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TOWARDS a LONG-TERM STRATEGY for BRICS TOWARDS a LONG-TERM STRATEGY for BRICS STRATEGY a LONG-TERM TOWARDS a Proposal by the BRICS Think Tanks Council

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TOWARDS a LONG-TERM STRATEGY for BRICS TOWARDS a LONG-TERM STRATEGY for BRICS STRATEGY a LONG-TERM TOWARDS a Proposal by the BRICS Think Tanks Council Capa BRICs Long Term Strategy.pdf 1 03/11/2015 11:05:31 TOWARDS A LONG-TERM STRATEGY FOR BRICS TOWARDS A LONG-TERM STRATEGY FOR BRICS STRATEGY A LONG-TERM TOWARDS A proposal by the BRICS Think Tanks Council TOWARDS A LONG-TERM STRATEGY FOR BRICS A proposal by the BRICS Think Tanks Council Federal Government of Brazil Ministry of Planning, Budget and Management Minister Nelson Barbosa A public foundation affiliated to the Ministry of Planning, Budget and Management, Ipea provides technical and institutional support to government actions – enabling the formulation of numerous public policies and programs for Brazilian development – and makes research and studies conducted by its staff available to society. President Jessé José Freire de Souza Director of Institutional Development Alexandre dos Santos Cunha Director of Studies and Policies of the State, Institutions and Democracy Roberto Dutra Torres Junior Director of Macroeconomic Studies and Policies Cláudio Hamilton Matos dos Santos Director of Regional, Urban and Environmental Studies and Policies Marco Aurélio Costa Director of Sectoral Studies and Policies, Innovation, Regulation and Infrastructure Fernanda De Negri Director of Social Studies and Policies André Bojikian Calixtre Director of International Studies, Political and Economic Relations Brand Arenari Chief of Staff José Eduardo Elias Romão Chief Press and Communications Officer João Cláudio Garcia Rodrigues Lima URL: http://www.ipea.gov.br Ombudsman: http://www.ipea.gov.br/ouvidoria TOWARDS A LONG-TERM STRATEGY FOR BRICS A proposal by the BRICS Think Tanks Council Brasília, 2015 © Institute for Applied Economic Research – ipea 2015 Towards a long-term strategy for BRICS : a proposal by the BRICS Think Tanks Council / BRICS Think Tanks Council.- Brasília : IPEA, 2015. 184 p. : gráfs. color. Includes bibliographical references. ISBN 978-85-7811-261-5 1. International Cooperation. 2. Economic Cooperation. 3. Development Aid. 4. Social Justice. 5. Sustainable Development. 6. Innovations. 7. BRICS. I. BRICS Think Tanks Council. II. Institute for Applied Economic Research. CDD 327 The opinions expressed in this publication are of exclusive responsibility of the authors, not necessarily expressing the official views of the Institute for Applied Economic Research and the Ministry of Planning, Budget and Management. Reproduction of this text and the data contained within is allowed as long as the source is cited. Reproduction for commercial purposes is prohibited. CONTENTS PRESENTATION..........................................................................................7 FOREWORD ...............................................................................................9 EXECUTIVE SUMMARY ...........................................................................11 CHAPTER 1 PROMOTING COOPERATION FOR ECONOMIC GROWTH AND DEVELOPMENT ..................................................................................17 CHAPTER 2 POLITICAL AND ECONOMIC GOVERNANCE ................................................43 CHAPTER 3 SOCIAL JUSTICE, SUSTAINABLE DEVELOPMENT AND QUALITY OF LIFE .......71 CHAPTER 4 PEACE AND SECURITY .............................................................................105 CHAPTER 5 PROGRESS THROUGH SHARING KNOWLEDGE AND INNOVATION .............121 REFERENCES ..........................................................................................167 ABBREVIATIONS AND ACRONYMS ......................................................181 PRESENTATION In 2014 Brazil held the pro tempore presidency of BRICS. This means that Brazil also coordinated the meetings and work of all the groups created at previous BRICS summits during that year. The BRICS Think Tanks Council (BTTC) was no exception. Created in 2013, it held its third meeting in March 2014, in Rio de Janeiro. Ipea is the official Brazilian representative at the BTTC; therefore, its staff was responsible for organising and coordinating that BTTC meeting, as well as the VI BRICS Academic Forum. At its meeting in Rio de Janeiro the BTTC members agreed to prepare a document dealing with a long-term strategy for the five countries. This document was later recommended by the BRICS leaders at their sixth summit, held in Fortaleza in July 2014. It has, therefore, fallen to Ipea to coordinate the work to prepare this document. It is the result of a year of collaboration by the Think Tanks of the five countries and focuses on five pillars. It presents a diagnosis of the current situation with regard to these pillars and a set of recommendations to BRICS in each