H.E. Mr. Gilberto Fonseca Guimarães de Moura,
Ambassador of Brazil to Slovenia
Roundtable EU and BRICS
Academy of Active Citizenship and Entrepreneurship
13 May 2012
BRICS
Brazil-Russia-India-China-South Africa
1
BRICS
2
BRICS: Origin
• 2001:“Building Better Global Economic BRICs”. Paper by
Jim O’Neil, from Goldman Sachs.
• 2003:“Dreaming with BRICs: the path to 2050”: written by
Dominic Wilson and Roopa Purushothaman from Goldman
Sachs. Paper about the evolution of global economy until
2050, proposes new category composed of the four major
emerging economies.
3
BRICS: Concept
 The “BRICs” idea was immediately adopted by analysts and
the media.
 The growth of these countries would be the new building
blocs – “bricks” – of the world economy by 2050.
 Brazil, Russia, India and China were singled out due to their
economic indicators and their potential, in relation to other
developing countries.
4
BRICs: Chart of Indicators
26 % of Earth's land area
42 % of world's population
46% of world’s work force
19 % of world´s nominal GDP (26 % of GDP PPP)
5
BRICS: Comparative Graphic
According to the International Monetary Fund in 2011 the EU joint nominal GDP in billion USD was 17,577.691
Source http://www.imf.org/external/pubs/ft/weo/2012/01/weodata/weorept.aspx?sy=2011&ey=2011&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=94&pr1.y=8&c=001%2C998&s=NGDPD&grp=1&a=1
6
BRICs: GDP
Relevant data:
-
-
An
IMF
forecast
(January
2012)
predicted
that
the
five BRICS countries will contribute 56% of the world’s GDP growth in
2012. Comparatively, the contributions of the G-7 to global economic
growth will be approximately 9%, and Latin America as a whole is
expected to contribute 9.5%.
From 2003 to 2007, the growth of BRIC countries represented 65% of the
world’s GDP expansion.
In PPP (Purchasing Power Parity), BRIC’s GDP is already greater than
that of the USA or the EU (Country GDP (PPP) $Million for
2011: World 78,897,426
European Union 15,821,264 BRICS
20,990,530
United States 15,094,025 China 11,299,967 India
4,457,784
Japan
4,440,376
Germany
3,100,080
Russia
2,383,402 Brazil 2,294,243; Source: International Monetary Fund)
7
Country GDP (PPP) $Million for 2011
Source: International Monetary Fund
Country
GDP (PPP) $Million
World
78,897,426
BRICS
European Union
20,990,530
15,821,264
United States
15,094,025
China
11,299,967
India
4,457,784
Japan
4,440,376
Germany
3,100,080
Russia
2,383,402
Brazil
2,294,243
United Kingdom
2,260,803
France
2,217,900
Italy
1,846,950
8
BRICS: Comparative graphics
• Significant drop of
all countries but the
BRICs manage to
stay in positive
numbers
9
BRICS: Trade Flow
• Between 2003 to 2010 (US$ billion):
-
Brazil-Russia:
Brazil-India:
Brazil-China:
Brazil-South Africa:
Brazil-BRICS:
2
1
6,7
1
10,7
 6
 7,7
 56
2
 71,7
Increase of 570%
10
Foreign Trade of the BRICS countries with the EU
Source: Eurostat, European Statistical Office
11
Foreign Trade of the BRICS countries with Slovenia
Source: Eurostat, European Statistical Office
12
Foreign Trade of the BRICS countries with Slovenia
in 1000 EUR
Source: Statistical Office of the Republic of Slovenia
13
Bilateral trade Slovenia - Brazil 2005-2011
Source: Izvozno okno, Statistic Office of the Republic of Slovenia
2000
2005
2006
2007
2008
2009
2010
2011
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Brazil
23861
29280
11801
56982
18883
72344
21602
105865
28148
76062
24286
64208
34448
62806
37131
114270
14
Bilateral trade Slovenia - Russia 2005-2011
Source: Izvozno okno, Statistic Office of the Republic of Slovenia
2000
2005
2006
2007
2008
2009
2010
2011
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Russia
209873
213282
467462
334195
599504
357056
691606
489977
799914
355888
519354
207452
534099
289474
542678
386537
15
Bilateral trade Slovenia - India 2005-2011
Source: Izvozno okno, Statistic Office of the Republic of Slovenia
2000
2005
2006
2007
2008
2009
2010
2011
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
India
18217
14488
17843
47648
32049
53274
36301
69614
49036
87922
76040
134021
71618
170044
83635
197972
16
Bilateral trade Slovenia – China 2005-2011
Source: Izvozno okno, Statistic Office of the Republic of Slovenia
2000
2005
2006
2007
2008
2009
2010
2011
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
China
15828
43537
36248
196797
53579
245841
60571
345932
68978
440974
63376
345685
87285
449486
88682
509124
17
Bilateral trade Slovenia – South Africa 2005-2011
Source: Izvozno okno, Statistic Office of the Republic of Slovenia
2000
2005
2006
2007
2008
2009
2010
2011
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
South Africa
9288
4224
36712
11572
32961
12285
24071
19268
21886
22821
17151
4342
24603
6287
23269
6823
18
BRICs: Characteristics
• Vast land area
• Challenges related to economic and social integration
• Desire to make the international order more
representative
• Possibility of cooperation in many areas
19
From BRICs to BRICS
• Institutionalization at the Ekaterinburg Ministerial: the
BRIC (singular), implied the establishment of a
dynamic of cooperation among the four countries, which
had originally been placed side to side due to their
individual characteristics (the BRICs, plural)
• The BRIC became a mechanism through which the
countries can exchange opinions, seek convergence,
identify areas of cooperation and influence the
international agenda.
