D
MINISTRY OF ECONOMIC DEVELOPMENT
OF THE RUSSIAN FEDERATION
RUSSIAN FOREIGN TRADE ACADEMY
November, 2013

DRAFT BRICS Economic Cooperation Strategy
I. Executive Summary ______________________________________________________ 3
I.1. Goals and Objectives of the Strategy: ___________________ 4
I.2. Main principles: ____________________________________________ 5
II. Priority areas of cooperation __________________________________________ 6
II.1. Trade and investment ___________________________________ 6
II.2. Manufacturing and mining ____________________________ 10
II.3. Energy _____________________________________________________ 11
II.4. Transport and logistics _________________________________ 12
II.5. Agricultural production ________________________________ 13
II.6. Innovation and technological exchange _____________ 14
III. Interaction with international and regional economic
associations and organizations __________________________________________ 15
III.1. BRICS and WTO _________________________________________ 15
III.2. BRICS and G20 __________________________________________ 15
III.3. BRICS and regional economic cooperation
organizations __________________________________________________ 16
III.4. BRICS and the UN economic organizations ________ 16
IV. Annex _____________________________________________________________________ 16
2

DRAFT BRICS Economic Cooperation Strategy
BRICS is a platform for dialogue and cooperation among the countries with 43% of the global population. The goal of this platform is to promote peace, security and development in the multipolar, interconnected and complex globalized world. The BRICS countries represent Asia, Africa, Europe and Latin America, thus making their cooperation transcontinental and especially valuable and significant.
The BRICS countries are committed to building a harmonious world order, based on lasting peace and common prosperity. They believe that the 21 st century should be a century of peace, security, development and cooperation. It is a strong joint commitment to peace, security, development and cooperation that brought together the
BRICS countries.
The BRICS countries are prepared – on the basis of universally recognized norms of international law and multilateral approach to decision-making – to cooperate with other countries, both developed and developing, to address the problems facing the world today and seize new opportunities.
3

DRAFT BRICS Economic Cooperation Strategy
I.1. Goals and Objectives of the Strategy:
 to elaborate new models and approaches in order to ensure a more equitable development and inclusive global growth with the focus on the complementarity and strengths of the BRICS economies;
 to consolidate BRICS; to form and develop its institutions and mechanisms in order to combine all the efforts of the partners in overcoming economic crises; to coordinate efforts in response to global economic challenges and threats;
 to contribute to the economic security and global competitiveness of the partners; to maximize complementarity of the economies and synergies of the participating states for the respective development;
 to develop and elaborate mechanisms of trade and investment cooperation among the BRICS countries;
 to promote social and economic transformation, higher living standards and eradication of poverty in each BRICS country;
 to join efforts in order to develop innovative economies targeted at a new quality of growth and transition to sustainable economy of the
21 st century;
 to share best practices and expertise on implementation of national development strategies, and to share experience of stimulating trade, investment and human capital development;
 to enhance interaction and cooperation with the states beyond
BRICS and regional economic associations;
 to ensure gradual development of BRICS and its transformation into
 a full-scale mechanism for the current and long-term coordination on a wide range of key issues of the global economy and politics.
4

DRAFT BRICS Economic Cooperation Strategy
I.2. Main principles:
 commitment of the member states to international law and recognition of the United Nations role as the main multilateral forum, which is responsible for making hopes come true, promoting peace, order and sustainable development in the world;
 commitment of the member states to the rules of the existing international trading system with the WTO in its core;
 full respect for the sovereignty of the member states and their equality;
 recognition of the polycentric nature of the global economic and political systems;
 account for national interests, priorities and economic development strategies of all the members states;
 transparency and consensus in decision-making;
 commitment to supporting common basics of sustainable development, in particular inclusive economic growth and development, social progress and environmental protection;
 constructive partnership in developing economic cooperation;
 open nature of cooperation among the BRICS countries not orientated at establishing a closed economic block.

