o t ky agatms ty av stabs, a t goo stp furtr by sog t orty ca sap a uc pocy byvrg o t promss ty mak.

(lft to rgt) BRiCS ars Mamoa Sg,

dmtry Mvv, hu Jtao, dma Roussff

a Jacob Zuma at t 2011 summt Ca


32/96

PARTICIPATING POWERS


Foreign investors producing

goods in Russia will be able

to expand their market in

a country that accountsfor almost one-sixth of the

customs area of the world

Bfor cosrg t ssuof Russas mmbrsp t wor Tra Orgazato(wTO), t s mportatto ursta at ts

partcpato or tra mas for tcoutry. Russa raks svt by xport goos, 12t by xport srvcs, 12t

by mport goos a t by mport srvcs t or. its coomy scostaty grog. it s bcomg a morsgcat payr t tratoamarkts. T cocuso of t gotatosfor Russas accsso to t wTO, cast for 17 yars, s tus mportat forRussa a ts partrs. Ts aso partyxpas y t orkg party o Russasaccsso as t argst wTO story,t 60 mmbrs t 27-mmbreuropa Uo as o mmbr.

T gotatos r couct o

markt accss for goos a srvcs, ao t so-ca systmc qustos.

wt rspct to t gotatooutcoms, t umbr of commtmtsma by coutrs tat jo t wTOffrs substatay: from commtmtso substata brasato of trargm (Ukra) to commtmts tat, fact, prv t coutry of staarrgts (Ca). For Russa, t umbrof commtmts tat cu vuamts spcc to Russa r ructo a mmum. Ovr t cours of t

accsso procss, Russas gsato asarmos t wTO orms. Trfor,mpmtg most of t commtmts ot rqur substata cags t Russa gsato or t txts of

t Customs Uo bt Russa, Barusa Kazaksta (CU).

For Russas coomy, accsso tot wTO s o of t most mportatstrumts to ac t ffctvssof ts tratoa coomc actvty tsort a mum trms. Russa s a majorvopg coomy a, as a o-mmbr

of t wTO, ost may opportuts.

Gaining access to global marketsAccsso crats opportuts for Russacompas to av o-scrmatoryaccss to forg markts. it pto vop o-rsourc sctors of tcoomy o of t most mportatcags for Russa. wTO mmbrsp p Russa to tak a sgcat stptoars rsovg ts ssu.

Russa rgars t wTO as a morbass for mutuay bca tra ratos

tat a partrs ursta. it s o scrttat scrmatory masurs ar oftapp to Russa goos. Bg a wTOmmbr, Russa av accss to twTOs uqu sput sttmt systm.Ts mcasm s a vry mportatavatag of wTO mmbrsp.

lbrasg t tra rgm op tra a vstmtprspctvs for forg compas Russa, c provs spcaopportuts for tratoa busss.Forg vstors proucg goos Russa

b ab to xpa tr markt acoutry tat accouts for amost o-sxtof t customs ara of t or. Russas atoa vstmts a mormaagmt mcasms a qupmt.Sar rus crat a sou fouato formutuay bca cooprato.

Russa s ray to compy t twTOs orms a rus, a xpcts tsam from ts partrs.

T agrmts o accss to marktsrsutg from amost yars ofgotatos ar far, a crat

opportuts for tra. i t framorkof t gotatos, t casscato ofmport uts o goos covr a tota of11,567 tarff s.

i gra, agrmts o tarffs rrac bt 2004 a 2006, buturg t og pro of gotatossvra sgcat cags r ma,partcuary rgarg t commo tarffof t Customs Uo. Utmaty, tagr v of tarff protcto of a faryxtsv st of goos at t momt ofaccsso to t wTO s gr ta t

currty xstg v by approxmatyo prctag pot, f t cacuato sprform usg a avrag gt ratof t Customs Uo tarff.

Foog accsso to t wTO, tta v of tarff protcto for mostgoos grauay cras ovr aavrag of to to tr yars. O sstvtms t a ructo of uts amoutgto 10 pr ct, t trasto pro tak bt v a sv yars.