• With the entrance of South Africa, at the 3rd BRICS
Summit, in April 2011, the BRIC became BRICS, with
capital "S".
20
Entrance of South Africa
•
•
•
•
It brings an important contribution to the Group because of its economic
importance in Africa, constructive political action and its geographic
representation. With South Africa, the BRICS, as it is now called, includes
countries from all continents except Oceania.
The entrance of the fifth country represents a detachment of the group in
relation to the acronym originated in the financial markets, highlighting the
search of the five countries to form a group with its own features and agenda.
It is noteworthy that the creator of the acronym BRIC manifested, after the
Summit in Sanya, a certain perplexity with the new member. In his analysis,
however, Jim O'Neill took into account only his perspective, focused on
economic elements. But as a diplomatic group, the BRICS can reinvent
itself, and this is what it is doing.
The consensual approach is that the interaction between the five countries is
done and will continue to be done without an element of confrontation. The
group is open to an increased engagement and cooperation with third
countries, as well as international and regional organizations.
21
BRIC in diplomacy
• September 2006: 1st Meeting of Foreign Ministers, at
the margin of the 61st UNGA
– Since then, the BRICS Foreign Ministers meet
every year at the margin of the UNGA sessions
• May 2008: 1st Ministerial Meeting, in Yekaterinburg
• July 2008: Informal meeting of BRIC’s Heads of State
and Government, at the G-8 Summit, in Hokkaido
22
1st BRIC Summit
• June 16, 2009: 1st Summit of Heads of State and
Government, in Yekaterinburg. The summit's focus
was on means of improving the global economic
situation and reforming financial institutions and
discussed how the four countries could better cooperate in the future.
• 2 documents issued:
– Joint Statement
– Joint Statement on Global Food
Security
23
1st BRIC Summit
24
2nd BRIC Summit
• April 15th, 2010, in Brasília
• Leaders signed a Joint Statement
• The leaders discussed various current issues including the Iran
and nuclear weapons, development, the furtherance of the
BRIC (and IBSA that was occurring at the same time) as an
international body, the global economic situation at the time,
reform of financial institutions, the financial G20, and
cooperation and issues related to global governance
• Meetings held at the margin of the Summit:
- Meeting of BRIC Cooperatives (Brasília)
- IBSA+BRIC Business Forum (Rio de Janeiro)
- BRIC Think Tanks Seminar (Brasília)
- Meeting of BRIC Development Banks (Rio de Janeiro)
25
2nd BRIC Summit
26
3rd BRICS Summit
• April 14th, 2011, in Sanya, China.
• Joint Declaration issued, including an Action Plan listing
events and initiatives to be organized in 2011.
• The Summit discussed Economy, International law, United
Nations Security Council reform, Trade medium and Libyan
civil war
• Associated to the Summit, the following events were
organized: Think Tanks Seminar in Beijing, the 2nd BRICS
Business Forum, in Sanya, and the Meeting of BRICS
Development Banks, also in Sanya.
• Trade ministers discussed the Doha Round, exchange rates
and commodity prices.
27
3rd BRICS Summit
28
4th BRICS Summit
• March 29th, 2012, in New Delhi, India.
• The Leaders meeting consolidated the mechanism and
deepened intra-group dialogue, especially in the financial
and economic area.
• The Leaders approved the creation of a Working Group to
study the implementation of a Development Bank, for
mobilizing resources for infrastructure and sustainable
development projects in BRICS and other emerging
economies and developing countries.
• The Development Banks Presidents met and approved two
agreements to facilitate trade in local currencies.
• Associated to the Summit, the following events were
organized: Trade ministers meeting, Business Forum,
Financial Forum, Academic Forum.
29
4th BRICS Summit
• The Delhi Declaration, issued at the meeting, shows that
the BRICS are able to achieve important common
denominators. Besides subjects related to the international
economic and financial agenda, the document covers peace
and security, environment, energy, among others issues.
