SAIIA
BRICS ROLE IN
GLOBAL GOVERNANCE
BRICS-TERN Meeting
New Delhi
27 March 2012
Outline
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Global governance and the BRICS
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BRICS and G20
Governance of world trade and
investment
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Issues for the BRICS
A possible common agenda
International Financial Institutions
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What is global governance?
Focus on economics and trade
Potential roles for BRICS
World Bank Presidency: A chance for
the BRICS?
BRICS-TERN Meeting
New Delhi March 2012
Global Governance
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Extremely broad – covers almost every
area where there is international
cooperation e.g. Peace and security,
environment, development,
Focus of BRICS is on economic and
trade issues
UN is most widely referred to global
institution in BRICS statement – initial
priority regarding Security Council reform
G20, WTO and IFIs priorities
BRICS-TERN Launch Shanghai 19 November
2011
Global Economic Governance
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WEF Global Risks 2011 two different
but connected global risks:
economic disparity
 worldwide failures in governance
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Growth of Asia and other developing
regions is rebalancing economic
power between countries but there is
evidence that economic disparity
within countries is growing
BRICS-TERN Launch Shanghai 19 November
2011
Challenge for BRICS
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Balance between development
challenges and redressing global
imbalances
National interests vs. Common
objectives
Shared approach vs. Diversity of position
Position with regards to other coalitions
e.g. IBSA
Regional groupings for some members
BRICS-TERN Launch Shanghai 19 November
2011
Potential Roles for BRICS
Rebalancing debate – voice of
emerging economies
 Development experience
 Resources and capacity
 Ideas and positions for mandating to
other institutions
 Coordination mechanism for
negotiations
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BRICS-TERN Launch Shanghai 19 November
2011
G20 and BRICS
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G20 now established as major forum on
global economic governance matters
BRICS coordination limited – dominance
of G7 ongoing? G2 axis of US-China?
Agenda often set by chair as no
secretariat
Crucial for coalitions to influence
development of G20 processes and to
ensure legitimacy
BRICS-TERN Launch Shanghai 19 November
2011
G20 and BRICS:
Research Questions
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What are BRICS’ core strategic interests
in the G20?
What influence, if any, have BRICS had
on G20 outcomes in areas of strategic
interest?
How successful have efforts to consult
other (including African) stakeholders
been?
How could consultation efforts be
improved?
BRICS-TERN Launch Shanghai 19 November
2011
G20 and BRICS:
Research Questions
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Have domestic agendas, policy making
processes, and legislation been – or are poised
to be – altered by commitments taken by
BRICS in the G20 so far?
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Have the relationships between BRICS and the
variety of International institutions tasked with
the follow-up of G20 decisions as
implementation watchdogs been altered as a
result of the G20? Those Institutions
“underlying” the G20 agendas are for instance:
IMF, WB, OECD; IEA, OPEC, FSB, BIS.
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BRICS-TERN Launch Shanghai 19 November
2011
Trade and Investment
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Growing in terms of BRICS references
Now have BRICS Contact Group on
Trade and Investment
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Trade flows
Industrial policy
Green industries
Trade facilitation
Services
BRICS Statement at WTO Ministerial
2011
BRICS-TERN Launch Shanghai 19 November
2011
BRICS Trade Agenda
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The WTO. India, Brazil, and South Africa have
shown that they can collaborate on a common
agenda and thereby shift the locus of
negotiations e.g. G20 on agriculture.
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A broader discussion, now including Russia and
China, should be pursued with its core focus
being on providing emerging market leadership
to resuscitate the Doha Round. The future of
the WTO should be an issue of core interest to
all BRICS countries.
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BRICS-TERN Launch Shanghai 19 November
2011
BRICS Trade Agenda
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China’s 12th Five year Plan should be explicitly
engaged by BRICS, including currency reform.
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Relevant for BRICS since each is keen to
develop domestic manufacturing industries
which are currently undercut by the ‘China
price’ portion associated with the RMB’s peg to
the US dollar.
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Linked to ongoing trade demand from China
through shift to domestic consumption growth
from export driven growth
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BRICS-TERN Launch Shanghai 19 November
2011
BRICS Trade Agenda
Common BRICS position within the
G20 on global economic imbalances
and revival of multilateral trade talks
 Recommendations to G20 on ways to
break impasse on trade issues
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BRICS-TERN Launch Shanghai 19 November
2011
International Financial
Institutions
Traditional strong BRICS focus on
efforts to facilitate reform of IMF and
World Bank
 Some success in shift of voting power
 Change of leadership of IMF saw
BRICS fail to take common position
 Opportunity for BRICS with regards to
change of presidency of World Bank
in
2012
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BRICS-TERN Launch Shanghai 19 November
2011