Accorg to prmary stmats,t currt avrag gt rat of t

commo customs tarff (CCT) ot cagsgcaty for t o casscato: from10.293 pr ct to t a wTO bg vof 7.147 pr ct (t ta bg v s11.85 pr ct). T avrag gt rat

Russia as an export opportunity:

looking into the future

Russia is opening up to new trade opportunities and relations.

Not only is it a member of the BRICS grouping, but it has

also been accepted into the World Trade Organization an

important step in the countrys participation in global trade

ByMaxim Medvedkov, director, Department of Trade Negotiations,Russian Ministry of Economic Development


33/96



opratg o sar rus compyg twTO orms a rguatos.

Russas tgrato procsss aaspratos ar ot mt to tstabsmt of a Customs Uo or byaccsso to t wTO. Russas fu wTO

mmbrsp provs a opportutyto xpa a p ratos ttratoa trag partrs v furtr.

Bug o t wTO staars arus, Russa s gotatg fr traagrmts. Broa prfrta agrmtst t coutrs of t europa FrTra Assocato a n Zaa arbg actvy scuss.

Russa s op to opportuts a tra ratos.

Sats aat gats for t crmoy

dcmbr 2011 markg Russas accsso to

t wTO, foog 17 yars of gotatos

$1,869 bo a t voum of tratoatra rac $946 bo 2008.

Sc t auc of t Customs Uo,som tra-rguatg fuctos avb assg to t v of t CU. iato, Russa as commtt to surg

compac t t wTO rqurmtsat t v of t CU, accorg to aspca agrmt o t fuctog oft Customs Uo t t mutatratra systm. Ur ts agrmt,commtmts ma by t CU mmbrs orr to acc to t wTO bcom apart of t Customs Uos ga systm.Ts provsos crat opportutsfor forg busss a vstors, asty gt accss to t CU markts

for agrcutura proucts cras from15.634 pr ct CCT to 11.275 pr ct.For ustra goos t rat crasfrom 9.387 pr ct CCT to 6.41 pr ct, t ta bg v for ustragoos s 11.256 pr ct.

Russas accsso to t wTO as ampact o t procss of cratg tCommo ecoomc Spac of Barus,Kazaksta a Russa (CeS).

O of t ma objctvs of t CeSs to form a capacous commo markt bybrgg togtr atoa markts of ttr coutrs. it s caractrs byt foog gurs: t popuato of CeSmmbrs s 167 mo pop, tr totagross omstc prouct 2008 amout to


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With its strong external position and foreign-exchangereserves, China can help those advanced economies

facing insolvency, liquidity shortages and credit crunches

Aftr tr cas ofbrakck grot, Ca asbcom t ors scoargst coomy, tsco argst trar a t

argst or of forg-xcag rsrvs.ev f grot morats, t s ky tobcom a g-com coomy a t

ors argst coomy bfor 2030.Sc t 2008-09 aca crss,Ca as b t sg most mportatg of goba grot. its output 2011 accout for 15.8 pr ct of gobaoutput. it cotrbut 1.4 prctagpots to t 3.9 pr ct of or grot.T cotrbuto of avac coomsas just 0.8 prctag pots.

w Ca st rus a szab trasurpus, t past tr yars ts mportsav gro fastr ta ts xports, ats tra surpus as b srkg fast.

Cosquty, forg coutrs avbt from crasg xports toCa. T coutrys ma for rgyrsourcs a ra matras s a boost tosom avac cooms, as as tomay vopg cooms tat xportcommots. i rct yars, Casoutbou forg rct vstmt (Fdi)as cras ramatcay. Ratr tabg a rcpt, t coutry s o asgcat sourc of Fdi. it as v ma

mportat roas portfoo vstmt som avac coutrs. wt tsstrog xtra posto a ug forg-xcag rsrvs, Ca ca p tosavac cooms facg sovcy,quty sortags a crt crucs.

An active international role

Atoug Ca rmas poor, sz mattrs.it ca affor to srk ts tratoarsposbts. it must o mor tobras ts tra rgm batray,rgoay a mutatray. it must asoop ts aca srvcs sctor mor.Rcprocty s cssary. hstorcay, tcoutrys outbou Fdi focus argyo rsourcs. T futur s morCs Fdi maufacturg. T coutry partcpat mor cosoatg tmutatra tra rgm agast traprotctosm, rformg t tratoa

motary systm, a strgtgrgoa tra a aca cooprato.i cooprato t otr vopgcoutrs, Ca pay a mor actv ro tratoa forums suc as t G20.

