BRIC and IBSA Summits

The two Summitshas discussed glo-bal economic cri-sis besides ways toenhance coopera-tion among themember countriesof the two group-

ings. Prime Minister Manmohan Singh arrived inBrazil on a two day visit inApril 2010 during whichhe attended the Brazil—Russia—India—China(BRIC) and India—Brazil— South Africa (IBSA)Summits and held bilateral meetings with ChinesePresident Hu Jintao and Russian President DmitryMedvedev. The Prime Minister reached from Wash-ington on the second leg of his eight nation tour.At the 2nd BRIC Summit, Iran’s nuclear issue andthe controversy surrounding it also discussed underthe grouping’s format by Singh, Russian PresidentDmitry Medvedev, Chinese President Hu Jintao andBrazilian President Lula da Silva. This was the firsttime that Iran has been part of focussed agenda ofthe grouping.

BRIC is a significant grouping comprising two ofthe world’s leading energy producers Russia andChina and top energy consumers India and China,which officials say forms the basis for natural syn-ergy.

In the BRIC format, Foreign Ministers of the fourcountries have met regularly on the sidelines of in-ternational conferences, including the UN GeneralAssembly.

The BRIC countries, representing 40 per cent of theglobal population, are among the largest and fastestgrowing economies with rich human and materialresources. They represent the future of the globaleconomic landscape.

BRIC and IBSASummits

With a similarity of views on several issues likeclimate change and reform of global institutions,including the UN, the four countries have been finetuning their collective approaches to these issues.In the IBSA format too, India, Brazil and South Af-rica, the three fastest growing economies of threecontinents, have evolved common and coordinatedapproaches to the challenges like global economiccrisis and climate change besides pushing efforts toenhance cooperation among themselves.

After the IBSA Summit, India, Brazil and South Af-rica signd two trilateral MoUs. These are in the ar-eas of solar energy and science and technology. AnMoU in the field of sport is also likely to be inked.“These groupings reflect the growing role of emerg-ing economies in shaping the global economic or-der,” the Prime Minister had said in a statement.

He said the IBSA process has come of age as it to-day encompasses a wide range of activities whichsupplement the excellent bilateral relations that In-dia enjoys with each of these countries.

“Our coordination on important international issueshas expanded, and our trilateral cooperation is be-ginning to bear fruit in many sectors,” the PrimeMinister had said.

“We have a high stake in the revival of the globaleconomy, an open trading system, energy security,combating climate change and addressing non tra-ditional threats to international security,” he said.Singh also held bilateral meetings with the ChinesePresident and Russian President. Ahead of his meet-ing with Hu, Singh said in Washington that Indiaand China were working very hard to find a “practi-cal” and “pragmatic” solution to the boundary ques-tion and it would “take time” to get resolved.

Noting that both countries “recognise that it wouldtake time”, he said both the nations have agreed that

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pending the resolution of the border issues, peaceand tranquility should be maintained along the Lineof Actual Control and by and large that situationprevails on the ground.

On the overall Sino India relations, he said the eco-nomic content of the relationship has increased sig-nificantly, with China today being India’s largesttrading partner.

There are large Chinese investments in our countryand there are large Indian investments in China. “Onthe economic front the relationship is moving in theright direction,” he said.

On multilateral issues, he said, there was a recogni-tion in China that there was a similarity of approachbetween the two countries and they can gain byworking together.

In this context, he referred to the Copenhagen con-ference on climate change last December duringwhich India and China worked closely to block de-veloped nations from imposing their agenda IBSAto develop satellites, cooperate on global issues

India, Brazil and South Africa decided to jointlydevelop two satellites and forged closer coopera-tion on global issues like UN reforms, climatechange and world trade talks. This emerged afterthe fourth India-Brazil-South Africa (IBSA) sum-mit.

The two satellites will be used for studying climateto help agriculture sector in the three countries.Prime Minister Manmohan Singh said that IBSAbesides the embodiment of south-south cooperationhad entered the phase of consolidation and imple-mentation of initiatives.

