Review Article The International Journal of Political Science33 Volume 3 Number 1, January ­ June 2017 DOI: http://dx.doi.org/10.21088/ijpos.2454.9371.3117.6

Authors Affiliation * Deputy Editor, South Asian Journal of Socio­Political Studies BRICS and BIMSTIC: Dawn of a New Era in [SAJOSPS]. **Head, Department of Public Administration and the Global Economic Sphere Policy Studies, Central University of Kerala, Kasaragod, Kerala.

Reprints Requests M.R. Biju, Head, Department of Public Administration and Policy Studies, Central University of M.R.B. Anantha Padmanabha*, M.R. Biju** Kerala, Kasaragod, Kerala­671 316. E­mail: [email protected] Received on 18.02.2017 Accepted on 18.03.2017

Abstract

The BRICS has completed its 10 years, while BIMSTEC has a history of 20 years. Undoubtedly, BRICS has made remarkable progress in these 10 years. The BRICS Bank or NDB remains the biggest and brightest achievement which shows the extent of what could be achieved through this kind of groupings. During India’s chairmanship, the group has been taken forward and the network to enhance cooperation among BRICS countries has been further strengthened. After Goa, India has emerged and established itself as a more active partner among five member countries.On the other hand, despite being there for almost double of the 3’ears compared to BRICS, the BIMSTEC has yet to invent itself. India has now decided to lead the regional economic cooperation efforts against the backdrop of Pakistan’s margina Esation in South Asia. India’s outreach to , BIMSTEC during the BRICS Summit in Goa was an important signal that New Delhi is serious about its role as a facilitator of economic cooperation in South Asia. BRICS is the acronym for anassociation of five major emerging nation aleconomies: Brazil, Russia, India, China and South Africa. Originally the first four were groupedas ”B RIC” (or ”theBRICs”), before the induction of South Africain 2010. The BRICS mem bersa reall leading developing or newly industrialized countries, but they are distinguished by their large, some times fast­growing economies and significant influence on regional affairs; all five are G­20 members. As of 2015, the five BRICS countries represent over 3.6 billion people, or half of the world population; all five members are in thetop 25 of the world by population, and four are in the top 10. The five nations have a combined nominalGDPof US$16.6 trillion, equivalent to approximately 22% of thegross world product, combined GDP (PPP) of around US$37 trillion and an estimated US$4 trillion in combined foreign reserves.Overall the BRICS are forecasted to expand 4.6% in 2016, from an estimated growth of 3.9% in 2015. The World bank expects BRICS growth to pick up to 5.3% in 2017.The BRICS have received both praise and criticism from numerous commentators.Bilateral relations among BRICS nations have mainly been conducted on the basis of non­interference, equality, andmutual benefit. Since2009, the BRICS nations have met annually at formal summits. Russia hosted the group’s seventh su mmit in July 2015. India hosted the 8th BRICS conference in Goa on 15th and 16th Oct 2016, which was attended by Narendra Modi, the Prime Minister of India, Vladimir Putin, the President of Russia, Xi Jinping, the President of China, Michel Temer, the President of Brazil and Jacob Zuma, the President of South Africa. For the first time, BRICS­BIMSTEC (the Bay of Bengal Initiative for Multi­Sectoral Technical and Economic Cooperation) Outreach Summit was also held simultaneously which was attended by the heads or their representatives of seven member nations, including Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. Against this backdrop, an attempt has been made in this paper to examine the evolution, commercial, political, strategic and cultural dimensions of this regional grouping and its linkage with BIMSTEC. It also explore the challenges. Keywords:

The© 2017 International Red Flower Journal Publication of Political Pvt. Science Ltd. / Volume 3 Number 1 / January ­ June 2017 34 M.R.B. Anantha Padmanabha & M.R. Biju / BRICS and BIMSTIC: Dawn of a New Era in the Global Economic Sphere

Part –I International Monetary Fund (I MF). However, this BRICS – The Historical Roots loan was conditional on IMF voting reforms. In late March 2013, during the fifth BRICS summit in The term ”BRIC”was coined in 2001 by then­ Durban, South Africa, the member countrie sagreed chairman of Goldman Sachs Asset Management, Jim to create a global financial institution which they O’Neill,in his publication Building Better Global intended to rival the western­dominated IMF and Economic BRICs. The foreign ministers of the initial World Bank. After the summit, the BRICS stated that four BRIC states (Brazil, Russia, India, and China) they planned to finalise the arrangements for this metin New York City in September 2006 at the New Development Bank by 2014. However, disputes margins of the General Debate of the UN General relating to burden sharing and locations lowed down Assembly, beginning a series of high­level meetings. the agreements. A full­scalediplo maticmeeting was held in At the BRICS leaders meeting in St Petersburg in Yekaterinburg, Russia, on16June2009. September 2013, China committed $41 billion towards the pool; Brazil, India and Russia $18 billion BRIC(S) Summits each; and South Africa $5 billion. China, holder of the world’s largest foreign exchange reserves and The BRIC grouping’s first for malsummit,al so who is to contribute the bulk of the currency pool, heldin Yek aterinburg, com menced on16 June 2009, wants a greate rmanaging role, said one BRICS with LuizInácio Lulada Silva, Dmitry Me dvedev, official. China also wants to be the location of the Manmohan Singh, and HuJintao, there spective reserve.”Brazil and India want the initial capital to leaders of Brazil, Russia, India and China, all be shared equally. We know that China wants attending. The summit’s focus was on means of more,”said a Brazilian official. ”However, weares improving the global economic situation and till negotiating, there are not ension sarising yet.”On reforming financial institutions, and discussed how 11 October 2013, Russia’s Finance Minister Anton the four countries could better co­operate in the Siluanov said that a decision on creatinga $100 future. There was further discussion of ways that billion fundde signated to steady currency markets developing countries, such as 3/5 of the BRIC would be taken in early 2014. The Brazilian finance members, could become more involved in global minister, Guido Mante gastated that the fund would affairs. In the aftermath of the Yekaterinburg summit, be created by March 201 4. However, by April 2014, the BRIC nations announced the need for a new the currency reserve pool and development bankhad global reserve currency, which would have to yet to be setup, and the date was rescheduled to 2015. be”diverse, stable and predictable”. Although the One driver for the BRICS development bankis that statement that was released did not directly criticise the existing institutions primarily benefit extra­ the perceived”dominance”of the US dollar– BRICS corporations, and the political significance is something that Russia had criticised in the past–it not able because it allows BRICS member states”to did spark a fall in the value of the dollar against promote their interests a broad ...and can highlight other major currencies. the streng thening position s of countries whose opinion is frequently ignored by their developed Entry of South Africa American and European colleagues.” In 2010, South Africa began efforts to join the BRIC In March 2014, at a meeting on the margins of the grouping, and the process for its formal admission Nuclear Security Summitin The Hague, the BRICS began in August of that year. South Africa officially Foreign Ministers issued a communique that” noted became a member nation on 24 December 2010, after with concern, the recent media statement on the forth being formally invited by the BRIC countries to join coming G20 Summit to be held in Brisbane in the group. The group was renamed BRICS–with the November 2014. The custodianship of the G20 ”S” standing for South Africa–to reflect the group’s belongs to all Member States equally and noone expanded membership. In April 2011, the President Member State can unilaterally determine its nature of South Africa, Jacob Zuma, attended the 2011 BRICS and character.” In light of the tensions surrounding summit in Sanya, China, as a full member. the 2014 Crime ancrisis, the Ministers remarked that ”The escalation of hostile language, sanctions and The BRICS Forum, an independent inter national counter ­sanctions, and force does not contribute to a organisation encouraging commercial, political and sustainable and peaceful solution, according to cultural cooperation between the BRICS nations, was international law, including the principles and formed in 2011. In June 2012, the BRICS nations purposes of the United Nations Charter.” This was pledged $75 billion to boost the lending power of the in response to the statement of Australian Foreign

