New Areas of BRICS Trade, Economic and Investment Cooperation within BRICS under South Africa’s Chairmanship
KEY CONCLUSIONS
BRICS economic growth rate is increasing
“Starting last year, all BRICS countries have demonstrated positive trend in economic growth. Moreover, we expect that the growth rate will be increasing through 2018 and 2019, especially in India,” Yaroslav Lissovolik, Chief Economist, Managing Director for Research, Eurasian Development Bank.
New Development Bank expands the range of activity
“Last year we signed a memorandum establishing New Development Bank,” Sello Mashao Rasethaba, Chairman of the Black Business Council.
“This year we have started working with private sector <…> including loans that are not guaranteed by the government. <…> Economic activity is growing. As for bank loans, generally, there are no problems there <…> and sanctions will not be a challenge to credit financing,” Kundapur Vaman Kamath, President, BRICS New Development Bank.
PROBLEMS
Protectionism grows
“Global economy risks are related to protectionism in many cases initiated by developed countries,” Yaroslav Lissovolik.
“Certainly, there is a number of challenges <…> and one of them is agriculture. As for subsidies from the USA and the EU, we have to choose <…> between allowing these products to enter South Africa and losing 6,000 jobs, for example,” Slauzy Zodwa Mogami, Founder, CEO, Chairperson, Ladies in the Frontline.
Biased ratings of BRICS companies
“Many of the BRICS countries consider that often our countries and some of our banks get a biased evaluation. We would like to see more neutral ones that we can further relate to,” Sergey Katyrin, President, Chamber of Commerce and Industry of the Russian Federation.
SOLUTIONS
Increasingly active use of BRICS national currencies
“The last two years have shown the importance of turning to local currency. Volatility <…> can have a negative effect on our countries,” Kundapur Vaman Kamath.
“In Development Bank, we witness a growing demand for national currency in project activity. The possibilities of using national currencies are increasing as new platforms are being formed,” Yaroslav Lissovolik.
Reducing administrative barriers for business and supporting SME
“We <…> propose an initiative to develop a road map for eliminating excessive administrative barriers. <…> [We need] to exchange national SME support practices, consider new joint mechanisms that might expand SME funding possibilities, and facilitate SME integration in the business chains,” Elena Myakotnikova, Corporate director, Agency for Strategic Initiatives.
Transport and logistics infrastructure development
“In BRICS countries, development of logistics related cooperation has a great future. <…> [We] bought a Greek company. When we just did, its turnover capacity was only 80 thousand tons. After the acquisition, it reached 4 million tons. <…> Through these investments, we managed to develop local infrastructure and provide a huge number of jobs,” Jiakang Sun, Executive Vice President, China COSCO Shipping Corporation Limited.
“Infrastructure is of paramount importance. We see projects that reach continental scale in BRICS area,” Yaroslav Lissovolik.
Creating a supranational rating agency for BRICS countries
“As a first step towards creating such an agency, we propose <…> the countries to offer their national agencies to form a network. <…> Our partnership with one of the Chinese rating agencies, <…> Golden Credit, could be used as a prototype of this network. <…> There is a discussion that this organization can be supra-national, which will require international agreements,” Ekaterina Trofimova, Chief Executive Officer, Analytical Credit Rating Agency.
Expanding trade
“Interaction among BRICS countries is especially important in terms of qualitative characteristics of our economic growth. In case of India, it is the question of inclusive development. In case of China, it is the question of sustainable environmental development. In case of Russia, it is the question of sustainable economic growth and <…> industrial diversification,” Yaroslav Lissovolik.
“We have to understand that the trade among all BRICS countries is actually open and free. BRICS face the need <…> to help small agricultural farmers,” Slauzy Zodwa Mogami.
Active use of modern tools and technologies
“Second vector of the initiative is eliminating barriers on the way to technological development. <…> Legislation and regulation are behind technological progress,” Elena Myakotnikova.
“Franchising is an ocean of possibilities and BRICS are the countries that allow for these possibilities to be implemented in several continents,” Agnessa Osipova, President, Russian Franchising Association.
Creating an international women alliance
“Today women own mostly small and medium-sized business in BRICS. <…> BRICS Business Women Alliance is a tool that should help to actively involve female entrepreneurs in international trade,” Anna Nesterova, Founder, Chairman of the Board of Directors, Global Rus Trade.
“We are happy to support Russia on the women alliance initiative,” Slauzy Zodwa Mogami.
For more information, visit the official website of the Roscongress Foundation Information and Analytical System.