He said IBSA has immense prospects for the peopleof the three countries and the right direction wasbeing provided to it by strengthening cooperationin science and technology, energy, ocean’s research,which were the hallmark of the forum.

“OBS has developed into a vibrant organisationwhich will play important role in world affairs,”Dr. Singh said.

Dr. Singh said the three developing economies anddemocracies shared similar views with regard toreform of global institutions of governance like theUN.

Mr. Zuma said that IBSA has a natural dialogue fo-rum and he has great confidence in its future. Hesaid the decision to develop the satellite jointly wassymbolic of the fact that the forum has entered anew phase.

He pointed out that the member countries had com-mon positions on the Doha round of WTO talks.He pressed for early conclusions of the Doha roundof trade talks saying it can’t be put indefinitely.

Mr. Zuma said the IBSA was rapidly emerging asan important forum for engagement. “But we areyet to fully explore the full potential of this forum,”he said.

The South African president, whose country willhost the next IBSA summit, said there was an op-portunity for expanding cooperation in science andtechnology and reinforcing shared developmentalobjectives.

Noting that all the three IBSA countries were influ-ential in their own regions, Mr. Zuma said, “Weare in a position to make contributions to a globaldebate. This became clear at the Copenhagen Sum-mit on climate change when IBSA and China playeda key role in reaching an agreement.”

He said the four countries were able to reflect theinterest of developing nations at the climate meet.He said the IBSA countries were key for reform ofglobal bodies like UN to make them more demo-cratic and more responsive to the poor.

Mr. Zuma said the three countries needed more co-ordination on climate change to ensure legally bind-ing agreement on the issue in the next summit inMexico next year.

BRIC, IBSA nations not keen on Iran sanctionsAs the United States and its western allies press ahead

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with efforts to impose tough penalties on Iran, lead-ers and officials from two major internationalgroupings BRIC and IBSA meeting in Brasilia thisweek took a contrary view, agreeing that new sanc-tions would not help resolve the nuclear issue.

On the sidelines, India’s national security adviser,Shiv Shankar Menon, took part in a meeting of BRICsenior security officials alongside Nikolai Patrushevof Russia and Dai Binguuo of China. Earlier in theweek, Mr. Menon also met with his U.S. counter-part, James L. Jones, who provided a detailed de-scription of Washington’s current approach to theIran issue.

Giving an account of the intra-BRIC exchanges onIran, a senior Indian official said, “All of us agreedthat we don’t think sanctions will help solve thecurrent problems with Iran.” In addition, there wasagreement that dialogue and diplomacy were essen-tial and that the central role of the InternationalAtomic Energy Agency in settling the Iran nucleardocket had to be re-established.

The official said the BRIC nations agreed Iran hadthe right to nuclear energy but that it also has anobligation to set at rest international fears about thenature of its nuclear programme.

Though the BRIC summit statement did not touchon Iran, the IBSA communiqué said the three lead-ers “reiterated the need for a peaceful and diplomaticsolution of the issue”.

Indian officials said President Lula would be goingto Iran next month and that his visit had added sig-nificance since Brazil was a non-permanent mem-ber of the Security Council through 2011. Anotherfactor which might have a bearing on sanctions wasthat Lebanon – whose government has tended not tosupport the U.S. on Iran would assume the rotatingchair of the UNSC in May.

India buys a significant amount of crude oil fromIran. Until 2009, Indian companies like Reliance alsosold refined products to Iran but have withdrawnfrom the market as American pressure on banks

around the world has made it more difficult to openletters of credit.

An analysisSummits of IBSA and BRIC nations, India and Bra-zil were the lucky two who had overlapping mem-bership in both forums. But South Africa, which isonly part of the former, would very much like BRICto become BRICS, while China, which is part of thelatter as well as of the climate change ginger groupof BASIC with India, Brazil and South Africa —would not be averse to IBSA becoming CHIBSA.