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Minister Julie Bishop, who had said earlier that After the 2015 summit, the respective Russian President Vladimir Putin might be barred communications ministers, under a Russian from attending the G20 Summitin Brisbane. proposal, had a first summit for their ministries in In July 2014, the Governor of the Russian Central Moscowin October where the hostminister, Nikolai Bank, Elvira Nabiullina, claimed that the ”BRICS Nikiforov, proposed an initiative to further tighten partners the establishment of a system of multilateral their information technology sectors and challenge swaps that will allow to transfer resources to one or the monopoly of the United States in the sector. Since another country, if needed”in an article which 2012, the BRICS groups of countries have been concluded that ” If the current trend continues, soon planning an optical fibre submarine communications the dollar will be abandoned by most of the cable system to carry telecommunications between significant global economies and it will be kicked the BRICS countries, known as the BRICSC able. Part out of the global tradefinance.” Over the week end of of the motivation for the project was the spying of the 13 July 2014 when the final game of the World Cup National Security Agency on all telecommunications was held, and in advance of the BRICS Fortaleza that flowed across the US. summit, Putin met his homologue Dilma Rouseff to discuss the BRICS development bank, and sign some BRICS Summits other bilateral accordsonair defence, gas and education. Rouseff said that the BRICS countries” The grouping has held annual summits since are among the largest in the world and can not 2009, with member countries taking turns to host. content themselves in the middle of the 21 stcentury Prior to South Africa’s admission, two BRIC summits with any kind of dependency.” The Fortaleza summit were held, in 2009 and 2010. The first five­member was followed by a BRICS meeting with the Union of BRICS summit was held in 2011. The most recent th South American Nations president’s in Brasilia, (8 ) BRICS summit took place in Goa, India, from 15 where the development bank and the monetary fund to 16 October, 2016. were introduced. The development bank will have The eighth BRICS Summit had its significance in capital of US $50 billion with each country taking forward the process of creating an emerging contributing US$10 billion, while the monetary fund market network to give shape to die architecture of will have US$100 billion at its disposal. global governance and economic interaction among On 15 July, the first day of the BRICS 6th summitin the member nations that have now emerged more Fortaleza, Brazil, the group of emerging economies equal than they had been since the victors of World signed the long­anticipated document to create the War II gave die world its present shape. Though, the US$100 billion New Development Bank (formerly summit was held almost immediately after Uri terror known as the” BRICS Development Bank”) and are attack in Jammu & Kashmir by Pakistan­sponsored serve currency pool worth over another US$100 terrorist organisations and India’s surgical strikes billion. Documents on cooperation between BRICS in Pakistan­occupied Kashmir in its aftermath, and export credit agencies and an agreement of India to some extent did try and utilise the occasion cooperation on innovation were also inked. At the to further isolate Pakistan among the world end of October 2014, Brazil trimmed down its US community. But it would be completely erroneous to government holdings to US$ 261.7 billion; India, think that the summit was all about isolating US$77.5 billion; China, US$1.25 trillion; South Pakistan as a terrorist nation. The summit, in fact, Africa, US$10.3 billion. was much more focused on the long­term goals of the grouping that aims to integrate the economies of In March 2015, Morgan Stanley stated that India the member countries in such a way that together and Indonesia had escaped from the’ fragile five’ they could alter the balance of power in the world in (the five major emerging markets with the most fragile their own favour. Although the concurrent meeting currencies) by instituting economic reforms. of die heads of another grouping of nations around Previously, in August 2013, Morgan Stanley rated the Bay of Bengal, which includes most important India and Indonesia, to get her with Brazil, Turkey South Asian nations, with the addition of Thailand and South Africa, as the’ fragile five’due to their and Myanmar, serving as a bridge between South vulnerable currencies. But since then, India and Asia and Southeast Asia, but pointedly excludes Indonesia have reformed their economies, Pakistan, did serve to underline that nation’s completing 85% and 65% of the necessary isolation. adjustments respectively, while Brazil had only achieved 15%, Turkey only 10%, and South Africa The BRICS had a special significance for India this even less. year since it was India’s turn to host and preside

The International Journal of Political Science / Volume 3 Number 1 / January ­ June 2017 36 M.R.B. Anantha Padmanabha & M.R. Biju / BRICS and BIMSTIC: Dawn of a New Era in the Global Economic Sphere over the 8th Summit of the group. India utilised the The Goa Declaration 2016 opportunity fully to its advantage. By organising the While the declaration deliberated on almost all summit meeting successfully in Goa and holding a global issues ranging from terror to urbanisation and host of events throughout the year, India established climate change, this broad sweep of the final Goa itself further as an emerging world leader and a Declaration should not distract anyone from the nation of capabilities in the comity of nations. During progress achieved in the specific areas where these its leadership, going beyond the routine activities, five major emerging economies can make a difference India added some new and innovative features to by working together and coordinating their policies activities of the group. The first BRICS Trade Fair, with one another. The New Development Bank (NDB), held successfully in New Delhi a few days before the located in Shanghai and headed by India’s renowned summit, was one such innovative feature which banker Mr. M.V. Kamath as its first President, has served as a platform to bring the businessmen and kicked off both its lending and borrowing activities entrepreneurs of the member countries together and with quite vigour. The NDB, or BRICS Bank as it is provided an opportunity to them to explore areas of also called, has already completed a green financial cooperation. Moreover, India took people­to­people bond issuance of 3 billion yuan (around $450 million) cooperation to a new height by organising more than and now focusing on raising $250­$500 million 100 events involving a big number of people bonds denominated in Indian rupees to fund representing different fields from the member infrastructure projects in India. The NDB has been countries. On Terrorism asked to focus on projects related to infrastructure, The Goa Declaration, in a departure from previous technology and renewable energy. Progress on BRICS documents, called upon the countries to economic integration among the BRICS nations is ensure that their territories are not used for terrorist underway with a group­specific business council and activities, and terrorist bases existing on their lands trade fair having been launched and work on aligning must be dismantled. While the declaration did not non­tariff barriers, customs cooperation and Exim mention cross­border terrorism due to China’s Bank coordination in progress. Some salient points resistance, it contained some significant references from the Goa Declaration include: against terrorism. It noted the responsibility of all • It reaffirmed the need for a comprehensive reform states to prevent terrorist activities from their of the UN, including its Security Council, with a territories. In the context of India’s surgical strikes view to making it more representative, effective across the Line of Control, it listed dismantling of and efficient. terrorist bases among measures needed for a comprehensive approach to fighting terrorism. The • It expressed deep concern over the persisting document also noted that political causes were not security challenges in Afghanistan and acceptable reasons to condone terror. There was an significant increase in terrorist activities in agreement to strengthen cooperation in combating Afghanistan. international terrorism both at the bilateral level and • It welcomed the people­centric and holistic at international fora. approach to sustainable development enshrined The declaration also called for adoption of the in the 2030 Agenda and its emphasis on equality, Comprehensive Convention on International equity and quality life to all; Terrorism (CCIT) at the United Nations General • It called upon the developed countries to honour Assembly without further delay. It may be their Official Development Assistance mentioned that Mr. Modi has taken up CCIT with commitments to achieve 0.7% of Gross National all world leaders he had met in the last two years Income commitment for Official Development and early adoption of CCIT had been mentioned in Assistance to developing countries. BRICS declaration in the past as well. The • It highlighted the importance of public and declaration also acknowledged the recent meeting private investments in infrastructure, including of the BRICS High Representatives on National connectivity, to ensure sustained long­term Security and, in this context, welcomed the setting growth and up of the BRICS Joint Working Group on Counter­ Terrorism in September 2016. It expressed the belief • It welcomed India’s initiative to host the first that it would further promote dialogue and BRICS Trade Fair in New Delhi and said that understanding among BRICS nations on issues of this was an important step towards the counter­ terrorism as well as coordinate efforts to implementation of Strategy for BRICS Economic address the scourge of terrorism. Partnership and further consolidating trade and commercial partnership among BRICS countries