The implementation of the BRICS Economic Cooperation
Strategy will assert BRICS as a new point of economic growth, a free and responsible partnership of a new type based on mutually beneficial and equitable economic relations and consensus in decisionmaking.
Cooperation within BRICS does not substitute the development of bilateral relations; it is rather a step forward. The implementation of the BRICS Economic Cooperation Strategy will provide a better environment for improving competitiveness of the BRICS national economies in the global economy.
5

DRAFT BRICS Economic Cooperation Strategy
II.1. Trade and investment
To achieve a sustainable, comprehensive and dynamic growth in the conditions of growing population, the BRICS countries should take advantage of the opportunities provided by international economic cooperation, including deepening of trade and investment relations, both within BRICS and with the rest of the world. More intense trade and investment ties within BRICS will create a synergetic effect of growth and make it possible to use the opportunities brought in by complementarity of the BRICS economies. It will strengthen the positions of these countries in the global economy and contribute to resolving domestic economic and social problems.
Trade and investment links between the BRICS countries should reflect the scale and capabilities of the participating countries and contribute to growth and sustainable development of all the BRICS economies.
Trade and investment links in the BRICS countries are maintained in the framework of the existing international trading system, and they do not contradict it. Such cooperation will contribute to further development of the international economic relations. Promotion of cooperation within BRICS will help formulate new approaches to emerging challenges in trade and investment.
6

DRAFT BRICS Economic Cooperation Strategy
The expansion of trade and investment links requires the following:
 to create favorable conditions for the development of mutual trade in the BRICS countries and direct foreign investments growth, that help diversify the economic structure and export, in order to raise the share of high value-added products in GDP and exports of the BRICS countries and to weaken their dependence on fluctuations in the world commodity markets;
 to use extensively the capabilities of the technical assistance mechanism to raise the production and export potential of the countries;
 the investment cooperation should contribute to establishment and development of hi-tech industries responding to trends and needs of the 21 st century economy;
 to develop cooperation on the competition policy;
 to develop investment cooperation in order to raise the volume, diversify the patterns of investment and to elaborate and apply the investment principles aimed at creating a favorable investment climate and ensure investors’ confidence. The following investment principles could be applied: maintaining transparency, predictability and stability of the state investment policy; guarantees of investment protection; raising the efficiency of investment procedures; using new technologies to facilitate investment etc.
 to provide conditions for extending the practice of settling disputes, differences and any conflicts among trade and investment partners in the BRICS countries through consultations before going to court; future convergence and unification of arbitration procedures in order to enhance the ease of doing business;
7

DRAFT BRICS Economic Cooperation Strategy
- to strengthen cooperation among the organizations that facilitate investment;
 to help eliminate barriers to trade and investment; the state policy and practice should contribute to ensuring the maximum efficiency of foreign investment at all stages of the investment cycle;
 to strengthen customs cooperation, the exchange of information on changes in customs rules and procedures; the exchange of existing best practices, convergence of customs requirements and practices; development of e-commerce;
 to develop information exchange on trade and economic opportunities and the movement of goods, services and capital between the BRICS countries, including such cooperation among statistical and other agencies; the governments should seek to ensure that the investment information is promptly published, clear and available to business community; efforts will be made and information infrastructure will be created to distribute information on investment opportunities in certain industries of the member states; statistical agencies will strive to ensure the comparability of national statistics;
 to develop cooperation in the field of statistics in order to enhance the exchange of statistical data and experience in implementing the international statistical standards, and to arrange joint statistical publications;
 to elaborate a co-financing mechanism for projects in traditional industries and in the fields of sustainable development, including resources accumulation for development of infrastructure in the
African countries;
 to develop public-private partnerships as a tool to attract additional resources; combining the capabilities of the state and private businesses from different BRICS countries to implement technologically advanced and financially expensive projects, including infrastructure projects;
8