Equation ReversedLast year, when the Russian hosts at Ekaterinburgheld back-to-back summits of BRIC and the Shang-hai Cooperation Organisation, the equation was re-versed. Russia and China belong to both groupings,while India, which has mere observer status in theSCO, agreed to have Prime Minister ManmohanSingh attend that summit only after receiving as-surances that he would have full speaking rights andwould not have to leave the room when the realmembers met.

On the sidelines of the April 15 IBSA and BRICmeets in Brasilia, President Hu Jintao of China helda bilateral meeting with his Brazilian counterpart,Lula da Silva, and the two countries signed a num-ber of agreements. One of these was an 'action plan',and buried deep within it was this proposal: “Thetwo sides will discuss conducting long-term researchon the potential for furthering the development oftrade relations between IBSA and China”.

Not EnthusiasticSome in Brazil have quietly been suggestingBeijing's inclusion in IBSA -- China is, after all, itslargest trading partner -- but India and, to a lesserextent, South Africa, which sees IBSA as a great ve-hicle for itself on the world stage -- are not enthusi-astic.

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“Well, IBSA has a character of its own -- three largedemocracies coming together,” Prime MinisterSingh told reporters who managed to throw a ques-tion to him on China joining the trilateral forum.He was standing with his delegation in the lobby ofItamaraty Palace, home to the Brazilian foreignministry, on Thursday evening, waiting for his mo-torcade in between the IBSA and BRIC summits. “Ithink IBSA has now come into its own”.

The reference to democracies was not accidental. Itwas present in Dr. Singh's speech to the IBSA ple-nary and the final summit communiqué spoke ofshared democratic traditions. For Indian officials,this is what provides additional glue to a groupingthat joins India with the most important powers ofAfrica and South America. It helps, of course, thatas a criterion for club membership, China wouldnot quallify.

ProblematicAsked about the expansion of BRIC, the Prime Min-ister said this was an idea of Goldman Sachs. “Weare now trying to give it some shape, flesh it out.Let us see”.

Like IBSA, the expansion of BRIC is problematicbecause the majority of its members fear the dilu-tion of the forum's core competence: fast risingeconomies with a growing footprint in the globaleconomy and system. BRIC today accounts for alittle under a quarter of world output. The SouthAfrican economy is not yet in that league.

Other countries that have expressed an interest injoining BRIC are Mexico, Indonesia and Turkey. TheTurks are also apparently interested in IBSA.

“What makes BRIC a good fit today is that the fourcountries have complementary factor endowmentsand national skills,” a senior Indian official told TheHindu. If China has solid manufacturing and hugefinancial clout, Russia has energy and advanced tech-nology in certain fields, while Brazil is an agricul-tural superpower with strong manufacturing andIndia has a comparative advantage in IT, pharma-

ceuticals as well as agriculture. In an article writ-ten on the eve of the BRIC summit, President DmitriMedvedev spoke of the four countries collaborat-ing with each other in nuclear technology, spacetechnology, aircraft manufacturing, nanotechnologyand other fields. But some in the Indian establish-ment remain sceptical of doing too much with BRIC,fearing a backlash from the U.S.

II BRIC SUMMIT: JointStatement

We, the leaders of the Federative Republic of Bra-zil, the Russian Federation, the Republic of Indiaand the People’s Republic of China, met in Brasíliaon 15 April 2010 to discuss major issues of the in-ternational agenda as well as concrete steps to moveforward the cooperation and coordination withinBRIC.

We have agreed on the following:

Common Vision and GlobalGovernance

We share the perception that the world is undergo-ing major and swift changes that highlight the needfor corresponding transformations in global gover-nance in all relevant areas.

We underline our support for a multipolar, equi-table and democratic world order, based on inter-national law, equality, mutual respect, cooperation,coordinated action and collective decision-makingof all States.

We stress the central role played by the G-20 incombating the crisis through unprecedented levelsof coordinated action. We welcome the fact that theG-20 was confirmed as the premier forum for in-ternational economic coordination and cooperationof all its member states. Compared to previous ar-rangements, the G-20 is broader, more inclusive,diverse, representative and effective. We call uponall its member states to undertake further efforts to

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implement jointly the decisions adopted at the threeG-20 Summits.