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among other things. (NDB), particularly in the renewable energy Three MoUs were also signed during the summit. projects in BRICS countries. We express One of them was related to establishment of the satisfaction with NDB’s issuance of the first set BRICS Agricultural Research Platform. Second will of green bonds in RMB. We are pleased to note pave the way for cooperation between diplomatic that the operationalisation of BRICS Contingent academies of the member nations. And the third MoU Reserve Arrangements (CRA) has strengthened was on Regulations on Customs Cooperation the global financial safety net. In order to reach Committee of the BRICS. The leaders also agreed to out and enrich our understanding and establish BRICS Railway Research Network and engagement with fellow developing and BRICS Sports Council. After conclusion of the emerging economies, we will hold a Outreach summit, India handed over the chairmanship to Summit of BRICS Leaders with the Leaders of China and the next summit will be organised by the BIMSTEC member countries – Bay of Bengal largest economy among the BRICS countries. Initiative for Multi­Sectoral Technical and Economic Cooperation comprising of Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Here is the Full Text of the Goa Declaration Adopted Lanka and Thailand. The meeting will be an by the BRICS Member Nations opportunity to renew our friendship with BIMSTEC countries as well as to jointly explore • We, the Leaders of the Federative Republic of possibilities of expanding trade and commercial Brazil, the Russian Federation, the Republic of ties, and investment cooperation between BRICS India, the People’s Republic of China and the and BIMSTEC countries, while advancing our Republic of South Africa, met on 15­16 October common goals of peace, development, democracy 2016 in Goa, India, at the Eighth BRICS Summit, and prosperity. which was held under the theme “Building Responsive, Inclusive and Collective Solutions.” • We reiterate our common vision of ongoing Recalling all our previous declarations, we profound shifts in the world as it transitions to a emphasis the importance of further more just, democratic, and multi­polar strengthening BRICS solidarity and cooperation international order based on the central role of based on our common interests and key priorities the United Nations, and respect for international to further strengthen our strategic partnership law. We reaffirm the need for strengthening in the spirit of openness, solidarity, equality, coordination of efforts on global issues and mutual understanding, inclusiveness and practical cooperation in the spirit of solidarity, mutually beneficial cooperation. We agree that mutual understanding and trust. We underline emerging challenges to global peace and security the importance of collective efforts in solving and to sustainable development require further international problems, and for peaceful enhancing of our collective efforts. settlement of disputes through political and diplomatic means, and in this regard, we reiterate • We agree that BRICS countries represent an our commitment to the principles of the Charter influential voice on the global stage through our of the United Nations. tangible cooperation, which delivers direct benefits to our people. In this context, we note • We note the global character of current security with satisfaction the operationalization of the challenges and threats confronting the New Development Bank (NDB) and of the international community. We reiterate our view Contingent Reserve Arrangement (CRA), which that international efforts to address these contributes greatly to the global economy and challenges, the establishment of sustainable the strengthening of the international financial peace as well as the transition to a more just, architecture. We welcome the report presented equitable and democratic multi­polar by NDB President on the work of the Bank during international order requires a comprehensive, the first year of its operations. We are pleased to concerted and determined approach, based on note the progress in operationalising the Africa spirit of solidarity, mutual trust and benefit, Regional Centre (ARC) of the NDB and pledge equity and cooperation, strong commitment to our full support in this regard. We look forward international law and the central role of the to developing new BRICS initiatives in a wider United Nations as the universal multilateral range of areas in the years to come. organisation entrusted with the mandate for maintaining international peace and security, • We note with appreciation the approval of the advance global development and to promote and first set of loans by the New Development Bank

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protect human rights. We underline the United Nations in the past ten years. We importance of further strengthening coordination congratulate Mr. António Guterres, on his of our efforts in this context. appointment as the Secretary­General of the • We reaffirm our commitment to contribute to United Nations and express our support and to safeguarding a fair and equitable international work closely with him. Cognizant of BRICS order based on the purposes and principles of countries’ significant contributions to UN the Charter of the United Nations including Peacekeeping operations, and recognising the through consistent and universal respect and important role of UN Peace keeping operations adherence to the principles and rules of in safeguarding international peace and international law in their inter­relation and security, we realise the challenges faced by UN integrity, compliance by all states with their Peace keeping and emphasis the need to further international legal obligations. We express our strengthen its role, capacity, effectiveness, commitment to resolutely reject the continued accountability and efficiency, while adhering to attempts to misrepresent the results of World War the basic principles of peacekeeping. We II. We recall further that development and emphasis that UN Peacekeeping operations security are closely interlinked, mutually should perform the duty of protection of civilians reinforcing and key to attaining sustainable in strict accordance with their respective peace. mandates and in respect of the primary responsibility of the host countries in this regard. • We remain confident that resolving international problems require collective efforts for peaceful • We are deeply concerned about the situation in settlement of disputes through political and the Middle East and North Africa. We support diplomatic means. Implementation of principles all efforts for finding ways to the settlement of of good­faith, sovereign equality of States, non­ the crises in accordance with international law intervention in the internal affairs of States and and in conformity with the principles of cooperation excludes imposition of unilateral independence, territorial integrity and coercive measures not based on international law. sovereignty of the countries of the region. On We condemn unilateral military interventions Syria, we call upon all parties involved to work and economic sanctions in violation of for a comprehensive and peaceful resolution of international law and universally recognised the conflict taking into account the legitimate norms of international relations. Bearing this in aspirations of the people of Syria, through mind, we emphasis the unique importance of inclusive national dialogue and a Syrian­led the indivisible nature of security, and that no political process based on Geneva Communiqué State should strengthen its security at the of 30 June 2012 and in pursuance of the UN expense of the security of others. Security Council Resolution 2254 and 2268 for their full implementation. While continuing the • We recall the 2005 World Summit Outcome relentless pursuit against terrorist groups so document. We reaffirm the need for a designated by the UN Security Council including comprehensive reform of the UN, including its ISIL, Jabhat al­Nusra and other terrorist Security Council, with a view to making it more organizations designated by the UN Security representative, effective and efficient, and to Council. increase the representation of the developing countries so that it can adequately respond to • We reiterate also the necessity to implement the global challenges. China and Russia reiterate the two­state solution of the Palestinian­Israeli importance they attach to the status and role of conflict on the basis of the relevant UNSC Brazil, India and South Africa in international resolutions, the Madrid Principles and Arab affairs and support their aspiration to play a Peace Initiative, and previous agreements greater role in the UN. between the two sides, through negotiations aimed at creating an independent, viable, • We welcome the substantive measures territorially contiguous Palestinian State living undertaken by the UN membership to make the side­by­side in peace with Israel, within secure, process of selecting and appointing the UN mutually agreed and internationally recognised Secretary­General more transparent and borders on the basis of 1967 lines, with East inclusive. Jerusalem as its capital, as envisaged in the • We express our gratitude to UN Secretary­General relevant UN Resolutions. Mr. Ban Ki­moon for his contributions to the • We express deep concern at the persisting

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security challenges in Afghanistan and African Capacity for Immediate Responses to significant increase in terrorist activities in Crises (ACIRC). Afghanistan. We affirm support to the efforts of • We express our concern that political and security the Afghan Government to achieve Afghan­led instability continues to loom in a number of and Afghan­owned national reconciliation and countries that is exacerbated by terrorism and combat terrorism, and readiness for constructive extremism. We call upon the international cooperation in order to facilitate security in community through the United Nations, African Afghanistan, promote its independent political Union and regional and international partners and economic course, becoming free from to continue their support in addressing these terrorism and drug trafficking. The Leaders challenges, including post­conflict expressed the view that capable and effective reconstruction and development efforts. Afghan National Security Forces (ANSF) should be the key to the stabilisation of Afghanistan. In • We welcome the adoption of landmark 2030 this regard, the Leaders emphasised the need for Agenda for Sustainable Development and its continued commitment of regional countries and Sustainable Development Goals during the UN wider international community, including the Summit on Sustainable Development on 25 NATO­led Resolute Support Mission, which as September 2015 and the Addis Ababa Action the ISAF’s heir has a key role in the ANSF Agenda at the Third International Conference capacity­building. The Leaders stressed the on Financing for Development. We welcome the importance of multilateral region­led interaction people­centred and holistic approach to on Afghan issues, primarily by those sustainable development enshrined in the 2030 organisations, which consist of Afghanistan’s Agenda and its emphasis on equality, equity and neighbouring countries and other regional states, quality­life to all. We welcome the reaffirmation such as the Shanghai Cooperation Organization, of the guiding principles of the implementation Collective Security Treaty Organization, and the of the 2030 Agenda, including the principle of Heart of Asia Conference. Common But Differentiated Responsibilities (CBDR). The 2030 Agenda, with its overarching • We welcome the African Union’s (AU) vision, focus on poverty eradication, lays an equal and aspirations, goals and priorities for Africa’s balanced emphasis on the economic, social and development enshrined in Agenda 2063, which environmental dimensions of sustainable is complementary with the 2030 Agenda for development. We call upon developed countries Sustainable Development. We reaffirm our to honour their Official Development Assistance support for Africa’s implementation of its various commitments to achieve 0.7% of Gross National programmes in pursuit of its continental agenda Income commitment for Official Development for peace and socio­economic development. We Assistance to developing countries. Those will continue to engage in joint endeavours to commitments play a crucial role in the advance Africa’s solidarity, unity and strength implementation of the SDGs. We further welcome through support measures for regional the establishment of a Technology Facilitation integration and sustainable development. We Mechanism within the UN with a mandate to further welcome recent elections that have been facilitate technology for the implementation of held in the continent and the peaceful manner the SDGs. in which they were conducted. • We commit to lead by example in the • We support the AU’s efforts to resolving conflicts implementation of the 2030 Agenda for through its peace and security architecture, in Sustainable Development inline with national collaboration with the United Nations and the circumstances and development context continent’s regional organizations, and to respecting the national policy space. We welcome contribute towards lasting and sustainable peace the G20 Action Plan on the 2030 Agenda for and security in Africa. Sustainable Development adopted during G20 • We welcome the decision of the African Union’s Hangzhou Summit and commit to its Assembly to operationalise its Peace Fund, in implementation by taking bold trans­formative order to contribute to financing of its peace and steps through both collective and individual security operations. We support efforts aimed at concrete­actions. full operationalization of the African Standby • We meet at a time when the global economic Force (ASF) and note the progress being made in recovery is progressing, with improved resilience this regard, including the contributions by the and emergence of new sources of growth. The