case. It is expected that this important document will contribute to the definition of joint initiatives by the five countries, with the aim of improving their processes of social and economic development, as well as to joint action by the five countries in pursuit of their objective of achieving a better international order. Jessé Souza President of the Institute for Applied Economic Research FOREWORD It is understood by the BRICS Think Tanks Council (BTTC) members that the BRICS countries share common ideals in the pursuit of economic and social development. Reaching the corresponding goals will be facilitated by joint initiatives of the five countries, sharing experiences and information, as well as improving the conditions to foster intra-group trade and investment flows. At the same time, the BRICS members are committed to making joint efforts to build a more just and fair international order. This set of objectives imposes the need to build a rather wide-ranging common agenda in the medium to long run. This is the focus of the present document, jointly elaborated by the five think tanks. At its third meeting, in March 2014, the BTTC approved a document entitled Towards a Long-Term Strategy for BRICS – Recommendations by the BRICS Think Tanks Council, which was submitted to the BRICS leaders at their sixth summit. According to Article 66 of the Declaration following that summit, “The BTTC is encouraged to develop strategic pathways and action plans that will lead to the realization of this long-term strategy”. The BTTC presents here the diagnosis of the current situation and then proposes a set of recommendations with regard to the five pillars selected in the above-mentioned document, namely: i) promoting cooperation for economic growth and development; ii) peace and security; iii) social justice, sustainable development and quality of life; iv) political and economic governance; and v) achieving progress by sharing knowledge and innovation. Each of these issues was developed by a working group formed by members of the five countries. Each group was coordinated by the think tank of one of the BRICS countries. China coordinated the preparation of topic 1, Russia topic 2, South Africa topic 3, India topic 4, and Brazil chaired the preparation of topic 5 and coordinated the whole process. These working groups comprised technical staff from the five governments, as well as experts from civil society in each country. It is understood, therefore, that the present set of diagnosis and recommendations corresponds to a broad view shared by various members of society in the five countries. The document will be submitted to the Heads of State at their seventh summit, in Russia in 2015, and it is expected that it will contribute in a substantive way to the identification of lines of action to be jointly adopted by BRICS. 10 | BRICS Long-Term Strategy A work of this magnitude necessarily requires the efforts of several people. Group 1 was coordinated by Zhou Yuyun, and had as formal active members Claudio Amitrano (Brazil), Elena Rogathykh (Russia), Zhao Zhongxiu, Sun Jingying (China), Vivan Sharan (India) and Jaya Josie (South Africa). Group 2 was jointly coordinated by Georgy Toloraya and Victoria Panova, and the formal members were Edison Benedito and Paulo Esteves (Brazil), Nandan Unnikrishnan (India), Zhao Zhongxiu (China), and Narnia Bohler-Muller and Candice Moore (South Africa). Group 3 was jointly coordinated by Olive Shisana and Narnia Bohler-Muller, and the formal members were Maria Paula Santos (Brazil), Leonid Grigoriev (Russia), Rumi Aijaz (India), Sun Jingying (China) and John Luiz, Edward Webster, Jackie Dugard and Michelle Pressend (South Africa). Group 4 was jointly coordinated by Samir Saran and Vivan Sharan, and the formal members were Carlos Lampert Costa and Ivan Oliveira (Brazil), Victoria Panova (Russia), Lan Qingxin (China), Jochen Mistelbacher (India) and Temba Masilela and Siphamandla Zondi (South Africa). Group 5 was coordinated by Luis Kubota, and the formal members were Marnia Larionova (Russia), Jochen Mistelbacher (India) and Glenda Kruss and Rasigan Maharajh (South Africa). The consolidated version of the document was prepared with the support of Tamara Farias, Andre Pineli and Luisa Nazareno, from Ipea. This first joint activity by the BTTC is expected to be considered an example of the type of contribution that the group of think tanks can provide in terms of analysis and proposals to BRICS. Renato Baumann 2014 Coordinator of the BRICS Think Tanks Council (BTTC) EXECUTIVE SUMMARY In the past few decades the BRICS countries (Brazil, Russia, India, China and South Africa) have played a vital role in the world economy in terms of total production, investment capital destination and as potential consumer markets. BRICS economic growth and social inclusion policies have helped to stabilise the global economy, foster job creation, reduce poverty and combat inequality,
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