We advocate the need for the G-20 to be proactiveand formulate a coherent strategy for the post-cri-sis period. We stand ready to make a joint contri-bution to this effort.

We express our strong commitment to multilateraldiplomacy with the United Nations playing the cen-tral role in dealing with global challenges andthreats. In this respect, we reaffirm the need for acomprehensive reform of the UN, with a view tomaking it more effective, efficient and representa-tive, so that it can deal with today’s global chal-lenges more effectively. We reiterate the impor-tance we attach to the status of India and Brazil ininternational affairs, and understand and supporttheir aspirations to play a greater role in the UnitedNations.

We believe the deepened and broadened dialogueand cooperation of the BRIC countries is conducivenot only to serving common interests of emergingmarket economies and developing countries, butalso to building a harmonious world of lasting peaceand common prosperity. We have agreed upon stepsto promote dialogue and cooperation among ourcountries in an incremental, proactive, pragmatic,open and transparent way.

International Economic andFinancial Issues

The world economic situation has improved sinceour first meeting in June 2009, in Ekaterinburg. Wewelcome the resumption of economic growth, inwhich emerging market economies are playing avery important role. However, we recognize thatthe foundation of world economic recovery is notyet solid, with uncertainties remaining. We call uponall states to strengthen macroeconomic cooperation,jointly secure world economic recovery and achievea strong, sustainable and balanced growth. We reit-erate our determination to make positive efforts inmaintaining domestic economic recovery and pro-

moting development in our own countries andworldwide.

We underline the importance of maintaining rela-tive stability of major reserve currencies andsustainability of fiscal policies in order to achieve astrong, long-term balanced economic growth.

We are convinced that emerging market economiesand developing countries have the potential to playan even larger and active role as engines of economicgrowth and prosperity, while at the same time com-mit to work together with other countries towardsreducing imbalances in global economic develop-ment and fostering social inclusion.

G-20 members, with a significant contribution fromBRIC countries, have greatly increased resourcesavailable to the IMF. We support the increase ofcapital, under the principle of fair burden-sharing,of the International Bank for Reconstruction andDevelopment and of the International Finance Cor-poration, in addition to more robust, flexible andagile client-driven support for developing econo-mies from multilateral development banks.

Despite promising positive signs, much remains tobe done. We believe that the world needs today areformed and more stable financial architecture thatwill make the global economy less prone and moreresilient to future crises, and that there is a greaterneed for a more stable, predictable and diversifiedinternational monetary system.

We will strive to achieve an ambitious conclusionto the ongoing and long overdue reforms of theBretton Woods institutions. The IMF and the WorldBank urgently need to address their legitimacy defi-cits. Reforming these institutions’ governance struc-tures requires first and foremost a substantial shiftin voting power in favor of emerging market econo-mies and developing countries to bring their par-ticipation in decision making in line with their rela-tive weight in the world economy. We call for thevoting power reform of the World Bank to be ful-filled in the upcoming Spring Meetings, and expectthe quota reform of the IMF to be concluded by the

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G-20 Summit in November this year. We do alsoagree on the need for an open and merit based selec-tion method, irrespective of nationality, for the head-ing positions of the IMF and the World Bank. More-over, staff of these institutions needs to better re-flect the diversity of their membership. There is aspecial need to increase participation of developingcountries. The international community must de-liver a result worthy of the expectations we all sharefor these institutions within the agreed timeframeor run the risk of seeing them fade into obsolescence.

In the interest of promoting international economicstability, we have asked our Finance Ministers andCentral Bank Governors to look into regional mon-etary arrangements and discuss modalities of coop-eration between our countries in this area. In orderto facilitate trade and investment, we will studyfeasibilities of monetary cooperation, including lo-cal currency trade settlement arrangement betweenour countries.

Recent events have shattered the belief about the self-regulating nature of financial markets. Therefore,there is a pressing need to foster and strengthen co-operation regarding the regulation and supervisionof all segments, institutions and instruments of fi-nancial markets. We remain committed to improveour own national regulations, to push for the reformof the international financial regulatory system andto work closely with international standard settingbodies, including the Financial Stability Board.