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growth, though is weaker than expected with connectivity, to ensure sustained long­term downside risks to the global economy continuing growth. We, in this regard, call for approaches to persist. This gets reflected in a variety of to bridge the financing gap in infrastructure challenges including commodity price volatility, including through enhanced involvement of weak trade, high private and public Multilateral Development Banks. indebtedness, inequality and lack of • We reaffirm our commitment to a strong, quota inclusiveness of economic growth. Meanwhile, based and adequately resourced IMF. Borrowed the benefits from growth need to be shared resources by the IMF should be on a temporary broadly in an inclusive manner. Geopolitical basis. We remain strongly committed to support conflicts, terrorism, refugee flows, illicit financial the coordinated effort by the emerging economies flows and the outcome of UK referendum have to ensure that the Fifteenth General Review of further added to the uncertainty in the global Quotas, including the new quota formula, will economy. be finalised within the agreed timelines so as to • We reiterate our determination to use all policy ensure that the increased voice of the dynamic tools – monetary, fiscal, and structural, emerging and developing economies reflects individually and collectively, to achieve the goal their relative contributions to the world economy, of strong, sustainable, balanced and inclusive while protecting the voices of least developed growth. Monetary policy will continue to countries (LDCs), poor countries and regions. support economic activity and ensure price • We welcome the inclusion of the RMB into the stability, consistent with central bank’s Special Drawing Rights (SDR) currency basket mandates. Monetary policy alone, though, on October 1, 2016. cannot lead to balanced and sustainable growth. We, in this regard, underscore the essential role • We call for the advanced European economies of structural reforms. We emphasise that our to meet their commitment to cede two chairs on fiscal policies are equally important to support the Executive Board of the IMF. The reform of the our common growth objectives. We also take note IMF should strengthen the voice and that the spill­over effects of certain policy representation of the poorest members of the IMF, measures in some systemically important including Sub­Saharan Africa. advanced economies can have adverse impact • We share concerns regarding the challenges of on growth prospects of emerging economies. sovereign debt restructurings, and note that • We recognise that innovation is a key driver for timely and successful debt restructuring is key mid and long term growth and sustainable for ensuring access to international capital development. We stress the importance of markets, and hence economic growth, for industrialisation and measures that promote countries with high debt levels. We welcome the industrial development as a core pillar of current discussions to improve the debt structural transformation. restructuring process, and on the revised collective action clauses (CACs). • We highlight the need to use tax policy and public expenditure in a more growth­friendly • We reiterate our support for the multilateral way taking into account fiscal space available, trading system and the centrality of the WTO as that promotes inclusiveness, maintains resilience the cornerstone of a rule based, open, and ensures sustainability of debt as a share of transparent, non­discriminatory and inclusive GDP. multilateral trading system with development at the core of its agenda. We note the increasing • We note the dynamic integration processes number of bilateral, regional, and plurilateral across the regions of the world, particularly in trade agreements, and reiterate that these should Asia, Africa and South America. We affirm our be complementary to the multilateral trading belief to promote growth in the context of regional system and encourage the parties thereon to align integration on the basis of principles of equality, their work in consolidating the multilateral openness and inclusiveness. We further believe trading system under the WTO in accordance that this will promote economic expansion with the principles of transparency, through enhanced trade, commercial and inclusiveness, and compatibility with the WTO investment linkages. rules. • We highlight the importance of public and • We emphasise the importance of implementing private investments in infrastructure, including the decisions taken at the Bali and Nairobi

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Ministerial Conferences. We stress the need to lower capital cost, and create self­employment advance negotiations on the remaining Doha opportunities in rural and underdeveloped Development Agenda (DDA) issues as a matter areas. MSMEs thus help assure equitable wealth of priority. We call on all WTO members to work distribution nationally and globally. We together to ensure a strong development oriented commend organization of BRICS second round­ outcome for MC11 and beyond. table on MSMEs by India with a focus on • We appreciate the progress in the technical and business alliances in MSMEs implementation of the Strategy for BRICS Sector. We agree to work for greater integration Economic Partnership and emphasis the of MSMEs in Regional and Global Value Chains. importance of the BRICS Roadmap for Trade, • We commend China for the successful hosting Economic and Investment Cooperation until of the 11th G20 Leaders’ Summit in Hangzhou 2020. We believe that close cooperation between and its focus on innovation, structural reform the sectoral cooperation mechanisms, BRICS and development as drivers of medium and long Contact Group on Economic and Trade Issues, term economic growth. We recognise the role of the BRICS Business Council, New Development G20 as the premier forum for international and Bank and the BRICS Interbank cooperation financial cooperation and emphasis the mechanism is crucial in strengthening the BRICS importance of the implementation of the economic partnership. We welcome, in this outcomes of G20 Hangzhou Summit, that we context, the continued realisation of the major believe will foster strong, sustainable, balanced BRICS economic initiatives such as enhanced and inclusive growth and will contribute to cooperation in e­commerce, “single window”, improved global economic governance and IPR cooperation, trade promotion and micro, enhance the role of developing countries. small and medium enterprises (MSMEs).We • We stress the importance to foster an innovative, recognise non­tariff measures (NTMs),services invigorated, interconnected and inclusive world sector, and standardisation and conformity economy. We will enhance our consultations and assessments as possible areas of future coordination on the G20 agenda, especially on cooperation. We note in this context the meeting issues of mutual interest to the BRICS countries, of BRICS Trade Ministers in New Delhi on 13 and promote issues of importance for the October 2016 and welcome its substantive Emerging Market and Developing Economies outcomes. In operationalising the Strategy for (EMDEs). We will continue to work closely with BRICS Economic Partnership, we encourage all G20 members to strengthen macroeconomic measures that support greater participation, cooperation, promote innovation, as well as value addition and upward mobility in Global robust and sustainable trade and investment to Value Chains of our firms including through the propel global growth, improve global economic preservation of policy space to promote governance, enhance the role of developing industrial development. countries, strengthen international financial • We welcome India’s initiative to host the first architecture, support for industrialisation in BRICS Trade Fair in New Delhi. This is an Africa and least developed countries and important step towards the implementation of enhance cooperation on energy access and Strategy for BRICS Economic Partnership. We efficiency. We stress the need for enhanced believe this will further consolidate trade and international cooperation to address illicit cross­ commercial partnership among BRICS countries. border financial flows, tax evasion and trade We welcome the deliberations and outcome of mis­invoicing. The role of BRICS and its the meeting of BRICS Trade Ministers held on 13 collaborative efforts in the field of economic and October 2016 in New Delhi. financial co­operation are yielding positive • We noted the Annual Report by the BRICS results. We emphasis the importance of our Business Council, including the various cooperation in order to help stabilize the global initiatives undertaken by its Working Groups. economy and to resume growth. We further direct the Council to accelerate the • We welcome experts exploring the possibility of development and realisation of joint projects setting up an independent BRICS Rating Agency which, on a mutually beneficial basis, contribute based on market­oriented principles, in order to to the economic objectives of BRICS. further strengthen the global governance • We agreed that MSMEs provide major architecture. employment opportunities, at comparatively • We welcome the reports of BRICS Think Tanks