Svra faturs caractrs Casgrot paragm. T rst s grot-focus gross omstc prouct (GdP). Tsco s a g vstmt rat supportby a v gr savgs rat. T trs prfrta tratmt toars Fdi. T

fourt s xport promoto. T coutrysgrot mo as ork t past,but rt cotractos vtuaygat tat mo.

Ovr t past 30 yars, t Csgovrmt as succssfuy mobs

rsourcs to acv maxmum GdPgrot. Ufortuaty, GdP s amprfct masur of coomc -bg.i Ca, may actvts tat cratGdP smutaousy stroy at. Tpursut of GdP grot as rsut tbcomg t most pout coutry tor. F partcuats t ar avrac agrous vs most majorCs cts. its atura rsourcs arrapy bg pt, a t s urcgtoars a atr crss.

Cas cocssoa pocy to attract

Fdi s a rsut of comptto amog ocagovrmts at a vs. T coutryas attract a ot of Fdi a caccumuat muc forg capta stock.Fdi cotrbuts to Cas grot but ata g cost. w forg captas xpctg rturs o tr vstmts Ca,Cs savgs must b vst UStrasurs for magr rturs. Bcaus tstock of forg capta Ca s arg,tr sou b sgcat ffrcsbt ts gross atoa prouct a tsGdP. Som ay, Ca may scovr t s

muc poorr ta ts GdP v suggsts.T g vstmt rat s t ma

par of Cas g GdP grot. For avopg coutry, a g vstmtrat s spsab for grot yamsm.hovr, t ts rat approacg50 pr ct of GdP, Cas rat s fartoo g. Atoug t sou b brougtto a sustaab v, t optmsatoof Cas vstmt structur s mormportat. T sg most mportatcatgory of vstmt Ca sproprty vopmt, c accouts

for 10 pr ct of GdP a 25 prct oftota x-asst vstmt. ivstmt frastructur s mportat, but trqurs accompayg vopmt maufacturg capacty. Og to

China as a global

economic power

Chinas economy has grown at a dizzying speed. Its growth

model served it well for the first phase of its expansion,

but now, as the country becomes a global power, inherent

contradictions are arising and a new paradigm is evolving

By Yu Yongding, Chinese Academy of Social Sciences


35/96



Pa, t aua grot rat of mmumags t xt v yars must b kpt

abov 13 pr ct. T govrmt as asomobs rsourcs to mprov ts socascurty systm. Rsg ags trggrcags Cas rsourc aocatos ac ts grot paragm.

T coutry av to ry omprovg prouctvty troug ovatoa crato ratr ta xtsvvstmt a cap abour. its grot bcom sor but grr, a ssrgy- a rsourc-tsv. itsabour-tsv xports bcom sscompttv tratoay, makg mor

room for otr vopg coutrsto xpa tr xports. T gobacoomy as a o bt fromCas sftg grot paragm a tsbcomg a goba coomc por.

Cas sz, t tratoa pattr ofrgy- a rsourc-tsv vstmt

s usustaab. Rsourcs sou baocat to projcts tat bu umacapta, prov pubc goos, a fostrcratvty a ovato. iustrapocy st as ts pac, but vstmtcsos sou b ma at t trprsv. etrprs rform os t ky foroptmsg Cas vstmt structur.

Switch to domestic demand

itratoa tra as b pvota Cas coomc vopmt. For avopg coutry, t ky rsourc s

a abuat abour suppy. T xportof abour-tsv proucts kck-startscoomc vopmt. itratoatra xposs omstc proucrs totratoa comptto, tcoogy

a maagra sks, c mprovcompttvss amog omstc proucrs

a ras tr proucts to tratoastaars. hovr, as t ors argstxport coutry t a tra-to-GdP axports-to-GdP ratos xcg 60 prct a 30 pr ct rspctvy, Ca st top proucr of mor ta 200 majorprouct catgors. T goba marktcaot absorb ts massv xports. Tcoutry must abao xport promotoa ry o omstc ma.