• The Declaration mentioned the reform of the United
Nations and international financial governance.
30
4th BRICS Summit
31
BRICS – Next Summit
2013, in South Africa
32
BRICS: Policy coordination
The BRICS share many interests related to the construction of a new global governance –
therefore, they could identify common agendas and principles:
- Commitment to multilateral diplomacy with the United Nations playing the
central role in dealing with global challenges and threats. In this respect, BRICS
reaffirm the need for a comprehensive reform of the UN, including its Security
Council, with a view to making it more effective, efficient and representative
- The voice of emerging and developing countries should have greater resonance
in international relations
- The coping of climate change. BRICS support the Cancun Agreements and are
ready to make concerted efforts with the rest of the international community to
bring a successful conclusion to the negotiations at the Durban Conference
applying the mandate of the Bali Roadmap and in line with the principle of equity
and common but differentiated responsibilities
- The Doha Round. BRICS share the same positions about the round
- Strong condemnation of terrorism in all its forms and manifestations; the United
Nations has a central role in coordinating the international action against terrorism
- Support the Group of Twenty (G20) in playing a bigger role in global economic
governance as the premier forum for international economic cooperation
- Support the reform and improvement of the international monetary and financial
system, whose inadequacies and deficiencies were evident with the international
financial crisis
33
BRICS: Areas of cooperation
34
Finance
• In November 2008, the 1st Meeting of BRIC Finance
Ministers was held, on the sidelines of the G-20 Ministerial in
São Paulo.
• Since then, BRICS Finance Ministers and Central Bank
Presidents often gather on the sidelines of G-20 and IMF
meetings.
• These meetings have an important role in the consolidation
process of the group, which claim more active participation of
developing countries in the reform of international financial
institutions such as the IMF and World Bank.
• The BRICS Leaders met on the sidelines of the G-20 Summit
in Cannes (November 8th, 2011) to discuss matters related to
the Euro Zone)
• The last meeting of BRICS Finance Ministers was held on the
sidelines of the G-20 meeting in Mexico City (February 25th,
2012).
35
Agriculture
•
•
•
March 2010: Meeting of BRIC Agriculture and Agricultural
Development Ministers, in Moscow. Joint Communiqué
proposes:
1) Creation of a BRIC agricultural information system
2) Development of a general strategy for ensuring access to
food for the most vulnerable population
3) Reduction of the negative impact of climate change on
food security and adaptation of agriculture to climatic
changes
4) Enhance agricultural technology cooperation and
innovation
August 2011: 1st Meeting of the BRICS agricultural experts
WG, in Beijing.
October 2011: 2nd Ministerial Meeting, in Chengdu.
36
Health
• May 2011: Meeting of Health Ministers on the margins of the 64th
World Health Assembly.
• July 2011: 1st Meeting of Health Ministers, in Beijing.
• September, 2011: Meeting of Health Ministers on the margins of the
UN High Level Meeting on Non-communicable Diseases”.
Issues discussed:
• Promote adequate access to health services and medicines
• Reform of WHO
• Strengthening of health systems and health financing
• Transfer of technology to strengthen innovation capacity to benefit
public health in developing countries
37
Strategy and Security
• May 2009: 1st Meeting of High Level Representatives on
Security, in Moscow.
• April 2010: 2nd Meeting, in Brasília
• October 2010: BRIC meeting on the sidelines of the
International Security Meeting in Sochi (Russia).
• Discussed Topics:
- Global governance and multilateralism
- Exchange of views on issues which occupy the top of the
international agenda, from the strategic and security point of
view, such as disarmament and nonproliferation; long-term
energy security.
38
Statistics
• February 2010: 1st Meeting of Heads of Statistical
Intitutions of the BRIC, in New York, on the sidelines of
the meeting of the UN Statistical Committee.
- Release of the BRIC Statistics Publication (in the 2nd
Summit)
• December 2010: 2nd Meeting of Heads of Statistical
Intitutions
of
the
BRIC
(Rio
de
Janeiro)
- Release of updated version of the Statistics Publication,
already with South Africa data (in the 3rd Summit)
• March 2012: release of the 3rd version of the statistics
publication, in New Delhi
39
Other events in 2011
Over 25 BRICS events were organized in 2011.
Some of them are listed below:
• September 15th : meeting of BRICS Senior Officials in science,
technology & innovation areas, in Dalian.
• September 23rd: 6th Meeting of Foreign Ministers, at the
margin of the 66th UNGA.
• December 3rd: First Conference of BRICS Sister Cities and
Local Governments, in Beijing.