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Council and BRICS Academic Forum that have the Base Erosion and Profit Shifting Project emerged as valuable platforms for our experts to (BEPS) with due regard to the national realities exchange views. They have submitted their of the countries. We encourage countries and valuable suggestions with regard to promoting International Organisations to assist developing market research and analysis in BRICS and economies in building their tax capacity. developing countries and exploring possibilities • We note that aggressive tax planning and tax of carrying this process forward. We believe that practices hurt equitable development and BRICS institution­building is critical to our economic growth. Base Erosion and Profit shared vision of transforming the global Shifting must be effectively tackled. We affirm financial architecture to one based on the that profit should be taxed in the jurisdiction principles of fairness and equity. where the economic activity is performed and • We emphasis the importance of enhancing intra­ the value is created. We reaffirm our commitment BRICS cooperation in the industrial sector, to support international cooperation in this including through the BRICS Industry Ministers regard, including in the Common Reporting Meetings, in order to contribute to the accelerated Standard for Automatic Exchange of Tax and sustainable economic growth, the Information (AEOI). strengthening of comprehensive industrial ties, • We note the ongoing discussions on the promotion of innovation as well as job international taxation matters. In this regard, we creation, and improvement of the quality of life recall the Addis Ababa Action Agenda on of people in BRICS countries. Financing for Development including its • We congratulate the United Nations Industrial emphasis on inclusive cooperation and dialogue Development Organization (UNIDO) for the 50th among national tax authorities on international anniversary of its foundation and recall its tax matters with increased participation of unique mandate to promote and accelerate developing countries and reflecting adequate, inclusive and sustainable industrial equitable, geographical distribution, development and its contribution in promoting representing different tax systems. industrialisation in Africa. We note, in this • We support the strengthening of international context, the progress achieved so far in the cooperation against corruption, including establishment of the UNIDO­BRICS Technology through the BRICS Anti­Corruption Working Platform. Group, as well as on matters related to asset • We commend our Customs administrations on recovery and persons sought for corruption. We the establishment of the Customs Cooperation acknowledge that corruption including illicit Committee of BRICS, and on exploring means of money and financial flows, and ill­gotten wealth further enhancing collaboration in the future, stashed in foreign jurisdictions is a global including those aimed at creating legal basis for challenge which may impact negatively on customs cooperation and facilitating procedures economic growth and sustainable development. of customs control. We note the signing of the We will strive to coordinate our approach in this Regulations on Customs Cooperation Committee regard and encourage a stronger global of the BRICS in line with the undertaking in the commitment to prevent and combat corruption Strategy for BRICS Economic Partnership to on the basis of the United Nations Convention strengthen interaction among Customs against Corruption and other relevant Administrations. international legal instruments. • We recall the Fortaleza Declaration wherein we • We recognize that nuclear energy will play a recognised the potential for BRICS insurance and significant role for some of the BRICS countries reinsurance markets to pool capacities and had in meeting their 2015 Paris Climate Change directed our relevant authorities to explore Agreement commitments and for reducing global avenues for cooperation in this regard. We would greenhouse gas emissions in the long term. In like this work to be expedited. this regard, we underline the importance of • We reaffirm our commitment towards a globally predictability in accessing technology and fair and modern tax system and welcome the finance for expansion of civil nuclear energy progress made on effective and widespread capacity which would contribute to the implementation of the internationally agreed sustainable development of BRICS countries. standards. We support the implementation of • We reiterate that outer space shall be free for

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peaceful exploration and use by all States on the • We call upon all nations to adopt a basis of equality in accordance with international comprehensive approach in combating law. Reaffirming that outer space shall remain terrorism, which should include countering free from any kind of weapons or any use of force, violent extremism as and when conducive to we stress that negotiations for the conclusion of terrorism, radicalisation, recruitment, movement an international agreement or agreements to of terrorists including Foreign Terrorist Fighters, prevent an arms race in outer space are a priority blocking sources of financing terrorism, task of the United Nations Conference on including through organised crime by means of Disarmament, and support the efforts to start money­laundering, drug trafficking, criminal substantive work, inter alia, based on the activities, dismantling terrorist bases, and updated draft treaty on the prevention of the countering misuse of the Internet including social placement of weapons in outer space and of the media by terror entities through misuse of the threat or use of force against outer space objects latest Information and Communication submitted by China and Russian Federation. We Technologies (ICTs). Successfully combating also note an international initiative for a political terrorism requires a holistic approach. All obligation on the no first placement of weapons counter­terrorism measures should uphold in outer space. Priority should be accorded to international law and respect human rights. ensuring the long­term sustainability of outer • We acknowledge the recent meeting of the BRICS space activities, as well as ways and means of High Representatives on National Security and, preserving outer space for future generations. We in this context, welcome the setting up and the note that this is an important objective on the first meeting of the BRICS Joint Working Group current agenda of the UN Committee on the on Counter­Terrorism on 14September 2016 in Peaceful Uses of Outer Space (UNCOPUOS). In New Delhi. We believe it will further promote this respect, we welcome the recent decision by dialogue and understanding among BRICS the UNCOPUOS Scientific and Technical Sub­ nations on issues of counter terrorism, as well as Committee Working Group on Long­term coordinate efforts to address the scourge of Sustainability of Outer Space Activities to terrorism. conclude negotiations and achieve consensus on the full set of guidelines for the long term • We acknowledge that international terrorism, sustainability of outer space activities by 2018 to especially the Islamic State in Iraq and the Levant coincide with the commemoration of the 50th (ISIL, also known as Daesh) and affiliated Anniversary of the first United Nations terrorist groups and individuals, constitute a Conference on the Exploration and Peaceful Uses global and unprecedented threat to international of Outer Space (UNISPACE + 50). peace and security. Stressing UN’s central role in coordinating multilateral approaches against • We strongly condemn the recent several attacks, terrorism, we urge all nations to undertake against some BRICS countries, including that in effective implementation of relevant UN Security India. We strongly condemn terrorism in all its Council Resolutions, and reaffirm our forms and manifestations and stressed that there commitment on increasing the effectiveness of can be no justification whatsoever for any acts of the UN counter terrorism framework. We call terrorism, whether based upon ideological, upon all nations to work together to expedite the religious, political, racial, ethnic or any other adoption of the Comprehensive Convention on reasons. We agreed to strengthen cooperation in International Terrorism (CCIT) in the UN General combating international terrorism both at the Assembly without any further delay. We recall bilateral level and at international fora. To the responsibility of all States to prevent terrorist address the threat of chemical and biological actions from their territories. terrorism, we support and emphasise the need for launching multilateral negotiations on an • We reaffirm our commitment to the FATF international convention for the suppression of International Standards on Combating Money acts of chemical and biological terrorism, Laundering and the Financing of Terrorism and including at the Conference on Disarmament. In Proliferation and call for swift, effective and this context, we welcome India’s offer to host a universal implementation of FATF Consolidated Conference in 2018 aimed at strengthening Strategy on Combating Terrorist Financing, international resolve in facing the challenge of including effective implementation of its the WMD­Terrorism nexus. operational plan. We seek to intensify our cooperation in FATF and FATF­style regional

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bodies (FSRBs). principles of responsible behaviour of States • We welcome the outcome document of the Special including through the process of UNGGE. We session of the General Assembly on the world recognise that the states have the leading role to drug problem, held in New York from 19­21 April ensure stability and security in the use of ICTs. 2016. We call for strengthening of international • We advocate also for an open, non­fragmented and regional cooperation and coordination to and secure Internet, and reaffirm that the Internet counter the global threat caused by the illicit is a global resource and that States should production and trafficking of drugs, especially participate on an equal footing in its evolution opiates. We note with deep concern the and functioning, taking into account the need to increasing links between drug trafficking and involve relevant stakeholders in their respective terrorism, money laundering and organised roles and responsibilities. crime. We commend the cooperation between • We recognise the importance of energy­saving BRICS drug control agencies and welcome the and energy­efficiency for ensuring sustainable deliberations in second Anti­Drug Working economic development and welcome the Group Meeting held in New Delhi on 8 July 2016. Memorandum of Understanding which was • We reaffirm that ICT expansion is a key enabler signed in this regard. for sustainable development, for international • We recognise the challenge of scaling­up power peace and security and for human rights. We generation and its efficient distribution, as well agree to strengthen joint efforts to enhance as the need to scale up low carbon fuels and security in the use of ICTs, combating the use of other clean energy solutions. We further ICTs for criminal and terrorist purposes and recognise the level of investments needed in improving cooperation between our technical, renewable energy in this regard. We therefore law enforcement, R & D and innovation in the believe that international cooperation in this field field of ICTs and capacity building institutions. be focused on access to clean energy technology We affirm our commitment to bridging digital and finance. We further note the significance of and technological divides, in particular between clean energy in achieving Sustainable developed and developing countries. We Development Goals. We recognise that recognise that our approach must be sustainable development, energy access, and multidimensional and inclusive and contains energy security are critical to the shared an evolving understanding of what constitutes prosperity and future of the planet. We access, emphasising the quality of that access. acknowledge that clean and renewable energy • We reiterate that the use and development of ICTs needs to be affordable to all. through international and regional cooperation • We support a wider use of natural gas as an and on the basis of universally accepted norms economically efficient and clean fuel to promote and principles of international law, including sustainable development as well as to reduce the Charter of the UN; in particular political the greenhouse emissions in accordance with independence, territorial integrity and sovereign the Paris Agreement on climate change. equality of States, the settlement of disputes by peaceful means, non­interference in internal • We note that BRICS countries face challenges of affairs of other States as well as respect for human communicable diseases including HIV and rights and fundamental freedoms, including the Tuberculosis. We, in this regard, note the efforts right to privacy; are of paramount importance in made by BRICS Health Ministers to achieve the order to ensure a peaceful, secure and openand 90–90–90 HIV treatment target by 2020. We cooperative use of ICTs. The increasing misuse underline the imperative to advance cooperation of ICTs for terrorist purposes poses a threat to and action on HIV and TB in the BRICS countries, international peace and security. We emphasise including in the production of quality­assured the need to enhance international cooperation drugs and diagnostics. against terrorist and criminal misuse of ICTs and • We take note of United Nations High Level reaffirm the general approach laid in the Meeting on Ending AIDS in June 2016 and eThekwini, Fortaleza and Ufa declarations in this forthcoming Global Conference on TB under regard. We reaffirm the key role of the UN in WHO auspices in Moscow in 2017. Recognising addressing the issues related to the security in global health challenges we emphasise the the use of ICTs. We will continue to work together importance of cooperation among BRICS for the adoption of the rules, norms and countries in promoting research and