T ma forc tat gat Caso grot paragm s a succssfu rsutof t paragm. Taks to stay GdP

grot, t asprato for gr pay asbcom rrsstb. Avrag coms avb crasg by mor ta 20 pr ct.T govrmt s actg to satsfy orkrsmas. Accorg to t 12t Fv-Yar

hombuyrs ook at mo bugs

Syag. Proprty vopmt s t sg

most mportat catgory of vstmt Ca


36/96

participating powers


tty yars ago, t Csgovrmt tat astratgy to vrsfy ts xportmarkts, tg to ructs xcssv pc o

major ustras cooms. At tattm, about tr-quartrs of Cs

xports t to t Ut Stats, europ,Japa a hog Kog. T stratgy mayav sm usuccssfu, sc ts fourst rak as t bggst statos forxports a accout for 60 pr ct oftota xports 2010.

hovr, som ays t stratgy asork vry . Cas sar orxports as gro from 2.25 pr ct 1992 to 10.36 pr ct 2010, takgtop spot as t argst xportr aay fromt US. Ca s o amog t top vmport orgs of 148 cooms out of

161 covr by wor Tra Orgazato(wTO) statstcs. For vop cooms suc as tos of t europa Uo (eU),Austraa, Japa a t US a mrggcooms suc as iosa, Vtam,Sua a etopa Ca as bcomt bggst suppr of ustra goos.

Smutaousy, from bg a amostggb mportr 20 yars ago, Cao mports arou pr ct aas bcom o of t top v xportstatos of 67 cooms. dvop,as as vopg, coutrs suc asJapa, Kora, C a B av Ca

as tr argst xport markt.

Impact at home and abroadCas sft from a uatra xportr toa goba to-ay trag partr as gratsgcac for t coutry a for tor. Bot tm to ajust.

Frst, as a goba trar, Ca mustaopt a goba prspctv to f tstrsts a assum ts obgatos. durgt gotatos for Cas accsso to twTO, Ca focus oy o t US a teU. hovr, toay Ca s to a

t a r rag of trag partrs,spcay o tat ts vopg frstak t srousy as a mportat suppr orcompttor. Ca must aso cosr morpartrs cocrs makg ts traa xtra pocs, bcaus ts crtay affct tos pocs.

Sco, as t omat goba trar,Ca must p mor o tsf to fts goba trsts. Ca as btfrom t currt or trag systm, stup by t US aftr t Sco wor war.As t argst stakor tat systm,

Ca sou vst mor rsourcs to tsmatac a vopmt.

At t sam tm, as a argr mportr,Ca as mor capabty a vrag topursu ts o goas. notss, Ca

th kk- ch

h l ld d

a ch mv m b mly x

l d , h ld dju uh

mj h m . Hv, ch l d

h ldh d d lbl v

By Tu Xinquan, China Institute for WTO Studies of the University of

International Business and Economics

os ot sm to b ray for ts cag

ro, u to a ack of bot capacty agss to a.

Tr, Cas upsurg mas cagsa opportuts for t rst of t or.A comr aays brgs ucrtatsa uasss, spcay a ug o sucas Ca. Tr s o prct orstory of suc a mrgg por, tts combato of xpasv trrtory, aarg a g-quaty abour forc, affctv govrac, t smgycomparab maufacturg capabtya compttvss amost a sctors,

ragg from sos to spacsps.Cs succss as ras oubts

amog may of ts trag partrs. Tyav tr ar tr to trasform Cato a coutry smar to tmsvs or to

My

lv ch bu

d lbu

. th chy h f

blm 100 dy


37/96

participating powers


Cas sar or xports as rs from2.25 pr ct 1992 to 10.36 pr ct 2010, makg t t ors argst xportr

as a buyr provs may opportuts to

may vop a vopg coutrs,spcay t aftrmat of t 2008goba aca crss. wt ts accumuatoof capta rsourcs, Ca as bcom tft argst vstor t or.

Bfor t jo t wTO, som orrtat Ca cou abus ts por to sruptt currt trag systm. no Ca saccus of bg too actv t doarou of tra gotatos. Som vpropos a Ca rou.