DRAFT BRICS Economic Cooperation Strategy
 to develop interaction on cooperation among small and medium sized enterprises; to arrange exchange of information and expertise on regulation policy and SMEs’ support and to help develop the dialogue among the relevant ministries and agencies; orientation at raising the productivity in small and medium sized enterprises; engaging SMEs in international projects; expanding the practice of facilitating SMEs' access to public services and financing;
 to actively support mechanisms of promoting business cooperation, including the BRICS Business Council, annual business forums, the
Exchanges Alliance, the Bank Forum, and to establish permanent information channels to promote initiatives and search for partners, including specialized web-portals;
 to arrange regular exhibitions, business missions of entrepreneurs with the view of establishing partnerships and initiating projects; to organize trade fairs, industry conferences, round tables in order to inform businessmen from BRICS countries about available business opportunities.
The BRICS investment cooperation is developing on the basis of the following:
 the member states apply the national treatment to foreign investment except the cases by the national legislation, foreign investors should enjoy the same treatment as domestic investors;
 conditions should be provided for free repatriation of profits and other payments arising as a result of foreign investment except the cases envisaged in national law;
 to promote sustainable development it is necessary to ensure that easing of health, safety and environment requirements are not used as an incentive to attract investment.
9

DRAFT BRICS Economic Cooperation Strategy
II.2. Manufacturing and mining
The industrial development is the key to accelerated economic development. Manufacturing provides jobs and makes it possible to change the structure of the economy and labor force rapidly, to raise the living standards, to increase production and export of products with high added value, to engage in the international division of labor with the greatest benefit and gain managerial experience at the national market, which is necessary for effective realization of the national economic potential in the global world.
Interaction in the interests of technological renewal and industrial development of the BRICS countries implies:
 cooperation in raising the technological level of traditional industries;
 cooperation in creating and developing new hi-tech industries;
 providing conditions in the BRICS countries for enhancing mutual supplies of modern equipment and transfer of technologies contributing to hi-tech industrial development;
 cooperation in the field of production and use of mineral resources; attracting investments of the BRICS member states in order to modernize and develop the mining industry;
 enhancing industrial cooperation; establishing and strengthening international production chains in the BRICS countries;
 joint elaboration and adoption of green industrial technologies;
 cooperation in construction and running of industrial facilities;
 exchange of experience and assistance to companies in the BRICS countries in organization of production in the member states;
 broad cooperation in the field of training, including programs for the exchange of experiences on high-tech industrial development.
10

DRAFT BRICS Economic Cooperation Strategy
II.3. Energy
Expansion of production and sustainable consumption of energy is crucial for dynamic growth and economic development. To ensure energy security in the BRICS economies given the limited amount of conventional energy resources, the member states will develop cooperation, aimed, inter alia, at creating the conditions for meeting the needs of the BRICS countries in the sustainable energy supply.
Given the growing demand for renewable energy sources, as well as for energy-efficient and green technologies, and the existing complementary advantages of the BRICS countries in these areas, the
BRICS countries will exchange information and experience in various areas related to the fuel and energy complex, and promote the development of a legal framework for international energy cooperation.
11

DRAFT BRICS Economic Cooperation Strategy
II.4. Transport and logistics
Transport and communication are essential components of the production infrastructure, and their development is one of the priority economic goals of any state.
A dynamic, stable and balanced national transportation system is essential for the economic growth. Development and modernization of the transportation sector stimulate socio-economic development and improve living standards. Efficient and safe operation of transport is crucial for development of international trade and formation of global production chains. Communication infrastructure, information and telecommunication technologies have become an instrument contributing to the accelerated growth and economic development, lower production and transaction costs.
The cooperation within BRICS will be aimed at establishing and developing the transportation and communication systems, contributing to the growth of national economies, development of international trade and meeting the modern security and environmental requirements. The BRICS cooperation will include joint projects, exchange of experience and joint research in the field of transport, communication, information and communication technologies, and cooperation in the field of design, construction, modernization, operation of transport and communications infrastructure; establishment of logistics complexes and hubs, the use of transit capacities of the BRICS countries etc; training for the construction and operation of infrastructure.
12

DRAFT BRICS Economic Cooperation Strategy
II.5. Agricultural production
Food security and access to food are essential for sustainable growth.
The growing population, increasing burden on the environment, destabilization and deregulation of the global food market affect the food security. The BRICS countries as the largest agricultural powers that have certain potential for raising the agricultural production could play an important role in the near future on the global agricultural market as a driving force of growth in agricultural production.
The main areas of BRICS cooperation in the field of agriculture could be the following:
 contributing to the international and national food security;
 expanding mutual trade in agricultural products;
 coordinating positions on international trade in agricultural products;
 joint elaboration and adoption of new agricultural equipment and advanced agricultural technologies, including biotechnology;
 promoting investment in agricultural production;
 ensuring safety of food products;
 exchanging experience on accreditation of organic products;
 raising the agricultural productivity and sustainability;
 exchanging information on national policy and practices in specific agricultural industries;
 organizing training in the field of agricultural production etc.
13