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development of medicines and diagnostic tools Diplomatic Academies to encourage exchange to end epidemics and to facilitate access to safe, of knowledge and experiences. effective, quality and affordable essential • We welcome the outcomes of the fourth BRICS medicines. STI Ministerial Meeting held on 8 October 2016, • We welcome the High Level meeting on Anti­ wherein they adopted the Jaipur Declaration and Microbial Resistance (AMR) during UNGA­71, endorsed the updated Work Plan (2015­2018) which addresses the serious threat that AMR aimed at strengthening cooperation in science, poses to public health, growth and global technology and innovation, especially leveraging economic stability. We will seek to identify young scientific talent for addressing societal possibilities for cooperation among our health challenges; creating a networking platform for and/or regulatory authorities, with a view to BRICS young scientists; co­generating new share best practices and discuss challenges, as knowledge and innovative products, services well as identifying potential areas for and processes; and addressing common global convergence. and regional socio­economic challenges utilising • We reaffirm our commitment to promote a long­ shared experiences and complementarities. term and balanced demographic development • We stress the importance of implementation of and continue cooperation on population related the BRICS Research and Innovation Initiative. matters in accordance with the Agenda for BRICS We welcome the hosting of the first BRICS Young Cooperation on Population Matters for 2015­ Scientists Conclave in India, instituting of BRICS 2020. Innovative Idea Prize for Young Scientists. We • We welcome the outcomes of the meetings of note the progress of the first Call for Proposals BRICS Labour& Employment Ministers held on under the BRICS STI Framework Programme, in 9 June 2016 in Geneva and on 27­28 September ten thematic areas, with funding commitment 2016 in New Delhi. We take note of the possibility from the five BRICS STI Ministries and associated of bilateral Social Security Agreements between funding bodies. We welcome the establishment BRICS countries, and of the commitment to take of the BRICS Working Group on Research steps to establish a network of lead labour Infrastructure, and Mega­Science to reinforce the research and training institutes, so as to BRICS Global Research Advanced Infrastructure encourage capacity building, information Network (BRICS­GRAIN). exchange and sharing of best practices amongst • We welcome the outcomes of the Agriculture BRICS countries. We recognise quality Ministers’ Meeting, held on 23 September 2016, employment, including a Decent Work Agenda, including the Joint Declaration. We emphasise sustaining social protection and enhancing the importance of ensuring food security, and rights at work, are core to inclusive and addressing malnutrition, eliminating hunger, sustainable development. inequality and poverty through increased • We welcome the outcomes of the fourth BRICS agricultural production, productivity, Education Ministers’ meeting held on 30 sustainable management of natural resources September 2016 in New Delhi, including the New and trade in agriculture among the BRICS Delhi Declaration on Education. We stress the countries. As the world’s leading producers of importance of education and skills for economic agriculture products and home to large development, and reaffirm the need for universal populations, we emphasise the importance of access to high­quality education. We are satisfied BRICS cooperation in agriculture. We recognize with the progress of the BRICS Network the importance of science­based agriculture and University (BRICSNU) as well as the BRICS of deploying information and communication University League (BRICSUL), which will technology (ICT). To further intensify cooperation commence their programmes in 2017. These two among BRICS countries in agricultural research initiatives will facilitate higher education policy, science and technology, innovation and collaboration and partnerships across the BRICS capacity building, including technologies for countries. small­holder farming in the BRICS countries, we welcome the signing of the MoU for • We appreciate the organisation of Young Establishment of the BRICS Agricultural Diplomats’ Forum held on 3­6 September 2016 Research Platform. Considering the dependence in Kolkata. We also welcome the signing of the of agriculture on water, we call upon the Memorandum of Understanding between BRICS development of infrastructure for irrigation to

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assist farmers in building resilience during times Flora (CITES), held in Johannesburg, South of drought and welcome sharing of experiences Africa, as a landmark advancement of the and expertise in these areas. regulation of international trade in endangered • We affirm that the value of sharing expertise and species from 24 September – 4 October 2016. experiences among BRICS countries with regard • We welcome the adoption of the Paris Agreement to usage of Information and Communication anchored in the United Nations Framework Technology (ICT) in e­governance, financial Convention on Climate Change (UNFCCC), and inclusion, and targeted delivery of benefits, e­ its signing by a large number of countries on 22 commerce, open government, digital content and April 2016. We emphasise that the services and bridging the digital divide. We comprehensive, balanced and ambitious nature support efforts aimed at capacity building for of the Paris Agreement reaffirms the principles effective participation in e­commerce trade to of UNFCCC including the principle of equity ensure shared benefits. and common but differentiated responsibilities • We welcome the forthcoming BRICS and respective capabilities, in light of different Telecommunication Ministerial Meeting that will national circumstances (CBDR & RC). further strengthen our cooperation, including on • We welcome the Paris Agreement and its technology trends, standards developments, skill imminent entry into force on 4 November developments, and policy frameworks. 2016.We call on the developed countries to fulfill • We believe it is necessary to ensure joint efforts their responsibility towards providing the towards diversification of the world market of necessary financial resources, technology and software and IT equipment. We call for capacity building assistance to support the developing and strengthening the ICT developing countries with respect to both cooperation in the framework of the BRICS mitigation and adaptation for the Working Group on ICT Cooperation. implementation of the Paris Agreement. • We welcome the outcomes of the meetings of • We reiterate the commitments to gender equality BRICS Ministers responsible for Disaster and empowerment of all women and girls as Management held on 19­20 April 2016 in St. contained in the 2030 Agenda. We recognise that Petersburg and on 22 August 2016 in Udaipur. women play a vital role as agents of development We also welcome the Udaipur Declaration and acknowledge that their equal and inclusive adopted at the second meeting and applaud the participation and contribution is crucial to formation of BRICS Joint Task Force on Disaster making progress across all Sustainable Risk Management. Development Goals and targets. We emphasise the importance of enhancing accountability for • We extend our deepest condolences to the people the implementation of these commitments. of Haiti and the Caribbean on the tragic loss of Cognizant of the potential and diversity of youth lives following hurricane Matthew. We support population in our countries, their needs and the efforts of the UN and humanitarian partners aspirations, we welcome the outcomes of the in their response to this tragedy. BRICS Youth Summit in Guwahati including, • We welcome the outcomes of the BRICS “Guwahati BRICS Youth Summit 2016 Call to Ministerial Meeting on Environment held on 15­ Action” that recognise the importance of 16 September 2016, in Goa, including the Goa education, employment, entrepreneurship, and Statement on Environment. We welcome the skills training for them to be socially and decision to share technical expertise in the areas economically empowered. of abatement and control of air and water • We welcome the BRICS Convention on Tourism, pollution, efficient management of waste and that was organised in Khajuraho, Madhya sustainable management of bio­diversity. We Pradesh on 1­2 September 2016 as an effective recognise the importance of participation by means to promote tourism cooperation among BRICS countries in environmental cooperation BRICS countries. As home to 43% of the world initiatives, including developing a platform for population and among the fastest urbanising sharing environmentally sound technologies. societies, we recognise the multi­dimensional • We welcome the outcome of the 17th Conference challenges and opportunities of urbanisation. of Parties to the Convention on International We affirm our engagement in the process that Trade in Endangered Species of Wild Fauna and will lead to adoption of a New Urban Agenda by the Conference of the United Nations on Housing