Cas passvss ru-makggotatos appars fcut to

ursta. O possb xpaatos tat t coutry caot ffctvygag t gam bcaus of capactya sttutoa rstrats. Aotrtory s tat Ca s strustfu of

t currt systm, c t as oftb scrmat agast.

T currt stuato s crtayusrab. Ca sou rposto tsfas a goba trag partr tat as gratpc a mpact o t or. it

s Cas rgt, as as ts obgato,to mak t tratoa tra rusork. A major por s aays stctv.Tr s o ay to trasform Ca toa mmbr fuy cosstt t tstabs staars. A bttr coc s toaccommoat som Cs caractrstcstat ar ffctv t coomcvopmt of a poor coutry.

Shared interests with BRICS partnerseac of ts BRiCS partrs s a crasgymportat trag partr for Ca. it s

t sco argst mport org for Russa,ia a Sout Afrca a t tr forBraz. Ca s t sco argst xportstato for Braz a Sout Afrcaa t fourt for ia a Russa. At BRiCS coutrs ar skg to spvopmt a ty sar may trsts t or trag systm. A arructat to trouc ssus suc asuma rgts a vromta masursto t wTO gotatos.

But Ca s s as a formabcompttor by t otr four. Ty orry

about tr tra structur t Ca,mportg maufactur goos fromCa a xportg commots tot. For xamp, 2010, mras apat proucts accout for 81.2 prct of Braza xports to Ca, maufactur goos accout for 71.4 prct of Braza mports from Ca.

Tr s o car-cut borr btts opportuts a cags.T BRiCS mmbrs sou ot tak acorcv approac to arss t probmsamog tm. i, a ky mt of

Cas succss as b ts approac ofcrmta rform bug cossusa avog coct. Ts mgt prov ausfu sso for t ars a tr tramstrs as ty cov n d.

kp Ca out of tr markts. But Ca

as ptrat vryr, v t as rma a coutry t a ffrtcoomc a potca systm.

Declining competitivenessT or s mor patc tCas ogous cag. A f yarsago, som coutrs bam Cas oags as a ufar avatag. Toay, mayforg trprss ar avg bcausof rap crass abour costs. Casxport utra-compttvss as bgu toms. Tr s a Cs sayg tat o

or ca boom for 100 ays.Ma, mor Cs omstc

ma av to b mt by tforg suppy of bot commots amaufactur goos. Cas ug apptt


38/96


38|BRICS NEW DElhi 2012

As te severty of teEuropean crss unfoded n2011, perceptons tat tenternatona order s underte stress of mutpe forces

of cange became stronger. For many, tepost-2008 upeava n te word economy

w take tme to redress tsef and wave ong-term mpacts n word potcs.Te sow recovery of te Unted States andpessmstc projectons for Europe suggesttat te centres of nternatona power wave mted abty to nuence te most

sgncant ssues n goba governance,suc as securty, stabsaton of te gobaeconomy and sustanabty. Consequenty,expectatons regardng te roe of teBRiCS countres ave rsen, desptengerng sceptcsm about te groupsabty to act coectvey and agree common

objectves. in fact, we most commentarydscounts BRiCS as a caenge to tedomnant word power, muc anayss of tenanca crss as focused on te group.

Te growng reevance of BRiCS mgt bemore a matter of percepton tan of actua

accompsments. however, perceptonsgo far n condtonng word vews andmndsets. Te BRiCS New De Summtw ep eter to renforce or dspe tepervasve noton of a rsng tde of teemergng economes n word affars.

Finding common groundWe te summt may dffer ttefrom tose ed prevousy n terms ofdecsons and ntatves, t s perapsmore mportant n terms of ow te BRiCScountres w present temseves. Can teycoordnate postons on reevant ssuesmore effectvey? Do tey ave te potcaw to act coectvey? Can tey artcuatea common and aternatve vson ofte comng nternatona order? Can teyovercome dvergent nterests n trade

and securty to aceve more nuence nmutatera nsttutons? Are tey moretan just a groupng of bg emergngmarkets wt some cout on specc ssues?