• December 2nd: Meeting of the Contact Group for Trade and
Economic Issues, in Beijing
• December 14th: BRICS Trade Ministers meeting, on the
margin of the 8th WTO Meeting, in Geneva
40
BRIC(S) OFFICIAL DOCUMENTS
Summits
•
2012: March 29, New Delhi, India
•
2012 Delhi Declaration and Delhi Action Plan
•
BRICS Report: Executive Summary
•
Statement on Agreements between BRICS Development Banks
•
2011: April 14, Sanya, China
•
BRICS leaders declaration
•
2010: April 15, Brasilia, Brazil
•
BRIC leaders joint statement
•
2009: June 16, Yekaterinburg, Russia
•
BRIC leaders joint statement
•
BRIC Joint Statement on Global Food Safety
Agriculture Ministers
•
2012: India
•
2011: October 29-30, Chengdu, China
•
•
BRICS agriculture ministers declaration
•
•
Action Plan 2012-2016 for Agricultural Cooperation of
BRICS Countries
•
•
Working Procedures for Agricultural Cooperation
Working Group
•
2011: August, Beijing, China
•
•
First meeting of the BRICS Agricultural Cooperation
Working Group
•
2010: March 26, Moscow, Russia
•
•
BRIC agriculture ministers declaration
Finance Ministers
•
Note: BRICS finance ministers usually meet on the margins
of G20 meetings and the regular meetings of the International
Monetary Fund and World Bank.
•
2011: September 22, Washington DC, United States
•
BRICS finance ministers communiqué
•
2009: March 14, Horsham, United Kingdom
•
BRIC finance ministers communiqué
•
2008: November, Sao Paulo, Brazil
•
BRIC finance ministers
Foreign Ministers
•
2011: November 24, Moscow, Russia
•
BRICS deputy foreign ministers communiqué
•
2011: September 21, New York
Health Ministers
•
2011: July 11, Beijing, China
• BRICS health ministers declaration
Trade Ministers
•
2011: December 14, Geneva, Switzerland
•
BRICS trade ministers declaration
•
2011: April 13
•
BRICS trade and economic ministers
•
2010: April, Rio de Janeiro
•
BRICS trade ministers
41
BRICS - Conclusion
• The BRICS, in its current configuration, fulfills the need of
strengthening centers of influence in global governance which
could contribute to the establishment of a “positive
multipolarity" in international affairs.
• The group aims at not only defending the interests of its
members, but also aims at broader goals, such as opening
spaces for dialogue that could facilitate a systemic reaccommodation of the international order. The mechanism
wishes to strengthen multilateralism.
• The BRICS is at a significant moment of consolidation. The
group demonstrated at the Declaration of New Delhi that it can
reach broader and significant consensus.
• Extending beyond the original concept, the BRICS is today an
exciting and promising mechanism not only for intra-group
cooperation, but also to promote real change in global
governance.
42
• From the Brazilian point of view, it is necessary to stress that
Brazil does not have confrontational intentions as it can be
seen in its international action open to engagement, in its
efforts to strengthen multilateralism and cooperation with third
countries and in its constructive activities in the framework of
G-20.
• The Forum does not want to replicate old patterns of
asymmetric and dominating relations. The BRICS are
interested in creating new innovative mechanisms capable of
dialogue and cooperation as stated in the 6th paragraph of the
Sanya Declaration: “we reiterate that such cooperation is
inclusive and non-confrontational. We are open to increasing
engagement and cooperation with non-BRICS countries, in
particular emerging and developing countries, and relevant
international and regional organizations”.
43
Report on the EU foreign policy towards the BRICS and
other emerging powers: objectives and strategies
10 January 2012
EU Parliament, Committee on Foreign Affairs
•
•
•
•
The BRICS (Brazil, Russia, India, China and South Africa) and other emerging
economies could gather strong relevance in foreign policy terms on the global scene. In a
global economic perspective, seven emerging countries (Brazil, Russia, India, China,
Indonesia, Mexico and Turkey) are projected to have larger economies than, collectively,
the G-7 countries (USA, Japan, Canada, United Kingdom, Germany, France and Italy) in
2050.
As the current economic crisis demonstrates, there is a strong degree of interdependence
between emerged powers and emerging powers.
In this regard, it should be pointed out that the BRICS have already shown clear
ambitions in foreign policy terms. Thus, the BRICS seem to challenge the current system
of international governance. However, if an inclusive, new system of governance were to
be devised, they could become valuable partners of the West.
The EU will have to duly take into account the new weight, in political and economic
terms, of the BRICS and other emerging powers and use its political leverage to continue
to promote universal values.
44
BRICS Website
• http://www.itamaraty.gov.br/brics
– Events held since 2006
– Documents issued by Heads of State and
Government, and by the Foreign Ministers
– Documents issued by High Representatives
– Articles and academic texts
– Statistical Publication
– Videos and interviews
45