International TradeWe stress the importance of the multilateral trad-ing system, embodied in the World Trade Organi-zation, for providing an open, stable, equitable andnon discriminatory environment for internationaltrade. In this connection, we commit ourselves andurge all states to resist all forms of trade protec-tionism and fight disguised restrictions on trade. Weconcur in the need for a comprehensive and balancedoutcome of the Doha Round of multilateral tradetalks, in a manner that fulfills its mandate as a "de-velopment round", based on the progress alreadymade, including with regard to modalities. We take

note and strongly support Russia's bid for accessionto the WTO.

DevelopmentWe reiterate the importance of the UN MillenniumDeclaration and the need to achieve the MillenniumDevelopment Goals (MDGs). We underscore theimportance of preventing a potential setback to theefforts of poor countries aimed at achieving MDGsdue to the effects of the economic and financial cri-sis. We should also make sustained efforts to achievethe MDGs by 2015, including through technicalcooperation and financial support to poor countriesin implementation of development policies and so-cial protection for their populations. We expect theUN MDG Summit, in September 2010, to promotethe implementation of MDGs through policy rec-ommendations. We stress that sustainable develop-ment models and paths of developing countriesshould be fully respected and necessary policy spaceof developing countries should be guaranteed.

The poorest countries have been the hardest hit bythe economic and financial crisis. The commitmentsregarding the aid to the developing states, especiallythose related to the MDGs, should be fulfilled, andthere should be no reduction in development assis-tance. An inclusive process of growth for the worldeconomy is not only a matter of solidarity but alsoan issue of strategic importance for global politicaland economic stability.

AgricultureWe express our satisfaction with the Meeting ofMinisters of Agriculture and Agrarian Developmentin Moscow, where they discussed ways of promot-ing quadripartite cooperation, with particular atten-tion to family farming. We are convinced that thiswill contribute towards global food production andfood security. We welcome their decision to createan agricultural information base system of the BRICcountries, to develop a strategy for ensuring accessto food for vulnerable population, to reduce thenegative impact of climate change on food security,and to enhance agriculture technology cooperationand innovation. ,


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Fight against povertyWe call upon the international community to makeall the necessary efforts to fight poverty, social ex-clusion and inequality bearing in mind the specialneeds of developing countries, especially LDCs,small islands and African Countries. We supporttechnical and financial cooperation as means to con-tribute to the achievement of sustainable social de-velopment, with social protection, full employment,and decent work policies and programmes, givingspecial attention to the most vulnerable groups, suchas the poor, women, youth, migrants and personswith disabilities.

EnergyWe recognize that energy is an essential resourcefor improving the standard of living of our peoplesand that access to energy is of paramount impor-tance to economic growth with equity and socialinclusion. We will aim to develop cleaner, moreaffordable and sustainable energy systems, to pro-mote access to energy and energy efficient technolo-gies and practices in all sectors. We will aim to di-versify our energy mix by increasing, where appro-priate, the contribution of renewable energy sources,and will encourage the cleaner, more efficient useof fossil fuels and other fuels. In this regard, we re-iterate our support to the international cooperationin the field of energy efficiency.

We recognize the potential of new, emerging, andenvironmentally friendly technologies for diversi-fying energy mix and the creation of jobs. In thisregard we will encourage, as appropriate, the sus-tainable development, production and use ofbiofuels. In accordance with national priorities, wewill work together to facilitate the use of renew-able energy, through international cooperation andthe sharing of experiences on renewable energy, in-cluding biofuels technologies and policies.

We believe that BRIC member countries can coop-erate in training, R&D, Consultancy services andtechnology transfer, in the energy sector.

