SAIIA
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Transcript of SAIIA
SAIIABRICS ROLE IN
GLOBAL GOVERNANCE
BRICS-TERN MeetingNew Delhi
27 March 2012
Outline Global governance and the BRICS
What is global governance? Focus on economics and trade Potential roles for BRICS
BRICS and G20 Governance of world trade and
investment Issues for the BRICS A possible common agenda
International Financial Institutions World Bank Presidency: A chance for
the BRICS?
2 BRICS-TERN MeetingNew Delhi March 2012
Global Governance 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 prioritiesBRICS-TERN Launch Shanghai 19 November
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Global Economic Governance WEF Global Risks 2011 two different
but connected global risks: economic disparity worldwide failures in governance
Growth of Asia and other developing regions is rebalancing economic power between countries but there is evidence that economic disparity within countries is growing
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Challenge for BRICS 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
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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
negotiationsBRICS-TERN Launch Shanghai 19 November
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G20 and BRICS 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
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G20 and BRICS: Research Questions 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?
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G20 and BRICS: Research Questions 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?
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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Trade and Investment Growing in terms of BRICS references Now have BRICS Contact Group on
Trade and Investment Trade flows Industrial policy Green industries Trade facilitation Services
BRICS Statement at WTO Ministerial 2011
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BRICS Trade Agenda
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.
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 Trade Agenda
China’s 12th Five year Plan should be explicitly engaged by BRICS, including currency reform.
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.
Linked to ongoing trade demand from China through shift to domestic consumption growth from export driven growth
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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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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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