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and Sustainable Urban Development – Habitat investment between BRICS countries and the III (Quito, 17­20 October, 2016).We welcome the important role of BRICS Interbank Cooperation BRICS Urbanisation Forum, BRICS Friendship Mechanism, we welcome the signing of the Cities Conclave, held in Visakhapatnam on 14­ Memorandum of Understanding between the 16 September 2016, and in Mumbai on 14­16 BRICS countries National Development Banks April 2016, respectively, which contributed to and the New Development Bank (NDB). We fostering increased engagements between our welcome the initiative of the Export­Import Bank cities and stakeholders. We call for enhanced of India of instituting Annual BRICS Economic cooperation with regard to strengthening urban Research Award to promote advanced research governance, making our cities safe and inclusive, in economics of relevance to BRICS countries. improving urban transport, financing of urban • We reiterate our commitment to strengthening infrastructure and building sustainable cities. our partnerships for common development. To • We note India’s initiative on the upcoming this end, we endorse the Goa Action Plan. China, BRICS Local Bodies Conference to exchange South Africa, Brazil and Russia appreciate expertise and best­practices, including in local India’s BRICS Chairpersonship and the good budgeting. Noting the importance of orderly, safe, pace of BRICS cooperation agenda. regular and responsible migration and mobility We emphasise the importance of review and follow of people, we welcome the outcomes of first BRICS up of implementation of outcome documents and Migration Ministers Meeting in Sochi, Russian decisions of the BRICS Summits. We task our Sherpas Federation, on 8 October 2015. to carry this process forward. China, South Africa, • We recognise the important role of culture in Brazil and Russia express their sincere gratitude to sustainable development and in fostering mutual the Government and people of India for hosting the understanding and closer cooperation among Eighth BRICS Summit in Goa. India, South Africa, our peoples. We encourage expansion of cultural Brazil and Russia convey their appreciation to China exchanges between people of BRICS countries. for its offer to host the Ninth BRICS Summit in 2017 In this context we commend the hosting of the and extend full support to that end. first BRICS Film Festival in New Delhi on 2­6 September 2016. Part – II • We welcome the forthcoming meeting of the Second BRICS Parliamentary Forum in Geneva on 23 October 2016under the theme of ‘BRICS Bay of Bengal Initiative for Multi-Sectoral Parliamentary Cooperation on the Technical and Economic Cooperation (BIMSTEC) implementation of the SDGs’. The Bay of Bengal Initiative for Multi­Sectoral • We appreciate the deliberations of the BRICS Technical and Economic Cooperation (BIMSTEC) is Women Parliamentarians’ Forum in Jaipur on an inter national organisation involving a group of 20­21 August, 2016 and the adoption of Jaipur countries in South Asia and South East Asia. The Declaration, centred on SDGs, that inter alia seare: Bangladesh, India, Myanmar, SriLanka, emphasises the commitment to strengthen Thailand, Bhutan and Nepal. parliamentary strategic partnerships on all the three dimensions of sustainable development, fostering gender equality and women Origin empowerment. On 6 June 1997, a new sub­regional grouping was • We note the deliberations on a BRICS Railways formed in Bangkok and given the name BIST­EC Research Network aimed at promoting research (Bangladesh, India, SriLanka, and Thailand and development in this field to further growth Economic Cooperation). Myanmar attended the in our economies in a cost effective and inaugural June Meeting as an observer and joined sustainable manner. the organisation as a full member at a Special Ministerial Meeting held in Bangkokon 22 December • We congratulate India on organising the first 1997, upon which the name of the grouping was BRICS Under­17 Football Tournament in Goa on changed to BIMST­EC. Nepal was granted observer 5­15 October 2016. We, in this regard, note the status by the second Ministerial Meetingin Dhakain initiative towards a BRICS Sports Council to December 1998. Subsequently, full membership has foster exchanges among BRICS countries. been granted to Nepal and Bhutanin February 2004. Recognising the increasing trade, business and

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In the first Summit on 31 July 2004, leaders of the Chairmanship. The Chairmanship of BIMSTEC has group agreed that the name of the grouping should been taken in rotation commencing with Bangladesh be known as BIMSTEC or the Bay of Bengal Initiative (1997–1999), India (2000) Myanmar (2001–2002), for Multi­Sectoral Technical and Economic SriLanka (2002–2003), Thailand (2003–2005), Cooperation. Bimstec Headquarters is situated in Bangladesh (2005–2006). Bhutan asked for the skip. Dhaka, Bangladesh and opened by Bangladeshi Soit’s turned to India (2006–2009). In November 2009, Prime Minister Sheikh Hasina (13 September 2014). Myanmar hosted the 12th Ministerial Meeting and The main objective of BIMSTEC is technological assumed BIMSTEC Chairmanship. The 13th and economic cooperation among south Asian and Ministerial Meeting also chaired by Myanmar, which south east Asian countries along the coast of the bay was held in NayPyiTaw, Myanmaron 22 January of Bengal. Commerce, investment, technology, 2011. Nepal formally took over the new tourism, human resource development, agriculture, Chairmanship as on 4March 2014. Sumith fisheries, transport and communication, textiles, Nakandala of SriLanka became the first Secretary leather etc. have been include dinit. Participating General of BIMSTEC. Countries: Bangladesh, India, Myanmar, SriLanka, Thailand, Bhutan and Nepal. Cooperation with Asian Development Bank (ADB) BIMSTEC Priority Sectors The ADB has become BIMSTEC’s development BIMSTEC has Fourteen priority sectors cover all partner since 2005, to undertake a study which is areas of cooperation. Six priority sectors of designed to help promote and improve transport cooperation were identified at the 2nd Ministerial infrastructure and logistic among the BIMSTEC Meeting in Dhakaon 19 November 1998. They include countries. So far, AD Bhas already finished the project the following: so called BIMSTEC Transport Infrastructure and Logistic Study (BTILS). The final report of the said • Tradeand Investment, led by Bangladesh study from ADB has already been conveyed to all • Transport and Communication, led by India members and being awaited for the feedback. Other fields of cooperation will be designed later on. Its • Energy, led by Myanmar headquarters is situated at Mandaluyong, • Tourism, led by India Philippines. • Technology, led by SriLanka • Fisheries, led by Thailand BIMSTEC Centre After the 8th Ministerial Meeting in Dhaka on 18– At the Sixth BIMSTEC Ministerial Meeting on 19 December 2005, a number of new areas of 8February 2004 in Phuket, Ministers end or sed the cooperation emerged. The number of priority sectors setting up of a Technical Support Facility (TSF). As of cooperation increased from 6 to 14. The 7 new reflected in the Ministerial Joint Statement, this sectors were discussed in the 1st BIMSTEC Summit Technical Support Facility would” serve the and there has been various activities to enhance those BIMSTEC Working Group (BWG) and to coordinate co­operation sever since.The sectors areas follows, BIMSTE Cactivities, including those of the BIMSTEC • Agriculture, led by Myanmar Chamber of Commerce, for a trial period of two years”. The decision by the Ministers was based upon there • PublicHealth, led by Thailand commendation proposed by BIMSTEC Senior • Poverty Alleviation, led by Nepal Officials whometin Bangkok during 17–19 • Counter­ Terrorism and Transnational Crime, September 2003. On this particular item, the SOM led by India had withthemadraft report prepared by Mr David Old field, an ESCAP consultant, on” Towards Setting • Environment and Natural Disaster up a BIMSTEC Technical Support Facility and Management, led by India Permanent Secretariat: Considerations and Options”. • Culture, led by Bhutan The report recommended that a TSF should be set up • People to People contact, led by Thailand in Bangkok and would initially serve just the BWG during the trial period of two years. • Climate change, led by Bangladesh Since the Establishment of the Permanent Chairmanship Secretariatis awaited to consider in the 2nd Summit, BIMSTEC uses the alphabetical order for the which was held on 12–13 November 2008 in India,

The International Journal of Political Science / Volume 3 Number 1 / January ­ June 2017 M.R.B. Anantha Padmanabha & M.R. Biju / BRICS and BIMSTIC: Dawn of a New Era 49 in the Global Economic Sphere