Tese recurrng questons w nger forte comng year. Te queston s weter

The global infuence o BRICS:

a Brazilian perspective

The increasing importance o BRICS might be based more

on perception than on recent achievements, but the member

countries are in a position to use their coalition to infuence

policies and organisations on a ar wider scale than beore

By Joao P Nogueira, International Relations Institute, Pontifcal Catholic

University o Rio de Janeiro, and general coordinator, BRICS Policy Center

Brazans vew BRiCS membersp as

a boost to te countrys standng n

goba trade and nanca arenas


39/96



The combination o robust economic perormance and

proactive diplomacy has ormed a perception that

Brazil might soon join the club o world powers

t summt mgt carfy at may a mayot b xpct from ts coutrs atr xprmt a coato tat spakst aguag of rform a costructoof a atratv, mor rprstatv,cusv tratoa orr.

Partcpatg BRiCS as ac tv Braz of ts potta for a grgoba pro. T combato ofrobust coomc prformac a proactvpomacy as form a prcpto tat Brazmgt soo jo t cub of or pors.

To most Brazas ts s a abstractaffar, but busss ts, pomats,acamcs a jourasts vau t atat t coutrys prospcts, spcay forog-trm coomc grot a t rrssof soca s, ar t to tratoarcogto a trasat to mor

rprstato mutatra forums.Brazs approac to BRiCS s pragmatc: tvaus t ac prstg as a payr mportat potca aras, as as tcras gtmacy attac to t abtat rforcs a vry Braza prspctvabout t ffctvss of tratoasttutos a approprat rprstatoof t vopg or cso-makg.

Generating ideasi 2011, Braz oat proposas fora coorat BRiCS approac to t

urozo crss, t a mpass ostabsg coutry-spcc stabtyfus maag troug t itratoaMotary Fu (iMF). Ts stratgy ascort t t goa of strgtg tro of mrgg cooms tratoaaca govrac, partcuary rgargvotg rgts at t iMF. w Ca atrcosr cratg a spca fu to vst europa bos, t mpass ttrmato of t iMF.

Ts s just o xamp of o tBRiCS mmbrs s t group as a usfu

forum to oat as outs t framorkof str-omat sttutos,a praps as a mcasm for pocycoorato. Braz as qustotr t xt prst of t wor

Bak sou b appot by t UtStats a ssu tat may b scussat t summt, gv ts prorty of gobagovrac rform. As t t iMF, trs o cossus o o to pck a caat.T BRiCS mmbrs ar ot ky to takbo acto o t mattr, or praps mayc t s ot ort atagosg tUt Stats at prst. hovr, tratv fragty of t US tratoaposto cou offr a trstgopportuty for a mor afrmatv stac.

An instrument for reformBraz os ot s t BRiCS as a at-str coato. nor os t s tbocs futur as a mor sttutoazmutatra forum. its vau s tsxb format a t combato of astrog group tty tat cofrs prstg,uc, spac for autoomy a pursutof vua trsts. Ts -arragmt as acv mportatobjctvs rformg tratoaaca sttutos a strgtg

t G20. T goa of rformg gobagovrac uts t v coutrs.it s partcuary mportat for Braz,c cosrs t mocratsato oft arctctur of goba govrac astratgc forg pocy goa.

hovr, sustaab vopmt aog-trm coomc grot ar aso coratoa trsts tat form t vsoof o muc autoomy tratoasttutos sou av vs--vs sovrgstats. Braz a ts BRiCS partrs avfrquty sa tat a xpag goba

potca spac govr by strogrsttutos s a bra a tat ascoctrat por a at twst. Ts coutrs caot b xpctto poo tr por rsourcs scms

tat trasfr sovrgty from stats tomutatra sttutos ays tat mgtmt tr futur coomc prformac.

T vromt s o suc ssu. Tn d Summt taks pac a f motsbfor Jus Ut natos Cofrco Sustaab dvopmt (Ro+20). Tars ar k to t as bg aboutvopmt, povrty ructo a tgr coomy, ot just t vromt.Ty aso oppos t proposa tocrat a tratoa vromta

orgasato, matag tat vuastats ar mor ffctv

brics: the 2012 new delhi summit

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