DRAFT BRICS Economic Cooperation Strategy
II.6. Innovation and technological exchange
The main areas of BRICS cooperation in this field could be the following:
 exchanging of information on scientific and technological policy and programs, and formulating on this basis joint long-term problemoriented cooperation programs;
 arranging interaction among the governmental agencies, business circles and academia in order to create and promote new technologies;
 coordinating positions on technology transfer;
 arranging scientific, technological and innovation cooperation within BRICS, including establishment of high-tech areas (science parks) and incubators; creating common "technology platforms"; encouraging joint investment in the development of advanced technologies, BRICS research and innovation centers;
 expanding cooperation in the field of education, training of research personnel and joint research programs;
 cooperating on intellectual property rights (exchange of experience; cooperation of national agencies, capacity building, etc.)
 promoting research in areas of common priority for the BRICS members, such as aeronautics, space technology, high-speed vehicles, microelectronics and information technology, nanotechnology, food security and sustainable agriculture, biotechnology and health, medicine, fundamental research, search and mineral exploration, remote sensing, climate change, water resources and water treatment technology etc.;
The BRICS scientific and technical cooperation is open and, in case of mutual interest, involves the development of cooperation with partners beyond BRICS.
The BRICS industrial, scientific and technical cooperation is carried out in strict compliance with international obligations.
14

DRAFT BRICS Economic Cooperation Strategy
Development of the BRICS cooperation in the frames of international organizations is necessary for promoting common interests in the field of international trade, investment and scientific and technical cooperation. The coordination of positions of the BRICS members in international and regional organizations, associations and forums will help strengthen the influence of BRICS in the world community.
Cooperation in a multilateral format will complement the bilateral economic relations of the BRICS countries.
III.1. BRICS and WTO
The BRICS cooperation is carried out in accordance with the international trade rules agreed in the WTO and is aimed at creating the conditions for expansion and diversification of the BRICS participation in global trade.
III.2. BRICS and G20
Using the BRICS capacities to strengthen G20 as the main economic cooperation forum for the participating countries. Active participation in the work of G20 with the view of further democratization of the global governance.
15

DRAFT BRICS Economic Cooperation Strategy
III.3. BRICS and regional economic cooperation organizations
The BRICS countries are natural regional leaders. Their active participation in regional organizations will contribute to strengthening the role and authority of the member states in their regions
III.4. BRICS and the UN economic organizations
The BRICS countries are actively developing economic cooperation with the UN system, while respecting the fundamental principles of the UN Charter and supporting the reform of the existing international organizations in order to adapt them to the changing global economy and the emerging challenges. They also actively participate in multilateral cooperation for achieving sustainable development of the global and national economies.
The BRICS Economic Cooperation Strategy will be carried out until
2020, and its implementation will include several stages. The
Strategy is adopted by Heads of States and Governments. The ministers of economy of the BRICS member states will control its implementation. The BRICS Contact Group on Economic and Trade
Issues will handle the ongoing work on monitoring and controlling the implementation of the Strategy.
IV.1. Road Map of BRICS Investment Cooperation
(should be prepared on the basis of proposals submitted by all partners).
16

DRAFT BRICS Economic Cooperation Strategy
Contact information:
Evgeny POPOV
Director
Asia and Africa Department
Ministry of Economic Development of the Russian Federation
Tel: +7 (495) 651-75-11
E-mail: PopovEN@economy.gov.ru
Natalia STRIGUNOVA
Deputy Director
Asia and Africa Department
Ministry of Economic Development of the Russian Federation
Tel: +7 (495) 651-74-09
E-mail: Strigunova@economy.gov
Ilya LOBOV
Chief Expert
Asia and Africa Department
Ministry of Economic Development of the Russian Federation
Tel: +7 (495) 651-75-88
E-mail: LobovIV@economy.gov.ru
17