Thailand had already extended the contract of the Ward, the Hizbul militant killed in an encounter with BIMSTEC Centre for an other year from June 2007­ Indian security forces, as a martyr. Unlike the BRICS’ May 2008. Sofar, the Ministry of Foreign Affairs of Goa Declaration, the outcome document of BIMSTEC Thailand had recently extended the contract for was much more powerfully worded. While the another year from 1 June 2008–31 May2009. documents did not mention the Uri attack, it condemned the recent “barbaric attacks in the region”. Recognising that terrorism continues to BIMSTEC Free Trade Area Framework remain the single­most significant threat to peace and Agreement stability in the region, the document reiterated the Free Trade Area Frame work Agreement in order group’s strong commitment to combat the to stimulate trade and investment in the parties, and scourge.The BIMSTEC Permanent Secretariat in attract outsiders to trade with and investin BIMSTEC Dhaka has become functional since September 2014. at a higher level. All members, except Bangladesh The fourth BIMSTEC Summit will be held in Nepal because of domestic procedure, became signatories in 2017. to the Frame work Agreement in the 6th Ministerial Meeting, as witnessed by the Prime Minister of Thailand and BIMSTEC’s Foreign Ministers. Concluding Observations Bangladesh later joined the Framework Agreement on 25 June 2004. The Trade Negotiating Committee No Mention of Uri Attack in BRICS Goa Declaration (TN C) was set up and had its 1st khyoiujholiach country’s chief negotiator act as TNC’s spokes The Goa summit was held at a time when India persons, while TNC’s chairperson will report the and Pakistan are at loggerheads over growing result via STEOM to the Trade and Economic terrorist activities in the Valley and China’s move in Ministerial Meeting. TNC’s negotiation area covers United Nations where it used the veto to avoid trade in goods and services, investment, economic designating JeM chief MasoodAzhar a terrorist. On cooperation, as well as trade facilitations and also the sidelines of 2016 BRICS summit, PM technical assistance for LDCs in BIMSTEC. It was NarendraModi also met Sri Lankan President agreed that once negotiationon trade in goods is MaithripalaSirisena and Bhutan Prime Minister completed, the TNC would then proceed with Tshering Tobgay, both of whom backed India’s firm negotiation on trade in services and investment. stand against cross­border terrorism after the Uri attack. However, the word cross­border terrorism and BIMSTEC Summit Pakistan’s role in using terror as a tool against India The summit meeting of the Bay of Bengal Initiative did not find a voice in the Goa declaration. PM for Multi­Sectoral Technical and Economic NarendraModi repeatedly raised the issue of Cooperation (BIMSTEC) was also held at Goa on terrorism during the meet. On the first day of the October 16, 2016. Founded in 1997, with the objective summit, Modi targeted Pakistan calling it the of enhancing technological and economic ‘mothership’ of terrorism. “Terror modules around cooperation among South Asian and South­east the world are linked to this mothership. This country Asian countries along the coast of the Bay of Bengal, shelters not just terrorists. It nurtures a mindset,” the BIMSTEC now includes Nepal and Bhutan apart Modi said during the meet on Sunday. He reiterated from Bangladesh, India, Myanmar, Sri Lanka and the stand and called on BRICS nations to come Thailand. Neglected so far by its members, the together and act against terrorism and countries grouping got a boost this year when India decided to which were supporting it. Responding to this, hold its meeting as BRICS­BIMSTEC outreach summit Chinese Foreign Ministry spokeswoman in Goa HuaChunying told a daily news briefing said: While the BIMSTEC Leaders’ Retreat 2016 outcome “Everyone knows that India and Pakistan are victims document did not mention cross­border terrorism or of terrorism. Pakistan has made huge efforts and great names of Pakistan­based terror outfits, it still sacrifices in fighting terrorism. I think the managed to hit the spot with India as it demanded international community should respect this.” action against states which provide sanctuary to Chinese premier Xi Jinping, however, didn’t terrorists and terror groups. The document, in fact, budge from his stand on MasoodAzhar and India’s also stated that there should be no glorification of entry to the Nuclear Supplier’s Group (NSG). On terrorists as martyrs. This is significant in the context the other hand, Brazil softened its stand on India’s of Pakistan PM Mr. Nawaz Sharif describing Burhan entry to NSG and said that it will ‘work with others

The International Journal of Political Science / Volume 3 Number 1 / January ­ June 2017 50 M.R.B. Anantha Padmanabha & M.R. Biju / Brics and Bimstic: Dawn of a New Era in the Global Economic Sphere to help India move towards its membership’. Brazilian reimagine the multilateral forum to serve its larger President Michel Temer’s comment came four months strategic ends. For Modi, BRICS is an important after his country joined China and half a dozen other platform to showcase to his domestic critics that his countries to block India from entering the group. foreign policy remains independent of, and not subservient to, the U.S. He has cleverly used the BRICS platform to position New Delhi’s priorities on to the Bilateral with China agenda of the forum. How far he succeeds in During his meeting with Chinese President Mr. Xi achieving Indian objectives will determine Indian Jinping, Mr. Modi insisted that terrorism was not an investment in BRICS in the future. issue India and China could afford to have differences As rightly observed by K.C. Singh (2016) The BRICS on, particularly when both India and China were Summit 2016 held in Goa was significant for a victims of terrorism, and called for a long­term road. number of reasons. First, the previous summit at Ufa Mr. Modi said that he looked forward to working with caused an India­Pakistan distraction as it was held China to realise India’s NSG membership of the group back­to­back with the summit of Shanghai which controls international nuclear commerce. Mr. Coopera­tion Organisation, which incidentally both Xi recalled the fact that the two sides had already had South Asian neighbours joined as members. The one round of dialogue over the issue and said that the short­lived thaw between them also commenced at second would take place soon. Mr. Xi emphasised the Ufa. The Goa summit was held at a time when the importance of resolving the issues through talks since divide between them was wider than ever since 2001. both the countries carry the responsibility to convert Second, it was the 15th anniversary of the creation of st the 21 century into an Asian century. the original BRIC (Brazil, Russia, India and China, China preferred to issue a separate statement with with South Africa joining later), inspired by banker regard to the India­China bilateral meeting in Goa, Jim O’ Neill’s envi­sioning four dominant emerging which stated that both the leaders discussed economies of the 21st century as drivers of growth. measures to enhance bilateral partnership, including Two of them, India and China, continue to deliver on rail projects and industrial parks. The statement also that promise, albeit with diminished vigour as an said that better relations are needed to get support economic slowdown set in globally. However, the on international forums. The two sides also other three that is, Brazil, Russia and South Africa, discussed the huge trade deficit between India and being com­modity exporters have been hobbled by China. One way of balancing trade is to get more shrunk demand. Some are thus uncharitably calling Chinese investments into India. On that, the Chinese BRICS a wall of loose bricks. President said that the Chinese companies were Third, the growing strategic convergence between interested in investing in India because they saw Russia and China and perceptible drawing closer of India as an investment destination with potential India and the U.S. raises the issue whether a and that the Chinese government would encourage grouping can flourish if stra­tegic perceptions such investments. between the more pow­erful members are dissonant. The China­Pakistan full spectrum alliance also is an in­hibiting factor for India, a clear example of which Bilateral Ties with Russia is Chinese protection to Pakistani ter­rorist leaders Further, India used the Goa summit to re­galvanise by putting on hold their listing by the UN Security its long­standing partner­ship with Russia, which Council. Russia seemed to warm up to India after the was in danger of losing direction. Russia’s decision hefty arms deal. The deal delivered S­400 missiles to hold military exercises with Pakistan did not go which al­ter the balance of air power in India’s down well with India at a time when it was seeking favouras they can engage Pakistani planes well be­fore to diplomatic­ally isolate Pakistan after the Uri terror they can enter Indian airspace. Russia also made attacks. Russia, for its part, has been concerned about supporting sounds on India’s cross­Line of Control India’s tilt towards the U.S. In Goa, the two states “surgical strikes”. Buthas India paid a strategic price reaffirmed the strategic nature of their friendship once by letting some language slip into the Goa Declaration again. India signed three major deals worth billions which is clearly anti­U.S. and its allies? of dollars with Rus­sia: five 5­400 Triumf air defence In short it can be concluded that the BRICS has sys­tems, four stealth frigates, and a joint venture to completed its 10 years, while BIMSTEC has a history manufacture Kamov­226T utility helicopters in of 20 years. Undoubtedly, BRICS has made India.Recognising the limits of the BRICS mandate remarkable progress in these 10 years. The BRICS at a time of slowing economies and growing intra­ Bank or NDB remains the biggest and brightest BRICS political divergences, India has tried to

The International Journal of Political Science / Volume 3 Number 1 / January ­ June 2017 M.R.B. Anantha Padmanabha & M.R. Biju / BRICS and BIMSTIC: Dawn of a New Era 51 in the Global Economic Sphere achievement which shows the extent of what could 2. Raghavan P. S., Reinventing Old Links, The Hindu, be achieved through this kind of groupings. 19 October 2016. During India’s chairmanship, the group has been 3. Singh K C, The bonding in Benaulim, The Hindu, taken forward and the network to enhance 20 October 2016. cooperation among BRICS countries has been further 4. The CSR, December 2016 Issue. strengthened. After Goa, India has emerged and 5. The New Indian Express. established itself as a more active partner among five 6. The Decan Chronicle. member countries. 7. https://en.wikipedia.org/wiki/BRICS. On the other hand, despite being there for almost 8. https://en.wikipedia.org/wiki/BRIC. double of the 3’ears compared to BRICS, the BIMSTEC has yet to invent itself. India has now 9. brics2016.gov.in/content/innerpage/about­ decided to lead the regional economic cooperation usphp.php. efforts against the backdrop of Pakistan’s margina 10. brics2016.gov.in. Esation in South Asia. India’s outreach to , BIMSTEC 11. thebricspost.com. during the BRICS Summit in Goa was an important 12. https://in.rbth.com/brics. signal that New Delhi is serious about its role as a facilitator of economic cooperation in South Asia. 13. currentaffairs.gktoday.in/tags/brics. 14. timesofindia.indiatimes.com/brics­summit­in­ goa/liveblog/54778175.cms. References 15. brics.itamaraty.gov.br/about­brics/information­ about­brics. 1. Harsh V. Pant, Reimagining BRICS, The Hindu, 18 October 2016.

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