Climate ChangeWe acknowledge that climate change is a seriousthreat which requires strengthened global action.We commit ourselves to promote the 16th Confer-ence of the Parties to the United Nations Frame-work Convention on Climate Change and the 6thConference of the Parties serving as the Meeting ofthe Parties to the Kyoto Protocol, in Mexico, toachieve a comprehensive, balanced and binding re-sult to strengthen the implementation of the Con-vention and the Protocol. We believe that the Con-vention and the Protocol provide the framework forinternational negotiations on climate change. Thenegotiations in Mexico should be more inclusive,transparent, and should result in outcomes that arefair and effective in addressing the challenge of cli-mate change, while reflecting the principles of theConvention, especially the principle of equity andcommon but differentiated responsibilities.

TerrorismWe condemn terrorist acts in all forms and mani-festations. We note that the fight against interna-tional terrorism must be undertaken with due re-spect to the UN Charter, existing international con-ventions and protocols, the UN General Assemblyand Security Council resolutions relating to inter-national terrorism, and that the prevention of ter-rorist acts is as important as the repression of ter-rorism and its financing. In this context, we urgeearly conclusion of negotiations in the UN GeneralAssembly of the Comprehensive Convention on In-ternational Terrorism and its adoption by all Mem-ber States. Brazil and China express their sympathyand solidarity with the people and Governments ofRussia and India which suffered from recent bar-baric terrorist attacks. Terrorism cannot be justi-fied by any reason.

Alliance of CivilizationsWe affirm the importance of encouraging the dia-logue among civilizations, cultures, religions andpeoples. In this respect, we support the “Alliance of

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Civilizations”, a United Nations’ initiative aimedat building bridges, mutual knowledge and under-standing around the world. We praise the Braziliandecision to host, in Rio de Janeiro, in May 2010, the3rd Global Forum and confirm our intention to bepresent at the event, in appropriate high level.

HaitiWe reaffirm our solidarity towards the Haitianpeople, who have been struggling under dire cir-cumstances since the earthquake of January 12th, andreiterate our commitment to gather efforts with theinternational community in order to help rebuild-ing the country, under the guidance of the Haitiangovernment, and according to the priorities estab-lished by the Action Plan for National Recovery andDevelopment of Haiti.

CooperationWe welcome the following sectoral initia-tives aimed at strengthening cooperationamong our countries:

a) the first Meeting of Ministers of Agriculture

and Agrarian Development;

b) the Meetings of Ministers of Finance and Gov-

ernors of Central Banks;

c) the Meetings of High Representatives for Secu-

rity Issues;

d) the I Exchange Program for Magistrates and

Judges, of BRIC countries, held in March 2010 in

Brazil following the signature in 2009 of the Proto-

col of Intent among the BRIC countries’ Supreme

Courts;

e) the first Meeting of Development Banks;

f) the first Meeting of the Heads of the National

Statistical Institutions;

g) the Conference of Competition Authorities;

h) the first Meeting of Cooperatives;

i) the first Business Forum;

j) the Conference of think tanks.

28. We also endorse other important mani-festations of our desire to deepen our rela-tionship, such as:

a) the joint publication by our respective nationalstatistical institutions which is going to be releasedtoday; b) a feasibility study for developing a joint BRICencyclopedia.

29. We reaffirm our commitment to advancecooperation among BRIC countries in science,culture and sports.

We express our confidence in the success of the 2010World Expo in Shanghai, the 2010 CommonwealthGames in New Delhi, the 2013 World StudentGames in Kazan, the 2014 Winter Olympic andParalympic Games in Sochi, the FIFA 2014 WorldCup in Brazil and the 2016 Olympic and ParalympicGames in Rio de Janeiro.

We reaffirm the efforts to strengthen our coopera-tion and assistance for reduction of natural disas-ters. Russia and India express their condolences andsolidarity with the people and Governments of Bra-zil and China, for the lives lost in the mudslide inRio de Janeiro, Brazil, and in the earthquake inYushu, China.

III BRIC SummitBrazil, Russia and India appreciated the offer ofChina to host the III BRIC Summit in 2011.

Russia, India and China expressed their profoundgratitude to the Government and people of Brazilfor hosting the II BRIC Summit.

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Documents

BRIC and IBSA Summits